Published: October 2023 | Report Code: 11074 | Available Format: PDF | Pages: 210
The global smart parking systems market is estimated to have stood at USD 7,956.2 million in 2023 and is assumed to reach USD 32,278.3 million by 2030, advancing at a CAGR of 22.3% during 2024–2030. This is due to the increased traffic jamming, as people like to travel alone in their automobiles and avoid shared mobility, which requires more parking lots and advancements in smart parking; increased customer awareness and comfortability while using smart parking; and government support for smart parking systems.
In addition, with the worldwide increase in population, the ownership of vehicles is surging in urban areas, which gives rise to the high requirement for parking systems. For instance, according to the population division of the UN Department of Economic and Social Affairs (UNDESA), 68% of the world population is predicted to live in urban areas by 2050.
One of the Indian Government’s initiatives, launched in June 2015, for improved quality of life in towns and cities, is the ‘Smart Cities Mission’, which uses programmed technology and information for the results. Strategies like this have amplified the requirement for smart parking systems, to improve traffic management.
Moreover, other factors driving the market include technological advancements, a rise in the demand for connected and electric vehicles, a surge in the need for proficient parking management, and an increase in the number of collaborations and partnerships among industry players. Besides, the benefits of smart parking include a reduction in traffic jamming, better air quality, and simplified parking searches.
Parking sites are of two types: off-street and on-street. Between the two, the off-street parking system dominates the market, as single-slot parking is preferred by everyone and the rising number of businesses that require enough parking and sophisticated detecting facilities. Also, off-street parking is becoming more and more popular, as it enables more vehicles to fit in a single space (multi-story), and the surging need for sensor-based vehicle identification technologies to handle parking issues.
Whereas, the on-street category is expected to witness significant growth in the coming years. This can be because the on-street parking system is utilized when the distance between parking sites and shopping malls, universities, or companies is short. It reduces the time to park and reach the destination points. This parking site is used in low-traffic areas, where the possibility of accidents is minimal and the space to park is available.
The component segment is divided into hardware, software, and service. The hardware category is split into cameras and LPRs (license plate recognition), smart meters, parking gates, and others. The demand for cameras and LPRs is expected to rise at the highest rate in the forecast duration. Whereas, as on-street parking is mostly used in urban and metropolitan areas, the smart meter division has the major market share. This is also because of the surging developments of smart cities, which boost the need for efficient and secure parking solutions.
Moreover, the most advantageous feature of smart meters is the use of sensors and mobile apps to trace empty and accessible parking spaces, with the information on number of automobiles parked. This has increased the use of camera sensors. In addition, ultrasonic sensors and electronic signals provide a simple and straightforward graphical interface. These sensors are fitted on various structures like light poles, which gather data regarding empty and occupied spaces. The data gathered is in real-time and broadcasted to end users using analytical solutions, which, in turn, safeguards the safety and security at the parking site.
Furthermore, in smart city projects, the high need for the identification of vehicles by sensors and the increase in business demand for parking and detection features are also fueling the market growth. Moreover, the software category also provides similar features with an additional feature of informing the duration of the availability of a parking slot, which helps save time. Using sensors and software, a parking system transforms parking space operations.
Another category of this segment is the service, which is of the following types: engineering, consulting, and mobile app services. Among these, the engineering service category holds the largest market share. This is due to the rising use of semi-autonomous and autonomous vehicles in developed countries, which require special conditions for parking like robotic engineering facilities and customizations. On the other hand, consulting services include learning about the usage of smart parking applications or constructing parking slots that meet the needs of end users.
Market Size in 2023
USD 7,956.2 Million
Market Size in 2024
USD 9,667.4 Million
Revenue Forecast in 2030
USD 32,278.3 Million
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
By Parking Site; By Component; By End User; By Region
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On the basis of end user, the smart parking systems market is categorized into commercial, government, and others. To find an empty parking slot during peak hours is hectic, especially near shopping malls, airports, hospitals, convention centers, and schools and universities. This problem with parking is increasing with the growing population near commercial and residential areas. The commercial category is the most prevalent in this segment. Hence, the multi-story smart parking system has given some relief in finding a vacant space, and due to the increase in commercial usage, the category dominates the market. Furthermore, the expansion and rising use of digital payment methods add to the contactless and fast accessibility of parking fees will further fuel the market in this category.
In the government category, different initiatives for smart parking take place. This drives the demand for smart parking systems in this category. For instance, in Thiruvananthapuram, an idea for a technology-based parking management system was pitched as part of the K-DISC’s CS-ODOI initiative. This was submitted as an innovative idea for the government employee departments and agencies under the state government.
Globally, North America is the largest market for smart parking systems. It is estimated to have held a revenue share, of 50%, in 2023. This is due to the rising number of automobiles on the road, the surging need to decrease traffic congestion, the increasing concern for parking spaces, the mounting number of smart city projects, and the surging government initiatives for parking systems in the region. For instance, the first City Council in Canada, the City of Standford established a technology-based smart parking system that consists of a real-time parking map and displays vacant spaces, in June 2018.
Whereas, APAC is the fastest-growing market, which is predicted to grow at a CAGR of 23% during the forecast period. This can be ascribed to the surging demand for advanced technologies to decrease the influence on the environment (increasing air quality), notable participation by global market players, surging need for efficient parking lots, and an increasing number of startups in this field in the region. For example, in India, Himachal Pradesh is a tourist destination with a large influx of vehicles, which leads to a high demand for parking lots. To cater to this, an online parking space startup, Eryo Parks, was launched in 2019.
Moreover, the smart parking systems market in Europe is also expected to rise over the forecast period. The main reason for the growth is governments’ strict rules to preserve a sustainable environment in the region by minimizing pollution. In addition, the demand for innovative parking solutions is being driven by the increasing use of cameras and ultrasonic sensors in passenger automobiles across the region, and the smart parking management system helps reduce traffic congestion, increase revenue collection, improve air quality, enhance customer satisfaction, better traffic safety and accessibility, and improve urban planning.
This fully customizable report gives a detailed analysis of the smart parking systems market from 2017 to 2030, based on all the relevant segments and geographies.
Based on Parking Site
Based on Component
Based on End User
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