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Automated Parking System Market

Automated Parking System Market: Information by Component (Hardware, Software), Structure Type (AGV System, Silo System), Platform Type (Palleted), Automation Level (Fully Automated), End-User (Residential), and Regions—Forecast Till 2031

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Market Overview

The global automated parking system market size was valued at USD 1.67 billion in 2022. It is estimated to reach USD 6.78 billion by 2031, growing at a CAGR of 15.1% during the forecast period (2023–2031).

The Automated Parking System (APS) regulates parking to maximize the required parking space. In order to increase the number of parking spots while decreasing the amount of land required for parking lots, multi-story parking systems are made using the automated parking system. In most cases, APS stacks automobiles vertically rather than horizontally to utilize more space. These unique systems' designs enable automobiles to be moved from the entrance to their parking location without the driver being there.

Automated parking systems come in two types, i.e., semi-automatic and completely automated. The benefits of automated parking systems include space savings, especially for automatic parking systems that do not require employees to park cars. Each car may be parked nearer to another because nobody will need to exit their vehicles.

Highlights

  • The tower system dominates the structure type segment
  • Palleted dominates the platform-type segment
  • Commercial dominates the end-user segment
  • Europe is the highest shareholder in the global market

Market Snapshot

market snapshot
Base Year
: 2022
Study Period
: 2021-2031
CAGR
: 15.1 %
Fastest Growing Market
: Asia-Pacific
Largest Market
: Europe
Market Size
: USD 6.78 billion by 2031
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Market Dynamics

Global Market Drivers

Increasing Investments in Smart City Projects

Automated parking systems have been incorporated into several smart city projects to meet residents' needs and improve their quality of life, thereby creating smarter outcomes. The government worldwide focuses on developing the smart city and making strategic investments. For instance, the U.S. government announced an investment of USD 160 million in a federal research project in smart cities. It will also form 25 more technology collaborations to help cities solve problems.

In developing economies like India, the Indian government 2015 announced its plan to build 100 smart cities in India. The automated parking system is embedded in smart cities to offer functions such as mobile payment, reservation of parking spots, and others, enabling drivers to park and pay without any hassles, fueling the market expansion.

Increasing Traffic Congestion Propelling the Demand for Improved Parking Solutions

According to the report titled '2018 Revision of World Urbanization Prospects' published by the United Nations Department of Economic and Social Affairs (UN DESA), 65% of the world's population is projected to reside in urban areas by 2050. Unabated increase in population, the rapid expansion of cities, under-planned agglomerations, and the subsequent increase in car ownership are expected to pose significant challenges to mobility in urban locations in the 21st century.

An aging infrastructure, rising traffic congestion, and the subsequent pressure on the available mobility solutions and transportation infrastructure would further lead to traffic congestion and jams, thereby adding to the transport costs and having adverse effects on the everyday life of people. An automated parking system can provide real-time traffic statistics and ease traffic congestion. Such factors boost market growth.

Global Market Restraint

Expensive Parking System Installations and Lack of Well-Established Funding Models

The high costs associated with developing, installing, and maintaining automated parking systems can particularly restrain the market's growth. An efficient automated parking calls for a sophisticated centralized Traffic Management Center (TMC) to handle the real-time traffic data. The system also needs to be connected with system operators, transportation managers, and response agencies. While the overall network involves several components, such as CCTV cameras, advanced traveler information systems (ATIS), Highway Advisory Radio (HAR), microwave detectors, and Dynamic Message Signs (DMS), among others, Mobile Data Terminals (MDTs) also need to be established at several locations for effective operations. All these installations can lead to huge investments, which cannot be affordable for governments of developing countries.

Global Market Opportunities

Technological Advancements

Technological advancements such as payment systems and IoT are expected to boost industry growth over the forecast period. Developments carried out in sensors are also anticipated to lead to a reduction in size and improved accuracy of sensors, making them cost-effective, efficient, and compatible. In addition, drivers can spend less time circling in vain for a parking spot when they can access up-to-the-minute information about parking availability. As a result, the increasing smartphone penetration and availability of parking mobile applications are expected to benefit the market in the coming years.

Mobile wallets and electronic payment systems are also gaining popularity online and among smartphone users. Parking mobile applications enable users to reserve parking slots and make payments through mobile wallets. In addition, IoT technology is witnessing growth in automated parking systems owing to increasing awareness among consumers, governments, and businesses about the benefits of connecting inert devices to the Internet. All these factors are expected to provide lucrative opportunities for market growth.

Segmental Analysis

The global automated parking system market is bifurcated into components, structure type, platform type, automation level, and end-user.

