License Plate Recognition: 17 Use Cases Across 5 Industries

Out of all the applications of computer vision (CV) technology, license plate recognition (LPR), also known as automated number plate recognition (ANPR),  is perhaps the one that has become the most embedded into our daily lives. While many CV applications are still on the cutting edge, LPR has been widely used in tolls and other industries for several decades now. In fact, the United Kingdom has been using LPR for law enforcement purposes since the late 1970s. 

With almost 50 years of real-world applications behind it, LPR has proven itself to be a powerful tool for many different industries. From parking management to traffic management, LPR is helping businesses and governments cut costs, boost efficiency, and improve customer and user satisfaction. 

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How Does License Plate Recognition (LPR) Work?

LPR is powered by computer vision: a subset of AI technology that focuses on finding ways to make computers see the world like we do. Since its introduction in the 70’s, the general LPR process has remained largely unchanged, but it has become much quicker and more accurate.

First, an image capture device takes a picture or video of the license plate. Both general-purpose devices, such as CCTV cameras, security cameras, IP cameras, or bullet cameras, or devices specifically designed for LPR, such as automated license plate recognition (ALPR) cameras, can be used. The flexibility of LPR when it comes to hardware makes it easy for businesses to get started without having to make a big investment in new devices — companies can simply use the security cameras they already have. 

However, while some CCTV cameras can be used, specially-designed license plate reader cameras are typically more accurate. LPR cameras typically have both a fast shutter speed so that they can capture clear images of high-speed cars as well as infrared image capture to compensate for low-light conditions. 

Once the license plate is captured, the LPR system uses various algorithms and machine and deep learning models to turn the image into something the computer can read. Typically, LPR systems rely on some form of optical character recognition (OCR), which first converts the image into a black-and-white version and then employs feature and pattern recognition algorithms to figure out what the license plate says. 

Finally, the information extracted from the license plate is stored in a database. From there, it can be used for whatever application the user chooses.

License Plate Recognition Use Cases

License plate recognition has become an indispensable tool across many different sectors thanks to its ability to efficiently keep track of vehicles, and, by proxy, customers and users. Here are the most popular ways that LPR is being used today. 

LPR for Parking Management

With increasing urbanization and vehicle ownership, the demand for parking spaces often exceeds supply. Combined with clunky payment systems and a lack of real-time information on available spaces, current parking systems often cause frustration for drivers and contribute to traffic congestion and pollution when they can’t easily find a spot. LPR can help resolve these issues by increasing parking efficiency in the following ways:

• Access control: LPR systems can be employed at the entrance and exit points of parking facilities to automatically recognize license plates and grant or deny access based on a rule set that’s provided to it, eliminating the need for ticketing and gate operators. For example, it can check whether a license plate is on a list of authorized vehicles, verify parking permits and subscriptions, and manage time-limited parking access. This makes for a faster entry process. 
• Payment processing: LPR can simplify parking payments by linking license plate data to parking fees and payment or account information. When a vehicle enters a parking lot, the LPR system logs the license plate number and the time of entry. Upon exiting, the system calculates the parking fee based on the duration of the stay and can automatically charge the customer's account.
• Parking enforcement: Identifying vehicles that are parked in violation of parking rules is easier with LPR. ALPR cameras can scan and compare license plates against a database of authorized vehicles or check whether a plate has exceeded its allotted time in the lot to determine if a violation has occurred. Parking enforcement officers can then be alerted to issue citations or tow the offending vehicle. 
• Occupancy monitoring: By monitoring the number of vehicles entering and leaving, LPR systems can provide valuable data on parking availability and trends, helping parking operators optimize space utilization and make informed decisions about pricing or expansion.
• Enhanced customer experience: Circling around a lot looking for a spot can greatly detract from the customer experience. LPR systems can help streamline parking processes and reduce wait times by integrating with mobile apps and other digital tools to provide customers with real-time parking availability and directions to available spaces. 

The CRE firm JBG Smith successfully uses an LPR solution from Safari AI to optimize its parking lot management. Since adding LPR tech to its operations, it has been able to reduce front desk burden, streamline parking stall reservations, and better monitor for illegal parking. 

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LPR for Retail and Marketing

Ecommerce has become increasingly popular over the past few years, in part because it’s viewed as a more convenient alternative to brick-and-mortar stores. On the business side, store owners appreciate the ability to collect precise data about their customers, which can be used to optimize marketing efforts and sales pipelines. LPR, and computer vision in general, is helping to close the convenience and data gap between ecommerce and traditional retail, which can help revitalize the industry. 

