Smart Parking Market Size, Share, Forecast, & Trends Analysis by Offering (Hardware, Software, Services), Application (Parking Management, Payment, Vehicle Identification, Security & Surveillance, Others), Parking Site, End User (Commercial, Residential) & Geography - Global Forecast to 2031

Smart Parking Market Size & Forecast

The Smart Parking Market is expected to reach $22.9 billion by 2031, at a CAGR of 18.2% from 2024 to 2031. The growth of this market is driven by escalating traffic congestion caused by improper parking, increasing investments in smart parking facilities, and the growing demand for parking spaces. However, the high implementation costs of smart parking systems restrain the growth of this market.

Moreover, the increasing investment in smart cities, the emergence of the parking-as-a-service business model, and the proliferation of EV charging stations are expected to create growth opportunities for stakeholders in this market. However, the lack of standardization in smart parking systems, resulting in interoperability and compatibility issues, and vulnerability to climatic conditions & vandalism are some of the challenges impeding the market's growth. Additionally, the integration of the Internet of Things (IoT) and sensor technologies and the rising demand for AI-powered parking solutions are prominent trends in the smart parking market.

Smart Parking Market Growth Drivers

• Escalating Traffic Congestion Caused by Improper Parking

Traffic congestion has far-reaching implications for cities, impacting travel, transportation, and economic growth. Additionally, it contributes to increased air pollution, posing significant environmental and health hazards. Various factors contribute to traffic congestion, including stalled vehicles, inadequate parking spaces, and illegal parking on roadsides. Smart parking solutions play a crucial role in alleviating these issues by reducing instances of illegal parking, thereby mitigating the broader impact of congestion on urban areas.

Smart parking solutions alleviate traffic congestion by enabling drivers to locate and access parking spaces more quickly and efficiently. Several countries are adopting smart parking solutions to address their traffic congestion challenges. For instance, in September 2023, the Qatar government announced the completion of its public parking management project, which involves installing sensors and identification panels in public parking lots across key areas like West Bay, the Corniche, and Central Doha. The primary objective of this project is to minimize congestion and traffic bottlenecks in densely populated zones by optimizing the organization and utilization of parking spaces. The increasing focus of countries on implementing smart parking technologies to tackle traffic congestion issues is expected to drive market growth.

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• Growing Demand for Parking Spaces

Rapid urbanization and densely populated areas have increased the need for smart and well-structured parking facilities. The availability and quality of parking options significantly influence the site selection process for corporate tenants and retailers, as well as the location choices for developers embarking on new projects. The proliferation of vehicles has increased the demand for parking spaces.

Urbanization has led to an increased demand for parking spaces while also prompting new developments that could potentially reduce the availability of surface lots and parking areas. Countries are actively investing in parking projects to address the imbalance between parking supply and demand. For instance, in February 2024, Miami International Airport announced a USD 136 million investment in the Park 6 garage, a seven-level parking facility. Park 6 will feature advanced amenities such as 50 spaces for electric vehicle charging, energy-efficient LED lighting fixtures, and a Parksmart Silver Certification design. Such innovative project developments are expected to drive the adoption of smart parking technologies.

Smart Parking Market Trends

• Growing Demand for AI-powered Parking Solutions

In recent years, there has been an increase in the integration of AI-powered solutions in parking management. This increase is driven by the rising need for accurately detecting the availability of parking spaces. AI algorithms analyze real-time data gathered from sensors, cameras, and other sources to provide drivers with timely information about vacant parking spots, thereby minimizing the time spent searching for parking. This process enhances the overall parking experience and also leads to reductions in emissions and fuel consumption, thereby fostering environmental sustainability. Furthermore, AI technology is applied in enforcing measures against illegal parking.

Moreover, the use of AI is gaining momentum due to its numerous benefits. Several technology companies are focusing on developing AI solutions for parking applications. For instance, in April 2024, Hayden AI Technologies, Inc. (U.S.) launched a new automated double parking enforcement product as part of its vision Artificial Intelligence (AI) platform. Additionally, in October 2023, park360.io (India) launched an AI-powered vehicle authorization system utilizing regular IP-based cameras to identify objects such as vehicles, number plates, and parking slots and extract vehicle numbers for authorization/payments, streamlining entry and exit processes across any premise without manual intervention. These advancements and the increasing adoption of AI-powered parking solutions are expected to bolster market growth during the forecast period.

