Smart Parking Market Size, Share & Trends Analysis Report By System (Guided Park Assist, Smart parking), By Parking Site (On-street, Off-street), By Application (Government, Commercial), By Component (Parking Sensors, Steering Angle Sensors, Electronic Control Unit (ECU), Display Unit), By Technology (IoT, Ultrasonic, RFID), By Solution (Security and Surveillance, Smart Payment System, E-parking, License Plate Recognition), By Hardware (Pucks (Wireless Sensors), Cameras and LPRs, Smart Meters, Signage, Parking Gates), By Service (Consulting Service, Engineering Service, Mobile App Parking Service) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global smart parking market size was valued at USD 6.8 billion in 2023 and is projected to reach a value of USD 33.5 billion by 2032, registering a CAGR of 17.4% during the forecast period (2024-2032). The increase in smart parking market share during the forecast period is related to increased demand for smart parking solutions due to rapid urbanization and a growing population, leading to an increased need for parking spaces.

Smart parking is a parking approach that integrates technological advancements with human ingenuity to maximize resource utilization efficiency, including fuel, time, and space. Its primary objective is to enable vehicles to be parked more quickly, conveniently, and densely during periods of inactivity. By incorporating technological solutions such as intelligent parking management systems, real-time data, and local turn-by-turn guidance, this strategy improves the parking experience, decreases search traffic, reduces vehicle emissions, and increases the overall efficiency of parking operations. Intelligent parking solutions optimize the parking process for a more sustainable and convenient urban environment by utilizing automatic number plate recognition (ANPR), GPS coordinates, and sensors to detect available spaces, direct motorists to vacant places, and identify available spaces.

Smart cities can improve the efficiency and security of metropolitan regions. The need for smart cities has increased, so government initiatives to construct intelligent cities have increased worldwide. Smart cities require smart infrastructure at airports, hospitals, workplaces, trains, and shopping malls, and the market for intelligent parking technologies is growing due to this increased demand. However, market expansion may need to be improved to some extent by setup complexity.

Highlights

• Guided Park Assist holds the largest share by system.
• Off-street leads the segment by Parking-site.
• Commercial dominates the segment By Application.
• Parking Sensors is a significant shareholder of Component.
• IoT holds the largest share by Technology.
• Security and Surveillance is a significant shareholder by solution.
• Cameras and LPRs dominate the hardware segment.
• Engineering Service holds the largest share by Service.

Market Dynamics

Global Smart Parking Market Drivers

Increase in Parking Issues Across the Globe

Finding an empty parking space during peak hours in airports, hospitals, universities, hotels, retail centers, and exhibition and convention centers is increasingly challenging. In the United States alone, there are over 2 billion parking spaces for about 250 million cars, equating to more than six parking spaces per registered car. However, parking shortages remain a significant issue, especially in urban areas. As the population grows, residential and business parking becomes increasingly tricky. Improved features like SMS notifications for available free spaces and real-time updates on space bookings using innovative parking technology help address these issues. For instance, systems that automate the identification of the ideal parking floor and location decrease the time a user spends searching for an available spot. 

Consequently, the global demand for smart parking solutions is rising. The increasing number of vehicles on the road exacerbates urban mobility challenges, including traffic congestion and environmental impact. Smart parking solutions optimize parking spaces, reduce search traffic, and improve overall traffic flow efficiency, contributing to a more sustainable urban environment.

Dependency on IoT Demands Smart Parking Solutions

As urbanization accelerates with global population growth, car owners increase, necessitating more parking spaces. According to the United Nations Department of Economic and Social Affairs, by 2050, nearly 68% of the global population will live in cities. In residential areas, an average of 35% of the land is used for parking lots, while in urban and the non-residential regions, between 50% and 70% of the land is dedicated to parking. This highlights the significant space consumed by parking infrastructure. Automakers are introducing Internet of Things (IoT)-enabled smart parking solutions to alleviate the growing global traffic load. Advancements in cloud platforms and ubiquitous computing provide new opportunities for smart parking solution providers. 

Additionally, the increasing popularity of data-driven operations and their benefits fuel the global rise in smart parking software usage. Integrating technology in smart cities supports the adoption of smart parking solutions, recognized by governments for reducing traffic congestion, improving air quality, and enhancing urban experiences. The user-friendly nature of smart parking systems, allowing drivers to find available spaces easily through mobile apps or signage systems, further fuels their growth in smart cities.

Global Smart Parking Market Restraints

Complex Design and High Implementation Costs

A significant factor hindering the adoption of smart parking solutions is consumers' need for more awareness. Additionally, the high costs of installing smart parking technologies impede widespread adoption. The expense may deter budget-conscious consumers and organizations from investing in smart parking systems, limiting market penetration. Due to ongoing technological advancements, upgrading systems and software to remain compatible with the external environment is necessary. 

