Smart Parking Systems Market (By Hardware: Pucks, Cameras & LPRs, Smart Meters, Signage, Parking Gates; By Software: Parking Guidance System, Analytics Solutions, Service Outlook, Consulting Service, Engineering Service, Mobile App Parking Service; By Type, On-street, Off-street, Garage Parking, Lot Parking; By Application, Commercial, Government, Transport Transit) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033
The global smart parking systems market size surpassed USD 7.49 billion in 2023 and is expected to hit around USD 55.62 billion by 2033, growing at a CAGR of 22.20% from 2024 to 2033. The market is expanding due to growing government investments in smart city projects and efforts to alleviate traffic congestion.
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The U.S. smart parking systems market size surpassed USD 2.02 billion in 2023 and is expected to hit around USD 15.02 billion by 2033, growing at a CAGR of 22.21% from 2024 to 2033.
North America held the dominating share of 36% in the smart parking systems market in 2023. The region's growth is fueled by the increasing number of vehicles. Consumers in North American countries have embraced smartphones and devices supporting mobile applications, facilitating activities like reserving, paying, and checking parking slot availability. Using analytics for developing parking solutions also contributes to market growth.
Asia Pacific's smart parking systems market is projected to experience the fastest growth rate at a CAGR of 25.5% during the forecast period. This growth is attributed to the heightened focus of regional governments on enhancing parking management, reducing air pollution, and alleviating traffic congestion. Due to limited parking spaces in densely populated cities, there is a notable demand for efficient vehicle parking management solutions in China, especially within corporate premises.
Huawei Technologies, a major vendor in China, collaborated with Nedap, a company specializing in vehicle identification and wireless parking systems, to develop NB-IoT-based smart parking sensors, aiming to expand its global reach. These factors are driving the increased demand for smart parking solutions in China.
Smart Parking Systems Market Overview
The smart parking systems market offers sophisticated systems and solutions that help drivers park their vehicles with utmost safety with integrated technologies. It uses software and sensors to identify available parking spaces, indicating their availability through signs or signals. The system relies on well-maintained vehicles to determine vacant spaces accurately. Different types of sensors serve as hardware components, detecting the presence or absence of vehicles in parking slots. Offering real-time data on parking space availability reduces the chance of interference from other cars for the same slot.
Widespread adoption of smart parking technologies can effectively address persistent parking issues, offering substantial advantages to the transportation ecosystem. These technologies combines systems involving affordable sensors, real-time data analysis, and intelligent mobile applications that enable users to monitor parking spot availability. Integrating smartphones with vehicle software allows drivers to locate parking spaces effortlessly while on the move, significantly saving time that would otherwise be spent searching for vacant spots.
Drivers
The rise in urban population
The increasing urban population is anticipated to create challenges like city traffic congestion. However, the emergence of smart cities presents an opportunity for governments to address these challenges effectively. Various countries, including Brazil, Australia, China, Germany, India, Japan, South Korea, and the U.S., are launching smart city projects, creating a favorable outlook for the smart parking systems market.
Advancements in wireless technology
The growing demand for smart parking systems is driven by their crucial role in assisting city administrations to efficiently manage dispersed parking spaces while aiding drivers in finding available spots, contributing to market acceleration. The popularity of these systems is on the rise due to their flexibility and scalability, further fueling the global smart parking systems market.
Additionally, integrating automated solutions and advancements in wireless and digital payment technologies is a significant factor influencing market growth. These solutions incorporate various technologies. The integrated computerized solutions encompass advanced sensors, smart parking meters, machine-to-machine (M2M) communication, mobile applications, and data analytics.
Restraint
Interoperability and system integration issues
A significant challenge faced by smart parking systems is the integration of various hardware and software platforms due to their diverse nature. Technology platforms like permit and enforcement (P&E) and parking access and revenue control (PARC) systems involve many components, including hardware sensors, traffic control devices, messaging systems, wireless and wireline telecommunication systems, server drivers, and application interfaces.
