The global smart parking system market size was valued at USD 81.3 million in 2015. An increasing number of vehicles across the globe are instrumental in intensifying the parking woes. The alarming problem of traffic congestion is rising exponentially on a global scale. The increasing need to counter and address parking related issues is significant in creating a high demand for efficient parking systems. Smart parking systems provide flexibility and scalability to effectively address the parking issues.
U.S. smart parking system market revenue by parking site, 2013 - 2024 (USD Million)
Vehicle overcrowding, which leads to congestion problems, is largely caused due to poor parking management. This consequently leads to noise and air pollution stifling the economic activity. Technological proliferation chiefly IoT & M2M communication and smart cities initiatives is anticipated to strengthen the industry growth as such parking systems facilitate in collecting real-time data to determine the availability of parking space. It benefits the users in saving time, cost, and fuel.
The adoption of smart parking systems involves the use of low-cost sensors and mobile phone-enabled automated payment systems. Such sophisticated features enable users in determining the available parking spaces and reserving the spot in advance reducing the time required to avail parking. The parking system helps in minimizing car emissions by eliminating the need for people to unnecessarily circle the city blocks in search of parking spaces.
Since, the system helps in minimizing traffic congestion and pollution levels, governments across the globe are undertaking various initiatives for the large-scale adoption of such parking systems. Favorable administrative schemes are presumed to remarkably contribute to the industry expansion in coming years.
The large scale system component is possible only through significant funding initiatives undertaken by the national governments. Nevertheless, the increasing adoption of these systems at airports, corporate campuses, and similar avenues is predicted to fuel the industry prospects.
The smart parking system market, on the basis of parking sites, can be classified into two types; on-street and off-street parking. The off-street parking site segment accounted for over 73% of the overall market share in 2015 and is predicted to continue its dominance over the next seven years.
Facilities such as ticketing and advanced payment solutions coupled with the launch of several mobile applications for parking guidance systems are favorably impacting the growth for off-street parking systems. This type of parking facilitates both long as well as short-term parking users.
The on-street parking site segment accounted for over 26% of the overall market share in 2015 and is predicted to grow over the next seven years.
The smart parking industry, on the basis of applications, can be classified into three types; transport transit, government, and commercial. The government application segment accounted for over 62% of the overall market share in 2015 and is predicted to continue its control on the market growth over the next seven years due to government initiatives in developed as well as developing countries.
The commercial application segment has a high growth potential and is projected to gain traction over the forecast period as these places are major attraction of tourist as well as local citizens. Such systems are increasingly adopted at corporate avenues, shopping malls, theaters, and sports complexes, among others where an efficient management of parking is on high priority. High convenience and flexibility along with mobile payment options are projected to impel growth in the commercial segment. Vendors are accentuating on providing convenience to users and are continually deploying new applications with innovative features.
The transport transit application segment accounted for over 9% of the overall market share in 2015 and is predicted to grow over the next seven years.
The North American smart parking system market accounted for over 39%of the global market share in 2015. The need for minimizing traffic congestion, owing to the increasing number of vehicles in the U.S. and Canada, is expected to trigger demand for efficient parking management systems.
The industry is predicted to gain momentum in the Asia Pacific and Latin American region, owing to the growing municipalities in the emerging economies. The growth is relatively higher in counties such as China, India, South Korea, and Brazil.
The European region is expected to present significant opportunities for industry expansion, owing to favorable government initiatives by the European Union in promoting the use of smart parking systems to minimize pollution and to create a sustainable environment.
Key players dominating the industry include Altiux Innovations, Amco, BMW Group, Bosch, Cisco Systems, Inc., CivicSmart, ParkHelp, ParkMe, ParkmobileLLC, Siemens, Swarco AG, Worldsensing, and Xerox Corp. These major industry players are focusing on offering differentiated products and integrating applications with additional features supplementing the basic utility of determining the availability of Internet of Things (IoT).
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