• Integration of Internet of Things (IoT) and Sensor Technologies

A smart parking system utilizes IoT devices and sensors to gather real-time data on parking lot occupancy, transmitting this information to the cloud or a local network. The integration of IoT and sensor technologies revolutionizes parking spaces by improving efficiency, accuracy, and the overall user experience. As cities embrace these technologies, they foster smarter, more sustainable urban mobility solutions. IoT-enabled smart parking solutions provide drivers with real-time and precise information about available parking spaces.

Furthermore, several IoT providers are focusing on developing IoT and sensor technologies to enhance efficiency in parking lots. For instance, in May 2023, Polysense Technologies Inc. (U.S.) launched iEdge 4.0, featuring new smart ultrasonic sensors. These sensors offer versatile options for various smart city applications, including parking lot management, river level monitoring, and monitoring oil or water levels in tanks. These advancements enhance the efficiency and accuracy of smart parking solutions, driving their adoption.

Smart Parking Market Opportunity

• Increasing Investments in Smart Cities

Smart parking solutions play a crucial role in bolstering the infrastructure of Smart Cities, ensuring the seamless operation of their transportation ecosystems. With the escalating number of vehicles on the road due to population growth, the demand for efficient and effective smart parking solutions is on the rise. Smart Parking systems contribute to optimizing traffic flow, particularly during peak hours, by ensuring that parking spaces are consistently available for vehicles throughout the day.

Moreover, numerous countries are prioritizing smart city projects aimed at developing sustainable infrastructure through the implementation of innovative solutions and funding mechanisms. These smart city initiatives encompass a wide range of endeavors, including multi-level smart parking facilities, market revitalization, urban mobility enhancements, solar power generation, the establishment of multi-modal transportation hubs, and the creation of educational centers. The increasing investments in smart city initiatives are expected to offer significant growth opportunities for players operating in the smart parking market.

Smart Parking Market Analysis: Key Findings

By Offering: In 2024, the Hardware Segment to Dominate the Smart Parking Market

Based on offering, the global smart parking market is broadly segmented into hardware, software, and services. In 2024, the hardware segment is expected to account for the largest share of the global smart parking market. This segment's large market share can be attributed to the rising adoption of pay-and-display machines and parking meters at parking facilities, the increased integration of surveillance cameras and monitoring systems to bolster vehicle safety and security, and the growing utilization of parking sensors for detecting parking occupancy.

However, the services segment is projected to register the highest CAGR during the forecast period. The growth of this segment can be attributed to the rising integration of IoT and sensors in parking spaces to enhance efficiency, the rising adoption of wireless and digital payment technologies to augment revenue generation, and the proliferation of smart public parking facilities. For instance, in April 2024, Batic Investments and Logistics Co. (BATIC) (Saudi Arabia) signed a framework agreement with Arabian Internet and Communications Services Company (Saudi Arabia) for the operation and maintenance of smart public parking spaces in Riyadh City.

By Application: In 2024, the Parking Management Segment to Dominate the Smart Parking Market

Based on application, the global smart parking market is segmented into parking management, payment, enforcement, security & surveillance, and vehicle identification. In 2024, the parking management segment is expected to account for the largest share of 33.0% of the global smart parking market. This segment's large share can be attributed to the widespread adoption of sensors in parking spaces for spot identification, the increased use of parking gates and signage to manage and regulate traffic flow, and the rising utilization of Automatic Number Plate Recognition (ANPR) technology for revenue generation at parking facilities. For instance, in November 2023, Teesside Park (U.K.), a retail and leisure park in England, announced plans to utilize ANPR cameras in parking areas to impose fines on vehicle owners exceeding a four-hour parking limit.

However, the security & surveillance segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the rising deployment of smart cameras in parking areas to prevent crime, gather evidence, and enforce parking regulations. Additionally, the proliferation of on-street parking networks in densely populated cities contributes to the segment's growth.

