SMART PARKING SYSTEMS MARKET ANALYSIS

Global Smart Parking Systems market size was valued at USD 6,524.3 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 20.56% from 2023 to 2030. Smart parking system refers to a parking strategy that combines human innovation and technology to use as few resources as possible, in order to achieve faster, easier, and denser parking of vehicles. Smart parking system modifies parking functions by providing solutions such as parking enforcement, access control, revenue management, permit management, parking guidance, security & surveillance, automated valet parking, and slot management. It helps parking site operators provide various parking conveniences to their customers such as time-saving, cashless payment options, pre-booking of parking spots, and enhanced vehicle security. Smart parking systems are designed in such a way that drivers have easy access to parking facilities in their ultimate destination without needing to search and can avoid other uncertainties related to cost and travel time.

Global Smart Parking Systems Market: Regional Insights

Europe held dominant position in the global smart parking systems market in 2022, accounting for 35.8% share in terms of value, followed by North America, Asia-Pacific and RoW respectively.

Figure 1: Global Smart Parking Systems Market Share (%), By Region 2022

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Global Smart Parking System Market Drivers:

Rising popularity of IoT- based parking solutions globally which helps to grow smart parking solutions

As global population is increasing, the urban region is also expanding which leading to increase in ownership of automobiles, which had necessitated a rise in the need for parking system. According to the UN Department of Economic and Social Affairs (UN DESA), near about 685 of the population will inhabit in urban area by 2050.

Rising adoption by municipalities is expected to propel the global smart parking systems market growth over the forecast period

Municipalities of many cities across the globe are increasingly adopting smart parking systems. These authorities are keeping parking fees relatively low and are increasingly willing to use an upward adjustment of fees, in order to invest in the latest technology with intention of improving customer experience. Smart parking system increases productivity in operations as well as provides long-term value to customers. The other benefits include fewer attendants, higher throughput, better collection, better utilization, and reduced emissions. Smart parking vendors and some municipalities are significantly developing the business insight to look at parking operations as one of the major means of revenue generation. Hence, these factors are expected to propel the global smart parking systems market growth over the forecast period.

Global Smart Parking System Market Opportunities:

Proactive initiatives smart cities can present lucrative growth opportunities

Governments of many countries have undertaken the initiative of smart cities, wherein advanced technologies will be integrated with the city’s public infrastructure. Governments have allotted a significant amount of funds for the development of smart cities. For instance, in June 2015, the Government of India launched “100 Smart Cities Mission” wherein it allocated a fund of US$ 14 billion. Such projects have increased the demand for smart parking system, in order to enhance traffic management.

Global Smart Parking System Market Trends:

Park Active is a new initiative promoting and raising awareness of active travel across the UK. The purpose is to encouraging people to use peripheral parking sites that are cheaper and more accessible. It also encourages more active travel options such as cycling and walking to reach their destination. Park active provides parking operators with a branded, practical framework to enable car parks to offer onward cycling and walking options to city centers, tourist attractions, or large employers such as hospitals.

The British Parking Association has been at the forefront of ensuring that the parking sector takes a proactive and strategic role as the situation evolves and it’s also actively lobbying government and bringing together its membership community in a diverse range of areas in an effort to support lasting positive change. “Active travel offers a socially distanced and healthy way to get around, and the UK government has signaled its desire to boost development through its ‘Gear Change’ initiative, with a £2 billion (€2.2 billion) active travel fund and emergency funding for cycle lanes and pedestrianisation measures during the pandemic,” explains O’Kelly.

Advent cashless parking systems

Many key players in the market are focused on introducing cashless parking systems, wherein parking fees can be paid via online transaction digital money. For instance, in May 2015, Parkmobile, LLC, launched its mobile payment solution in the city of Philadelphia, U.S., wherein customers can pay for parking using their smartphones. In September 2020, Q-Park had upgraded online parking booking system optimized for tablets and smartphones in which customers can book their desired parking spaces from anywhere and anytime.

Global Smart Parking System Market Restraints:

Interoperability and system integration issues are expected to hamper the global smart parking systems market growth over the forecast period

The major challenge with smart parking systems is system integration, owing variety of hardware and software platforms involved. Such diversity in solution availability and the lack of interoperability between different solutions poses system scalability concerns. Technology platforms such as permit and enforcement (P&E) and parking access and revenue control (PARC) systems comprise numerous hardware sensors, messaging systems, and traffic control devices, telecommunications systems both wireless and wireline, hardware and server drivers, and application interfaces. Since the configuration of all these devices is from different vendors and to bring them on a single platform is a major challenge. Hence, these factors are expected to hamper the market growth in the near future.

High implementation cost is expected to restrain growth of the global smart parking systems market during the forecast period

Smart parking system is a highly sophisticated and advanced technology. Implementing it requires significant investment in terms of infrastructure, technology, and overall maintenance. Furthermore, it needs to be operated by skilled personnel with adequate training. Although government authorities in developed countries are adopting this system, many emerging economies are hesitant towards this technology due to significantly high cost. Thus, these factors are expected to restrain growth of the global smart parking systems market growth.

Figure 2: Global Smart Parking Systems Market Share, By Parking Type

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Global Smart Parking System Market Segmentation:

The global smart parking system market report is segmented into parking type, component, application and region.

• By Parking Type- On-street, Off-Street
• By Component- Hardware, Software, Services (System Integration and Installation, Parking Management, Maintenance)
• By Application: Airports, Government and Municipalities, Corporate and Commercial institutions

Key Developments

1. In June 2020, Key players are focused on mergers and acquisitions, in order expand the market presence. For instance, Urbiotica acquired Fastprk solution from Worldsensing, completing Urbiotica’s smart parking solutions.
2. In April 2022, the first carmaker to deploy Cisco wireless backhaul technology for pre-production vehicles' high-speed, real-time performance testing was General Motors. GM engineers analyse crucial vehicle data right away and make data-driven decisions with Cisco's industrial wireless networking.

Global Smart Parking System Market: Key Companies Insights

The global smart parking system market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global smart parking system market are Streetline, Inc., Worldsensing, Smart Parking Limited, Swarco AG, Amano McGann, Skidata AG, Nedap N.V., ParkMe, Inc., Cisco System, Inc., Parkmobile LLC, and Urbiotica.

*Definition: Smart Parking is a parking strategy that combines technology and human innovation in an effort to use as few resources as possible—such as fuel, time and space—to achieve faster, easier and denser parking of vehicles for the majority of time they remain idle.