Influence of Automatic Vehicle Identification System on Parking Lot System
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September 21 09:24:07, 2025
The growing adoption of Automatic License Plate Recognition (ALPR) technology is reshaping the vehicle entry control industry, especially in sectors like roadblocks and off-street parking systems. As ALPR becomes more prevalent, it's disrupting traditional methods of managing vehicle access, offering a more efficient and automated solution.
According to IHS, the integration of ALPR has led to changes in charging mechanisms and parking management, particularly in urban areas where street parking is common. This shift has negatively affected the growth of conventional vehicle barriers. In mature markets such as North America, where ALPR is widely used, revenue from highway and toll barrier systems is projected to drop by 16.1% between 2013 and 2017.
ALPR systems use high-resolution cameras to identify license plates, allowing vehicles to pass without stopping, thus reducing traffic congestion. This efficiency not only improves user experience but also increases profitability for operators, making ALPR a more attractive investment compared to traditional barriers.
One of the most common applications of ALPR is in toll systems, where it enables free-flowing traffic while automatically enforcing penalties for unauthorized vehicles. IHS reported that the global toll collection market was valued at around 3 billion yuan in 2013 and is expected to grow rapidly as an ALPR application. In developed regions like Western Europe and the U.S., where government funding for roads is often public, ALPR has become a key tool for improving efficiency and profitability.
Another emerging use case is in on-street parking systems. ALPR allows for both short-term and long-term parking options, streamlining the process and reducing fraud. These systems can also enhance security by providing 24/7 surveillance. According to IHS, the ALPR-based parking system market is growing at a compound annual growth rate (CAGR) of 9.4% from 2012 to 2017, making it one of the fastest-growing segments.
Despite its advantages, the high cost of ALPR systems remains a significant challenge. The quality of the camera and software directly impacts the effectiveness of the system, and any errors can lead to lost revenue. This requires a substantial initial investment, which may be a barrier for smaller players in the market.
IHS predicts that the highway and toll station equipment market will continue to be a major driver for ALPR technology, especially in controlling vehicle access. While the impact on roadside units is still limited, the increasing adoption of ALPR in parking systems is reducing demand for traditional hardware. This trend could pose challenges for suppliers who fail to adapt to the new technology.