The global Smart Parking System market was worth around USD 5,529.50 million in 2021 and is estimated to grow to about USD 16346.57 million by 2028, with a CAGR of approximately 19.80 percent over the forecast period. Report Researches Europe, Japan, London, outlook, overview, and updated Analysis
The global Smart Parking System market was worth around USD 5,529.50 million in 2021 and is estimated to grow to about USD 16346.57 million by 2028, with a compound annual growth rate (CAGR) of approximately 19.80 percent over the forecast period. The report analyzes the Smart Parking System market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Smart Parking System market.
Smart Parking System Market: Overview
Smart parking is a parking system that assists drivers in parking safely. The smart parking system provides real-time data on the availability of nearby parking spaces and allows the driver to accommodate that slot without interfering with other vehicles. Furthermore, this technology is designed to address the long-term issue of parking, which has a negative impact on the environment. Low-cost sensors, real-time data interference, and smart mobile applications that allow users to monitor available and unavailable parking spots are among the components of the technology. The ability to handle vehicle parking appropriately with the use of smart phones, as well as the development of infrastructure to support such mobility, result in a reduction in the amount of time spent by the user in locating a vacant parking slot.
The global smart parking market is being driven by an increase in parking concerns, an increase in demand for Internet of Things (loT)-based technology, and a high adoption rate in the number of vehicles. Furthermore, an increase in investment in developing driverless vehicles, as well as an increase in government initiatives to build smart cities around the world, are expected to create tremendous opportunities for market growth. The rise of cashless transactions and e-payment options is opening up new avenues for smart parking solution providers to pursue. Furthermore, advancements in artificial intelligence and machine learning are assisting businesses in making game-changing discoveries in the field.
Many industries saw a significant shift in their business as a result of the Covid-19 pandemic. There is a significant impact on the growth of the market for Smart Parking Systems. As most countries around the world have imposed lockdown to contain the spread of COVID-19, the revenue of smart parking systems has suffered. Many educational and work institutions, such as schools and universities, have shifted to virtual learning, which has resulted in the disappearance of parking, transit, and other services. This has also resulted in monthly parking permit reimbursement. Similarly, the worldwide travel ban has had a significant impact on smart parking businesses.
Smart Parking System Market: Growth Drivers
Drivers: An increase in the number of vehicles and a decrease in the availability of parking spaces
Every year, the number of vehicles on the road increases significantly, causing traffic congestion. Because of the large number of vehicles, parking has become a major issue in major cities. In fact, the supply-demand gap for parking spaces is growing year after year. Inadequate parking space causes excessive traffic jams and congestions, which frustrate drivers, waste fuel, pollute the air and noise, and stymie productive economic activity. As a result, these factors are expected to drive the global smart parking systems market over the forecast period.
Restraint: Interoperability and system integration issues
Due to various hardware and software platforms involved, system integration is a major challenge with smart parking systems. The availability of so many different solutions, as well as the lack of interoperability between them, raises concerns about system scalability. Permit and enforcement (P&E) and parking access and revenue control (PARC) systems use a variety of hardware sensors, messaging systems, and traffic control devices, as well as wireless and wireline telecommunications systems, hardware and server drivers, and application interfaces. Because the configuration of all of these devices is from different vendors, bringing them all together on a single platform is a significant challenge. As a result, these factors are expected to stifle market growth in the near future.
Opportunities: Providing car-oriented services such as repairing and maintenance
In the long run, car-related services such as valets, repair services, washing, maintenance, car sharing, and electric vehicle charging can be bundled with parking transactions. Such bundled services may increase occupancy, particularly in commercial facilities geared toward travelers.
Challenges: High implementation cost
A smart parking system is a sophisticated and cutting-edge technology. Its implementation necessitates significant investment in infrastructure, technology, and overall maintenance. Furthermore, it must be operated by skilled personnel who have received adequate training. Although government officials in developed countries are embracing this system, many emerging economies are wary of it due to its prohibitively high cost.
Global Smart Parking System Market: Segmentation
The global Smart Parking System market is segregated based on Type, Component, Sensor technology, Vertical and Solution.
Based on Sensor Technology, the market is segmented into Ultrasonic Sensor, Radar Sensor and Image Sensor. The smart parking market for passenger automobiles is projected to be dominated by ultrasonic sensors. The primary use of ultrasonic sensors in smart parking is to aid the driver in locating an adequate parking place and to detect objects in the parking range over a short distance. Ultrasonic sensors are preferred because they are less expensive than image and radar sensors.
