SMART PARKING SYSTEMS MARKET SIZE:

The Smart Parking Systems Market Size was valued at USD 7.80 Billion in 2023 and is expected to reach USD 45.40 Billion by 2032 and grow at a CAGR of 21.73% over the forecast period 2024-2032.

Smart Parking Systems Market is emerging at a very fast pace due to increased urbanization, the requirement of effective parking management, and governmental initiative for reduction of traffic congestion and emissions. It includes efficiency in the use of available parking space through technologies such as IoT, sensor networks, and AI in the optimization of the available parking space, minimal idle time and also provides real-time information for the drivers. Governments, from the United States to countries in Europe, have engaged in policies of adopting smart parking solutions. In the United States, the Smart City Challenge and the efforts of the Department of Energy (DOE) focus on intelligent parking systems as a means of solving traffic problems in urban areas. Europe is not behind in seeking smart mobility solutions, and the UK, France, and Germany have placed smart parking as their number one priority in their urban development projects.

Technological innovations in parking guidance systems, automated payment solutions, and data analytics drive market growth. Recent innovations include contactless payment systems, license plate recognition, and EV charging within parking structures. Integrating autonomous vehicles with smart parking solutions will unlock vast opportunities in the future, especially in the USA and China, where government and private sectors will align to enhance the urban mobility infrastructure. European countries are also among others very keen on promoting sustainable and smart mobility solutions, such as parking technologies, through initiatives like Horizon 2020.

MARKET DYNAMICS

KEY DRIVERS:  

• Urbanization and increasing motor vehicle ownership lead to increased demands for parking.

As cities expand, cities are experiencing increased population densities, leading to increased ownership of vehicles and a demand for parking space. As urban areas get constrained for space, this leads to a scarcity of parking, causing congestion as well as wasted time spent on looking for parking. In Japan, an initiative by the Society 5.0 has presented a tremendous leverage toward their expected incorporation of smart parking systems into wider solutions of urban mobility, in preparing for an aging population and growing urbanization.

It is in such a scenario that a smart parking system addresses the need for optimal solutions in parking through real-time and automated systems for efficient management of parking spaces. Data reveals that over 30% of the traffic in major cities in the U.S. is attributed to drivers seeking parking space. This points to the need for more advanced systems in managing parking.

• Environmental concerns push demand for efficient parking systems.

Governments and cities from all over the world have started to become increasingly aware of the need for reduced emissions and sustainability. The inability to effectively use parking means that most cars end up idling for long periods, hence resulting in increased CO2 in the atmosphere. Smart parking cuts down on idle time, enables faster locating of empty slots by drivers, and provides installation facilities for electric car charging. The Department of Energy in the United States is currently working on trying to achieve sustainability by encouraging smart parking systems as a constituent of sustainable mobility that will make use of environmental efficiency.

RESTRAINTS 

• High initial investment restricts the large-scale adoption.

Although smart parking systems create long-run operational economies and efficiencies, high initial capital investment towards infrastructure development, hardware, and the deployment of software continues to act as a notable restraint to small and medium cities. Smart parking technology is based on IoT sensors, advanced data analytics platforms, mobile applications, and AI integration that attracts significant initial financial commitments. Also, the maintenance and upgradation of these systems through the aid of more advanced technology also incurs a cost. For instance, in the United States, though big cities like New York and San Francisco already have smart parking, the smaller cities do not have a budget for such a facility, and therefore, the overall market cannot expand.

KEY MARKET SEGMENTS

BY SOFTWARE

The smart parking systems market has been segmented based on software, into Parking Guidance Systems and Analytics Solutions.

In 2023, Parking Guidance Systems took a 72% market share of the market. Such systems are essential in metropolitan cities and assist drivers in finding empty slots quickly by providing real-time guidance, thereby reducing traffic congestion as well as idle time to a very great extent. Metropolitan cities like Los Angeles and New York already have these systems on a massive scale.

Meanwhile, Analytics Solutions is growing the fastest at a CAGR of 22.61% from 2024 to 2032. Analytics solutions help parking operators manage their lots better by gathering data about their parking habits, times of peak demand, and space utilization, thus facilitating better resource allocation and more informed decisions.

