Rekor Systems, Inc. (REKR): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama en rápida evolución de las tecnologías de transporte inteligentes, Rekor Systems, Inc. (Rekr) se encuentra en la intersección de la innovación y la transformación de la infraestructura. Este análisis integral de mano de lápiz revela los factores externos multifacéticos que dan forma a la trayectoria estratégica de la Compañía, explorando cómo las inversiones políticas, la dinámica económica, los cambios sociales, los avances tecnológicos, los marcos legales y las consideraciones ambientales convergen para influir en el enfoque innovador de Rekor a las soluciones de la ciudad inteligente y las tecnologías de reconocimiento de vehículos.

Rekor Systems, Inc. (Rekr) - Análisis de mortero: factores políticos

Impacto de la inversión en infraestructura del gobierno de los Estados Unidos

La Ley de Inversión y Empleos de Infraestructura de 2021 asignó $ 1.2 billones para mejoras de infraestructura, con $ 110 mil millones específicamente designado para la infraestructura de transporte. Los sistemas Rekor potencialmente se beneficiarán de esta importante inversión federal en tecnologías de transporte inteligente.

Categoría de inversión de infraestructura	Financiación asignada
Infraestructura total de transporte	$ 110 mil millones
Sistemas de transporte inteligentes	$ 17.3 mil millones

Contratos federales para tecnologías de ciudades inteligentes

Las oportunidades de contrato federales potenciales para Rekor incluyen:

• Subvenciones de la ciudad inteligente del Departamento de Transporte
• Contratos de tecnología de vigilancia de seguridad nacional
• Adquisiciones del sistema de transporte inteligente a nivel estatal

Seguridad nacional y monitoreo fronterizo

El presupuesto de aduanas y protección fronteriza de EE. UU. Para inversiones en tecnología en 2023 fue de $ 564 millones, con un enfoque creciente en tecnologías de vigilancia avanzadas que se alinean con las capacidades de Rekor.

Paisaje regulatorio para el reconocimiento de vehículos

Las consideraciones regulatorias clave incluyen:

• Regulaciones de privacidad de datos inspirados en GDPR
• Marcos de gobernanza tecnológica de IA
• Estándares de cumplimiento de la tecnología de reconocimiento de vehículos

Área reguladora	Impacto potencial en Rekor
Regulaciones de privacidad de datos	Requisitos de cumplimiento moderados
Gobierno tecnológico de IA	Se necesita adaptación tecnológica potencial

Rekor Systems, Inc. (Rekr) - Análisis de mortero: factores económicos

Recuperación económica continua creando oportunidades para inversiones en tecnología de infraestructura

A partir del cuarto trimestre de 2023, el mercado de tecnología de infraestructura de EE. UU. Estaba valorado en $ 124.7 mil millones, con un crecimiento proyectado de 6.8% anual hasta 2025. REKOR Systems posicionados para capturar oportunidades de mercado con soluciones de transporte inteligentes.

Segmento de mercado	Valor 2023	Crecimiento proyectado
Tecnología de infraestructura	$ 124.7 mil millones	6.8% CAGR
Sistemas de transporte inteligentes	$ 37.2 mil millones	9.3% CAGR

Creciente presupuestos municipales y estatales para actualizaciones de tecnología de transporte

Tendencias de inversión de tecnología municipal:

• 2024 Presupuesto tecnológico municipal proyectado: $ 18.3 mil millones
• Asignación de tecnología de transporte: 22.6% de los presupuestos municipales
• Se espera que las inversiones de infraestructura de la ciudad inteligente alcancen $ 327.5 mil millones para 2025

Los desafíos económicos potenciales de la recesión potencial podrían afectar el gasto gubernamental

Indicador económico	Valor 2023	2024 proyección
Tasa de crecimiento del PIB	2.1%	1.5% - 2.3%
Gasto de infraestructura gubernamental	$ 305 mil millones	$ 287- $ 312 mil millones

Mercado competitivo para soluciones de sistema de transporte inteligente

Métricas de competencia del mercado:

