Comparing LPR Camera and Server-based Video Analytics Solutions

License Plate Recognition (LPR) technology has changed how organizations manage vehicle access and security. Both LPR camera devices and LPR server-based systems automatically read license plates without human intervention, then process that data for access control, tracking, and automated enforcement. While both technologies share the same core objective, their approaches differ dramatically.

Understanding LPR Technology

LPR systems combine advanced technologies to achieve accurate vehicle identification. High-resolution surveillance cameras capture clear plate images, while artificial intelligence and Optical Character Recognition (OCR) algorithms convert those images into readable text data. The entire process happens in seconds, enabling easier and more accurate access to vehicles’ data.

License Plate Recognition technology works through three distinct stages that transform raw camera footage into actionable data. Each stage builds upon the previous one, creating comprehensive systems that handle diverse environments and challenging conditions.

How LPR Technology Works

First of all, it’s important to understand how License Plate Recognition (LPR) technology actually works and then discuss the differences between LPR camera (hardware) devices and LPR server-based (software) systems.

Stage 1: Image Capture

High-quality image capture is the cornerstone of any effective LPR system. Whether using an LPR camera device or a software-based system, both rely on high-resolution sensors, typically HD or 4K, equipped with infrared capabilities to function during nighttime operations.

Stage 2: Character and Number Recognition

The Optical Character Recognition (OCR) stage represents the most complex part of License Plate Recognition (LPR) system operations. Systems train on millions of license plate images to distinguish between similar-looking characters and numbers. Arabic letters like أ and ل can appear similar to numbers like ٧, while English letters like A and numbers like 4 present similar challenges in certain fonts.

Advanced OCR algorithms handle both pristine new digital plates and older plates with scratches, dirt, or wear. This versatility ensures consistent performance across diverse vehicle fleets and environmental conditions.

Stage 3: Data Analysis and Processing

After reading license plates, systems convert information into database search queries. Multiple actions become possible based on specific application requirements. Stolen vehicle databases enable automatic alerts when flagged vehicles appear. Toll bridge systems calculate fees instantly based on vehicle classifications and travel distances. Delivery companies track fleet movements across multiple locations, optimizing routes and ensuring accountability.

The Growing Automatic License Plate Recognition Market

Market research reveals significant growth potential for the global automatic license plate recognition system. According to Precedents Research, the global ALPR market reached USD 3.79 billion in 2024 and is expected to rise to USD 9.27 billion by 2034. This represents a compound annual growth rate of 9.36% during the forecast period, indicating strong demand across multiple industries.

LPR Camera Device vs. LPR Server-Based System

When choosing between LPR camera systems and server-based LPR solutions, organizations should evaluate their options across three key axes: resilience to hardware issues, accuracy, and deployment flexibility. Here’s a breakdown of how each solution compares:

Resilience in Case of Camera Hardware Damage or Vendor Change

Server-Based LPR:

• When LPR software experiences equipment damage, only the affected hardware components need replacement.
• The LPR software remains intact and fully functional once the hardware is restored.

LPR Camera:

• LPR camera systems integrate everything into single units. One equipment failure affects the entire system, requiring complete restoration of both physical and software parts.
• The integration makes maintenance more complex and increases downtime during repairs.

Accuracy Performance

Server-Based LPR:

• Advanced LPR software platforms deliver exceptional recognition rates.
• Systems hit 98% accuracy for Arabic license plates while maintaining strong performance across multiple languages.

LPR Camera:

• Struggles to reach 98% accuracy unless paired with expensive, high-performance cameras.
• Traditional LPR cameras typically fall short of modern accuracy standards. Most operate below the 98% benchmark that today’s applications demand.

The accuracy gap becomes critical in high-volume environments where recognition errors create real operational headaches.

Cost and Flexibility in New Deployments

Server-Based LPR:

• LPR software works with existing camera infrastructure. Organizations leverage their current surveillance investments while adding intelligent recognition capabilities.

LPR Camera:

• LPR cameras demand dedicated hardware replacement, creating higher upfront expenses and potentially disrupting existing security setups.

