Smart Parking Systems Market

Market Overview

The global Smart Parking Systems market size was valued at USD 6.53 Billion in 2023. It is estimated to reach USD 20.68 Billion by 2032, growing at a CAGR of 13.67% during the forecast period (2024–2032). Smart parking system technology aids vehicles in finding secure parking spots efficiently. Parking is a frequent task, yet drivers searching for spaces contribute to about 30% of urban congestion and fuel wastage, according to ITS America. The escalating traffic congestion and uncertainty surrounding parking availability drive the demand for innovative solutions that optimize space usage and enhance parking operation efficiency, thereby facilitating smoother traffic flow.

Smart parking enables remote and automated monitoring of parking occupancy rates by managers. As urban land use concerns intensify, finding suitable parking spots remains critical in densely populated cities. In the United States, commercial establishments like grocery stores typically allocate four to six parking spaces per 1,000 square feet.

Smart cities have the capacity to enhance the efficiency and safety of metropolitan areas. The imperative for smart cities has grown, prompting global government initiatives aimed at developing intelligent urban environments. Smart infrastructure is essential at locations such as airports, hospitals, workplaces, train stations, and shopping centers, driving the expansion of the intelligent parking technology market. However, the complexity of setup may somewhat hinder market growth.

Market Dynamics

Global Smart Parking Systems Market Drivers

Increase in Parking Issues Across the Globe

Finding vacant parking spots during busy periods at places like airports, hospitals, universities, hotels, retail centers, and exhibition and convention centers poses a significant challenge. As populations expand, both residential and commercial parking options are becoming scarcer. To alleviate this issue, advanced parking technologies now offer enhanced functionalities such as SMS notifications for available spaces and real-time updates on space reservations.

For instance, imagine arriving at a bustling airport during peak travel hours. Instead of circling endlessly to find a parking spot, a smart parking system could instantly notify you of an available space via SMS, guiding you to the nearest open spot. This system not only saves time but also reduces congestion and frustration associated with parking scarcity.

By automating the process of identifying optimal parking floors and specific locations, these technologies streamline the parking experience, making it more efficient for users. Consequently, there is a growing global demand for smart parking solutions that can effectively manage and optimize parking resources in increasingly crowded urban environments.

Dependency on IoT Demands Smart Parking Solutions

The rapid pace of urbanization is closely tied to the global population increase, resulting in a surge in car ownership and, consequently, a pressing demand for more parking spaces. According to projections from the United Nations Department of Economic and Social Affairs, urban dwellers will constitute nearly 68% of the world's population by 2050. This trend underscores the urgent need for solutions that can manage the escalating urban traffic burden.

In response to these challenges, automakers are rolling out IoT-enabled and smart parking solutions aimed at easing the strain on global transportation networks. These technologies leverage advancements in cloud platforms and ubiquitous computing, opening up new avenues for providers of smart parking solutions. The rising adoption of data-driven operations underscores the benefits associated with smart parking software, driving its utilization across diverse geographical regions.

For instance, China Mobile have implemented two separate NB-IoT Smart Parking systems in 2021. The first has involved installation of smart parking sensors across some of the 4000 spaces identified as part of the Yunnan Intelligent Parking project. The second, in Southeast Guizhou, involves a total of 6 sets of entrance and exit systems around the highlighted parking lot, combined with a parking management system connecting more than 300 parking bays. China Mobile’s NB-IoT powered smart parking solution has proven to be a success, with many parking bays now connected to the China Mobile management system and local attendant’s tablet devices

Global Smart Parking Systems Market Restraint

Complex Design and High Implementation Costs

Maintaining system and software upgrades to ensure compatibility with external environments is essential owing to continuous technological advancements. Additionally, the incorporation of various components such as sensors, RFID, and fuzzy logic into smart parking systems results in higher costs. Integration costs are elevated due to the consolidation of multiple components and sensors onto a single dielectric plate, emphasizing compatibility requirements. Moreover, the comprehensive nature of these systems necessitates wireless connectivity for optimal functionality, further contributing to higher implementation costs. Consequently, the widespread adoption of smart parking solutions in the market is hindered by the complexity of configuration and the initial investment required for installation.

Global Smart Parking Systems Market Opportunities

Increased Investment in Self-Driving Vehicles

Continuous technological advancements have spurred automotive companies like Tesla, Waymo, and Ford to explore parking assistance features in autonomous vehicles, which include displays of available parking spaces. This innovation is being embraced globally, with countries such as Canada, the United States, Germany, and the United Kingdom developing technologies that enable vehicle handling and parking via smartphones. Moreover, software providers are actively updating their solutions to tackle congestion challenges in smart parking systems.