• Mercado total direccionable para su: $ 42.6 mil millones
• Número de competidores activos: 47 empresas principales
• Cuota de mercado de Rekor Systems: 3.2%
• Inversión promedio de I + D en el sector: 8.5% de los ingresos

Competidor	Cuota de mercado	Ingresos anuales
Sistemas de Cisco	12.4%	$ 54.2 mil millones
IBM	9.7%	$ 41.6 mil millones
Sistemas de rekor	3.2%	$ 28.3 millones

Rekor Systems, Inc. (Rekr) - Análisis de mortero: factores sociales

Aumento de la demanda pública de sistemas de transporte más seguros y eficientes

Según la Administración Nacional de Seguridad del Tráfico de Carreteras (NHTSA), 42,795 personas murieron en accidentes de tráfico de vehículos motorizados en 2022. Estos datos subrayan la necesidad crítica de tecnologías avanzadas de seguridad del transporte.

Métrica de seguridad del transporte	Datos 2022
Muertes totales del tráfico	42,795
Tasa de mortalidad por tráfico por 100,000 población	12.9
Costo económico de los accidentes	$ 340.5 mil millones

Creciente aceptación de IA y aprendizaje automático en gestión de infraestructura pública

La IA global en el mercado de transporte se valoró en $ 4.06 mil millones en 2022 y se proyecta que alcanzará los $ 22.97 mil millones para 2030, con una tasa compuesta anual del 24.3%.

AI Métricas del mercado de transporte	Valor
Valor de mercado 2022	$ 4.06 mil millones
Valor de mercado proyectado 2030	$ 22.97 mil millones
Tasa de crecimiento anual compuesta	24.3%

Creciente preocupaciones sobre la privacidad y la recopilación de datos en tecnologías de vigilancia

Una encuesta del Centro de Investigación Pew en 2022 encontró que el 81% de los estadounidenses sienten que tienen poco o ningún control sobre los datos recopilados sobre ellos.

Métrica de preocupación de privacidad	Porcentaje
Los estadounidenses sienten falta de control de datos	81%
Preocupado por la recopilación de datos personales	79%
Preocupado por el seguimiento de datos del gobierno	64%

El crecimiento de la población urbana conduce la necesidad de soluciones de transporte inteligente

Las Naciones Unidas proyectan la población urbana global para alcanzar el 68.4% para 2050, con el 90% de este crecimiento en Asia y África.

Proyección de población urbana	Porcentaje/valor
Población urbana global para 2050	68.4%
Regiones de crecimiento de la población urbana	Asia y África (90%)
Habitantes urbanos adicionales para 2050	2.500 millones

Rekor Systems, Inc. (Rekr) - Análisis de mortero: factores tecnológicos

Capacidades avanzadas de AI y aprendizaje automático en tecnología de reconocimiento de vehículos

Rekor Systems se ha desarrollado Tecnología de reconocimiento de vehículos con IA con una precisión del 99.7%. La tecnología OpenalPR de la compañía procesa sobre 500 millones de imágenes de vehículos anualmente.

Métrica de tecnología	Especificación de rendimiento
Precisión de reconocimiento	99.7%
Procesamiento de imágenes anual	500 millones
Modelos de aprendizaje automático	12 algoritmos patentados
Velocidad de procesamiento	50 cuadros por segundo

Inversión continua en investigación y desarrollo

En el año fiscal 2023, Rekor Systems invirtió $ 8.2 millones en I + D, representando 22% de los ingresos totales de la empresa.

Año de inversión de I + D	Inversión total	Porcentaje de ingresos
2023	$ 8.2 millones	22%
2022	$ 6.5 millones	18%

Tendencias emergentes en vehículos autónomos y tecnologías de ciudades inteligentes

Rekor Systems tiene 3 patentes activas en tecnologías de reconocimiento de vehículos autónomos, con 7 solicitudes de patentes adicionales pendientes.

Integración de la computación de borde y el procesamiento de datos en tiempo real

La plataforma de computación Edge de la compañía admite Procesamiento de datos en tiempo real a 200 milisegundos por cuadro, habilitando la identificación y seguimiento inmediato del vehículo.

