The global market for smart parking systems is anticipated to develop at a CAGR of 22% during the forecast period of 2024 to 2032. As a result of the epidemic caused by COVID-19, countries all around the world have evidenced lockdowns of varied degrees, and many governments have also adopted initiatives to boost economic recovery. Since the middle of March 2020, the demand for parking systems in the United States has decreased by 90%, as reported by SpotHero, Inc., a provider of intelligent parking solutions based in the United States. At the very least for a limited amount of time, it is anticipated that this drop will have a negative impact on the expansion of the market not only in the country but also all over the world.
It is anticipated that an increase in traffic congestion would also lead to an increase in demand for intelligent parking systems. These systems can assist city administrations in effectively managing dispersed parking spaces and in assisting drivers in locating available parking spaces. The potential of these systems to give the necessary flexibility and scalability is also projected to fuel the growth, which is a further expected driver of the growth. Nevertheless, the primary factor that will act as a barrier to the expansion of the market over the course of the projection period is the low level of awareness regarding the advantages of smart parking.
It is anticipated that the increase in the deployment of integrated automated solutions, in conjunction with the developments in wireless and digital payment technologies, will contribute to the growth of the market. Machine-to-Machine (M2M) connectivity, data analytics, advanced sensors, smart parking meters, and mobile applications for slot bookings and online payments are some of the technologies that are utilized in the implementation of these systems. These technologies are intended to assess whether a parking lot is vacant or occupied, evaluate the data, and transfer it to applications that run on mobile devices and the web. It is anticipated that these technological advances will propel the expansion of the market.
Overcrowded Parking Areas Call for Efficient Parking Systems
In busy areas like hospitals, hotels and shopping centers, airports, universities, and exposition and convention centers, it can be quite challenging to find a parking spot during peak hours when those areas are most in demand. Because of the increase in population, there are no problems with residential parking in addition to the problems with commercial parking. The issue that arises as a result of this can be remedied by the utilization of augmented features such as notification of available free space through SMS and real-time updates of space reservations through the application of smart parking technology. This technology allows the user to identify a vacant parking spot in less time and automates the process of searching for the best parking floor and location, which both result in the user spending less time overall. As a result, it generates a significant amount of demand in the market for intelligent parking.
The Internet of Things (IoT) offers a High Level of Convenience
The Internet of Things, often known as IoT, is a network of interconnected computing devices that are linked to the internet in order to carry out a particular task through the exchange of data. This process does not require interaction between humans or between humans and computers. The amount of time that is spent seeking a parking spot is increasing all over the world. The deployment of an Internet of Things-based smart parking system not only helps improve parking management but also shortens the amount of time drivers spend parked. For instance, prior to entering a parking garage, drivers are given a list at the door that specifies the number of open parking spaces in the garage. This is accomplished by getting continuous information updates from the sensors and supplying the driver with the information that has been gathered. It is anticipated that such advancements in the technology of the internet of things for smart parking solutions would considerably boost the smart parking industry.
High Costs and Less Internet Adoption in Emerging Economies are Key Restraints
The market expansion is hindered, however, by factors such as high staffing costs and configuration complexity, as well as a low rate of internet adoption in developing nations. In addition, an increase in investments made toward the production of driverless vehicles and an increase in the number of initiatives undertaken by governments around the world to construct smart cities are anticipated to generate enormous prospects for the expansion of the market.
Increasing Demand for Autonomous Cars
Numerous firms that manufacture automobiles, including Tesla, Waymo, and Ford, have conducted tests on the parking assistance function that is included in autonomous vehicles. This function reveals available parking spaces. Numerous nations, including Canada, the United States, Germany, the United Kingdom, and others, are among those that have embraced the development of technology that may be used on smartphones to control or park a vehicle. In addition, organizations that develop software provide consistent updates in order to address the issue of congestion that affects the smart parking strategy. It is anticipated that the persistent developments in terms of technology and infrastructure would produce profitable growth prospects for the smart parking industry in the not-too-distant future.
Strong Interest Is Still Being Shown in Valet Parking Management Solutions
The prospects for automated valet parking solutions will continue to look positive as they gradually replace their conventional equivalents. There has been a recent uptick in the use of valet parking in metropolitan areas, and businesses are responding by developing automated management systems for valet parking in order to cater to the requirements of the city's growing population. The automated valet parking system makes use of a number of different technologies to provide assistance to car owners in the process of locating an acceptable parking space. In addition, intelligent valet parking management solutions provide car owners with information on the precise location of their parking spot, relieving them of the relevant burdens and responsibilities. According to the findings of the study, the market for intelligent valet parking solutions will experience a year-over-year growth rate of 10% during the forecast period of 2023 to 2030.
Commercial Sector Dominate with Over 40% of Revenue Share
The commercial sector is projected to account for close to 43% of the market's revenue share in 2023, making it the most probable candidate to take the lead in the smart parking solutions market. The expansion of this market sector can be due, in part, to the rising adoption of intelligent parking solutions at public venues such as retail malls, sports complexes, corporate buildings, and theatres, amongst other public venues. It is anticipated that the business sector would experience expansion as a direct result of the adaptability, high level of convenience, and mobile payment choices offered by smart parking systems.
Smart Meters Lead with Over 40% Revenue Contribution In the Hardware Market
In 2023, the segment that accounted for the biggest revenue share was smart meters, which was above 42%. Because of the growing demand for on-street parking spaces in cities all over the world brought about by the rapid urbanization that is taking place around the world, parking meters are becoming increasingly common. With the assistance of sensors and mobile applications, these meters keep track of available parking spots and keep a record of the number of vehicles that are parked. The majority of drivers leave their cars parked on the streets for extended periods of time. Because of this, governments have been forced to install intelligent parking meters, which also assist in accurately distributing payments for on-street parking places.