Based on components, the global market is segmented into software and hardware. 

The hardware segment is the highest contributor to the market and is projected to grow at a CAGR of 15.5% over the forecast period. In a parking system, the hardware components include microcontrollers, GSM modules, RF modules, displays, motor drivers, ultrasonic sensors, DC motors, and camera units, and the system structure varies between projects. Several solutions, such as guidance systems, web-based solutions, sensor-based recognition, license plate recognition solution, mobile-based parking, and RFID solutions, can be integrated into the systems, depending on the budget. Hardware systems account for most of the automated parking system's total cost. Therefore, the segment is anticipated to dominate over the forecast period.

Based on structure type, the global market is bifurcated into Automated Valet Garage (AVG), silo systems, tower systems, Rail Guided Cart (RGC) systems, puzzle systems, and rotary systems. 

The tower system segment owns the market and is predicted to boost at a CAGR of 16.4% over the forecast period. The tower system offers fast and automatic retrieval of cars from the parking space without removing the cars parked on any other level of the system. Tower-type systems are the most efficient because they conserve considerable horizontal space and maximize the benefits of vertical space. These solutions can be constructed and designed in lesser configurations to accommodate height restrictions of varying heights. The segment is anticipated to acquire significant momentum over the coming years due to the parking solution's increasing sophistication and automation.

Based on platform type, the global market is divided into palleted and non-palleted. 

The palleted segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 15.9% over the forecast period. A palleted automated parking system uses a platform to move vehicles vertically in upward and downward directions. The vehicle is parked on a platform or pallet when it enters the transfer cabin. The empty pallet returns to the transfer cabin to serve the next vehicle after the one carrying the vehicle leaves the transfer cabin. These parking solutions simplify the movement of vehicles in the parking space as the vehicles cannot be moved or lifted without the driver.

Based on the automation level, the global market is bifurcated into fully automated and semi-automated. 

The fully automated segment dominates the global market and is predicted to exhibit a CAGR of 16.5% during the forecast period. The rising number of luxury construction projects and the rising demand for fully automated parking systems by construction companies are driving the fully automated parking solutions segment. Similarly, advantages offered by fully automated parking solutions, such as higher efficiency, increased capacity, and reduced emission, lead to their high demand in developing economies. Fully automated parking solutions are suitable for the COVID-19 pandemic as they are touchless and designed to work without human intervention.

Based on end-user, the global market is segmented into residential, commercial, and mixed-use. 

The commercial segment is the largest contributor to the market and is projected to grow at a CAGR of 15.5% over the forecast period. Cities worldwide increasingly focus on developing corporate parks, malls, hospitals, and educational institutions. This, combined with the intense competition in land usage and the need to find solutions for rising congestion and pollution, drives the demand for automated parking technologies and systems in developed cities. In addition, the intense competition on land usage in urban downtowns (the city's commercial, cultural, political, and geographical heart) encourages many country governments to focus on establishing vehicle-automated parking systems. This can reduce waiting and speed up vehicle delivery and retrieval time.

Regional Analysis

Europe Dominates the Global Market

Based on region, the global automated parking system market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Europe is the most significant global automated parking system market shareholder and is estimated to exhibit a CAGR of 14.5% over the forecast period. The transport sector is considered a strategic sector in the European economy, where transportation services are vital prospects for the region's GDP and overall job creation. The European Commission works with its member states, industry players, and public authorities to form a standard solution for effectively integrating intelligent transportation systems into the existing infrastructure. It aims to increase the use of Intelligent Transportation Systems (ITS) to efficiently manage the transportation network for customers and businesses as part of the European Commission's Digital Single Market Strategy. It has also started work on the next generation of ITS solutions through Cooperative ITS deployment, resulting in increased transportation sector automation.

In addition, automated parking systems are something that European nations are eager to incorporate into their transportation sector. For instance, ITS (U.K.) has estimated that the approximate value of the ITS projects in the country would be around USD 2.2 billion. ITS (U.K.) is a not-for-profit public/private sector association established in the U.K. to promote intelligent transportation systems.

Asia-Pacific is anticipated to exhibit a CAGR of 17.7% over the forecast period. The increasing focus of governments across the Asia-Pacific to improve parking management and reduce traffic congestion and air pollution is expected to fuel the demand for the automated parking system over the forecast period. In addition, the Chinese government has been finding it challenging to manage traffic, especially in big cities. Traffic jams in these cities are often caused by drivers looking for an appropriate parking space, contributing to the country's high air pollution. As a result, adoption of automated parking systems is expected to increase in China. Furthermore, the increasing number of traffic jams in the major Indian cities is expected to fuel the demand for better parking facilities, creating a demand for a smart solution. For instance, the Indian government announced its objective to develop 100 smart city projects in 2015. Such an initiative is anticipated to drive the demand for automated parking systems over the forecast period.