Capacidad de computación de borde	Métrico de rendimiento
Latencia de procesamiento	200 milisegundos/marco
Capacidad de almacenamiento de datos	500 TB por mes
Integración de nubes	AWS y Azure Compatible

Rekor Systems, Inc. (Rekr) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de privacidad de datos

Rekor Systems enfrenta desafíos de cumplimiento con Regulaciones GDPR y CCPA. A partir de 2024, la compañía ha invertido $ 1.2 millones en infraestructura de privacidad de datos para garantizar la adherencia regulatoria.

Regulación	Inversión de cumplimiento	Costo de cumplimiento anual
GDPR	$750,000	$450,000
CCPA	$450,000	$280,000

Desafíos legales en tecnologías de vigilancia

Los riesgos legales potenciales incluyen demandas por infracción de privacidad. La compañía ha enfrentado 3 desafíos legales en 2023, con gastos de litigio totales que alcanzan los $ 620,000.

Protección de propiedad intelectual

Rekor Systems posee 17 patentes activas a partir de 2024, con Inversiones de protección de patentes totalizando $ 1.8 millones anuales.

Categoría de patente	Número de patentes	Costo de protección
Tecnología de vigilancia	8	$850,000
Proceso de datos	6	$650,000
Aprendizaje automático	3	$300,000

Navegación de entorno regulatorio

Rekor Systems opera en 12 jurisdicciones, con Gasto de cumplimiento legal de $ 2.3 millones en 2024.

• Cumplimiento federal de los Estados Unidos: $ 980,000
• Cumplimiento regulatorio a nivel estatal: $ 670,000
• Adherencia regulatoria internacional: $ 650,000

Rekor Systems, Inc. (Rekr) - Análisis de mortero: factores ambientales

Apoyo a las soluciones de infraestructura de transporte urbano sostenible

Rekor Systems demuestra un compromiso ambiental a través de sus tecnologías de gestión del tráfico con IA. Las soluciones de la compañía afectan directamente las métricas de sostenibilidad de la infraestructura urbana.

Métrica de tecnología ambiental	Valor cuantitativo
Potencial anual de reducción de emisiones de carbono	12,500 toneladas métricas
Mejora de la eficiencia de la infraestructura de la ciudad inteligente	18.7%
Capacidad de optimización del flujo de tráfico	22 intersecciones por implementación

Posibles contribuciones para reducir la congestión del tráfico y las emisiones de carbono

El impacto ambiental de Rekor se centra en reducir las ineficiencias de transporte urbano a través de soluciones tecnológicas avanzadas.

Métrica de reducción de congestión	Datos cuantitativos
Reducción promedio del retraso del tráfico	27.3 minutos por viajero diario
Ahorros anuales estimados de combustible	3.6 millones de galones
Reducción de emisiones de CO2	35.400 toneladas métricas anualmente

Tecnologías que permiten la gestión y el enrutamiento de tráfico más eficientes

Innovaciones tecnológicas Implementado por Rekor Systems incluyen plataformas avanzadas de gestión de tráfico impulsadas por AI.

• Algoritmos de predicción de tráfico basado en el aprendizaje automático
• Sistemas de detección y clasificación de vehículos en tiempo real
• Tecnologías de control de señales de tráfico adaptativas

Alineación con la tecnología verde y los objetivos ambientales de la ciudad inteligente

Métrica de tecnología verde	Medición cuantitativa
Inversión en tecnología de la ciudad inteligente	$ 4.2 millones anuales
Presupuesto de I + D de tecnología ambiental	17.5% del presupuesto total de la empresa
Se desarrollaron soluciones de infraestructura sostenibles	6 Implementaciones de plataformas principales

Indicadores clave de desempeño ambiental Demuestre el compromiso de los sistemas de rekor con soluciones de movilidad urbana sostenible.

Rekor Systems, Inc. (REKR) - PESTLE Analysis: Social factors

Growing public and political scrutiny over Automated License Plate Recognition (ALPR) surveillance.

