Market Overview
The Global Smart Parking Systems Market is projected to reach USD 9.8 billion in 2024 and grow at a compound annual growth rate of 23.0% from there until 2033 to reach a value of USD 63.0 billion.
Smart parking is known as the integration of advanced technologies, like sensors, data analytics, and mobile applications, to effectively manage parking spaces. It focuses on optimizing parking usage, reducing traffic congestion, enhancing user experience, and promoting sustainability by delivering real-time information about parking availability and facilitating convenient payment options.
The US Smart Parking Systems Market
The US Smart Parking Systems Market is projected to reach USD 3.1 billion in 2024 at a compound annual growth rate of 21.6% over its forecast period.
The Smart Parking Systems market in the US is expected to experience significant growth, driven by the large urbanization and the demand for efficient parking solutions. As cities experience growing vehicle numbers and congestion, smart parking technologies provide a way to streamline parking management, optimize space usage, and improve overall urban mobility. Moreover, integration with mobile applications allows users to easily reserve and pay for parking, increasing convenience.
Further, it is driven by the growth of urbanization and the demand for efficient parking solutions to combat congestion and optimize space usage. However, high installation and maintenance costs, along with challenges related to data privacy and system integration, create significant challenges to widespread adoption.
Key Takeaways
• Market Growth: The Smart Parking Systems Market size is expected to grow by 51.2 billion, at a CAGR of 23.0% during the forecasted period of 2025 to 2033.
• By Offerings: The hardware segment is anticipated to get the majority share of the Smart Parking Systems Market in 2024.
• By Type: The off-street segment is expected to be leading the market in 2024
• By Application: The commercial segment is expected to get the largest revenue share in 2024 in the Smart Parking Systems Market.
• Regional Insight: North America is expected to hold a 36.2% share of revenue in the Global Smart Parking Systems Market in 2024.
• Use Cases: Some of the use cases of Smart Parking systems include real-time parking availability, enhanced security & monitoring, and more.
Use Cases:
• Real-Time Parking Availability: Drivers can look into live information on vacant spots via apps or displays, minimizing the time spent searching for parking and lowering traffic congestion.
• Automated Payment and Ticketing: Contactless payment solutions enable seamless entry, exit, and billing through RFID, QR codes, or mobile wallets, removing the demand for manual ticketing.
• Traffic and Space Management for Cities: Smart systems inspect parking data to optimize urban traffic flow, identify peak usage periods, and adjust parking fees dynamically.
• Enhanced Security and Monitoring: Sensors, cameras, and AI provide monitoring to protect against theft, detect violations, and offer alerts in case of suspicious activity.
Market Dynamic
Driving Factors
Urbanization and Rising Vehicle Ownership
Fast urbanization and vehicle ownership growth drive the need for efficient parking solutions to manage congestion and limited space in cities, which pushes municipalities and the private sector to adopt smart parking technologies.
Advancements in IoT and AI Technology
Integrating IoT sensors, AI-powered analytics, and mobile apps improves real-time monitoring and dynamic pricing, enhancing user convenience. Governments and enterprises are highly investing in smart infrastructure, boosting the market's growth.
Restraints
High Installation and Maintenance Costs
Installing smart parking systems includes a higher initial investment in sensors, software, and infrastructure upgrades, along with ongoing maintenance expenses, which can impact the adoption, mainly for smaller municipalities and businesses.
Technical Challenges and Data Privacy Concerns
Integration issues with legacy systems, unreliable network connectivity, and the challenges of system failures can limit efficiency. In addition, concerns over data privacy and security may discourage users from completely embracing smart parking technologies.
Opportunities
Expansion of Smart Cities and Sustainable Mobility Initiatives
Government initiatives promoting smart cities & sustainable urban mobility are creating opportunities for combining smart parking with public transportation and EV infrastructure, promoting green and efficient urban ecosystems.
