Smart Parking Market

Market Overview

The global smart parking market size was valued at 5.23 USD billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.6% from 2022 to 2030 and reach around 16.54 USD billion. Smart parking is a parking technology that helps vehicles locate safe parking spaces. Parking a car is a common occurrence; however, according to ITS America, drivers looking for parking space account for approximately 30% of urban congestion, resulting in fuel waste. Growing traffic congestion and uncertainty about parking availability generate demand for innovative parking solutions, optimizing parking space consumption and increasing parking operation efficiency, allowing for more efficient traffic flow.

Smart parking allows parking managers to monitor parking occupancy rates remotely and automatically. Land-use issues are becoming more prevalent, and good parking places are a big concern in overcrowded cities. In the United States, commercial buildings such as grocery stores require four to six parking spaces per 1,000 square feet.

Smart cities have the potential to improve the efficiency and security of metropolitan regions. The need for smart cities has increased, and as a result, 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 be hampered to some extent by setup complexity.

Increasing investments in autonomous vehicle technologies will likely provide significant market growth potential during the forecast period.

Market Dynamics

Market Drivers

Increase in Parking Issues Across the Globe

During peak hours, finding an empty parking place in locations such as the airport, hospital, university, hotel & retail centres, and exhibition & convention centres is quite challenging. Residential and business parking are becoming increasingly difficult as the population grows. Improved features such as SMS notifications of accessible free spaces and real-time updates on space bookings using innovative parking technology help address the issue. By automating the identification of the ideal parking floor and location, this system decreases the amount of time a user spends hunting for an available parking spot. Hence, the demand for smart parking has been increasing across the world.

Dependency on IoT Demands Smart Parking Solutions

The rate of urbanization has increased rapidly as the world population grows. Therefore, the number of people who own cars increases, necessitating an enormous need for parking spaces. According to the United Nations Department of Economic and Social Affairs, by 2050, nearly 68 % of the global population will be living in cities. Hence, automakers are introducing internet of things (IoT) permitted and smart parking solutions to help alleviate the ever-increasing load of global traffic. Combined with advancements in cloud platforms, Innovations in ubiquitous computing provide new opportunities for smart parking solution providers. The growing popularity of data-driven operations and the benefits that come with them lead to a rise in the use of smart parking software worldwide.

Market Restraints

Complex Design and High Implementation Costs

Because of the ongoing advancement of technology, upgrading the system and software required to keep them compatible with the external environment is necessary. Furthermore, the cost of all components, such as sensors, RFID, fuzzy logic, and the required assembly in smart parking, is higher. It costs more since various components and sensors are combined in a single dielectric plate based on compatibility. This extensive system has a higher implementation cost because it requires wireless connectivity to function correctly. As a result, the smart parking market's widespread adoption is hampered by high configuration complexity and higher initial installation costs.

Market Opportunity

Increased Investment in Self-Driving Vehicles

due to the ongoing development in technology, many automotive companies, including Tesla, Waymo, and Ford, have tested a parking assistance feature in autonomous vehicles that displays parking spaces. Many countries, including Canada, the United States, Germany, the United Kingdom, and others, have developed technologies to handle or park vehicles using smartphones. Furthermore, software providers provide frequent updates to address the issue of congestion for smart parking. Soon, continuing technological and infrastructure advances are projected to generate profitable growth prospects for the smart parking industry.

Segmental Analysis

Parking sites, technology, solution, and geography have segmented the global smart parking market. The market has been divided into two types of parking sites: 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 market has been divided into three groups based on technology: IoT, the Internet of Things (IoT), Ultrasonic, and RFID. Using IoT for smart parking for drivers and parking enforcement agents improves visibility and effectiveness. According to the GSM Association, successful mobile IoT implementation for intelligent parking gives an 8 %reduction in traffic congestion. Finding a parking spot results in a 30% reduction in miles driven. Finding a parking place takes 43 %less time.

Moreover, both on-street and off-street parking areas require network coverage. Because it is built on existing mobile networks, mobile IoT provides extensive coverage. It's designed to go deeper indoors and underground than existing networks, making it suitable for a wide range of parking lots. Thus, the IoT segment has the most significant market share.

Based on solutions, the smart parking market is divided into four types security and surveillance, intelligent payment systems, e-parking, and license plate recognition are the four divisions based on the solution. In crowded regions of huge cities, such as retail malls, stadiums, and other popular venues, an e-parking system is a valuable tool for managing parking space through better access control and parking revenue methods, especially during peak hours.

Regional Analysis

Four regions make up the worldwide smart parking market share: Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa.

Europe has the highest proportion of the worldwide smart parking market, followed by North America. In countries all around Europe, the growing usage of cameras and ultrasonic sensors in passenger cars is driving the demand for innovative parking solutions. Rapid urbanization has necessitated infrastructure and transportation growth, raising the need for parking assistance and intelligent parking systems.

Governments in North America have been investing heavily in creating smart cities. These initiatives include optimizing existing infrastructure, which can be achieved through efficient land use. As a result, the smart parking market in North America is predicted to increase over the forecast period.

Because congested parking spaces are a significant concern in the Asia Pacific, the region is expected to develop at the quickest rate worldwide. Developing economies in the area, such as Japan, China, and India, have seen a high rate of new car registrations, which has created market growth opportunities. On the other hand, the LAMEA area is only predicted to account for a small fraction of the global smart parking industry.

Recent Developments

Smart Parking Market Segmentation

By Parking Site

• On-street
• Off-street

By Application

• Government
• Commercial

By Technology

• IoT
• Ultrasonic
• RFID

By Solution

• Security & Surveillance
• Smart Payment System
• E-parking
• License Plate Recognition

By Region

• North America
• Asia-Pacific
• Europe
• LAMEA