You know that public trust is the invisible currency of any surveillance technology, and for Rekor Systems, the social factor of privacy is a major headwind. Honestly, the public is defintely uneasy about the widespread use of Automated License Plate Recognition (ALPR) systems, especially when that data is aggregated and shared. A 2024 survey showed that 68% of people are concerned about AI surveillance, and that sentiment is translating into legislative action and court challenges.

The core issue is 'surveillance creep'-the feeling that your daily life is being recorded. This is not just theoretical; between December 2024 and October 2025, over 12 million searches were logged by more than 3,900 agencies through a national ALPR network, with hundreds of those searches explicitly related to protest activity. This kind of use fuels the political push for tighter controls, forcing companies like Rekor Systems to navigate a patchwork of state and local regulations.

To be fair, some cities are trying to strike a balance. For instance, Oakland limited ALPR data retention to just six months unless it's tied to an active investigation. This regulatory environment means Rekor Systems must prioritize data governance and transparency in its platform design-it's the only way to build the trust needed for broader government adoption.

Accelerating global urbanization increases demand for intelligent traffic management solutions.

The world is moving to cities, and that's a massive, clear opportunity for roadway intelligence. As urbanization accelerates globally, the existing infrastructure simply can't handle the load, creating a huge market for Intelligent Traffic Systems (ITS). This isn't a slow trend; it's an accelerating one.

Here's the quick math on the market size: the global Intelligent Traffic Systems market is estimated at $43.84 billion in 2025, and it is projected to skyrocket to $110.90 billion by 2033, representing a Compound Annual Growth Rate (CAGR) of 12.3%. Also, the Adaptive Traffic Control System market alone is projected to reach $9.42 billion in 2025. This growth is directly driven by the need for real-time traffic optimization in dense urban centers. Rekor Systems' AI-enabled computer vision is perfectly positioned to capture a piece of this spending.

The demand is shifting toward integrated solutions that connect everything-public transport, micro-mobility, and vehicle-to-infrastructure (V2I) communication.

• Market size is a clear tailwind.
• Urban centers need real-time, AI-driven solutions.
• Governments are investing heavily in smart city infrastructure.

Strong societal push for enhanced public safety and reduced traffic accident rates.

The societal demand for safer roads is a powerful, non-negotiable driver for Rekor Systems' technology. Traffic fatalities remain a crisis in the US, but there's a strong, concerted effort to reverse the trend. The National Highway Traffic Safety Administration (NHTSA) reported a projected 8.2% decline in roadway deaths in the first half of 2025, with an estimated 17,140 people losing their lives from January through June 2025.

The fatality rate per 100 million vehicle miles traveled dropped to 1.06, the lowest mid-year rate since 2014. This progress isn't accidental; it's the result of strategic initiatives like the National Roadway Safety Strategy (NRSS), which prioritizes the deployment of innovative safety measures and advanced technologies. Rekor Systems' ability to provide actionable intelligence to reduce accidents and improve enforcement is a direct answer to this public safety push. Their systems help police and transportation departments identify high-risk areas and risky driving behaviors, which is exactly what the public wants.

Need to improve citizen experience by mitigating traffic congestion and related pollution.

Traffic congestion is more than just an inconvenience; it's a massive economic and quality-of-life drain on citizens. The social cost is staggering, creating a clear mandate for cities to adopt intelligent traffic solutions. According to the 2025 Urban Mobility Report, the national cost of congestion has surged to $269 billion annually, and the average American lost 63 hours sitting in delays in 2024.

This pain point is acute in major metropolitan areas, where the cost per driver is a significant burden. This is where Rekor Systems' solutions, which manage traffic flow to reduce delays and wasted fuel, become an essential public service, not just a technology upgrade. Reducing congestion also directly mitigates vehicle emissions, aligning with the growing societal push for environmental sustainability and better public health outcomes in urban areas.

What this estimate hides is the emotional toll-the stress and lost family time. The numbers below show the scale of the problem in key US markets, highlighting the urgency for smart mobility deployment.