By solution, the market is segmented into Security and Surveillance, Parking Reservation Management, Valet Parking Management and License Plate Recognition. During the forecast period, the License Plate Recognition (LPR) segment is expected to be the fastest growing. This can be attributed to the increasing use of LPRs for vehicle surveillance, which significantly reduces the workforce required or the amount of time required to complete these tasks. With the advancement of technologies such as image processing and human-computer interaction, cameras are increasingly being used in smart parking systems to detect the entry and exit of vehicles in a parking lot.
|Historic Years||2016 - 2020|
|Forecast Years||2021 - 2028|
|Segments Covered||By Product Type, By Application, and By End Use|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Quantitative Units||Revenue in USD million/billion and CAGR from 2021 to 2028|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World|
|Countries Covered||U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others|
|Number of Companies Covered||10 companies with scope for including additional 15 companies upon request|
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.|
|Customization Scope||Avail customized purchase options to meet your exact research needs.|
Government initiatives to support intelligent parking systems as part of efforts to reduce pollution are expected to provide significant market opportunities in North America. Furthermore, growing concerns about the scarcity of parking spaces, particularly in urban areas, are driving the region's adoption of smart parking systems. As more parking management solutions are implemented to reduce the time it takes to find a parking spot and ease traffic congestion, the demand for parking sensors will increase.
Over the forecast period, the Asia Pacific market is expected to grow at the fastest rate. The region's governments' increasing emphasis on improving parking management and reducing traffic congestion and air pollution is expected to fuel demand for smart parking systems.
Some of the main competitors dominating the global Smart Parking System market include – Valeo S.A. (France), Continental AG (Germany), Robert Bosch GmbH (Germany), Kapsch TrafficCom AG (Austria), Cubic Corporation (U.S.), TKH Group-Park Assist (Netherlands).
Global Smart Parking System market is segmented as follows:
By Sensor Technology
Smart parking systems specifically provide the real-time information about parking spaces available in a particular geographic area. Smart parking system consists of low-priced sensors, automated payment systems through mobile phones and collection of real-time data that let people accurately predict and reserve the parking spot. Smart parking system reduces vehicle emissions in urban areas by decreasing the need for searching the available parking. It also allows cities to perfectly manage their parking lots. This system helps in solving one of the major problems of driving in metropolitan areas such as finding available parking places and controlling prohibited parking. Smart parking system uses the sensing devices to find out occupancy of the parking spaces. Smart parking system includes sensing devices such as cameras, counting devices like gates and embedded sensors to detect authorized number plates.
Finding an empty space for vehicle parking is a tedious job, especially in public places such as shopping malls, airports, or residential apartments. These factors enable the emergence to offer the development of smart solutions, which primarily drives the growth of smart parking system market across the globe. The global market for smart parking system is poised to flow exponentially in the near future owing to advantages such as real-time data availability about empty parking spaces in particular locations which save time, energy, and fuel. Smart parking system eliminates driver’s efforts for searching available parking spaces by going around preferred areas. It also effectively manages filled as well as empty spaces and reduces issues like illegal parking, which further is expected to boost the smart parking system market globally. Furthermore, growing the number of vehicles across the globe is increasing leading to the shortage of parking space, which is expected to steer the smart parking system market’s growth over the next five years. Moreover, increasing technological enhancements and adoption of IoT have encouraged governments to introduce initiatives, such as smart cities, thus propelling the growth of smart parking systems market globally. Growing technological innovations such as self- driving cars along with high investments for smart city developments will provide a significant growth opportunity for smart parking system market. However, the high installation cost of smart parking systems may hamper the growth of smart parking system market across the globe.
Smart parking system market is segmented based on component, parking site, application, and region. The component segment included in this market are hardware and software. Hardware component segment has the largest market share in smart parking system market. Increasing use of hardware components such as smart sensors, RFID, ultrasonic, and other technologies in smart parking system has boosted the demand for hardware components. Parking site segment includes off-street and on-street. The off-street segment is expected to grow at a higher CAGR as compared to the on-street segment in given forecasted period. Advanced facilities such as smart ticketing and RFID cards have facilitated the growth of the off-street segment. Application segment includes commercial, personal, transport & aviation, government, and others. Government segment is anticipated to have the highest share in smart parking system market in given forecasted period. This is due to the high government spending on smart city initiatives. The regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America and the Middle East and Africa with its further bifurcation into major countries including the U.S., France, UK, Germany, China, India, Japan, and Brazil.
Key players profiled in the global smart parking system market include 3M, Cubic Corporation, Amano Corporation, Nortek Control Systems Ltd., Swarco AG, Kapsch TrafficCom AG, Xerox Corporation, Siemens, BMW Group, and Bosch.
The global smart parking market is being driven by an increase in parking concerns, an increase in demand for Internet of Things (loT)-based technology, and a high adoption rate in the number of vehicles.
According to the Market Research report, the global Smart Parking System market was worth around USD 5,529.50 million in 2021 and is estimated to grow to about USD 16346.57 million by 2028, with a compound annual growth rate (CAGR) of approximately 19.80 percent over the forecast period.
Government initiatives to support intelligent parking systems as part of efforts to reduce pollution are expected to provide significant market opportunities in North America. Furthermore, growing concerns about the scarcity of parking spaces, particularly in urban areas, are driving the region's adoption of smart parking systems.
Some of the main competitors dominating the global Smart Parking System market include - Valeo S.A. (France), Continental AG (Germany), Robert Bosch GmbH (Germany), Kapsch TrafficCom AG (Austria), Cubic Corporation (U.S.), TKH Group-Park Assist (Netherlands).