The global smart parking systems market was valued at USD 4.44 billion in 2020 and is expected to grow at a CAGR of 21.6% during the forecast period. The growth of the systems market is attributed to the rising implementation of integrated automated solutions with ever-increasing concerns about vehicle parking, along with the significant advancements in the systems to help transmit information to mobile and web applications.
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These advancements or innovations emerging in the field of smart parking systems include automated robots, car lifts, robot car parks, smart sensors, and more. These technical developments help to eliminate the systems concerns and improve driver as well as passenger experience.
On average, 44% of drivers find parking a traumatic experience, and nearly all drivers spend 4 days annually for spaces to park, which may promote the adoption of the systems. Moreover, the continual increase in consumer preference towards luxury, safety, and comfort needs in vehicles, combined with growing competition among OEMs to provide such driver assistance features, which, in turn, expands the industry for smart parking systems globally.
These solutions are intended in such a way that helps the driver to easily access parking facilities in their decisive destination without requiring to search and can often prevent other uncertainties associated with cost and travel time. Thus, they are considered as the preferable option for vehicle safety and passenger safety, coupled with the environment-friendly automotive systems among end-users.
The increasing number of vehicles on the road and the limited availability of parking spaces are creating a lucrative need for digital automobile solutions. Also, the increased number of vehicles is further considerably causing a significant traffic issue in major cities. As a matter of this fact, the market demand-supply parking spaces are extending each year.
The inadequacy of parking space leads to superfluous traffic congestions, which bother drivers, generate more noise and air pollution, and obstruct market economic activity. Therefore, these factors are expected to drive the growth of the global market of smart parking systems over the forecast period. Furthermore, a surge in the number of road accidents is another major reason to escalate the market demand for smart systems. For instance, as per the National Safety Council, in the United States, the traffic fatalities on roads reached over 40,000 in 2018, and similarly, car theft has grown rapidly.
In addition, in 2018, more than 114,000 motor vehicle thefts were reported in England and Wales, and an increase of more than 8,000 offenses in comparison to 2017. As a result, the government of these regions is deploying strict rules to implement smart parking systems, thereby creating a lucrative growth prospect for the smart parking systems market over the forecast period.
The market is primarily segmented on the basis of hardware, software, service, application, and region.
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Based on the hardware segment, the smart meter was the largest revenue contributor in the global smart systems market in 2020. The continual growth in the need for on-street areas across urban cities has primarily led to the extensive adoption of meters worldwide. Besides, smart meters can track and record the number of parked vehicles simultaneously and pursue free spaces. This has forced governments to install smart meters, which further help ensure timely payments for on-street systems, which is predicted to propel the market growth worldwide.
The camera and LPRs segment is expected to hold the largest market share during 2021-2028. This can be accredited to the growing utilization of LPRs in-vehicle surveillance. Further, the increasing utility of sophisticated technologies, such as human-computer interaction and image processing, has led to extensively installed cameras in smart systems to identify and monitor vehicle's entry and exit in a parking site. These aforementioned factors are anticipated to reinforce the intelligent parking systems market growth in the forecasting years.
Geographically, North America was leading the global market in 2020. This is mainly due to the increasing popularity and implementation of these systems in smart city projects, the rising introduction of safety regulations by the regulatory bodies and transport authorities across the region.
Civic authorities in the United States and Canada are making continuous efforts to minimize road fatalities and traffic congestions, which have been getting more severe on account of growing vehicle ownership. Part of these efforts is strengthening the adoption of smart systems, which aid in delivering safe and legal systems for private and commercial vehicles.
Favorable support subsidized by the local and central governments in European countries on the road safety and traffic congestion strategy is further augmenting the market growth in the region. For instance, the European Commission has passed the "National Road Safety Plan Horizon 2020." The plan proposes a graded system of objectives with two levels for both high-risk categories of road users and general road safety trends. Such initiatives are expected to bolster the region's market growth.
Moreover, Asia Pacific intelligent parking systems market is projected to exhibit a high CAGR over the study period due to stringent government norms concerning traffic congestion activities and pollution control strategies, the increasing number of vehicles on the road, and the growing development of smart cities.
For instance, as per the International Urban Cooperation (IUC) report published in January 2021, the adoption of the smart system typically saves fuel of 97,112 liters for cars annually by considering the car market demand of 4,146 lots. This is comparable to the valued annual Green House Gas (GHG) emission reduction of almost 228 tonnes of CO2e. Such an initiative will strengthen the market outlook for the global market.
Some of the major market players operating the global market include Altiux Innovations, Amco S.A., BMW AG, Cisco Systems, Inc., CivicSmart, Inc., Deteq Solutions, gtechna, INDECT Electronics, Meter Feeder, Inc., Mindteck, Kapsch TrafficCom, Municipal Parking Services, Flowbird, ParkHelp Technologies, ParkJockey, ParkMe Inc., Siemens AG, Nedap N.V., SKIDATA AG, Smart Parking, Swarco AG, and Urbiotica, S.L.
Market size value in 2020
USD 4.44 billion
Revenue forecast in 2028
USD 16.06 billion
21.6% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million/billion and CAGR from 2021 to 2028
By Hardware, By Software, Service, By Application, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Altiux Innovations, Amco S.A., BMW AG, Cisco Systems, Inc., CivicSmart, Inc., Deteq Solutions, gtechna, INDECT Electronics, Meter Feeder, Inc., Mindteck, Kapsch TrafficCom, Municipal Parking Services, Flowbird, ParkHelp Technologies, ParkJockey, ParkMe Inc., Siemens AG, Nedap N.V., SKIDATA AG, Smart Parking, Swarco AG, and Urbiotica, S.L.