Influence of Automatic Vehicle Identification System on Parking Lot System
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September 21 09:57:27, 2025
The growing adoption of Automatic License Plate Recognition (ALPR) technology is reshaping the vehicle access control industry, especially in sectors like roadblocks and off-street parking systems. As ALPR becomes more prevalent, it’s disrupting traditional methods, leading to a shift in how entry and exit points are managed.
According to IHS, the integration of ALPR has significantly influenced street parking management by introducing more efficient charging models. This has, in turn, affected the growth of conventional vehicle barriers. In mature markets such as North America, where ALPR is widely used, revenue from highway and toll barriers is projected to drop by 16.1% between 2013 and 2017. This decline highlights the transition from manual or mechanical systems to automated, AI-driven solutions.
ALPR systems operate by using high-resolution cameras to identify license plates, granting or denying access while reducing traffic bottlenecks. By minimizing congestion, these systems not only improve user experience but also enhance operational efficiency, leading to higher returns on investment compared to traditional barriers.
One of the most common applications of ALPR is in toll systems, where vehicles can pass freely if their license plates are registered, while unauthorized ones are flagged for enforcement. IHS reported that the global fee-charging industry was valued at around 3 billion yuan in 2013, making it one of the fastest-growing ALPR applications worldwide. In developed regions like Western Europe and the U.S., government-controlled road financing has further boosted the appeal of ALPR, improving profitability and adoption rates.
Another emerging use case is in on-street parking systems. ALPR allows for both ticket-based and long-term parking options, streamlining the process and increasing revenue. These systems also reduce fraud and speed up parking operations. Additionally, the cameras provide 24/7 security, adding value beyond just access control. According to IHS, the ALPR parking system market grew at a CAGR of 9.4% between 2012 and 2017, ranking as the third-fastest growing segment.
Despite its benefits, the widespread implementation of ALPR faces challenges, primarily related to cost. The quality of the camera images is critical for revenue generation, as any misidentification could lead to lost income. This necessitates significant investment in high-quality hardware and software. While the impact on road-side units remains limited, the rising demand for ALPR in parking systems is gradually reducing the need for traditional parking equipment. For suppliers not adapting to this shift, it could become a major challenge in the coming years.