Market Expected to Reach $4.25B by 2023; Industry-Leading Technology Supports Existing Relationships with Government, Educational and Commercial Markets
CHANTILLY, VA / ACCESSWIRE / October 9, 2018 / Novume Solutions, Inc. (NASDAQ: NVMM), a holding company that integrates technology and human capital to solve client challenges in today's complex world, announced the launch of its second product using an advanced vehicle identification system and commented on its intent to disrupt the vehicle recognition system market, which is projected to reach $4.25B by 2023.
The Argos Finder™ product is a portable vehicle recognition system that uses advanced artificial intelligence (AI) to improve the performance of automated license plate readers by combining dramatically improved license plate capture rates with the ability to identify a vehicle's make, model and color. It is the second product developed by Novume's wholly-owned subsidiary, Brekford Traffic Safety Inc. (Brekford), designed to protect first responders and improve safety and security systems. Together with its previously announced Argos Guardian Move Over Camera™ system and a third product expected to be completed by the end of the year, the Argos product line will provide a full suite of applications that take advantage of proprietary software developed by OpenALPR Technology, Inc. (Open ALPR). The products will be sold on a competitive monthly subscription basis that requires no initial capital investments. In addition, OpenALPR-based products and services are anticipated to generate significantly greater margins than Novume's existing lines of business.
Traditional vehicle recognition system technologies, also known as automatic license plate readers (ALPRs), use an optical character recognition (OCR) process to identify a license plate. Using Brekford's hardware and integration expertise, OpenALPR's industry-leading software has been used to create ALPR devices with capabilities that significantly surpass those devices existing in the market, at a greatly reduced user cost. The products can identify, in real-time, the vehicle color, make and model under varying weather and lighting conditions and at high vehicle speeds. This technology is increasingly in demand to provide security for government, corporate and educational infrastructure, as well as by Brekford's traditional law enforcement clientele.
We believe that we are uniquely positioned to serve these markets through established business and customer relationships and distribution channels residing within our subsidiaries. Novume recently announced a binding letter of intent to acquire Open ALPR and is looking to take advantage of Open ALPR's demonstrated ability to use AI to provide better solutions to a range of problems its clients face.
Through the use of AI and several years of machine learning, OpenALPR has trained its system to recognize license plates from over 60 countries with a degree of accuracy of about 95%. Other ALPR devices typically have an accuracy of less than 85%. While traditional ALPR systems can only focus on a narrow viewing field and require dedicated cameras for single lanes of traffic, OpenALPR's technology can read multiple license plates at high skew angles, across several lanes of traffic, and can be monitored with a single camera.
"The ALPR industry is exciting for Novume as we are already well established within the law enforcement and municipal government sectors through Brekford's current customer-base. We have immediate uses for AI-powered ALPR software which can generate recurring revenue opportunities through a monthly SaaS subscription model," said Robert Berman, Novume's CEO. "More importantly, we can open new development channels with organizations that already have extensive hardware systems by licensing our ALPR software for use with their existing hardware systems. This allows us to serve both sides of the market - those seeking a full hardware and software installation, and those only seeking a powerful software upgrade to dramatically improve the performance of their current hardware installations."
The OpenALPR solution is an optimal fit for Brekford's line of automatic traffic safety enforcement cameras, its installed base of automated speed and red-light camera systems in the U.S. and Canada, and its backend citation management system. In addition, the software is compatible with most security cameras, opening up a significant pipeline of potential business both domestically and abroad. In 2014, it was estimated that there were 40 million security cameras installed in the United States, and some 245 million installed around the world. Open ALPR software can give them the ability to better identify vehicles and significantly improve their capabilities and performance.
With security being an increasingly important concern, dramatic improvements in ALPR technology will have significant implications for high-value contracts in the federal and municipal governmental sector. Novume, through its subsidiaries, is an established leading government contract consultant, helping clients to win more than $160 billion in federal government contracts – expertise that will provide the company with a unique vantage point in being involved with future government ALPR projects.
"There is a significant opportunity for ALPR offerings within the federal sector, which can be difficult to navigate for those unfamiliar with the innerworkings of the process," said Berman. "Novume's established leadership and relationships within the federal contracting industry will enable the company to capitalize on future governmental requests for ALPR solution."
Aside from security and surveillance, other growing applications for ALPR technology include vehicle repossession and tracking, parking control, shipping and logistics, and retail and rewards-based marketing. OpenALPR's software is also being piloted for use by one of the world's largest fast food companies to enhance their customers' drive-thru experience, while a Fortune 20 company is planning to use the software to streamline logistics by matching tractor and trailer license plates as shipments move between the client's distribution centers.
In addition, Novume remains focused on how AI can be incorporated into products and services of its other subsidiaries, which include AOC Key Solutions, Global Contract Professionals, Global Technical Services, and Firestorm Solutions.
About Novume Solutions, Inc.
Novume provides products and services to both government and private sector clients, with an emphasis on public safety, risk management and workforce solutions. We are a holding company that integrates technology and human capital to solve complex client challenges in today’s world. We provide Solutions for a New Generation. For more information, please visit novume.com, or connect with us on Twitter, LinkedIn, or Facebook.
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SOURCE: Novume Solutions, Inc.