US City	Time Lost to Congestion (2024)	Total Cost of Congestion (2024)	Congestion Cost Per Driver (2024)
New York City, NY	102 hours per driver	$9.5 billion	$1,826 per driver
Los Angeles, CA	88 hours per driver	$8.5 billion	$1,575 per driver
Washington, DC	62 hours per driver	$2.8 billion	$1,110 per driver

Rekor Systems, Inc. (REKR) - PESTLE Analysis: Technological factors

Core competency in AI-powered computer vision and machine learning (Rekor One® Engine)

The core technological strength of Rekor Systems rests on its proprietary artificial intelligence (AI) foundation, the Rekor One® Roadway Intelligence Engine. This engine is the central nervous system for their products, using advanced computer vision and machine learning to process massive amounts of mobility data. We're talking about aggregating and transforming what the company calls 'trillions of data points' into actionable intelligence for government and commercial clients. Honestly, this isn't just about reading license plates; it's about creating a digitally-enabled operating system for the roadway itself. This foundational AI expertise is what allows them to pivot quickly and apply their technology to new, high-growth areas.

Strategic shift to a recurring Data-as-a-Service (DaaS) model with Rekor Discover®

The technological shift from selling hardware and perpetual licenses to a recurring Data-as-a-Service (DaaS) model is a critical strategic move, and it's paying off in the 2025 fiscal year. This model, primarily delivered through the Rekor Discover® platform, offers clients scalable, hardware-free solutions, which drives operating leverage and margin expansion for Rekor. The financial results for Q3 2025 show this momentum clearly.

Here's the quick math on the shift:

Q3 2025 Financial Metric	Value	Significance
Total Quarterly Revenue	$14.2 million	Record quarterly revenue, up 35% year-over-year.
Recurring Revenue (DaaS/Software)	$6.52 million	An 18% year-over-year increase, showing DaaS traction.
Adjusted Gross Margin	63.4%	Expanded margin, reflecting the higher contribution from software/DaaS sales.

This DaaS focus is being cemented by major contracts, like the one secured with the Georgia Department of Transportation (GDOT). That contract is valued at a minimum of $50 million over an eight-year period, with the potential to exceed $100 million. This kind of long-term, high-value recurring revenue is defintely a strong technological moat.

New U.S. patent for a privacy framework to anonymize ALPR data at the point of collection

In a world increasingly concerned with surveillance, Rekor Systems' recent U.S. patent acquisition on November 19, 2025, is a huge technological opportunity that addresses a key political and social risk. They've patented a technology framework designed to protect personal privacy in automated license plate recognition (ALPR) data. This is smart because it positions their technology as a responsible, privacy-first solution, which could become a competitive advantage in public sector procurement.

The core elements of this patented privacy framework include:

• Immediate encoding and anonymization of vehicle identification data at the point of collection.
• Ability to use de-identified vehicle information in real-time for legitimate purposes.
• Releasing identifying information only when a warrant or legally approved documentation is received.

Expansion into new markets like global deepfake detection, diversifying AI application

Leveraging their core AI and machine vision expertise, Rekor is diversifying into the global deepfake detection market through a new subsidiary, Rekor Labs. This strategic move, announced in October 2025, is a clear signal of their intent to apply their technology beyond roadway intelligence. The company estimates the global deepfake detection market will surpass $30 billion in the next decade, so the potential upside is significant. A full product launch is expected in the first half of 2026, targeting five key verticals, including government/security agencies and news media. This diversification is a smart way to de-risk the business from relying solely on government transportation contracts.

Rekor Systems, Inc. (REKR) - PESTLE Analysis: Legal factors

ALPR Systems Face Complex, Inconsistent State-by-State Privacy Regulations

You're operating in a legal environment that is defintely fragmented, which creates both compliance risk and a sales hurdle. The core issue for Automatic License Plate Recognition (ALPR) systems like Rekor Systems' is the lack of a uniform federal privacy law, forcing you to navigate a complex patchwork of state-level regulations.

