Global Smart Parking Systems Market By Hardware (Pucks, Cameras & LPRs, Smart Meters, Signage & Parking Gates) By Software, By Service, By Application, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Smart Parking Systems Market was valued at USD 6.6 Billion in 2022 and will reach USD 42.7 Billion by 2032. In 2022-2032, this market is expected to grow at a CAGR of 21.1%

Fast growth in urbanization has led to a notable surge in the number of vehicles on the road, which is resulting in a shortage of parking spaces in cities. Smart parking systems offer well-organized parking management solutions to maximize the uses of available parking areas, making them significant for urban areas.

The increasing affordability and convenience of vehicles have resulted in a jump in vehicle ownership worldwide. With more vehicles on the road, the demand for suitable and structured parking solutions has also increased, driving the need for the Smart Parking Systems Market. Heavy traffic is a vital issue in urban areas and unfit parking management is attributed to traffic congestion.

Smart parking systems provide real-time information on available parking spaces, guiding drivers to vacant spots quickly and reducing the time spent searching for parking. This helps alleviate traffic congestion and enhances overall traffic management.

Driving Factors

The fast development of urban areas together with the express growth in population has resulted in a growth of the number of vehicles on the road. This has led to the need for parking space, and the need for effectual parking management systems. This has been the main reason for the Smart Parking Systems Market to gain traction.

The shortage of parking spaces in cities has turned into a major problem. Smart parking systems can help maximize parking utilization by providing live information about parking spots that are available, thus making it easier and faster to locate parking.

The issue of traffic congestion is a constant problem in many cities, resulting in increased travel time, consumption of fuel, and pollution of the environment. Smart parking systems ease congestion by directing motorists to parking spaces, reducing time spent circling to find parking spaces, and assisting in emissions reduction efforts.

Restraining Factors

Building a smart parking system requires considerable upfront expenditure in infrastructure, equipment, sensors, connectivity, and software development. The cost can be a significant barrier, especially for smaller parking operators or municipalities with limited budgets, hindering the widespread adoption of smart parking systems.

Integrating smart parking systems with existing parking infrastructure, such as parking garages, lots, and payment systems, can be complex and time-consuming. Legacy systems may not be compatible with the new technologies, requiring additional efforts and expenses for seamless integration.

The absence of universal standards and protocols in the smart parking industry poses challenges for interoperability and compatibility between different smart parking solutions. This lack of standardization can create complexities and limit scalability and compatibility when integrating systems from multiple vendors. Key players need to migitate these issues for improved efficiency in the Smart Parking Systems Market.

Growth Opportunities

Smart parking systems are an important part of smart city initiatives aimed at improving urban portability, traffic regulation, and sustainability. As governments across the globe carry on with investing in smart city initiatives, the need for Smart Parking Systems Market is anticipated to grow, presenting significant opportunities for market players. and the growing number of vehicles on the road are driving the need for well-organized parking management systems.

With the availability of fewer parking spaces in urban areas, there is a huge demand for smart parking systems that increase space utilization, minimize congestion, and improve the overall parking experience.

The continuous advancements in the Internet of Things and connectivity technologies, such as 5G networks, are opening up new possibilities for smart parking systems. These technologies enable seamless connectivity, real-time data monitoring, and efficient management of parking spaces, creating opportunities for innovation and growth in the Smart Parking Systems Market.

Latest Trends

Smart parking systems use the Internet of Things and connected technologies to improve efficiency and convenience. Including using sensors, cameras, and mobile apps to monitor and manage parking spaces, provide real-time information to drivers, and optimize parking operations.

Smart parking systems are increasingly incorporating advanced analytics and data-driven insights to optimize parking space allocation, improve traffic flow, and enhance overall parking management. Analyzing historical data and real-time information helps in making data-driven decisions and improving the Smart Parking Systems Market experience.

By Hardware  Analysis

Smart meters accounted for the largest share of 42% in 2022 in the Smart Parking Systems Market. There is an increase in urbanization across the world and the need for parking spaces in various cities across the globe, which has led to the general usage of parking meters.

These meters track spaces that are not in use and count the amount of vehicles parked with the help of sensors and mobile apps. A majority of people park their cars on streets for long periods of time. This has led to governments having to implement smart parking meters that can also assist in ensuring that payments are made for parking slots on streets.

The LPR segment is anticipated to be the fastest-growing segment, with a yearly rate of 25 percent over the forecast time. This is due to the increasing utilization of LPRs in-vehicle surveillance, as they drastically reduce the amount of staff required or the amount of time needed to accomplish these tasks.

The development of new technologies like human-computer interaction and image processing have resulted in cameras being used in intelligent parking systems that track the entry and departure of vehicles at parking sites.

By Software Analysis

The parking guidance systems segment was responsible for more than 75% Smart Parking Systems Market share in 2022. Parking guidance systems became popular in the market due to their ability to assist in filling vacant spaces and provide parking instructions, the availability of space, and the time of their availability.

They also assist in reducing time. Industry players are focused on launching their cutting-edge system of guidance to expand their presence in the world smart parking system market. The analytics solutions market is expected to see significant growth, with an estimated CAGR of 25.2 percent over the forecast time.

The growth is attributed to the ability of sensors that are fitted to parking structures, like light poles, which can collect accurate information on vacant and occupied spaces. This information is gathered in real-time and is then sent to users using analytics software and provides security and security at parking facilities in the event of emergencies or emergency situations.