The compatibility cuts deployment costs and simplifies installation processes significantly. While the flexibility lets companies align cost structures with operational requirements and budget cycles.

AvidAuto: Leading LPR Server-Based Software Innovation

AvidAuto identifies vehicles by license plates and also by color, make, and model characteristics. The multi-factor identification approach provides redundancy and enhanced accuracy, especially in challenging conditions where license plates might be partially obscured.

AvidAuto‘s ability to handle both Arabic and English license plates with industry-leading accuracy rates makes it particularly valuable in international markets and multicultural environments. Organizations operating across different regions can standardize on a single platform while maintaining optimal performance everywhere.

Key Features of AvidAuto LPR AI-Powered Software

Modern LPR software, like AvidAuto, offers features designed to meet diverse operational requirements:

1. License Plate Recognition forms the core capability. AvidAuto‘s top-tier system achieves over 98% accuracy for Arabic plates and 92% accuracy for English plates, ensuring reliable performance across multilingual environments.
2. Vehicle Access Control manages allow and deny lists that distinguish between known vehicles (residents, staff, authorized visitors) and unknown vehicles. The capability enables automated security management without constant human oversight.
3. Access Density Analysis tracks entry volumes by time of day to forecast rush hours and optimize staffing schedules. Organizations can predict peak traffic periods and adjust resources accordingly, improving operational efficiency while reducing costs.
4. Advanced search capabilities allow administrators to locate vehicles using multiple criteria, including plate numbers, colors, makes, or models.
5. Movement Tracking follows specific vehicles across multiple lanes or gates, providing visibility into vehicle movements throughout facilities. Security teams monitor suspicious activity while logistics managers track fleet movements.

Graphical data representation transforms raw data into visual dashboards that simplify traffic pattern interpretation.

Also you can learn more about: Automatic License Plate Scanners

Real-World Applications of License Plate Recognition Across Industries

The LPR camera system is now all around us in many places we go to every day. It doesn’t just save time and money but also increases security and reduces problems. Here are some applications of license plate recognition technology across different industries:

In Residential Compounds and Gated Communities

• Compound gates: Open automatically for residents and subscribers without needing to stop at the gates.
• Visitors: The camera registers the visitor’s license plate and notifies the homeowner that someone is approaching.
• Security: Detects any unknown vehicles entering the area.

In Malls and Large Retail Stores

• Smart parking: Knows how long your car has been parked and calculates fees without a parking attendant.
• Regular customers: If you have a membership, they can recognize you’re coming just from your car’s license plate number.
• Theft prevention: Records all vehicles exiting the parking lot in case of an incident.

Scenario: Consider malls, where shoppers can enter the parking facility easily. Instead of stopping for parking tickets, an LPR system camera at the entrance automatically reads each license plate and records entry time. When shoppers exit, the camera reads their plate again, calculates parking duration, and requests payment through a QR code sent to their phone. Queues disappear while customer experience improves dramatically.

In Corporate and Commercial Buildings

• Employee access: Registers staff check-ins and check-outs without cards.
• Visitors: Requires them to register their plate at reception before entering.
• Security: Determines parking locations and identifies any vehicles parked in prohibited areas.

Scenario: Corporate security systems also benefit significantly from LPR technology. Large companies require visitor permits for entry, and unauthorized vehicles trigger immediate alerts. When unregistered cars attempt entry, LPR cameras detect license plates and send real-time security notifications, maintaining facility security without manual oversight.

In Campuses and Educational Institutions

Scenario: University parking systems demonstrate LPR technology beautifully. Students registered in campus databases enter parking areas without tickets. The LPR system reads their license plate, checks the student database, and opens gates automatically when matches occur. Campus traffic congestion decreases while authorized users enjoy convenient access.

In Government and Municipal Applications

• Tax collection: Registers vehicles passing through specific areas.
• Traffic control: Manages congestion in crowded areas.
• Municipal services: Helps organize public parking, just like AvidBeam implemented the AvidAuto system to manage over 18,000 parking spots in Riyadh.

Learn more about: Best License Plate Reader Systems