The global smart parking systems market was valued at $3.4 billion in 2018, and it is expected to reach $9.1 billion by 2024, witnessing a CAGR of 16.1% during 2019–2024.
Asia-Pacific (APAC) is projected to be the fastest-growing region in the smart parking systems market, during the forecast period, with China being the major country. In China, the number of cars on roads exceeded 248 million in 2018. The country has only 800,000 traditional parking lots and 30 million off-street parking spaces. This insufficient parking space substantially impacts the flow of traffic in the country. According to industry experts, about 30.0% of traffic congestion problems are caused by parking difficulties, as vehicles have to wait in queues to get an available parking spot. Thus, the country continues to provide lucrative opportunities to the market players, by offering an ample scope for the adoption of smart parking systems.
Fundamentals Governing Smart Parking Systems Market
The rising focus on crowdsourced mobility data is an emerging trend in smart parking systems market. With the development of smart cities, several steps are being taken to collect data through sensor networks. Cities are looking for affordable ways to gather data through sensors, to streamline their smart parking operations and save money. To achieve this, several players in the smart parking systems industry are focusing on the development of systems that can help obtain data through sensors at a minimal cost. For instance, Robert Bosch GmbH is working on the installation of its community-based smart parking systems that use side-mounted sensors on connected vehicles for data generation. Thus, the crowdsourcing of mobility data is an evolving trend in the market.
The increasing parking concerns are driving the growth of the smart parking systems market. Traffic congestion caused by the increasing number of automobiles has become an alarming problem across the world, and inadequate and unorganized car parking is a major contributor to this problem in cities. According to industry experts, nearly 30.0% of traffic congestion is caused on account of the search for parking spaces. In addition, several people violate parking rules and park their vehicles incorrectly, which further results in parking fines. Germany generates the highest amount from parking fines globally, of around $449 million (EUR 380 million), every year. In view of this, countries across the globe are quickly adopting smart parking systems that offer real-time information, which allows drivers to search or reserve the available parking slots.
Smart Parking Systems Market Segmentation Analysis
When segmented on the basis of parking site, off-street parking dominated the smart parking systems market in 2018. Such solutions facilitate an easy pay-and-park process, owing to enhanced ticketing and payment systems. Furthermore, off-street smart parking systems facilitate parking for both short and long durations, which led to the larger usage of off-street parking during the historical period (2014–2018).
On the basis of technology, the hardware category generated the highest revenue in the smart parking systems market in 2018. This can be attributed to the critical role of hardware, such as sensors and cameras, in spotting automobiles in parking slots, which continues to support the smart parking systems’ adoption in the market.
Geographical Analysis of Smart Parking Systems Market
Geographically, North America led the global smart parking systems market during the historical period. The region accounts for the highest number of installations of smart parking systems, owing to the high focus on technologically advanced parking solutions, growing number of vehicles on roads, and increasing traffic congestion in its major cities. In the region, the U.S. was the largest contributor, in terms of revenue generation. During the forecast period, Asia-Pacific (APAC) is predicted to be the fastest-growing region, owing to a rise in the demand for connected and automated vehicles (CAV) and development of smart cities.
Competitive Landscape of Smart Parking Systems Market
The global smart parking systems market is witnessing intense competition, with the presence of companies such as Amano Corporation, Robert Bosch GmbH, Urbiotica S.L., Smart Parking Ltd., Kapsch TrafficCom AG, IPS Group Inc., ParkMobile LLC, Nedap N.V., WORLDSENSING S.L., Siemens AG, Valeo SA, Continental AG, Delphi Technologies PLC, Xerox Corporation, and Cisco Systems Inc.
Recent Strategic Developments of Major Smart Parking Systems Market Players
In recent years, major players in the smart parking systems market have taken several strategic measures, such as partnerships and mergers and acquisitions, and secured client wins, to gain a competitive edge in the industry. For instance, in September 2019, INDECT Electronics & Distribution GmbH (INDECT) was selected by HEB Grocery Company LP (HEB) for the installation of parking guidance systems at its new store in Texas, U.S. This is INDECT’s fourth parking guidance system installation at HEB’s stores. The installation will be managed by Parking Guidance Systems LLC (PGS). Furthermore, in the same month, ParkNow LLC acquired Parkling GmbH to strengthen its portfolio of digital parking solutions.
Key Questions Addressed/Answered in the Report
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