Furthermore, the cost of components like sensors, RFID, fuzzy logic, and the required assembly in smart parking systems is higher. Combining various components and sensors into a single dielectric plate based on compatibility increases costs. This extensive system requires wireless connectivity to function correctly, leading to higher implementation costs. As a result, the market's widespread adoption could be improved by high configuration complexity and initial installation costs.

Global Smart Parking Market Opportunity

Increased Investment in Self-Driving Vehicles

Technological advancements have led many automotive companies, including Tesla, Waymo, and Ford, to test parking assistance features in autonomous vehicles that display available parking spaces. The U.S. government has allocated USD 4 billion for autonomous vehicle research and development. The European Union aims for 20% of vehicles on the road to be autonomous by 2030. Many countries, including Canada, the United States, Germany, and the United Kingdom, have developed smartphone technology to handle or park vehicles. Software providers offer frequent updates to address congestion issues for smart parking. Continued technological and infrastructure advances are expected to create profitable growth opportunities for the smart parking industry. 

Furthermore, developing autonomous valet parking systems can further boost demand for smart parking solutions. These systems enable self-driving vehicles to park themselves without human intervention, reducing the need for human oversight and increasing parking capacity. This can lead to significant cost savings and improved operational efficiency for parking operators and property managers. For example, Bosch and Daimler have partnered to develop an automated valet parking system in Stuttgart, Germany, showcasing the potential of such technology to revolutionize parking management.

Regional Analysis

North America Dominates the Global Market

The global smart parking market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant market shareholder and is estimated to grow at a CAGR of 16.95% over the forecast period. Due to increased urbanization and technological improvements, North America dominates the worldwide Smart Parking market. According to the US Department of Transportation, 65% of major cities will deploy smart parking solutions in 2023, up from 55% in 2022. The American Public Transportation Association estimated a 30% reduction in traffic congestion in places with smart parking systems by 2024. In Canada, the Ministry of Infrastructure and Communities reported a 40% increase in smart parking systems in major urban regions by 2023.

Additionally, according to the US Green Building Council, 70% of new commercial projects will have smart parking technologies in 2024, up 15% from the previous year. Integrating AI and IoT reinforces the region's supremacy, with the Smart Cities Council estimating that 80% of North American smart parking systems would use AI-powered predictive analytics by 2024. According to the National Parking Association, localities implementing smart parking solutions saw a 25% increase in parking revenue and a 35% drop in parking violations by 2023. Furthermore, the United States Environmental Protection Agency anticipated that smart parking systems would contribute to a 20% reduction in car emissions associated with parking searches in major urban areas by 2024, underlining the technology's environmental benefits.

Europe is estimated to grow at a CAGR of 17.5% over the forecast period, driven by severe environmental regulations and government initiatives to promote smart city development. According to the European Commission, 55% of EU cities with populations over 100,000 have implemented smart parking systems by 2023, with a target of 70% by 2025. In the United Kingdom, the Department for Transport reported a 35% reduction in average time spent looking for parking spots in cities equipped with smart parking systems by 2024. Germany's Federal Ministry for Digital and Transport declared that by 2023, 60% of its largest cities would have integrated smart parking systems, up from 45% in 2022.

Furthermore, according to the European Automobile Manufacturers Association, 75% of new vehicles sold in Europe in 2024 will include smart parking assistance technologies. In 2023, France's Ministry of Ecological Transition reported a 25% drop in urban traffic due to parking searches in towns with smart parking infrastructure. The European Parking Association discovered that smart parking solutions contributed to a 30% increase in urban space utilization across vital European cities by 2024. Furthermore, the European Environment Agency anticipated that smart parking systems would reduce CO2 emissions by 15% in participating towns by 2023, highlighting the technology's significance in encouraging sustainable urban transportation

Segmental Analysis

The global smart parking market is segmented based on system, parking site, application, component, technology, solution, hardware, and service. 

The Smart Parking market is further segmented by the system into guided park assist smart parking.

Guided Park Assist maintains its market leadership position due to the substantial demand for its real-time data information system about the accessibility of parking spaces nearby. This technology is designed to address the enduring issue of parking on the environment. Components of the technology comprise inexpensive sensors intelligent mobile applications that interface with real-time data interference, and enable users to monitor available and unavailable parking spaces. A smartphone application or a satellite navigation device informs a user of an available parking space. Users are also granted advance notice of free parking spaces via their smartphone as they approach specific locations. IoT facilitates the reduction of time needed to locate a parking space and a parking lot, thereby stimulating market expansion.

The smart parking market is further segmented by parking site into On-street and Off-street.