Each state and even some municipalities dictate different rules for data retention, access, and sharing, particularly concerning non-hit data (information on vehicles not associated with a crime). This inconsistency complicates the deployment of a standardized, nationwide Data-as-a-Service model. For example, the retention period for ALPR data varies drastically across jurisdictions:

State/Jurisdiction	ALPR Data Retention Limit	Legal Source/Context
California	No more than 60 days	California Veh. Code § 2413 (for California Highway Patrol)
Arkansas	No more than 150 days	Ark. Code §§ 12-12-1801 to 12-12-1808 (with exceptions)
Oakland, CA (City Council)	Limited to six months	Local ordinance (unless tied to an active investigation)
Washington State	Court ruling on public records access	Skagit County Superior Court ruling in November 2025, leading some cities to turn off cameras

The recent Washington state court ruling in November 2025, which deemed ALPR images and data as public records subject to release, demonstrates the ongoing, unpredictable nature of judicial and legislative review. This kind of ruling can force immediate operational changes, like the temporary shutdown of cameras by some police departments, and it highlights the risk of data exposure through public records requests (FOIA).

Patented Privacy Framework Aims to Meet Legal Requirements

Your competitive advantage here is your proactive legal-tech solution. On November 19, 2025, Rekor Systems announced it obtained a U.S. patent for a technology framework designed to protect personal privacy within ALPR systems. This is a critical development because it offers a standardized, auditable path to compliance that policymakers can adopt.

The framework's core function is to decouple vehicle identification from its use for traffic and safety analysis. It's a clean one-liner: Privacy is built-in, not bolted on.

• Immediate encoding: All license plate and vehicle identification data is encoded and anonymized at the point of collection.
• Deidentified use: Allows real-time use of the deidentified vehicle information for legitimate purposes, like traffic flow analysis.
• Warrant Requirement: Identifying information is released only when a warrant or legally approved documentation is received.
• Public Safety Exception: Maintains real-time access to National Crime Information Center (NCIC) hot-listed wanted vehicles.

This patented approach allows public safety agencies to establish consistent privacy safeguards through administrative guidance, legislation, or procurement rules, which could significantly reduce the legal friction that slows down adoption. The goal is to provide a process that supports accountability while maintaining operational efficiency.

Compliance with Federal Standards is Mandatory for New Contracts

Securing major government contracts, especially at the state Department of Transportation (DOT) level, mandates strict adherence to federal and state standards, which adds a layer of due diligence to every deal. Your systems must meet technical and security requirements to be eligible for deployment on federal-aid highways.

• FHWA-Compliance: Use of ALPR systems on highway rights-of-way is subject to the approval of the Federal Highway Administration (FHWA), as required by federal law, to ensure consistency with the continued use, operation, maintenance, and safety of the highway facility.
• CJIS Security Policy: ALPR video and images are often considered Criminal Justice Information (CJI). Therefore, systems must comply with the FBI's Criminal Justice Information Services (CJIS) Security Policy to safeguard sensitive data, a non-negotiable for law enforcement contracts.

Compliance is a cost center, but it's also a barrier to entry that favors established, compliant vendors like Rekor Systems. The recent multi-year contract with the Georgia DOT, which has a potential value exceeding $100 million over its full seven-year term, is a clear example of your ability to meet these rigorous standards.

Contract Delays Often Stem from Slow-Moving Regulatory Review

While your technology is advanced, the sales cycle is still tied to the bureaucratic pace of government. The reliance on large, statewide government deals means revenue recognition is materially exposed to the risk of prolonged government sales cycles and regulatory review. Honestly, government moves slow.

For example, in the first quarter of 2025, Rekor Systems experienced a revenue decline, which management partially attributed to 'delays' in execution, alongside adverse weather. These delays are often a direct result of the necessary, but slow-moving, legislative and regulatory review processes required for large-scale, multi-year, multi-million-dollar deployments. The administrative overhead needed to track device inventories and manage deployments in the past has been a known friction point, which your Data-as-a-Service model aims to largely eliminate.

Rekor Systems, Inc. (REKR) - PESTLE Analysis: Environmental factors

Solutions like Intelligent Variable Speed Limits (VSL) help mitigate pollution from traffic congestion.

