Smart Parking Systems Market Size, Share, & Trends Analysis Report By Hardware (Pucks, Cameras & LPRs, Smart Meters, Signage), By Software, By Service, By Type, By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global smart parking systems market was valued at USD 6.49 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 22.1% from 2023 to 2030. The market growth can be attributed to increasing government investment in smart city projects and initiatives to curb traffic congestion. Further, advancements in Internet of Things (IoT), and significant investment by market players in R&D for innovative product development are anticipated to drive industry growth remarkably through 2030. The COVID-19 pandemic has negatively influenced the market growth in 2020 owing to strict lockdowns by various governments to curb the virus transmission. However, from early 2021, the market witnessed high growth due to significant investment by several governments in infrastructure development activities and the transport sector to improve the economy of the country, creating robust market opportunities.

Smart parking systems assist city administrations in managing dispersed parking spaces efficiently and drivers in locating available parking spaces to mitigate traffic congestion. Further, the growing technological advancements have led to the integration of transport systems, geospatial systems, and parking data from wireless sensors. The use of technologies such as smart parking meters, License Plate Recognition (LPR) cameras, and parking guidance systems for parking has facilitated the ease of vehicle parking, thereby reducing the wastage of time and fuel. These factors, along with the rising vehicle sales globally, are expected to boost the growth of the smart parking system market.

The growing urban population is likely to lead to an increase in the number of challenges faced by cities, such as traffic congestion. However, the development of smart cities is expected to offer opportunities for governments to address these challenges effectively. The government of various countries such as India, the U.S., South Korea, China, Australia, Japan, Germany, and Brazil is launching smart city projects, creating a favorable smart parking system market outlook. For instance, in October 2022, an investment & construction company from Indonesia, PT PP (Persero) Tbk, collaborated with a smart industrial solution provider, LG CNS from South Korea, to plan the smart city project for Indonesia’s new capital Nusantara, supporting the industry trend.

The significant rise in automated parking solutions integrations combined with the advancements in wireless and digital payment technologies is expected to contribute to market growth. Technologies utilized to implement these systems include advanced sensors, data analytics, smart parking meters, and Machine-to-Machine (M2M) communication, along with mobile applications for slot reservations and online payments. These technologies are designed to determine whether a parking lot is empty or occupied and evaluate & transmit the information to mobile and web applications. These advancements in technologies are expected to fuel the smart parking systems market growth.

Lack of awareness regarding the smart parking benefits is the main restraint for the growth of the market during the forecast period. Further, the smart parking solutions equipped with RFID tags face disruption in signals due to electromagnetic interference. Electromagnetic interference causes disturbance in the tracking signal, due to which vehicles are faultily detected. This is expected to create numerous challenges for operators and drivers in the forecast period. To tackle this issue, market players are collaborating with technology providers to develop innovative market solutions. For instance, in November 2020, Park+, a smart parking solution company, partnered with MyGate, a community & security service provider, to develop RFID-equipped smart parking solutions for the residential market.

Hardware Insights

The smart meters segment held the major share of over 40% in 2022. The world is witnessing increasing urbanization, and there is a need for on-street parking spaces across various cities globally, which led to the widespread use of parking meters. These meters track free spaces and record the number of vehicles that are parked with the help of sensors and mobile applications. Most people park vehicles on the streets for long hours. This has compelled governments to deploy smart parking meters, which also help appropriate payments for on-street parking slots.

The cameras & License Plate Recognition (LPR) segment is anticipated to emerge as the fastest-growing segment at a CAGR of 23.3% during the forecast period. This can be attributed to the growing use of LPRs in-vehicle surveillance as they greatly reduce the workforce required or the amount of time to achieve these tasks. Increasing technologies such as image processing and human-computer interaction have led to cameras being increasingly deployed in smart parking systems for detecting the entry and exit of vehicles in a parking site.

Software Insights

The parking guidance systems segment accounted for a revenue share of over 75% in 2022. These guiding systems have gained traction in the market as they assist with vacant slots, provide parking guidelines, the number of available spaces, and the duration of availability, and help them in saving their time. Industry players are focusing on unveiling their cutting-edge guidance systems to increase their share in the global smart parking systems market. For instance, in June 2021, parking solution provider Quercus Technologies launched an outdoor parking guidance system, SC Outdoor, to help drivers in locating spaces on rooftops and other outdoor parking facilities. This solution works with Quercus Technologies' parking management software BirdWatch parking system.

The analytics solutions segment is poised to exhibit significant growth with a CAGR of 25.2% over the forecast period. The growth can be owned by the ability of the parking sensors fitted on several structures, such as light poles, to thoroughly collect reliable information about occupied and vacant spaces. This information is collected in real-time and transmitted to end-users using an analytics solution and ensures security and safety at parking sites in case of emergencies and contingencies. The increase in technology-based companies is expected to enable easy parking, booking, and paying for slots at various parking sites, thereby increasing the demand for analytics solutions.

Service Insights

The engineering service segment acquired a share of over 60% in 2022. The increasing adoption of autonomous and semi-autonomous cars, especially in developed countries, accelerated segment growth over the forecast period. These vehicles require specially designed parking garages and lots with custom-built instrumentation installations and robotic engineering facilities. Autonomous vehicle manufacturing hubs such as the U.S., India, Germany, and China are anticipated to experience a high adoption of smart parking systems in the forecast period. In November 2022, Robert Bosch GmbH and Mercedes-Benz developed an automated parking systems with pre-booking facility for Stuttgart Airport.