The growth of companies based on technology is expected to facilitate easy parking, booking and even paying for parking slots at a variety of sites, which will increase the need for analytics-based solutions.

By Service Analysis

The engineering service segment grew to over 60% by 2022. The growing acceptance of semi-autonomous and autonomous vehicles particularly in developed countries increased the growth rate of the segment during the forecast period. These vehicles require parking garages that are specifically designed and lots that are equipped with custom-designed equipment and robotic engineering infrastructures.

Autonomous manufacturing hubs for vehicles like the U.S., India, Germany, and China are expected to witness an increase in the use of parking technology that is smart during the coming years. The year 2022 was the month that Robert Bosch GmbH and Mercedes-Benz created an automated parking system with pre-booking facilities in the Stuttgart Airport.

The parking apps for mobile devices are expected to experience significant growth with an estimated CAGR of 26.2 percent over the forecast time. The market is expected to expand significantly over the coming years, due to the massive acceptance of mobile applications that provide smart parking.

These applications allow for the easy reservation of slots as well as mobile-enabled payments. The widespread use of smart parking systems is likely to grow with the increasing use of cloud platforms based on IoT which allows mobile apps to run. The drivers are aware of the smart parking system that allows operators to make more informed choices regarding parking and payment.

By Application Analysis

The commercial segment was dominant in 2022 and contributed more than 40% in the Smart Parking Systems Market. The growing smart parking systems used in theaters, corporate buildings sports complexes shopping malls, and other public spaces are expected to boost the growth of the commercial sector until 2030.

In addition, the rise of mobile payment services that are flexible and a high level of convenience parking is expected to boost the growth of this segment over the forecast time. The government application segment is expected to experience a significant CAGR of 23.9 percent during the forecast time. Many Smart city-related projects are expected to increase the development of the government application segment by 2030.

Numerous smart parking systems are used in smart city projects that provide numerous advantages, including reservations of parking spaces and low management costs as well as mobile payments. Numerous companies are the launch of new mobile apps that have innovative features as part of their plans to provide user-friendly services and obtain contracts of high value from the government.

Global Smart Parking Systems Market Key Segmentation

By Hardware Type

• Pucks (Wireless Sensors)
• Cameras & LPRs
• Smart Meters
• Signage
• Parking Gates

By Software

• Parking Guidance System
• Analytics Solutions

By Service

• Consulting Service
• Engineering Service
• Mobile App Parking Service

By Application Channel

• Commercial
• Government
• Transport Transit

COVID-19 Impact Analysis

During the pandemic, there has been a significant decline in vehicle usage due to lockdowns, travel restrictions, remote work policies, and reduced commuting. With fewer vehicles on the road, the demand for parking spaces decreased, affecting the need for the Smart Parking Systems Market.

As businesses, offices, and commercial establishments operated at limited capacity or temporarily closed, the overall demand for parking spaces declined. This reduction in parking demand directly impacted the utilization of smart parking systems, as fewer drivers were actively searching for parking spots. The pandemic disrupted the implementation plans and timelines for smart parking projects.

Construction and installation activities were often delayed due to restrictions, labor shortages, and supply chain disruptions, affecting the deployment of new systems or expansions of existing ones. Many businesses and municipalities faced financial challenges during the pandemic, with budget cuts and reduced funding for non-essential projects.

This financial strain impacted the willingness and ability to invest in smart parking systems, leading to a slowdown in Smart Parking Systems Market growth.

Regional Analysis

North America will hold the major part of more than 37 percent of the world’s smart parking system market by 2022. The rising number of cars is expected to boost the local smart parking market until 2030. A number of joint efforts between public and private have been put in place to provide smart parking solutions across a variety of cities across North America owing to increasing traffic congestion.

Governments are taking positive initiatives in conjunction with smart parking system service providers to offer safe and legally licensed parking spaces for private and commercial vehicles. In addition, the increasing acceptance of smart city projects is accelerating the development of parking smart systems across the region.

The Asia Pacific smart parking systems market is expected to grow at a considerable CAGR of 27 percent during the forecast timeframe, due to the increasing emphasis of regional authorities on improving the management of parking and decreasing air pollution and traffic congestion.

Furthermore, the rapid growth of global Smart Parking Systems Market players as well as emerging companies in the region are expected to propel the Asia Pacific smart parking systems market. For instance, in September 2022, a company that offers smart parking solutions located in India, ParkMate, raised unannounced funds through the accelerator program in the world, Evolvex to enhance its smart parking solutions portfolio.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis

Key Players Are Implementing Numerous Strategies

Major market players are investing in funds for research and development to encourage growth and improve the effectiveness of their business. It has been observed that Companies are engaging in mergers acquisitions and partnerships to further improve their product offerings, and to gain an advantage in the marketplace. They are currently developing new products and enhancements to existing products to gain new customers and gain more market share.

Top Key Players in the Smart Parking Systems Market

• Altiux Innovations
• Amco S.A.
• BMW AG
• Cisco Systems
• CivicSmart, Inc
• Deteq Solutions
• Gtechna
• INDECT Electronics
• Meter Feeder, Inc.,
• Other Key Players

Recent Developments

• In July 2021, Westfalia Parking launched an integrated parking service for consumers, the Westfalia Parking app, to improve the efficiency and security of automated parking facilities. The app provides a seamless experience, with a tracking feature. This application permits drivers to contact their vehicle from their hotel, home, or work, offering the experience of a contactless one.

Report Scope