What is ANPR? How automatic number plate recognition works in parking facilities

ANPR simply means a camera reads the car's registration plate and uses it as the ticket. The technology isn't new – toll roads have used it for years – but it has become cheap and accurate enough to be a realistic alternative to barriers and pay stations in ordinary car parks. Below we go through how it works, what it costs and where the limits are.

How does ANPR work?

An ANPR system typically consists of three main parts: a specialized camera with infrared light, image processing software (OCR – Optical Character Recognition), and a database that links the registration number to a payment, subscription, or permit.

1. The camera captures an image of the plate as the vehicle enters
2. OCR software reads the characters and converts the image to text
3. The system checks the number plate against the database in real time
4. The vehicle is automatically granted access – or registered for post-payment

Accuracy depends more on the installation than on the camera: the angle to the plate, the distance, the lighting and how clean the plates are. Infrared light means the camera reads as well at night as in daylight, but snow, mud, tow bars and foreign plates still produce reads that need manual handling. A facility should therefore always have a routine for what happens when a plate isn't read – not just an assumption that it always works.

Free-flow parking: The end of barriers

Traditional parking facilities use barriers to control entry and exit. With ANPR, barriers can be completely removed, introducing so-called 'free-flow' parking. The driver drives straight in and out – the system handles the rest automatically.

ANPR use cases in Norway

ANPR and privacy (GDPR)

Registration numbers are considered personal data under GDPR. This means the operator must have a legal basis for processing, inform drivers about camera surveillance, and ensure data is stored encrypted and deleted within a reasonable time.

Professional ANPR providers have built-in privacy (privacy by design) with automatic deletion of images and anonymization of data after the parking session ends.

What does an ANPR system cost?

The cost varies based on the number of entries and exits, facility size, and whether you choose purchase or subscription. As a starting point, you can expect:

• Camera and installation: from NOK 30,000–80,000 per point
• Software and cloud service: NOK 2,000–8,000/month
• Alternatively: all-inclusive subscription from approx. NOK 5,000/month per entry point

With the 'parking as a service' model, the property owner avoids large investments. The provider delivers equipment, installation, and operations for a fixed monthly fee – and the owner keeps all parking revenue.

The future of ANPR parking

ANPR technology is evolving rapidly. Next-generation systems combine number plate recognition with AI-based analysis to deliver even more value:

• Predictive occupancy analysis – predict when the facility is full
• Automatic EV detection for smart charging distribution
• Integration with navigation apps for real-time availability
• Connection to building management systems (BMS) for energy optimization

Conclusion

ANPR fits best where traffic is steady and users are recurring – housing co-ops, office buildings, shopping centres and facilities with many short visits. If the facility is small, has one entrance and few users, something simpler may make more sense. What decides the outcome isn't the camera, but the rules the facility runs on and who follows them up day to day.