Market Challenges And Opportunities

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.

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 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.