The presence of multiple solutions with limited interoperability raises concerns about the system's scalability. Coordinating the configuration of these devices from different vendors onto a unified platform poses a significant challenge. As a result, these factors are expected to impede the market's growth shortly.
Opportunities
Emerging trends in the market
The automotive sector is innately influenced by changing trends and the acceptance of novel technologies and innovations. Acceptance of such new trends can offer further opportunities in the smart parking systems market.
Park Active, a new initiative in the U.K., aims to promote and raise awareness of active travel by encouraging people to utilize peripheral parking sites that are more affordable and accessible. The initiative advocates for active travel options like cycling and walking to reach their destinations, providing parking operators with a practical framework to incorporate onward cycling and walking choices.
Advent cashless parking systems
Major players are actively introducing cashless parking systems, enabling online transactions and digital payments for parking fees. This initiative not only streamlines the entire process but also saves time for drivers. This advancement is poised to create more opportunities and foster growth in the smart parking systems market.
The smart meters segment dominated the smart parking systems market with 41% of the market share in 2023. As urbanization continues to rise globally, the demand for on-street parking spaces in various cities has surged, driving the widespread adoption of parking meters. These smart meters use sensors and mobile applications to monitor available spaces and record the number of parked vehicles. Given the tendency for vehicles to occupy street parking for extended periods, governments are increasingly deploying smart parking meters. These meters facilitate efficient management of on-street parking slots and enable seamless and accurate payment processes.
An article published by Fox 8 in October 2023 highlights a significant development in Cleveland's parking system. The city will introduce signs indicating various parking "zones." This initiative aligns with the long-term goal of the city council and the mayor's office to transition from traditional coin-operated parking meters to smart parking technology. The shift aims to enhance the efficiency and intelligence of the parking infrastructure throughout Cleveland.
The cameras & license plate recognition segment is expected to experience rapid growth at a CAGR of 23.5% during the forecast period. This surge is primarily driven by the increasing adoption of license plate recognition technology in-vehicle surveillance, significantly reducing workforce requirements and task completion times.
The parking guidance systems segment dominated the smart parking systems market with 76% of the market share in 2023. These systems are popular for aiding users in finding vacant parking spaces, offering guidance on parking, and displaying the number of available spaces and their duration of availability, thereby saving users' time. Industry participants are actively introducing advanced guidance systems to improve their presence in the global smart parking systems market.
The analytics solutions segment is set to experience growth at a CAGR of 25.4% during the forecast period. This growth is linked to the capability of parking sensors strategically placed on structures like light poles to gather reliable data on occupied and vacant parking spaces systematically. This real-time information is transmitted to end-users through analytics solutions, ensuring emergency security and safety. The rise of technology-driven companies is anticipated to facilitate convenient parking processes, including booking and payment for slots at various parking sites, thereby driving the demand for analytics solutions.
The engineering service segment accounted for the largest share of 61% in 2023. The rise in the use of autonomous and semi-autonomous cars, particularly in developed nations, fueled the growth of this segment throughout the forecast period. These vehicles require specialized parking facilities, custom-designed instrumentation installations, and robotic engineering features. Regions with a significant adoption of autonomous vehicle manufacturing, such as the U.S., India, Germany, and China, are expected to witness increased adoption of smart parking systems.
The mobile app parking services segment is projected to experience notable growth during the forecast period, This substantial growth is anticipated due to the widespread use of smartphone applications that facilitate smart parking services.
By application, the commercial segment has led the market in 2023 while contributing 43% of the market share. The increased adoption of smart parking systems in corporate offices, theaters, sports complexes, shopping malls, and various public spaces is poised to enhance the growth of this segment until 2033. Furthermore, the availability of flexible mobile payment services and the notable convenience offered in parking are expected to drive the segment's growth in the forecast period.
The government segment is projected to experience remarkable growth in the forecast period. The growth is credited to the implementation of several smart city development projects expected to bolster the government application segment until 2033. Smart parking systems integrated into these projects provide various advantages, including reserved parking spots, reduced management costs, and mobile payment options.
Segments Covered in the Report
By Hardware
By Software
By Type
By Application
By Geography
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