Automatic License Plate Recognition Market Report 2026

The automatic license plate recognition market size has grown rapidly in recent years. It will grow from $8.97 billion in 2025 to $10.1 billion in 2026 at a compound annual growth rate (CAGR) of 12.5%. The growth in the historic period can be attributed to urban traffic congestion growth, deployment of surveillance cameras, adoption of OCR technology, government security initiatives, smart city pilots.

The automatic license plate recognition market size is expected to see rapid growth in the next few years. It will grow to $15.22 billion in 2030 at a compound annual growth rate (CAGR) of 10.8%. The growth in the forecast period can be attributed to smart mobility investments, AI-based image analytics, expansion of intelligent transport systems, demand for contactless tolling, connected infrastructure rollout. Major trends in the forecast period include expansion of smart traffic monitoring, growth of automated tolling systems, integration with law enforcement databases, rising use in parking management, demand for real-time vehicle tracking.

The increasing demand for traffic management is expected to drive the growth of the automatic license plate recognition market in the coming years. Traffic management involves the planning, control, and procurement of transportation services required for the physical movement of vehicles and freight. The growing need for traffic management is driven by efforts to mitigate traffic congestion, improve mobility, and promote safer transportation systems. Automatic license plate recognition systems play a vital role in traffic monitoring and enforcement by automatically capturing and identifying license plate numbers. The integration of advanced traffic management solutions with automatic license plate recognition technology offers significant potential to improve road safety and reduce road fatalities. For instance, in January 2025, according to the US Department of Transportation (USDOT), a US-based federal government agency, in 2024 the agency awarded US$1.2 billion through the Safe Streets and Roads for All (SS4A) program to enhance roadway safety at local, regional, and tribal levels as part of broader traffic management and safety initiatives. More than 1,600 communities have received SS4A funding, covering approximately 75% of the US population. Therefore, the growing focus on traffic management is fueling the expansion of the automatic license plate recognition market.

Leading companies operating in the automatic license plate recognition (ALPR) market are concentrating on developing innovative solutions, such as mobile applications with license recognition capabilities, to improve operational efficiency and public safety. Mobile applications integrated with license recognition technology enable law enforcement and security personnel to rapidly identify vehicles and access essential information, thereby enhancing public safety and response times. For instance, in October 2023, Flock Safety Inc., a US-based technology company, launched the Flock Safety Mobile App, which is designed to improve public safety and law enforcement effectiveness through advanced technology. The application incorporates features such as real-time license plate recognition alerts and audio detection, enabling officers to respond swiftly to potential threats. It also provides instant access to critical information, including vehicle data and crime-related audio clips, supporting faster suspect identification and improved situational awareness.

In December 2025, Axis Communications AB, a Sweden-based network video and technology company, acquired FF Group s.r.o. for an undisclosed amount. Through this acquisition, Axis aims to enhance its competitiveness, expertise, and capabilities in license plate verification while expanding its footprint in intelligent traffic solutions globally. FF Group s.r.o. is a Czech Republic-based edge AI and data analytics technology company specializing in software that combines license plate recognition, intelligent data processing, and camera-to-camera communication for transportation and security applications.

Major companies operating in the automatic license plate recognition market report include Siemens AG, Neology Inc, Motorola Solutions, Axis Communications, Verint Systems Inc, Vivotek, Genetec, Kapsch TrafficCom, Bosch Security Systems, GeoVision Inc, Senstar Technologies, TagMaster AB, Tattile S.r.l, NDI Recognition Systems, Quercus Technologies, Petards Group Plc, Digital Recognition Systems Ltd, PlateSmart Technologies, Sighthound, Rekor Systems, Flock Safety.

North America was the largest region in the automatic license plate recognition market in 2025. The regions covered in the automatic license plate recognition market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automatic license plate recognition market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automatic license plate recognition market consists of revenues earned by entities providing services such as vehicle identification and tracking, traffic monitoring and management, Parking Management and electronic toll collection system. The market value includes the value of related goods sold by the service provider or included within the service offering. The automatic license plate recognition market also includes of sales of high-resolution digital cameras, illumination systems, hard disk drives, and ethernet switches, routers, and network cables. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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