Vision‐based traffic surveillance plays an important role in traffic management. However, outdoor illuminations, the cast shadows and vehicle variations often create problems for video analysis and processing. Thus, the authors propose a real‐time cost‐effective traffic monitoring system that can reliably perform traffic flow estimation and vehicle classification at the same time. First, the foreground is extracted using a pixel‐wise weighting list that models the dynamic background. Shadows are discriminated utilising colour and edge invariants. Second, the foreground on a specified check‐line is then collected over time to form a spatial–temporal profile image. Third, the traffic flow is estimated by counting the number of connected components in the profile image. Finally, the vehicle type is classified according to the size of the foreground mask region. In addition, several traffic measures, including traffic velocity, flow, occupancy and density, are estimated based on the analysis of the segmentation. The availability and reliability of these traffic measures provides critical information for public transportation monitoring and intelligent traffic control. Since the proposed method only process a small area close to the check‐line to collect the spatial–temporal profile for analysis, the complete system is much more efficient than existing visual traffic flow estimation methods.
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