Growth in Electric Vehicles (EVs) and Autonomous Vehicles
The growth in the adoption of EVs and autonomous vehicles opens avenues for smart parking systems to provide EV charging integration and automated parking solutions, improving convenience and efficiency for next-generation mobility.
Trends
Integration with Smart City Ecosystems
The growing urbanization has led cities to adopt smart parking solutions as part of broader smart city initiatives, as they are integrated with transportation networks to show real-time traffic updates and optimize travel routes, supporting efficient urban mobility.
Advancements in IoT and AI
New technologies like IoT and AI are transforming parking management. IoT sensors allow real-time vehicle tracking and parking space availability updates, while AI-based systems enhance predictive parking analytics and optimize dynamic pricing models. These innovations not only improve parking efficiency but also open new avenues for revenue generation in urban areas
Research Scope and Analysis
By Offerings
Hardware plays a major role in the growth driver of the smart parking systems market by allowing the core infrastructure needed for efficient parking management. Devices like sensors, cameras, RFID systems, and gateways help monitor parking spaces, detect vehicles in real-time, and streamline entry-exit operations, which supports in the automation, minimizing the human intervention and enhancing the accuracy in space usage. The adoption of IoT-enabled sensors and ANPR (Automatic Number Plate Recognition) cameras has further improved tracking and security, making hardware an important part of smart parking solutions for businesses and governments alike.
In addition, software plays a vital role in driving the growth of smart parking systems by providing features that improve user convenience and operational efficiency. Parking management software combines with sensors and cameras to provide real-time data on available spaces, allowing smooth navigation through mobile apps. It also helps with with automated payments, reservations, and dynamic pricing, minimizes the wait times and manual efforts. Advanced software solutions use AI and data analytics to predict parking demand, supports operators optimize space usage and lower costs. These tools are important for businesses and governments to improve traffic management and provide a seamless parking experience for users.
By Type
The off-street segment is anticipated to dominate the smart parking market in 2024, which is driven by the growing availability of apps that support users reserving single-slot parking spaces, enhancing parking efficiency. In addition, many smart city and road development projects are focused on sensor-based vehicle detection technologies to address parking challenges and better use available spaces. The rising number of industries demanding specific parking and smart monitoring support further boosts the demand for off-street parking solutions in the coming years.
Further, the on-street segment is anticipated to grow the fastest during the forecast period. On-street parking provides the advantage of being closer to destinations, minimizing time spent between parking and accessing nearby places. It is mainly suitable for areas with slow-moving traffic, as it lowers the risk of accidents in comparison to fast-moving zones, as it is often used for short-term stops, making it convenient and affordable. Demand for on-street parking is mainly high in countries like the U.S., where busy urban areas with various shops and industries require accessible parking options to reduce congestion and enhance traffic flow.
By Application
The commercial segment of smart parking systems is set to lead the smart parking systems market in 2024, driven by their increase in use in corporate offices, shopping malls, theaters, sports arenas, and other public venues. These spaces benefit from the convenience provided by automated parking systems, which minimize the wait times and enhance the overall user experience. In addition, the availability of flexible mobile payment solutions like QR-based or contactless payments further encourages businesses to adopt these systems, ensuring smoother operations and higher customer satisfaction in the coming years.
Further, the government segment is expected to see significant growth, driven by the development of smart city initiatives across the world. Also, these projects incorporate smart parking technologies to optimize urban mobility by enabling services like parking space reservations, efficient monitoring, and low-cost management. Moreover, the governments are also highly working with vendors to deploy mobile apps with advanced features, improving user convenience and ensuring seamless access to parking. Such efforts are supporting authorities to secure high-value contracts and create smarter, more sustainable cities for the future., which also reflects the role of smart parking systems in modern urban infrastructure.
