New Mexico Department of Transportation Expands Use of Rekor Discover™ Through Pay-for-Data Distribution Model
Rhea-AI Summary
Rekor Systems (NASDAQ: REKR) announced that the New Mexico Department of Transportation (NMDOT) has expanded its use of Rekor Discover™ and Edge Series systems in Phase Two deployment, following the success of Phase One announced in January 2024. The AI-driven traffic analytics technology has gained significant traction across multiple U.S. states, including Florida, Georgia, Colorado, Maryland, South Carolina, and New York.
The technology offers a safer and more efficient alternative to traditional traffic analysis methods like rubber tubes and piezo sensors, which are prone to failure and require disruptive installation. Rekor Discover™ uses roadside AI with high-resolution video streams for accurate traffic data collection, featuring easy installation and third-party deployment capabilities.
This expansion demonstrates the platform's scalability both domestically and internationally, as traffic data collection is essential for transportation planning across all 50 U.S. states and numerous countries globally.
Positive
- Successful expansion of deployment with NMDOT, indicating product validation
- Growing adoption across multiple U.S. states showing market penetration
- Scalable business model through third-party installations
- Technology advantages over traditional methods reducing installation and maintenance costs
Negative
- None.
Insights
The expansion of Rekor Discover™ in New Mexico represents a strategic advancement in the transportation technology sector. The pay-for-data distribution model, coupled with third-party deployment capabilities, creates a scalable revenue stream that could significantly impact Rekor's market penetration and financial performance.
The technology's competitive advantage lies in its AI-driven, non-intrusive approach, which eliminates the safety risks and maintenance issues associated with traditional traffic monitoring methods. The Edge Series systems' architecture, processing AI at the roadside with high-resolution video streams, positions Rekor favorably in the
The successful Phase Two deployment indicates strong product-market fit and validates the technology's reliability, which could accelerate adoption among the remaining U.S. states and international markets. This expansion pattern mirrors successful SaaS company growth trajectories, suggesting potential for recurring revenue growth.
This expansion carries substantial market implications. The addressable market is clearly defined: 50 U.S. states and hundreds of Metropolitan Planning Organizations, plus international opportunities across 60+ countries. The pay-for-data model creates a recurring revenue stream, which investors typically value at higher multiples than one-time sales.
The third-party deployment strategy is particularly noteworthy as it enables rapid scaling without proportional increases in operational costs. This could lead to improved margins and faster market penetration. The expansion in New Mexico, following successful deployments in major states like Florida and New York, demonstrates strong product validation and potential for accelerated growth.
For context, traditional traffic monitoring equipment market has been growing at
Expansion Demonstrates Scalability Domestically and Internationally
COLUMBIA, MD, Jan. 06, 2025 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ: REKR), a leader in developing and implementing state-of-the-art roadway intelligence technology, today announced that the New Mexico Department of Transportation (NMDOT) has expanded its use of Rekor Discover™ and Rekor’s non-intrusive video-based Edge Series systems. This latest pay-for-data deployment, installed by an authorized third party, builds on the success of an initial Phase One deployment announced in January 2024.
Phase Two deployment marks a significant step forward, greatly expanding the presence of Rekor’s technology across New Mexico. Since its launch in 2023, Rekor Discover™ and Rekor’s Edge Series systems have continued to gain traction with leading transportation agencies across the U.S., including in Florida, Georgia, Colorado, Maryland, South Carolina, and New York, as well as in multiple other states that are at various stages of adopting or deploying the AI-driven traffic analytics technology. This continued growth underscores the platform’s increasing impact and implementation nationwide.
Rekor Discover™ and Rekor’s non-intrusive video-based Edge Series systems represent a significant advancement for transportation agencies, offering a safe, efficient, and effective alternative to traditional traffic analysis methods, such as rubber tubes and piezo sensors. These legacy technologies are prone to failure in harsh conditions. They often require digging into the roadway and disrupting traffic during installation or maintenance, contribute to pollution, and pose safety risks to workers who must deploy them directly onto roadways. Many roadway segments are also too dangerous or busy to deploy legacy methods for capturing traffic analytics, making them that much more important for transportation planning and maintenance.
By contrast, Rekor Discover™ leverages artificial intelligence done at the roadside with high-resolution video streams to capture highly accurate traffic data safely and efficiently. Rekor Discover™ and its Edge Series systems are designed for easy and rapid installation, allowing customers to gain access to insights easily and confidently and allowing 3rd parties to implement at roadside for states like New Mexico readily. This expansion confirms the success of the previous third-party deployments, showcasing the technology's ability to scale effectively through third parties across the United States and other international markets where traffic data collection is an essential tool for transportation planning.
“All 50 U.S. states and hundreds of Metropolitan Planning Organizations collect traffic data, including vehicle volume, speed, and classification, to monitor roadway usage and support infrastructure planning,” said David Desharnais, President and CEO of Rekor Systems. “The ability to meet this need through third-party installation and deployment is a critical step toward achieving domestic and global scalability. The NMDOT’s expansion reflects confidence in Rekor as a transformative solution for modernizing traffic data collection.”
Globally, many other countries also rely on traffic data collection to enhance roadway intelligence and transportation planning. The International Road Federation’s World Road Statistics includes data from over 60 countries, demonstrating the widespread practice of monitoring traffic volume and vehicle types. With its ability to scale through third parties, Rekor Discover™ is well-positioned to support these global efforts.
Rekor’s Phase Two deployment with NMDOT is a significant milestone, further establishing Rekor’s traffic analytics technology as a reliable, scalable solution for all transportation agencies aiming to improve roadway safety and decision-making through precise, actionable roadway data.
For more information about Rekor Discover™ and Rekor Edge Series Systems, visit https://www.rekor.ai/software/discover.
About Rekor Systems, Inc.
Rekor Systems, Inc. (NASDAQ: REKR) is a leader in developing and implementing state-of-the-art roadway intelligence systems using AI-enabled computer vision and machine learning. As a pioneer in the implementation of digital infrastructure, Rekor is collecting, connecting, and organizing the world's mobility data – laying the foundation for a digitally-enabled operating system for the roadway. With our Rekor One® Roadway Intelligence Engine at the core of our technology, we aggregate and transform trillions of data points into intelligence through proprietary computer vision, machine learning, and big data analytics that power our platforms and applications. Our solutions provide actionable insights that give governments and businesses a comprehensive picture of roadways while providing a collaborative environment that drives the world to be safer, greener, and more efficient. To learn more, please visit our website: https://rekor.ai, and follow Rekor on social media on LinkedIn, X (formerly Twitter), Threads, and Facebook.
Forward-Looking Statements
This press release and its links and attachments contain statements concerning Rekor Systems, Inc. and its future expectations, plans, and prospects that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the impact of Rekor's core suite of AI-powered technology and the size and shape of the global market for the Company's products and services. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," by the negative of these terms or by other similar expressions. You are cautioned that such statements are subject to many risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risk that actual circumstances, events or results may differ materially from those projected in the forward-looking statements, particularly as a result of various risks and other factors identified in our filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management's assumptions and estimates as of such date. We do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events, or otherwise.
Media & Investor Relations Contact:
Rekor Systems, Inc.
Charles Degliomini
ir@rekor.ai
FAQ
What is the significance of NMDOT's Phase Two expansion for Rekor Systems (REKR)?
How many U.S. states are currently using or implementing Rekor's (REKR) traffic analytics technology?
What advantages does Rekor Discover™ (REKR) offer over traditional traffic analysis methods?
How does Rekor's (REKR) third-party deployment model support its expansion?