Looking ahead, ongoing advancements in technology and infrastructure are expected to create lucrative growth opportunities for the smart parking industry. These developments promise to enhance the efficiency and convenience of parking solutions, further driving adoption and market expansion worldwide. Not only the major players, but the small and mid-scale companies are investing in R&D and launching new products and business models. Further, they are forming joint ventures, indulging in mergers and acquisitions to strategize their market direction for the future.

For instance, in March 2024, Smart Parking, the leading provider of parking technology and services announced the acquisition of LPS (Local Parking Security) and expands its market position in the UK. The acquisition adds 126 new parking management sites. 72 of the sites are Automatic Number Plate Recognition (ANPR) Technology managed locations and 54 manually operated sites.

Smart Parking System was successfully launched in Germany back in 2022. It has now recognised Denmark as possessing the necessary infrastructure, challenges related to smart city congestion, and favourable market conditions that align with the Group’s expansion plans in mainland Europe.

In addition, at the recent 23rd China International Urban Parking Industry Expo 2023, a batch of parking technologies and equipment were unveiled. Experts believe that the rapidly rising number of new energy vehicles and the market demand for urban renewal and renovation will drive the upgrading of parking facilities and create new opportunities for relevant industries. Besides, the application of big data, Internet of Things, artificial intelligence and other technologies will make parking smarter and cities more intelligent. According to statistics, the number of motor vehicles in China reached 426 million as of the end of June this year, and that exceeded 1 million in 88 cities.

In particular, both Beijing and Chengdu have an automobile population of over 6 million, and that in Chongqing, Shanghai and Suzhou surpassed 5 million. Apart from expanding the supply of parking space, cities across China are working to improve the efficiency of parking with digital technologies and thus alleviate the parking problem.

Regional Analysis

Europe Dominates the Global Market

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

Europe currently dominates the global market, followed closely by North America. In Europe, the increasing integration of cameras and ultrasonic sensors in passenger vehicles is fueling demand for advanced parking solutions. This trend is driven by rapid urbanization, which necessitates enhanced infrastructure and transportation systems, thereby boosting the adoption of parking assistance and intelligent parking technologies.

In North America, governments are heavily investing in initiatives aimed at building smart cities. These efforts focus on optimizing existing infrastructure through efficient land use strategies. Consequently, the smart parking market in North America is poised for significant growth in the coming years.

Meanwhile, the Asia Pacific region is expected to witness the fastest growth globally. The region faces substantial challenges with congested parking spaces, prompting a surge in demand for innovative solutions. Emerging economies such as Japan, China, and India are experiencing rapid increases in new car registrations, creating fertile ground for market expansion.

Conversely, the Latin America, Middle East, and Africa (LAMEA) region is projected to contribute a smaller share to the global smart parking industry. Economic factors and infrastructure development challenges in these regions limit the pace of market growth compared to other global counterparts.

Segmental Analysis

The global Smart Parking Systems Market is segmented based on parking sites, technology.

Based on Parking Sites, the market has been divided into two types - on-street and off-street, with the off-street smart parking technology segment expected to develop the fastest. Off-street parking is becoming increasingly popular in places like companies, shopping malls, universities, airports, and train stations. The growing preference for off-street smart parking solutions underscores their significant role in modern urban planning and transportation infrastructure. As urbanization continues to drive demand for efficient parking solutions, the off-street segment is poised to lead in innovation and adoption within the smart parking industry.

Based on Technology, Mobile App-based Systems are gaining substantial traction primarily due to their inherent advantages and evolving consumer preferences. Mobile app-based systems offer unparalleled convenience to users by allowing them to locate and reserve parking spaces remotely. This convenience aligns with modern consumer behaviors where individuals seek seamless and hassle-free experiences in their daily activities. These systems provide real-time information about parking availability, rates, and locations. Users can access up-to-date data directly on their smartphones, enabling them to make informed decisions quickly and efficiently

Recent Developments

• In March 2024 - ParkHub, a leading North American provider of parking management software and payments solutions, announced an agreement to combine businesses with JustPark, one of the UK’s leading app-based parking reservations technology and payments platforms. The combination creates a full-service parking software and payments solution for customers across North America and the United Kingdom. As part of this transaction, ParkHub secured a strategic growth investment led by FTV Capital with participation from existing investor LLR Partners. 
• In August 2023 - JustPark and Parkopedia entered into a partnership to drive car parking and payments ease forward. The Parkopedia platform, which enables connected car drivers to search for convenient local parking, will then host JustPark’s available parking locations, enabling drivers to book and pay for on-street and off-street parking through their vehicles. This landmark agreement allows Parkopedia’s considerable UK audience to see more than 100,000 of JustPark’s extensive collection of parking locations, while enhancing its users’ experience by offering even more parking options and the ability to book and pay for the spaces on the platform for the first time.