The Smart Parking Systems Market Report is segmented on the basis of the following:
By Offerings
• Hardware
o Wireless Sensors
o Cameras & LPRs
o Smart Meters
o Signage
o Parking Gates
• Software
o Parking Guiding System
o Analytics Solution
• Services
o Consulting Service
o Engineering Service
o Mobile App Parking Service
By Type
• On Street
• Off-Street
o Garage Parking
o Lot Parking
By Application
• Commercial
• Government
• Transport Transit
Regional Analysis
North America is anticipated to hold a significant 36.2% share of the smart parking systems market in 2024, which is heavily driven by the growth in the number of vehicles on the road and the broad adoption of smartphones, which make it easy for consumers to reserve, pay for, and check the availability of parking spots through mobile applications. In addition, the usage of analytics to create more effective parking solutions is further contributing to the region's market expansion.
Further, the Asia Pacific region is anticipated to experience the fastest growth rate during the forecast period, which is primarily due to regional governments prioritizing better parking management to tackle issues like air pollution & traffic congestion. In densely populated cities like those in China, there is a major demand for efficient vehicle parking management systems, mainly within corporate areas. As cities constantly grow and parking space becomes limited, innovative solutions to optimize parking usage are becoming highly important.
By Region
North America
• The U.S.
• Canada
Europe
• Germany
• The U.K.
• France
• Italy
• Russia
• Spain
• Benelux
• Nordic
• Rest of Europe
Asia-Pacific
• China
• Japan
• South Korea
• India
• ANZ
• ASEAN
• Rest of Asia-Pacific
Latin America
• Brazil
• Mexico
• Argentina
• Colombia
• Rest of Latin America
Middle East & Africa
• Saudi Arabia
• UAE
• South Africa
• Israel
• Egypt
• Rest of MEA
Competitive Landscape
The smart parking systems market is characterized by a mix of established technology firms and innovative start-ups. Companies are looking to offer integrated solutions that combine hardware, software, and services to meet diverse customer needs. They use advancements in IoT, AI, and data analytics to enhance parking efficiency and improve user experiences. Partnerships with local governments and businesses are common, as these collaborations help expand market reach and foster smart city initiatives. In addition, constant innovation and the development of user-friendly mobile applications play a crucial role in maintaining a competitive edge.
Some of the prominent players in the Global Smart Parking Systems are:
• Siemens
• Robert Bosch
• Cisco System
• Parkmobile
• Park Assist
• ParkMe
• Amco
• Amano McGann
• SpotHero
• Swarco
• Other Key Players
Recent Developments
• In September 2024, ParkMobile introduced a partnership with Flash, which would potentially process over a billion transactions in North America each year, which brings together hundreds of engineers to modernize parking infrastructure across millions of parking spaces in North America to accelerate and simplify digital payment experiences, benefiting parking operators, drivers, asset owners, and cities.
• In September 2024, Cocoparks unveiled the deployment of its innovative smart parking technology in the city of Shimla, India, which marks a significant milestone in Cocoparks’ mission to transform urban mobility and optimize parking management globally through advanced technology and would be deployed by the end of 2024.
• In July 2024, ParkPoint launched the Smart Parking Systems, which is particularly designed to meet the demands of smart cities and aims to improve the parking experience in the Kingdom of Bahrain, simplifying and streamlining the user journey.
• In June 2024, DESIGNA INDIA announced its first project at the revered Shri Jagannath Temple in Puri, one of the most popular temples in the Hindu religion, as it has secured a contract for the supply, installation, testing, and commissioning of an advanced Parking Management & Guidance System at the JBPC (Jagannath Ballav Pilgrim Center) Multi-Level Car Parking, located just 400 meters from the temple.
• In March 2024, ST Engineering announced that its Urban Solutions business will be extending its TransCore tolling technology currently utilized in the Salik Company traffic toll system in Dubai, to a smart car park system at one of the largest malls in the world, Dubai Mall, and involves integrating Urban Solutions’ barrier-free smart car park system with the Salik traffic toll system allowing automatic and ticketless parking fee collection at the mall, which has over 13,000 parking lots.
Contents