BY SERVICE

Apart from service, the market has further division based on segment into Consulting Service, Engineering Service, and Mobile App Parking Service.

In 2023, market share for the service type of engineering service dominated at 58%. Smart parking system design and implementation have a crucial sense because the full train of operation from installation of IoT sensors to the production of software platforms gets engineered in order to knit with the physical structure.

The Mobile App Parking Service is expected to grow at a CAGR of 23.47 % in the forecast period. Because smartphones and apps have become increasingly popular, the mobile parking service has gained much popularity, as users reserve and make payments as well as find parking spots through their phones, thereby becoming far more convenient and improving the user experience.

BY APPLICATION

Commercial, Government, and Transport Transit are the categories that the market for smart parking systems has been divided.

In 2023, commercial accounted for 40% of the market share. Commercial places like parking lots, shopping malls, and business hubs are implementing smart parking systems to optimize their area by improving user experience while cutting down on operational costs.

The Government segment is expected to rise at the fastest CAGR of 23.40%. Governments are investing in smart parking systems for the solution of traffic congestion and emissions in the urban areas as part of their broader smart city initiatives.

REGIONAL ANALYSIS

At present, North America is the foremost region in the smart parking systems market, occupying a 31% market share, due to factors such as high urbanization and government initiatives for the development of smart cities, coupled with increased adaptation of connected vehicle technologies. San Francisco and Chicago are adapting these systems the most. Asia Pacific is expected to grow at the fastest CAGR of 22.72% during the period from 2024 to 2032, driven by the increase in urbanization and government moves in countries like China and India to develop smart cities and intelligent transportation systems.

KEY PLAYERS

Some of the major players in the Smart Parking Systems Market are  

• Robert Bosch GmbH (IoT parking solutions, valet parking systems)

• Amano Corporation (parking management systems, ticketing solutions)

• Siemens AG (smart parking sensors, integrated parking platforms)

• Cisco Systems, Inc. (IoT connectivity, parking infrastructure)

• Nedap N.V. (parking access control, real-time monitoring)

• Parkeon S.A.S (parking kiosks, payment solutions)

• Kapsch TrafficCom AG (parking guidance systems, tolling solutions)

• Smart Parking Ltd (vehicle detection sensors, cloud parking services)

• Parkmobile LLC (mobile parking app, payment solutions)

• Parkmobile LLC  (parking access control, ticketing systems)

• Xerox Corporation (smart parking analytics, enforcement solutions)

• Cubic Corporation (parking payment systems, traffic management)

• TransCore, LP (smart parking management, RFID-based parking systems)

• SWARCO AG (traffic management, parking guidance solutions)

• T2 Systems, Inc. (parking management software, mobile solutions)

• Passport Inc. (mobile parking payments, enforcement)

• Flowbird Group (parking meters, payment solutions)

• Q-Free ASA (smart parking, tolling solutions)

• Meter Feeder, Inc. (smart parking enforcement, mobile solutions)

• FlashParking, Inc. (cloud-based parking management, EV charging integration)

• Kapsch TrafficCom

• Detroit Smart Parking Lab (DSPL)

RECENT DEVELOPMENTS

May 2024: With the opening of the Detroit Smart Parking Lab (DSPL), companies of any size are now learning how to plan for the future.  A partnership – involving Ford; Robert Bosch, the world's largest supplier of automotive parts; the Michigan Economic Development Corp. (MEDC); the American Center for Mobility, which was formed as a proving ground for self-driving vehicles; and Bedrock, the Detroit real estate firm that has a stake in downtown property and is supporting the parking lab.

September 2024: Kapsch TrafficCom informed that it had won the prestigious Road Finance Excellence Award conferred by the International Road Federation, related to its Bulgarian "Nationwide Tolling & E-Vignette System". This prize represents an expression of recognition for innovative design and perfect implementation, as well as further, positive effects of the applied GNSS-based tolling system on the transportation infrastructure of the country.