Smart Parking Systems Market Size, Share & Trends Report

Smart Parking Systems Market Size, Share & Trends Analysis Report By Hardware, By Software, By Service (Consulting Service, Engineering Service), By Type, By Application, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: May, 2021
  • Base Year for Estimate: 2020
  • Report ID: 978-1-68038-859-6
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 180

Report Overview

The global smart parking systems market size was valued at USD 4.4 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.5% from 2021 to 2028. Several countries across the globe have experienced and are currently experiencing varying degrees of lockdowns due to the COVID-19 pandemic. Furthermore, cities are experiencing a steep drop in traffic congestion. According to SpotHero, Inc., a U.S.-based smart parking solutions provider, since mid-March 2020, the demand for parking systems has decreased by 90.0% across the U.S. This decline is expected to adversely impact the market in the country as well as across the globe, at least for a short duration.

U.S. smart parking system market size, by hardware, 2016 - 2028 (USD Million)

However, post the COVID-19 pandemic, people are expected to use their vehicles for solo travel and avoid shared mobility, including public transportation. This is expected to fuel traffic congestion in numerous metro cities across the globe. The increase in traffic congestion is expected to propel the demand for smart parking solutions over the forecast period. The demand for smart parking systems, which can assist city administrations in efficiently managing dispersed parking spaces and help drivers in finding available parking spaces, is also expected to rise with increasing traffic congestion. The capability of these systems to ensure the necessary flexibility and scalability is further expected to trigger market growth.

The growing adoption of integrated automated solutions, combined with the advancements in wireless as well as digital payment technologies, is anticipated to contribute to market growth. Technologies utilized to implement effective systems include Machine-to-Machine (M2M) communication, data analytics, advanced sensors, smart parking meters, along with mobile applications for slot reservation and online payments. These technologies help determine whether a lot is empty or occupied and evaluate and transmit the information to mobile and web applications. Advancements in these technologies are expected to fuel market growth.

Poor traffic management is the primary cause of vehicle overcrowding and the resulting congestion on roads in several urban settings globally, which leads to air and noise pollution that can stifle economic activities. Smart parking systems can help tackle these problems by facilitating data collection in real-time and determining the availability of parking lots, thus benefiting the users in saving fuel costs and time. These systems can significantly reduce vehicular emissions as drivers unnecessarily do not have to loop around city blocks seeking parking spaces.

Having realized that such systems can also help minimize traffic congestion and reduce pollution levels, several governments globally are undertaking strategic initiatives encouraging their adoption. As such, favorable government policies in this area are projected to contribute significantly to market growth. For instance, in February 2017, the U.K. government announced the funding of USD 4.8 million around 19 local authorities for digital transport innovations.

Hardware Insights

The smart meters segment dominated in 2020 and accounted for the largest revenue share of over 40.0%. The increasing need for on-street parking spaces across various cities globally has chiefly led to the widespread use of parking meters. Smart meters track and record the number of vehicles that are parked, in addition to tracking free spaces. Most people park vehicles on the streets for long hours. This has compelled governments to deploy smart parking meters, which also help ensure appropriate payments for on-street parking slots.

The cameras and LPRs segment is projected to emerge as the fastest-growing segment during the forecast period. This can be attributed to the growing use of LPRs in-vehicle surveillance. The growing use of technologies such as image processing and human-computer interaction has 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 in 2020 and accounted for the largest revenue share of over 75.0%. These systems have gained traction in the market as they help drivers save time by proactively providing details of vacant spaces, parking guidelines, number of available spaces, and duration of availability. These systems ensure an enhanced experience for drivers, providing a user-friendly graphical interface by monitoring the status of several ultra-sonic sensors and electronic signs.

The analytics solutions segment is expected to witness significant growth over the forecast period. The segment's growth can be attributed to the capability of the parking sensors mounted on several structures such as light poles to systematically collect reliable information about vacant and occupied spaces. This information is collected in real-time and transmitted to end-users using an analytics solution. The collected information helps ensure security and safety at parking sites in case of emergencies and contingencies.

Service Insights

The engineering service segment dominated in 2020 and accounted for the largest revenue share of over 60.0%. The growth of the segment can be attributed to the increased adoption of autonomous and semi-autonomous cars, especially in developed economies. These cars require specifically designed parking lots and garages with robotic engineering facilities. Autonomous vehicle manufacturing hubs such as Canada and Germany are expected to witness widespread adoption of smart parking systems in the near future.

The consulting service segment is expected to witness significant growth over the forecast period. Consulting services address different management needs such as learning the use of a smart parking application or customizing a parking space according to the requirement of the operator or user. These services aid drivers and operators in easy and hassle-free parking. Consulting services, along with smart parking systems, enable easy operation, maintenance, and customization of facilities depending on customer requirements.

Application Insights

The commercial segment dominated in 2020 and accounted for the largest revenue share of over 45.0%. The growth of the segment can be attributed to the increased adoption of smart parking systems at shopping malls, sports complexes, corporate buildings, and theaters, among other public venues. Flexibility, high level of convenience, and mobile payment options offered by smart parking systems are anticipated to fuel the growth of the commercial segment.

The transport transit segment is expected to witness significant growth over the forecast period due to increased travel by airplanes. Airport authorities worldwide offer the facility to book or reserve parking spaces through its website and mobile apps. Online airport ticket vendors such as Ryanair offer the facility to reserve parking spaces at the airport while booking airline tickets. This, in turn, is expected to propel the transport transit segment growth over the forecast period.

Type Insights

The off-street segment dominated the market in 2020 and accounted for the largest revenue share of over 70.0%. The increasing adoption of off-street parking can be ascribed to the growing need to utilize space and accommodate many cars in a single slot. Smart city initiatives are demanding better parking space utilization using smart, sensor-based vehicle detection technology for managing parking issues. The increase in the number of industries that require adequate parking and smart detection facilities is further contributing to the segment growth.

Europe smart parking system market share, by type, 2020 (%)

The on-street segment is expected to witness significant growth over the forecast period. The segment is expected to benefit from the large-scale use of smartphone applications that allow users to track the accessibility of parking spaces in real-time. Furthermore, the segment is also expected to be driven by the increased focus of companies globally on providing smart parking solutions enabled with sensor-based technology for tracking vacant parking slots as people prefer parking on the streets.

Regional Insights

North America dominated the market in 2020 and accounted for the largest revenue share of over 35.0%. The market is expected to witness significant growth over the forecast period owing to the increasing number of vehicles in the region. Civic authorities in Canada and the U.S. are making efforts to reduce traffic congestions, which has been getting more and more severe with the increase in vehicle ownership. Part of the efforts is the increased adoption of smart parking systems, which help provide safe and legal parking for commercial and private vehicles. The increasing adoption of the smart cities concept and related technologies such as autonomous vehicles are further expected to drive the smart parking systems market in the region.

In Europe, the market is expected to present considerable growth opportunities, chiefly owing to government initiatives supporting intelligent parking systems as a part of the efforts to reduce pollution. Moreover, rising concerns about insufficient parking spaces, especially in urban spaces, are also driving the adoption of smart parking systems in the region. For instance, the International Road Transport Union (IRTU) took part in an EU-funded study that stated that the lack of secure and safe parking areas is a significant concern in Europe. Approximately 90% of transport operators and drivers stated that the current parking space is insufficient.

Key Companies & Market Share Insights

Leading companies are offering innovative solutions and hardware equipment to stay ahead of competitors. In response to the increasingly varying needs of parking lot management, smart parking market players are strengthening their collaborations with parking lot management firms. For instance, in February 2020, Amco S.A. was awarded a contract by the Memphis Area Transit Authority (MATA) in the U.S. for an automated fare collection system. Some of the prominent players in the global smart parking systems market include:

  • Altiux Innovations

  • Amano McGann, Inc.

  • Amco S.A.

  • BMW AG (ParkNow GmbH, Parkmobile LLC)

  • Cisco Systems, Inc.

  • CivicSmart, Inc.

  • Deteq Solutions

  • Flowbird

  • gtechna

  • INDECT Electronics & Distribution GmbH

  • Kapsch TrafficCom

  • Libelium Comunicaciones Distribuidas S.L.

  • Meter Feeder, Inc.

  • Mindteck

  • Municipal Parking Services, Inc.

  • Nedap N.V.

  • Park Assist

  • ParkHelp Technologies

  • ParkJockey

  • ParkMe Inc.

  • Robert Bosch GmbH

  • Siemens AG

  • SKIDATA AG

  • Smart Parking Ltd.

  • SpotHero, Inc.

  • Swarco AG

  • Urbiotica, S.L.

Smart Parking Systems Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 4.9 billion

Revenue forecast in 2028

USD 19.3 billion

Growth Rate

CAGR of 21.5% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company market share, competitive landscape, growth factors, and trends

Segments covered

Hardware, software, service, type, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; Germany; U.K.; China; India; Japan; Australia; Singapore; Thailand; Philippines; Hong Kong; Vietnam; Indonesia; Brazil

Key companies profiled

Altiux Innovations; Amano McGann, Inc.; Amco S.A.; BMW AG (ParkNow GmbH, Parkmobile, LLC); Cisco Systems, Inc.; CivicSmart, Inc.; Deteq Solutions; Flowbird; gtechna; INDECT Electronics & Distribution GmbH; Kapsch TrafficCom; Libelium Comunicaciones Distribuidas S.L.; Meter Feeder, Inc.; Mindteck; Municipal Parking Services, Inc.; Nedap N.V.; Park Assist; Parkeon; ParkHelp; ParkJockey; ParkMe Inc.; Robert Bosch GmbH; Siemens AG; SKIDATA AG; Smart Parking Ltd.; SpotHero, Inc.; Swarco AG; Urbiotica, S.L.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global smart parking system market report based on hardware, software, service, type, application, and region:

  • Hardware Outlook (Revenue, USD Million, 2016 - 2028)

    • Pucks (Wireless Sensors)

    • Cameras & LPRs

    • Smart Meters

    • Signage

    • Parking Gates

  • Software Outlook (Revenue, USD Million, 2016 - 2028)

    • Parking Guidance System

    • Analytics Solutions

  • Service Outlook (Revenue, USD Million, 2016 - 2028)

    • Consulting Service

    • Engineering Service

    • Mobile App Parking Service

  • Type Outlook (Revenue, USD Million, 2016 - 2028)

    • On-street

    • Off-street

      • Garage Parking

      • Lot Parking

  • Application Outlook (Revenue, USD Million, 2016 - 2028)

    • Commercial

    • Government

    • Transport Transit

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

      • Singapore

      • Thailand

      • Philippines

      • Hong Kong

      • Vietnam

      • Indonesia

    • Latin America

      • Brazil

    • MEA

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