Ultrasonic Sensor Technology to Dominate the Market
The ultrasonic sensor is the most widely used sensor technology in the industry in 2023. It is anticipated that ultrasonic sensors will dominate the market for intelligent parking for passenger cars. The primary function of ultrasonic sensors in intelligent parking is to give the driver with assistance by locating a suitable parking space and short-range identification of obstructions in the parking range. When compared to image and radar sensors, the cost of ultrasonic sensors is far lower, making them the more desirable option. Ultrasonic sensors are produced by a wide variety of automotive component manufacturers, including Continental AG (Germany) and Robert Bosch GmbH (Germany). These sensors are used in a passenger car to aid the driver in performing a variety of tasks.
The Parking Guidance Segment Held the Greatest Revenue Share
In 2023, the parking guidance system segment had the greatest revenue share, accounting for more than 73 % of total revenue. Because they assist with vacant slots, provide parking instructions, the number of available spots, the period of availability, and help customers save time, these guidance systems have gained popularity in the market. Because they monitor the stationary ultrasonic sensors and electronic indicators and provide drivers with a graphical interface that is simple to use, these systems may guarantee that vehicle drivers will have an easy time operating their vehicles.
Engineering Services Dominated with a 60% Revenue Share
In 2023, the engineering service category dominated the market for smart parking systems, with a revenue share that was greater than 62%. It is possible that the expansion of this market sector might be attributable to the growing popularity of fully driverless and partially autonomous vehicles, particularly in developed countries. These automobiles need parking spaces and garages that have been purposely created for them, complete with robotic engineering facilities and installations of tailor-made instrumentation and answers. It is anticipated during the forecast period, autonomous car production hotbeds such as Canada and Germany will see widespread use of intelligent parking systems.
Airports to Grow at the Fastest Pace During the Forecast Period
As a result of an increase in the number of people who travel by airplane, the transport and transit market is anticipated to experience significant growth over the course of the forecast period. Through their websites and mobile apps, airport authorities all over the world provide passengers with the ability to book or make reservations for parking spots. It is anticipated that the provision made by a number of airport ticket vendors, such as Ryanair, that passengers can reserve parking spaces at the airport simultaneously with the purchase of airline tickets will be a primary factor in the expansion of this market segment over the course of the forthcoming time period.
Off-Street Segment Took Over 70% of the Market Revenue
In 2023, the off-street segment was responsible for over 72 % of the market's revenue and was the segment that held the dominant position. It is possible to attribute the development in popularity of off-street parking to the growing number of businesses that are issuing applications for the use of spaces for parking in single slots. In addition, several smart city initiatives are demanding improved parking space utilization through the use of intelligent, sensor-based vehicle detection technology. This is being done in an effort to manage the parking issues. The expansion of the number of business sectors that call for adequate parking and sophisticated detection facilities is another factor that is contributing to the expansion. It is anticipated that the on-street segment will achieve its goals through the utilization of a variety of tools. These tools will include the design of parking spaces and facilities, as well as signs indicating where parking is allowed and prohibited. In addition, it is anticipated that this sector would profit from the widespread adoption of smartphone applications that, among other things, provide users with real-time information regarding the availability of parking places. In addition, one of the key factors that are driving the growth of the segment is the increased focus of businesses all over the world on providing intelligent parking solutions enabled by sensor-based technology for tracking vacant parking slots. This is because people prefer parking on the streets.
North America to Remain as the Global Leader
In 2023, North America maintained the greatest revenue share, which accounted for 33%. Through 2030, it is anticipated that the demand for smart parking in the United States would account for 75% of the market share in North America. Because the United States is such a large market for intelligent parking systems, it is projected that the country would experience growth in the years to come. One of the most important factors that are driving the growth of smart parking is the increase in the number of smart parking initiatives that are being implemented across the country. As a result of rising rates of vehicle ownership, a proliferation of smart city projects, and the development of fully automated parking systems, the United States is producing a growing number of opportunities for the smart parking market. The most important players in the country are increasing their investments in order to expedite the product development and innovation process. These kinds of elements are helping to drive growth in the intelligent parking market in the United States. As a result of government initiatives that support intelligent parking systems as part of the efforts to reduce pollution, the Europe region is anticipated to expand at a significant CAGR over the course of the forecast period. This is due to the fact that the region is located in Europe. In addition, issues with an inadequate supply of parking spots are one of the primary factors contributing to the expansion of the industry in the region. For example, the International Road Transport Union (IRTU) took part in a study that was funded by the European Union and found that a significant problem in Europe is the lack of safe and secure parking areas. Ninety percent of transport operators and drivers stated that the current parking supply is insufficient.
Product and Solution Innovation Remains the Key Strategy
Companies such as Cisco Systems, Inc., Altiux Innovations, Siemens AG, SKIDATA AG., Robert Bosch GmbH, Amano McGann, Inc., BMW AG (ParkNow GmbH, Parkmobile LLC), and ParkMe, Inc. are some of the most prominent players in this market. In order to maintain their position at the head of their industry, leading corporations are marketing cutting-edge hardware and software solutions. As a result of the increasingly diverse requirements of parking lot management, market participants in the smart parking industry are expanding their network with companies that specialize in parking lot management.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Smart Parking market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Key questions answered in this report
