In 2024, the size of the global market for smart parking systems was evaluated at US$ 8059.6 million, and it is anticipated that the market will rise at a compound annual growth rate (CAGR) of 19.7% during the forecast period of 2025 to 2033. Smart parking is always a strategic subject to work on because of the growing urban population and the resulting increase in traffic congestion; this is true not just in the scientific area but also from the perspective of economic interests. The advent of information and communication technology has made it possible for drivers to locate parking places that meet their needs in a manner that is both more efficient and more gratifying. In urban areas, parking is an essential component in the coordination of land use and transportation, and it is also one of the most important assets in terms of the amount of money it brings into cities. A number of cities have initiated programs to provide smart parking. Through the use of information and communication technology, particularly in developed nations, "smart parking" is a method that assists drivers in locating parking places that meet their needs more effectively and satisfactorily.
Rising Popularity of IoT-based Parking Solutions Spurring Uptake of Smart Parking Solutions
The rate of urbanization has skyrocketed at an exponential rate alongside the rise in the world population. Because of this, there is a growing number of people who own their own cars, which has led to an increase in the requirement for sufficient amounts of parking space. By the year 2050, nearly 68% of the world's population would be living in urban regions, as forecasted by the United Nations Department of Economic and Social Affairs (UN DESA). Therefore, automotive manufacturers are looking at adopting internet of things (IoT) enabled and smart parking solutions in an effort to lessen the impact of the ever-increasing load of global traffic. Companies that provide intelligent parking solutions are finding new markets to enter as a result of improvements in cloud platforms and innovations in pervasive computing, which together are creating new opportunities. Around the world, there has been an uptick in the implementation of data-driven operations and the advantages that come along with it, which has caused an increase in the use of data-driven parking software.
Increased Investment in self-driving vehicles is an opportunity for propagating smart parking solutions
As a result of 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. This feature helps drivers find available parking spots. A great number of nations, including Canada, the United States, Germany, the United Kingdom, and others, have created technology that allows drivers to use their smartphones to control or park their automobiles. In addition, companies that make software for smart parking give frequent updates in order to address the problem of traffic congestion. The smart parking business is expected to soon be presented with opportunities for profitable expansion in the near future as a result of ongoing technology and infrastructure advancements.
The complexity of design and high costs of implementation are the factors restraining the market
Because technological innovation is a continuous process, it is essential to regularly update both hardware and software components in order to maintain compatibility with the surrounding environment. In addition, the cost of all of the components that are required for smart parking, such as sensors, RFID, fuzzy logic, and the requisite assembly, is significantly greater. Due to the fact that multiple components and sensors are merged into a single dielectric plate on the basis of compatibility, the cost is increased. Due to the necessity of utilizing wireless connectivity for it to operate as intended, this sophisticated system has an increased cost of implementation. As a direct consequence of this, the widespread adoption of intelligent parking solutions is impeded by high design complexity as well as greater initial installation costs.
Market Segmentation by Hardware
Congestion in the streets and a lack of parking spots are two issues that have plagued both developed and emerging nations for a significant amount of time. At the moment, intelligent parking technologies are completely changing the applications for parking lots. Parking guidance information systems, automated parking systems, smart parking payment systems, and parking reservation systems are only some of the examples of cutting-edge technologies that are in high demand in the design of today's parking meter apps. In addition, the demand from drivers and car owners for the protection and safety of parked vehicles is growing at a rapid rate, which is driving the acquisition of parking surveillance systems. The capacity of smart technologies to maximize empty space and supply information on available parking spots in real-time is another feature that is helping to drive their widespread adoption. In the long run, this makes it easier for drivers to park their vehicles on the street as well as in off-street parking spaces. As a result, the growing acceptance of such advanced technologies is providing a boost to the expansion of the market for parking meter apps.
Market Segmentation by Application
During the forecast period, it is anticipated that applications related to security and surveillance would continue to have the majority share. During the time period covered by the projections, parking reservation management is anticipated to have the greatest CAGR, which is 24.8%. Customers are becoming more and more interested in parking reservation management as a result of a large amount of time it saves for owners of vehicles. Parking enforcement has developed into an essential component of modern living due to its increasing importance. Its purpose is to safeguard the safety of vehicles as well as pedestrians, while at the same time reducing the amount of congestion that occurs on the roadway. This is achieved by the implementation of this measure. It is possible that drivers and residents will become dissatisfied and furious if parking restrictions are enforced without the right instruments.
Regional Insights
In 2024, the revenue share held by North America was the highest, at more than 34%. Over the course of the time covered by this estimate, the regional market for intelligent parking systems is anticipated to expand as a result of the growing number of automobiles. The municipal authorities of the United States and Canada are making attempts to lessen the severity of traffic congestion, which has been getting worse as a direct result of the increasing demand for automobile ownership. Alongside the actions that are being taken by service providers, governments are also taking steps to boost the adoption of intelligent parking systems, which offer parking that is both safe and compliant with the law for commercial and private vehicles. In addition, the growing popularity of smart city programs is encouraging the installation of intelligent parking systems throughout the region.
Product and Solution Innovation Remains the Key Strategy
Companies such as Cisco Systems, Inc., Altiux Innovations, Siemens AG, SKIDATA AG., Robert Bosch GmbH, Amano McGann, Inc., BMW AG, INRIX, Inc., Urbiotica, Swarco AG, Kapsch Trafficcom AG, Nedap N.V., Gtechna, Smart Parking Ltd., Continental AG, Cubic Corporation, APTIV (Delphi Automotive PLC) are some of the most prominent players in this market. In order to maintain their position at the head of their industry, leading corporations are marketing cutting-edge hardware and software solutions. As a result of the increasingly diverse requirements of parking lot management, market participants in the smart parking industry are expanding their network with companies that specialize in parking lot management.
Historical & Forecast Period
This study report represents analysis of each segment from 2023 to 2033 considering 2024 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2025 to 2033.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Smart Parking market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2023-2033 |
| Base Year | 2024 |
| Forecast Period | 2025-2033 |
| Historical Year | 2023 |
| Unit | USD Million |
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Region Segment (2023-2033; US$ Million)
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Key questions answered in this report