Here are some ways that retailers can use LPR:

• Personalized marketing: By recognizing and tracking customer license plates, retailers can gain insights into individual customer behavior, such as frequency of visits. This data can then be used to deliver personalized promotions or offers, either through digital channels or by sending targeted messages directly to the customer's mobile device when they are in the parking lot.
• Customer loyalty programs: LPR technology can be integrated with customer loyalty programs to automatically identify and reward frequent shoppers. For instance, a retailer can offer parking benefits, such as reserved spots or reduced parking fees, to customers who frequently shop at their location, which encourages repeat business.
• Curbside pickup: COVID-19 made curbside pickup a standard offering, but even now that stores have reopened, many customers prefer curbside pickup for the added convenience. With LPR, curbside customers don’t need to manually check in with an app or by calling the store. Instead, the LPR system can simply recognize the license plates of customers arriving for pickup and notify store employees, allowing for faster and more efficient order processing.
• Security and loss prevention: LPR systems can also be used to enhance security and prevent theft in retail settings. By tracking vehicle movement in and out of parking lots, LPR can help identify suspicious activity, such as vehicles that frequently visit the store without making purchases or linger in the parking lot for extended periods.

LPR in Commercial Real Estate (CRE)

Given that many CRE properties include parking facilities, LPR has proven to be highly valuable for the industry. LPR systems can help improve security, enhance parking management, and optimize operations:

• Security and access control: LPR systems can be used to automatically control access to CRE properties such as office buildings, industrial parks, and retail centers. By recognizing the license plates of authorized vehicles, LPR technology can grant or deny access to the property, ensuring that only authorized personnel and visitors are allowed entry. This helps prevent unauthorized access and trespassing, keeping tenants and visitors safe.
• Parking management: For properties with parking facilities, LPR systems can automatically identify vehicles and their respective parking permissions, allowing for easier parking enforcement and a more streamlined parking experience. 
• Tenant and visitor tracking: LPR technology can be utilized to monitor and record the entry and exit of vehicles, providing valuable data for property managers. This information can help managers track tenant and visitor patterns, enabling them to plan for peak times and identify potential security concerns. 
• Parking payments: Retail CRE property managers can use LPR systems to automate parking payment or offer premium parking services. 

LPR in Homeowners Associations (HOAs)

Many homeowners associations preside over properties that are only accessible by vehicles. Whether it’s a condominium complex or a gated community, cars and parking play an important role in HOA operations. Here are some ways that homeowners associations can use LPR to create a safer and more enjoyable space to live in:

• Security and access control: The safety and security of the community is one of the top priorities of HOAs. LPR systems can help by automatically recognizing license plates of authorized vehicles and only granting access to residents and approved visitors. This prevents unauthorized access, trespassing, and potential criminal activity, ultimately contributing to a safer neighborhood.
• Parking management: LPR systems can automatically identify vehicles and their respective parking permissions, making it easier to enforce parking rules and restrictions. This can help prevent unauthorized parking, ensure that residents have access to their designated spaces, and optimize the use of guest parking areas.
• Property value enhancement: By implementing LPR technology, an HOA can demonstrate its commitment to safety and security, which can be an attractive feature for current and prospective residents. A well-managed and secure community can contribute to higher property values and increased resident satisfaction. 

LPR for Cities, Traffic, and Transportation

LPR has been used as a supplement to RFID (radiofrequency identification) for automatic tolling for approximately two decades. Although most automatic tolls do not rely entirely on LPR, EZ-Pass, one of the largest tolling facilitators in the United States, has been integrating LPR into its products for years. 

In that sense, LPR’s uses for city and traffic management brings us full circle: it shows us where the technology has come from, and where it’s going. LPR for city planning has some of the most traditional uses as well as some of the most futuristic — like using LPR to control access to low emission zones or to help residents find street parking. The technology shows great promise in helping cities better manage traffic congestion and pollution. 

Key Takeaways: License Plate Recognition Use Cases

From commercial real estate to parking management and beyond, license plate recognition has proven itself to be an invaluable tool. Businesses and communities have leveraged the power of LPR technology to enhance efficiency and increase customer satisfaction. 

Want to see if LPR can help optimize your business? Learn more about car detection with Safari AI. 

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