Automatic Number Plate Recognition (ANPR) Market – Vulnerabilities With Regards to Intrusion of Privacy Pose Threat to Growth

Automatic Number Plate Recognition (ANPR) Market - Vulnerabilities With Regards to Intrusion of Privacy Pose Threat to Growth

In a highly fragmented vendor landscape, companies are focusing to develop advanced automatic number plate recognition (ANPR) solutions with integrated ANPR systems and improved reading capabilities to strengthen their market positions. According to Transparency Market Research (TMR), the global automatic number plate recognition market will witness a fiercer competition in ANPR engine manufacturing. Besides this, the rivalry among system integrators and component manufacturers is likely to remain high in the coming years. To counter intensifying rivalry, the market players are likely to expand their footprint in Philippines, China, India, and Malaysia as the adoption of ANPR systems is likely to swell in these countries in the near future.

Some of the most prominent players operating in the global automatic number plate recognition market are NDI Recognition Systems LLC, Digital Recognition Systems, Ltd., ARH, Inc., ELSAG North America LLC, Bosch Security Systems, Inc., Vaxtor Technologies, Q-Free ASA, Vigilant Solutions, Genetec, Inc., Siemens AG, and Viion Systems Inc. “Strategies adopted by these companies to maintain a dominant stance could either act as tailwinds buoying growth for the ANPR market or might create  bottlenecks, nonetheless they are likely to exert considerable influence on its growth trajectory,” said a lead TMR analyst.

TMR pegged the global automatic number plate recognition market at US$2013.5 mn in 2016. Reporting an impressive 11.1% CAGR, the overall market is likely to reach US$4674.0 mn by the end of 2025. Among end users, governments segment held lead with a share of more than 70% in the global market in 2016. The rising demand for automatic number plate recognition from traffic, defense, homeland security, and other government departments has fuelled growth prospects for the government sector in the global automatic number plate recognition market. Regionally, Europe emerged dominant with a share of 35% in the global automatic number plate recognition market in 2016.

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Benefits Derived for Better Traffic Management to Boost Installation of ANPR Systems Worldwide

Automatic number plate recognition has proven much of benefit in security and surveillance, traffic enforcement, parking management, and toll enforcement. For improved road safety, stringent vigil is kept by the transport department in all the aforementioned sectors. This has resulted in the high penetration of ANPR systems in traffic enforcement and security and surveillance applications around the world. In addition, the market is significantly gaining from the high demand for advanced security in the public sector. Furthermore, the rising investments by government and commercial segments will create an environment conducive to the market’s expansion in the coming years.

For instance, government of India in the process of introducing and implementing anew Road Transport and Safety Bill, which will make installing CCTV cameras at all traffic signals, setting up 5,000 centers across the country for issuing driving licenses based on computerized tests a mandatory set-up. While these regulations may seem stringent, they are likely to boost installation of ANPR systems in India. In India, a network of more than 2,000 Automatic Number Plate Recognition (ANPR) technology enabled CCTV cameras with infra-red night vision capabilities were installed at major junctions and thoroughfares in 2016.

Vulnerabilities With Regards to Intrusion of Privacy Pose Threat to Growth

A large number of police departments and security agencies globally use ANPR systems to enhance security in the respective regions. ANPR systems are also used in large numbers for traffic management applications. The installation of ANPR systems minimizes human intervention, thereby providing cost related benefits. However, challenges such as intrusion of privacy and non-uniformity in number plate designs are restraining the market growth. Nevertheless, in the forthcoming years the demand from commercial sector is expected to increase owing to the increasing installations in vehicle parking application, thus offering potential opportunities.

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Pragati Pathrotkar

As one of the lead news writers on cmfenews, Pragati’s specialization lies in the science and technology domains. Her passion for the latest developments in cloud technology, connected devices, nanotechnology, and virtual reality, among others, shines through in the most recent industry coverage he provides. Pragati’s take on the impact of digital technologies across the science, technology, and business domains gives her writing a fresh and modern outlook.

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