Parking Management Market by Component (Solutions, Services), End User (Commercial, Residential), Technology (Image Processing, RFID, Visible Light Communication), Deployment Mode, and Parking Site, & Geography - Global Forecast to 2031

Parking Management Market Size & Forecast

The Parking Management Market is projected to reach $12.3 billion by 2031, at a CAGR of 14.2% from 2024 to 2031. 

The growth of the parking management market is attributed to the growing demand for AI-based services, increasing demand for parking spaces, and growing focus on seamless traffic flow & reducing fuel consumption. However, the complexity of system integration and the shift from a car ownership model to a car sharing/rental model restrain the market’s growth.

Moreover, the increase in the adoption of smart city initiatives globally and technological advancements in autonomous cars offer significant opportunities for the growth of the global parking management market. However, high initial implementation costs, climate durability, and the prevalence of vandalism may hinder the market's growth.

Growing Demand for AI-Based Services Drives the Growth of the Global Parking Management Market

The rising adoption of AI-based services has resulted in a remarkable growth of the parking management market in recent years. This growth is primarily attributed to the increasing use of AI in parking technology for detecting the availability of parking space in a given image using a video feed in real time. AI analyzes the real-time data from sensors, cameras, and other sources to provide drivers with information on available parking spots, reducing the time spent searching for parking. It enhances the overall parking experience and contributes to reduced emissions and fuel consumption, promoting environmental sustainability. AI can optimize the lighting and ventilation systems based on real-time occupancy data. Surveillance cameras equipped with AI play a crucial role in enhancing the security and safety of parking facilities by detecting unusual or suspicious activities and alerting security personnel in real time.

Further, the use of AI is gaining momentum primarily due to the developments by leading economies to offer AI-based technologies for parking management systems. For instance, in November  2023, Rezcomm (U.K.) launched AI-driven technology for lounges, parking, and other airport services to enhance operational efficiencies. Also, in October 2023, park360.io (India) launched an AI-based vehicle authorization system by using regular IP-based cameras to identify objects such as vehicles, number plates, and slots and extract vehicle numbers for authorization/payments, facilitating entry and exit across any premise without any manual involvement. Such developments and the increasing adoption of AI-based services in parking management systems support the market growth during the forecast period.

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Key Findings in the Global Parking Management Market Study:

In 2024, the Solutions Segment is Expected to Dominate the Global Parking Management Market by Component

Based on component, the global parking management market is segmented into solutions and services. In 2024, the solutions segment is expected to account for the larger share of the global parking management market. The large market share of this segment is attributed to the growing need for solutions to improve the parking experience for users and increase revenue and operational efficiency. In addition, the high focus of transport authorities across the world to reduce traffic congestion and encourage daily commuters to use more and more park-and-ride facilities is further supporting the growth of this market.

The Commercial Segment to Register the Highest CAGR During the Forecast Period in the Global Parking Management Market by End User

Based on end user, the commercial segment is projected to register the highest CAGR during the forecast period. The growth of this segment can be attributed to the increasing adoption of parking management systems in the commercial sector to manage security concerns, obstructive parking, and unallocated spots in many companies.

In 2024, the Reservation-based Parking Management Systems Segment is Expected to Dominate the Global Parking Management Market by Technology

Based on technology, the global Parking Management market is segmented into license plate recognition, reservation-based parking management systems, image processing, RFID-based parking management systems, visible light communication, and other technologies. In 2024, the reservation-based parking management systems segment is expected to account for the largest share of the global parking management market. The large market share of this segment is attributed to the increasing advantages of reservation-based parking management systems, such as periodic submission of parking status from central servers of the parking lot. Allowing users to effectively find and reserve a vacant spot, constant updates on the physical status of parking, accessibility through smartphones, and dynamic pricing also contribute to the segment’s large share.

The Cloud-based Deployments Segment to Register the Highest CAGR During the Forecast Period

Based on deployment mode, the cloud-based deployments segment is projected to register the highest CAGR during the forecast period. The growth of the segment is attributed to the growing demand to automate parking operations and the increasing adoption of cloud-based intelligent car parking solutions in smart cities.

In 2024, the Off-street Segment is Expected to Dominate the Global Parking Management Market

Based on parking site, the global parking management market is segmented into off-street and on-street. In 2024, the off-street segment is expected to account for the larger share of the global parking management market. The large market share of this segment is attributed to the rising requirement for parking spaces in CBDs and efforts to reduce congestion levels on streets, making parking safe and convenient for both the driver and the vehicle.

Asia-Pacific is Expected to Register the Highest CAGR During the Forecast Period

Based on geography, Asia-Pacific is projected to register the highest CAGR during the forecast period. The growth of this region is attributed to the increasing adoption of automation and advanced technologies across the region, favorable government initiatives for smart cities, and investments by major ICT companies for developing AI and IoT-based solutions.

Parking Management Market: Competitive Analysis

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by major market players in the last three to four years. The key players profiled in the global parking management market study are Xerox Corporation (U.S.), Amano Corporation (Japan), IBM Corporation (U.S.), Cubic Corporation (U.S.), Robotic Parking Systems, Inc. (U.S.), Swarco AG (Austria), SKIDATA AG (Austria), Siemens AG (Germany), Skyline Parking AG (Switzerland), Unitronics (Israel), Robert Bosch GmbH (Germany), Precise Parklink Inc. (Canada), Flowbird S.A.S (France), T2 Systems, Inc. (U.S.), and Cleverciti Systems GMBH (Germany).

Parking Management Market Report Summary:

Key questions answered in the report: