Smart Parking Systems Market (2026 - 2033) Size, Share & Trends Analysis Report By Hardware (Smart Meters, Signage), By Software, By Service (Consulting Service, Engineering Service), By Type, By Application, By Region, And Segment Forecasts

Smart Parking Systems Market Summary

The global smart parking systems market size was estimated at USD 10.22 billion in 2025 and is projected to reach USD 53.38 billion by 2033, growing at a CAGR of 23.3% from 2026 to 2033. 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 negatively impacted market growth in 2020, due to strict lockdowns imposed by various governments to curb the transmission of the virus. 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 increasing global vehicle sales, are expected to drive 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 governments of various countries, such as India, U.S., South Korea, China, Australia, Japan, Germany, and Brazil are 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 technology 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 falsely 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 dominated the market in 2025 and accounted for the largest share of 42.0%. The world is witnessing increasing urbanization, and there is a need for on-street parking spaces across various cities globally, which has 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 their 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 and LPRs segment is expected to witness a significant CAGR over 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 system segment dominated the market in 2025. 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 save 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 solution segment is expected to witness a moderate CAGR over the forecast period. The growth can be attributed to 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 ensuring security and safety at parking sites in case of emergencies and contingencies. The rise of technology-based companies is expected to facilitate easy parking, booking, and payment for slots at various parking sites, thereby increasing the demand for analytics solutions.

Service Insights

The engineering services segment dominated the market in 2025. 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 system with a pre-booking facility for Stuttgart Airport.

The mobile app parking services segment is expected to witness significant growth in the forecast period. The segment is expected to grow significantly during the forecast period, driven by the widespread adoption of smartphone applications that support 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.

Type Insights

The off-street segment dominated the market in 2025. The growing demand for off-street parking can be attributed to the increasing number of companies offering applications for booking parking spaces in single slots. Furthermore, several smart cities and road development initiatives require robust parking space utilization through sensor-based vehicle detection technology to effectively 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 expected to grow at the fastest CAGR over 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.

Application Insights

The commercial segment dominated the market in 2025. 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 over 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, offering multiple benefits, including reserved parking spots, reduced management costs, and mobile payment options. 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.

Regional Insights

North America dominated the smart parking system and accounted for a share of 35.7% in 2025. 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.

U.S. Smart Parking Systems Market Trends

The U.S. smart parking systems market held a substantial share in 2025, driven by widespread adoption across major metropolitan areas and early integration of IoT- and AI-enabled parking solutions. Strong investments in smart city initiatives, traffic congestion management, and digital payment infrastructure further supported market leadership.

Europe Smart Parking Systems Market Trends

Europe smart parking systems market is expected to register a moderate CAGR from 2026 to 2033. The market is benefiting from strong sustainability initiatives, widespread deployment of low-emission zones, and increasing adoption of digital payment platforms and real-time parking guidance systems across major cities. The expansion of smart city programs and connected transportation infrastructure is further accelerating demand for integrated smart parking solutions.

The UK smart parking systems market is expected to grow at the fastest CAGR from 2026 to 2033. Rising adoption of app-based parking, dynamic pricing models, and sensor-enabled on-street and off-street parking solutions is strengthening market growth, particularly in response to sustainability targets and urban transport modernization initiatives.

The Germany smart parking systems market held a substantial market share in 2025. Stringent environmental regulations, combined with a focus on reducing urban traffic emissions and improving parking efficiency, are encouraging the deployment of automated parking systems, smart meters, and data-driven parking management platforms across major German cities.

Asia Pacific Smart Parking Systems Market Trends

The Asia Pacific smart parking systems market is expected to grow at a fastest CAGR during the forecast period. Governments and municipalities across the region are investing heavily in intelligent transportation systems to address traffic congestion, parking shortages, and emissions reduction. The growing adoption of IoT sensors, cloud-based parking management platforms, mobile applications, and contactless payment systems is further accelerating market growth, particularly in densely populated urban centers.

The China smart parking systems market held a dominant position in the region in 2025. The country is witnessing widespread deployment of AI-powered parking management, automated parking systems, and real-time space detection technologies to improve traffic flow and reduce urban congestion.

Key Smart Parking Systems Company Insights

Some of the key companies in the smart parking systems market include Siemens AG; Cisco Systems, Inc.; Amano McGann, Inc.; SKIDATA AG; Nedap N.V, among others. These companies focus on product innovation, R&D and strategic initiatives such as new product launches, business expansions, partnerships, collaborations and mergers and acquisitions.

• Siemens AG is engaged in developing, designing, and providing smart infrastructure solutions, including intelligent transportation systems, smart parking management platforms, traffic control solutions, and digital mobility services. The company offers integrated hardware, software, and analytics solutions that enable real-time parking availability, access control, automated payment, and traffic optimization. Siemens has a strong market presence across Europe, North America, Asia Pacific, and the Middle East, supported by long-standing relationships with municipalities and urban infrastructure operators.

• Cisco Systems, Inc. is involved in providing IoT-enabled networking, connectivity, and data analytics solutions that support smart parking systems as part of broader smart city ecosystems. The company enables real-time data collection and communication between parking sensors, cameras, mobile applications, and centralized parking management platforms through secure network infrastructure.

Recent Developments

• In November 2025, DP World has partnered with Parkin to launch a fully automated smart parking system at Dubai’s Al Aweer Central Fruit and Vegetable Market, covering around 2,500 light vehicle spaces and 500 truck spaces. The system utilizes license plate recognition and real-time data to facilitate barrier-free access, thereby reducing congestion and enhancing traffic flow at one of the region’s busiest food hubs. The initiative aims to streamline high-volume movements for traders and logistics operators, where efficiency is critical for perishables. This project supports Dubai’s Smart City agenda and the transformation of the site into the world’s largest integrated food trading and logistics center. Both DP World and Parkin highlighted that the collaboration will enhance operational efficiency across the supply chain while benefiting traders, visitors, and logistics providers.

• In October 2025, Autech-Otis has launched its next-generation chess-type (XY) parking system for overseas markets, drawing strong interest from urban developers. The system enables vehicles to move both horizontally and vertically, significantly improving parking efficiency in space-constrained environments. Demand is expected to be high in global megacities, prompting Autech-Otis to accelerate expansion across the Middle East, Southeast Asia, and Europe. Its compact design and advanced control system allow flexible deployment in underground and above-ground spaces within commercial districts, airports, mixed-use developments, and smart cities.

Smart Parking Systems Market Report Scope

Global Smart Parking Systems Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global smart parking systems market report based on hardware, software, service, type, application, and region:

• Hardware Outlook (Revenue, USD Million, 2021 - 2033)

  • Pucks (Wireless Sensors)

  • Cameras & LPRs

  • Smart Meters

  • Signage

  • Parking Gates

• Software Outlook (Revenue, USD Million, 2021 - 2033)

  • Parking Guidance System

  • Analytics Solutions

• Service Outlook (Revenue, USD Million, 2021 - 2033)

  • Consulting Service

  • Engineering Service

  • Mobile App Parking Service

• Type Outlook (Revenue, USD Million, 2021 - 2033)

  • On-street

  • Off-street

    • Garage Parking

    • Lot Parking

• Application Outlook (Revenue, USD Million, 2021 - 2033)

  • Commercial

  • Government

  • Transport Transit

• Regional Outlook (Revenue, USD Million, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)

    • KSA

    • UAE

    • South Africa