The mobile app parking services segment is expected to witness significant growth, with a CAGR of 26.2% in the forecast period. The segment is expected to grow considerably in the forecast period, owing to the large-scale adoption of smartphone applications supporting smart parking services. The applications are enabling easy reservation of slots and mobile-enabled payment. The widespread adoption of smart parking systems is expected to increase with the growing use of IoT-based cloud platform that helps run mobile applications. Drivers are aware of the smart parking arrangement that allows operators to make informed decisions about parking and payments.

Application Insights

The commercial segment dominated in 2022 and accounted for a revenue share of over 42%. The rising smart parking systems adoption at corporate buildings, theaters, sports complexes, shopping malls, and other public places is expected to strengthen the commercial segment growth through 2030. Additionally, the proliferation of flexible mobile payment services and a significant convenience level of parking are anticipated to fuel the segment's growth in the forecast period.

The government segment is expected to witness significant a CAGR of 23.9% in the forecast period. Several smart city development projects are anticipated to strengthen the growth of the government application segment through 2030. Various smart parking systems are installed in smart city projects, which offer multiple benefits, such as reservation of parking spots, low management costs, and mobile payment. Various vendors are focusing on launching new mobile apps with innovative features as a part of their initiatives to ensure user convenience and gain high-value contracts from governments.

Type Insights

The off-street segment dominated the market in 2022 and accounted for a revenue share of over 70%. The growing rise of off-street parking can be ascribed to the increasing number of companies providing applications for using spaces for parking in single slots. Furthermore, several smart cities and road development initiatives demand robust parking space utilization using sensor-based vehicle detection technology to manage parking issues. The increase in the number of industries that require parking and smart detection facilities is also contributing to the segment growth in the forecast period.

The on-street segment is anticipated to register a CAGR of 21.0 % in the forecast period. On-street parking enables a shorter duration between work and stoppages as vehicles are parked close to the destinations. This type of parking is used to reduce parking space and parking charges. It is preferred for slow-moving traffic as the probability of accidents in the case of fast-moving traffic is higher. Furthermore, this type of parking provides visible auto access for short-term parking. The demand for on-street parking is higher in countries such as the U.S. owing to the increased number of shops & industries and congested areas.

Regional Insights

North America held the major share of over 35% of the global smart parking systems market in 2022. The increasing number of vehicles is expected to grow the regional smart parking systems market through 2030. A large number of public-private collaborative efforts have been undertaken to introduce smart parking solutions in various cities in North America owing to increasing traffic congestion. The governments are also taking supportive initiatives together with smart parking systems service providers to provide safe & legal parking for private & commercial vehicles. Furthermore, the increasing adoption of smart city initiatives is driving the implementation of smart parking systems in the region.

The Asia Pacific smart parking systems market is expected to expand at a significant CAGR of 25.4% in the forecast period, owing to the increasing focus of regional governments on improving parking management and reducing air pollution & traffic congestion. Further, significant penetration by global market players and rising startups in the region is expected to drive the Asia Pacific smart parking systems market. For instance, in September 2022, a smart parking solution company in India, ParkMate, raised undisclosed funding in the global accelerator program, Evolvex to strengthen its smart parking solution portfolio.

Key Companies & Market Share Insights

Market players are observed to invest resources in research & development activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions, and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development and enhancement of existing products to acquire new customers and capture more market shares.

For instance, in July 2021, Westfalia Parking launched an integrated consumer parking solution, the Westfalia Parking app, to increase the efficiency and safety of automated parking facilities. This application offers a contactless experience with a vehicle tracking facility. This application allows the driver to call their vehicles from home, hotel, or office, facilitating a contactless experience. Some of the prominent players in the global smart parking systems market include:

• Altiux Innovations

• Amano McGann, Inc.

• Amco S.A.

• BMW AG (ParkNow GmbH, Parkmobile LLC)

• Cisco Systems, Inc.

• CivicSmart, Inc.

• Deteq Solutions

• Flowbird

• gtechna

• INDECT Electronics & Distribution GmbH

• Kapsch TrafficCom

• Libelium Comunicaciones Distribuidas S.L.

• Meter Feeder, Inc.

• Mindteck

• Municipal Parking Services, Inc.

• Nedap N.V.

• Park Assist

• ParkHelp Technologies

• ParkJockey

• ParkMe Inc.

• Robert Bosch GmbH

• Siemens AG

• SKIDATA AG

• Smart Parking Ltd.

• SpotHero, Inc.

• Swarco AG

• Urbiotica, S.L. 

Smart Parking Systems Market Report Scope

Global Smart Parking Systems Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the smart parking systems market report based on hardware, software, service, type, application, and region.

• Hardware Outlook (Revenue, USD Million, 2018 - 2030)

  • Pucks (Wireless Sensors)

  • Cameras & LPRs

  • Smart Meters

  • Signage

  • Parking Gates

• Software Outlook (Revenue, USD Million, 2018 - 2030)

  • Parking Guidance System

  • Analytics Solutions

• Service Outlook (Revenue, USD Million, 2018 - 2030)

  • Consulting Service

  • Engineering Service

  • Mobile App Parking Service

• Type Outlook (Revenue, USD Million. 2018 - 2030)

  • On-street

  • Off-street

    • Garage Parking

    • Lot Parking

• Application Outlook (Revenue, USD Million. 2018 - 2030)

  • Commercial

  • Government

  • Transport Transit

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • Singapore

    • Thailand

    • Philippines

    • Hong Kong

    • Vietnam

    • Indonesia

  • Latin America

    • Brazil

  • MEA