Off-street parking holds the largest share. During the forecast period, the market is anticipated to be dominated by off-street parking due to the proliferation of private facilities in urban areas, including hotels, garages, private parking lots, cultural and recreational facilities, hospitals, and airports. The increasing number of visitors to these locations is driving the need for off-street parking systems, which optimize and manage the parking spaces housed within these private facilities. 

The smart parking market is further segmented by application into government and commercial areas.

The commercial segment constitutes the market leader. The substantial revenue share of the smart parking market is attributed to the commercial end-user segment, which comprises leisure and hospitality buildings, office buildings, outdoor leisure facilities, and retail buildings. In this end-use market, competition is motivated to engage in strategic partnerships and innovations due to the high demand. In February 2023, for instance, the U.S. headquarters of Cox Communications and Intel announced a partnership to develop and implement end-to-end managed smart city solutions, including a smart park prototype for high-resolution parking space insights. This demonstrates the increasing need for intelligent parking solutions in commercial environments.

The smart parking market is further segmented by component into parking sensors, steering angle sensors, electronic control units (ECU), and display units.

Parking Sensors dominate the market due to their high demand and capacity to detect the presence of automobiles in parking lots. Parking sensors are further divided into three types: ultrasonic sensors, infrared sensors, and magnetic sensors, with ultrasonic sensors being the most prevalent due to their lower cost compared to image and radar sensors. These sensors collect and analyze data in real-time, making it possible to discover and monitor parking spaces more efficiently. The development of smart city efforts, as well as the aim to improve parking utilization, are driving the growth of the parking sensors market.

The smart parking market is further segmented by technology into IoT, Ultrasonic, and RFID.

The Internet of Things (IoT) is a key driver of the Smart Parking industry because it can provide real-time data on the availability of adjacent parking spaces and help vehicles park securely. IoT-based smart parking systems include low-cost sensors, real-time data interference, and smart mobile apps that allow users to monitor available and unavailable parking spaces. This device is intended to solve the long-term problem of parking, which has a negative influence on the environment. The primary drivers pushing the growth of the Smart Parking market are the rising demand for IoT-based automobiles, the implementation of rules and regulations to support smart parking, and the increase in the number of vehicles due to an increasing economy.

The smart parking market is further segmented by solutions into security and surveillance, smart payment systems, e-parking, and license plate recognition.

Security and surveillance solutions are critical in smart parking systems to ensure the safety and security of vehicles and individuals who use the facilities. These technologies assist in monitoring parking lots, avoiding theft, and improving overall security. The growing emphasis on safety and security in parking lots, combined with the requirement for effective surveillance systems, fuels demand for Security and Surveillance solutions in the Smart Parking industry.

The smart parking market is further segmented by hardware into pucks (Wireless Sensors), cameras and LPRs, smart meters, signage, and parking gates.

Cameras and LPRs are the most dominant segment, leading the market due to their rising implementation in smart parking systems. Cameras and LPRs are utilized for License Plate Recognition, which allows for more effective parking management and security. They can recognize the license plates of vehicles entering and exiting parking lots, enabling automatic parking fee collection and access control. In addition, cameras and LPRs can monitor parking space occupancy, delivering real-time data to parking guidance systems. These features add to the increased demand for cameras and LPRs in the Smart Parking sector.

The smart parking market is further segmented by services into consulting services, engineering service, and mobile app parking services.

Engineering Service leads the market. This is because the engineering service sector is critical in the deployment of smart parking systems, as it involves the design, development, and integration of the many components and technologies needed for the system to function properly. The engineering service segment entails installing and configuring hardware such as sensors, cameras, and electronic control units, as well as creating software programs for parking management and payment systems. The engineering service sector also includes the smart parking system's interaction with other smart city infrastructure and services like traffic management and public transit. The complexity of smart parking systems, as well as the requirement for specific skills and knowledge in the design, development, and integration of the numerous components and technologies involved, make the engineering service segment an important component of the Smart Parking market.

Impact of covid-19

The pandemic had caused a lockdown in almost all the countries across the world backed up by strict government regulations such as social distancing and quarantine. A severe effect of the lockdown was observed on the economy of various countries which further canceled certain construction projects temporarily or permanently.

Further, immediate long-term effects were seen in the supply chain and the deployment of smart solutions required in the smart buildings. However, the ease offered and the multiple benefits of the smart building solutions are anticipated to increase the deployments during the time.

Recent Developments

• March 2024- The chief minister of Arunachal Pradesh, unveiled an advanced, entirely automated smart parking system powered by artificial intelligence (AI) at the Tomo Riba Institute of Health and Medical Sciences (TRIHMS) in Naharlagun. By utilizing prefabricated equipment and Korean technology, the AI-based smart parking system necessitates a minimal amount of construction space.