In North America, many public-private collaborative efforts have been undertaken to introduce automated parking systems in various cities, owing to the increasing traffic and congestion in the city. Automotive OEMs in the region are focused on collaborations and alliances, and companies are providing apps for introducing smarter parking solutions and traffic control systems to users. These factors are contributing to the North American market growth. In addition, the easy availability of resources and databases related to vehicles and the automobile industry has led to an increase in the number of startups in North America. These startups are focused on providing apps that enable users to book parking slots and reserve tickets. This subsequently increases the growth opportunities for the region's real-time market.

In Latin America, the successful implementation of the automated parking system in Las Condes, Chile, resulted in a 20% reduction in search time, improved vehicle commuters, and increased user satisfaction. The increasing awareness about the benefits of automated parking systems among governments of various Latin American nations is estimated to boost market growth. In addition, the growing presence of international players and the upcoming smart city projects in the Middle East and Africa region is expected to grow the market over the forecast period. The production of motor vehicles is rapidly increasing in the Middle East and Africa, driving the need for an automated parking system. According to the Africa Check Organization, in 2015, around 53,809 vehicles were stolen in Africa. The increasing concerns for vehicle theft in Africa are expected to create growth opportunities for the market.

Automated Parking System Market Regional Analysis
Regional Growth Insights Download Free Sample

Top Key Players of Automated Parking System Market

  1. Skyline Parking
  2. Westfalia Parking
  3. Unitronics (1989) (R” G) Ltd.
  4. AJ Automated Parking Systems Co. Ltd
  5. Klaus Multiparking GmbH
  6. Robotic Parking Systems Inc.
  7. Fata Automation Inc.
  8. City Lift Parking
  9. LLC
  10. Park Plus Inc.
  11. PARKMATIC
  12. Wohr Parking System Pvt. Ltd.

Report Scope

Report Metric Details
CAGR 15.1%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Component
    1. Hardware
    2. Software
  2. By Structure Type
    1. AGV System
    2. Silo System
    3. Tower System
    4. Rail Guided Cart (RGC) System
    5. Puzzle System
    6. Shuttle System
  3. By Platform Type
    1. Palleted
    2. Non-palleted
  4. By Automation Level
    1. Fully Automated
    2. Semi-automated
  5. By End-User
    1. Residential
    2. Commercial
    3. Mixed-use
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa
  • LATAM

Recent Developments

  • November 2022- Mercedes-Benz and Bosch received approval for a fully automated self-parking system enabling cars to drive into a pre-reserved parking space at the Stuttgart Airport parking lot. The vehicles can also travel out automatically.
  • February 2023- BMW Group and Valeo strengthened their long-standing partnership by announcing a collaboration on the co-development of Level 4 completely automated parking technologies. The collaboration would involve an ADAS domain controller, parking and maneuvering sensors, and software for the generation of BMW's upcoming "Neue Klasse" platform.

Automated Parking System Market Segmentations

By Component

  • Hardware
  • Software

By Structure Type

  • AGV System
  • Silo System
  • Tower System
  • Rail Guided Cart (RGC) System
  • Puzzle System
  • Shuttle System

By Platform Type

  • Palleted
  • Non-palleted

By Automation Level

  • Fully Automated
  • Semi-automated

By End-User

  • Residential
  • Commercial
  • Mixed-use

By Regions

  • North America
  • Europe
  • APAC
  • Middle East and Africa
  • LATAM

Frequently Asked Questions (FAQs)

How big is the automated parking system market?
The global automated parking system market size was valued at USD 1.67 billion in 2022. It is estimated to reach USD 6.78 billion by 2031, growing at a CAGR of 15.1% during the forecast period (2023–2031).
Asia-Pacific has the highest growth in the global market.
Key verticals adopting the market include: Skyline Parking, Westfalia Parking, Unitronics (1989) (R” G) Ltd., AJ Automated Parking Systems Co. Ltd, Klaus Multiparking GmbH, Robotic Parking Systems, Inc., Fata Automation, Inc., City Lift Parking, LLC, Park Plus Inc., PARKMATIC, and Wohr Parking System Pvt. Ltd.
Increasing investments in smart city projects and increasing traffic congestion propelling the demand for improved parking solutions are the key drivers for the growth of the global market.
Technological advancements is one of the upcoming key trends in the global market.
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