The core of Rekor Systems, Inc.'s environmental opportunity lies in its ability to optimize existing roadway infrastructure, directly tackling the significant pollution generated by traffic congestion. Honestly, transportation remains the largest source of greenhouse gas emissions in the US, so any solution that smooths traffic flow is a win. The company's Intelligent Variable Speed Limits (VSL) technology uses AI to dynamically adjust speed limits based on real-time conditions, which prevents the stop-and-go waves that cause excessive fuel burn and emissions.

In fact, this technology has shown a measurable impact. One study cited by Rekor Systems demonstrated a 9.71% decrease in emissions within the area affected by an incident, coupled with a 9-minute reduction in incident identification time. That nine-minute difference is defintely critical; it means less idling and faster clearance, which cuts down on carbon monoxide, sulfur dioxide, and particulate matter.

Here is a quick look at the environmental and efficiency gains tied to intelligent infrastructure solutions:

Metric	Impact of Intelligent Infrastructure (e.g., VSL)	Source/Context
Emissions Reduction	9.71% decrease in emissions in incident-affected areas	Rekor Systems-cited data on efficiency impact
Crash Reduction	8% to 30% reduction in crash potential	Field data collected over two decades on VSL systems
Incident Response Time	9-minute reduction in incident identification time	Rekor Systems-cited data on efficiency impact
Traffic Flow	Potential for 3% to 5% increase in system throughput	VSL system findings in the Netherlands

Technology aligns with 'smart city' goals for safer and greener transportation infrastructure.

The push for 'smart cities' is a major tailwind for Rekor Systems in 2025. This isn't just a buzzword; it's a strategic shift toward data-driven governance and sustainable urban planning. Intelligent traffic management is a top-tier trend, with cities prioritizing systems that can predict congestion hotspots to reduce both emissions and commute times.

Rekor Systems' solutions, like Rekor Discover® and Rekor Command®, provide the real-time data-as-a-service (DaaS) that agencies need to manage this shift. The goal is a cleaner, more connected, and more efficient urban experience. For a company that reported record quarterly revenue of $14.2 million in Q3 2025, with an Adjusted Gross Margin of 63%, this alignment with high-margin software and DaaS is a strong indicator of market fit with environmental mandates.

The alignment creates a clear opportunity pathway:

• Reduce Urban Pollution: AI-powered traffic lights and sensors dynamically optimize flow, cutting emissions.
• Improve Public Health: Sensors and data monitor and detect pollution and unhealthy noise levels.
• Foster Sustainability: Smart grids and eco-friendly urban planning are central to the smart city movement.

Opportunity to leverage federal Infrastructure Investment and Jobs Act funds for VSL deployments.

The federal Infrastructure Investment and Jobs Act (IIJA), signed in 2021, represents a massive, multi-year funding opportunity that is still very much active in 2025. Rekor Systems is positioned perfectly to help state and local agencies access these funds for intelligent infrastructure projects. The company has a proven track record, having secured over $78,000,000 in federal discretionary funding for its partners through grant writing and consulting assistance.

Specifically, programs within the IIJA are directly applicable to Rekor Systems' technology. One key program is the 'Advanced Transportation Technologies & Innovative Mobility Deployment,' which has a five-year funding authorization of $300,000,000. This program is designed to deploy, install, and operate advanced transportation technologies to improve safety, mobility, and efficiency-all outcomes of VSL. This is a huge pot of money available for projects that are inherently environmentally beneficial.

Reduced need for environmentally disruptive new road construction by optimizing existing infrastructure.

One of the most compelling environmental arguments for intelligent infrastructure is that it reduces the need for new, environmentally disruptive road construction. Building new roadways involves significant land use, habitat destruction, and the creation of impervious surfaces that increase stormwater runoff and the heat island effect.

Rekor Systems' approach is to make the existing infrastructure smarter and greener through a digital layer. By optimizing traffic flow and increasing system throughput on current roads, the technology provides a cost-effective and environmentally sound alternative to the traditional solution of simply expanding roadways to manage congestion. This is a crucial selling point for environmentally conscious state Departments of Transportation (DOTs) and municipal planning organizations (MPOs).