By Parking Site: In 2024, the Off-street Segment to Dominate the Smart Parking Market

Based on parking site, the global smart parking market is segmented into off-street and on-street. In 2024, the off-street segment is expected to account for the larger share of 70.0% of the global smart parking market. This segment's market share is attributed to rapid urbanization and the proliferation of pay-and-park facilities in congested areas aimed at mitigating traffic congestion and generating revenue.

Moreover, the off-street segment is projected to register a higher CAGR during the forecast period. The growth of this segment is driven by the rising need to address traffic congestion issues, the increasing utilization of pay-and-park services, and the proliferation of smart meters and pay-and-display machines in commercial parking facilities.

By End User: The Commercial Segment to Witness Highest Demand During the Forecast Period

Based on end user, the global smart parking market is broadly segmented into commercial and residential. In 2024, the commercial segment is expected to account for the larger share of 80.0% of the global smart parking market. This segment's large market share can be attributed to the heightened emphasis of commercial establishments on enhancing parking experiences by incorporating technologies like ANPR, signage, and pay-and-display machines. Additionally, the increasing adoption of smart parking solutions in commercial spaces to address security concerns, tackle obstructive parking, and identify unallocated parking spots efficiently contributes to the significant market share of this segment.

Moreover, the commercial segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the proliferation of electric vehicle charging facilities integrated with smart car parking technologies such as smart meters, pay-and-display machines, and cameras. For instance, in May 2023, ST Engineering (Singapore) collaborated with Nanyang Technological University (Singapore) to deploy Singapore's first integrated smart car park and electric vehicle charging system, GoParkin, at NTU's main campus.

Geographical Analysis

In 2024, North America is expected to account for the largest share of 41.0% of the global smart parking market. North America's significant market share can be attributed to increasing investments by cities and municipalities in smart parking initiatives within densely populated urban areas, the rising number of vehicles in the region, mounting challenges in urban mobility and infrastructure, and the proliferation of online parking reservation services across the region. For instance, in February 2023, Eleven-x (Canada) was chosen for a municipal smart parking project in Virginia, U.S. The project encompasses a smart parking system leveraging Eleven-x's wireless technology to monitor parking spots and generate real-time availability data.

However, the market in Asia-Pacific is projected to register the highest CAGR of 20.0% during the forecast period. The growth of this regional market can be attributed to the region's densely populated cities, escalating congestion issues in urban areas, and the increasing focus of municipalities on developing smart parking solutions to alleviate congestion problems. For instance, in February 2024, the Chandigarh Municipal Corporation (India) issued a request for proposal (RFP) for the design, development, and maintenance of smart parking lots based on a PPP (public-private partnership) model. As part of this initiative, 89 paid parking lots will be operated using smart facilities.

Smart Parking Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players' product portfolios and geographic presence and the key growth strategies adopted by them over the past 3–4 years. Some of the key players operating in the smart parking market are Cisco Systems, Inc. (U.S.), Siemens AG (Germany), Swarco AG (Austria), Robert Bosch GmbH (Germany), Amano Corporation (Japan), PRECISE PARKLINK INC. (Canada), Nedap N.V. (Belgium), Libelium Comunicaciones Distribuidas S.L. (Spain), Meter Feeder, Inc. (U.S.), ST Engineering (Singapore), TKH Security B.V. (Netherlands), CivicSmart, Inc. (U.S.), FLOWBIRD (France), SKIDATA GmbH (Austria), and Smart Parking Limited (U.K.).

Smart Parking Industry Overview: Latest Developments from Key Industry Players

• In March 2024, Smart Parking Limited acquired the parking management contracts and assets from Local Parking Security Ltd (U.K.) to bolster its presence in the U.K. parking management market. This acquisition includes 126 new parking management sites.

• In February 2024, Amano Korea Corporation (AKC) (South Korea) acquired WAYTOTEC, Inc. (South Korea) to enhance its parking control systems' technological capabilities and fortify its parking business base in South Korea.
   
• In July 2023, FLOWBIRD partnered with Umojo, Inc. (U.S.), a leading provider of communication, data analytics, and automation solutions. This partnership aims to revolutionize the parking experience in Portland by integrating Umojo's advanced communication software into Flowbird's off-street parking devices.
   
• In July 2023, Smart Parking Limited announced the complete acquisition of ParkInnovation GmbH (Germany).

Smart Parking Market Research Summary:

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