PUBLISHER: Allied Market Research | PRODUCT CODE: 1344518
PUBLISHER: Allied Market Research | PRODUCT CODE: 1344518
The Smart Parking Market size is expected to experience a significant growth rate of 17.4% from 2023-2032 owing to government initiatives in building smart cities across the globe - Allied Market Research
E-parking is an electronic parking system, which uses a wireless network to help drivers and customers find an easy and quick space to park their vehicles. It is designed to control traffic flow by helping visitors find parking quickly. E-parking system mostly uses available parking garages to assist customers coming for any commercial activities such as shopping, eating, and getting a short-term parking space available in off-street parking garages. It works through signs, which are displayed to drivers to guide them in relation to parking information, on the garages or lots that have available spaces. There are different signs that convey different information ensuring that the driver is on the right path.
The smart city initiatives being pursued in different parts of the globe would contribute to the growth of the segment. In addition, various smart parking systems rolled out in smart cities offer functions such as mobile payment and reservation of parking spots. Moreover, several governments collaborate with market players and implement smart parking systems with innovative features as part of their initiatives to ensure user convenience. Such strong initiative globally by the government boosts the demand for street line smart parking system. In October 2019, AppyWay, the pioneering kerbside management, and intelligent mobility firm, announced the launch of their innovative Smart City Parking scheme in the West Yorkshire town of Halifax in partnership with Calderdale Council. This scheme integrates technical capabilities such as smart parking sensors and sensor-enabled payments across on and off-street parking spaces, offering a seamless mobile app experience for customers.
In many developed or developing countries, the rise in disposable incomes has resulted in a rapid increase in sales of vehicles. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), 81,623,588 units of vehicles were sold during the financial year 2022. In addition, urbanization in developing countries such as India, Japan, and others led to the rising number of vehicles across the countries. For instance, according to India Auto Inc., the total of 3.89 million units of passenger vehicles sold in FY2023, the utility vehicles sub-segment accounted for a shade of more than 2 million units or 51.50% of total passenger vehicles sales, registering 35% Y-o-Y growth. This rise in the adoption of vehicles leads to problems such as limited car parking facilities and traffic and improper management of parking space. Smart parking solutions, which use advanced technology to optimize the use of parking spaces, are becoming increasingly popular as they help to reduce traffic congestion and enhance the overall user experience. This trend is expected to continue in the coming years, as urbanization and population growth drive further increases in vehicle ownership.
Moreover, technological advancements along with the steady rise in vehicle sales are the primary factor boosting the growth of the smart parking market in European countries. In March 2023, the EU car market recorded a significant 28.8% increase in passenger car registrations, surpassing more than a million units (1,087,939). All the largest markets of bloc saw double-digit growth last month, with Spain (66.1%) and Italy (40.7%) in the lead. Thus, a surge in the number of vehicles indicates congestion issues related to parking spaces, which are expected to provide opportunities for the smart parking market players.
In May 2021, the National Development and Reform Commission of China issued the "Opinions on Promoting the Development of Urban Parking Facilities", which stated that by 2025, large, medium, and small cities across the country may have basically built urban parking systems, with dedicated parking facilities, off-street public parking facilities, and on-street parking spaces. The rise in number of vehicles in the semi-urban and urban areas of China has impacted the country's parking system eventually leading to a shortage of parking spaces. Therefore, the county is now implementing smart parking systems, which in turn, has boosted the smart parking market.
Increased parking concerns across the globe, growth in demand for Internet of Things (IoT)-based technology and increase in the number of vehicles are the major factors that propel the smart parking market growth. However, high implementation cost & configuration complexity and low rate of internet penetration in developing regions are the major factors that hamper the growth of the smart parking market. Furthermore, the rise in investment in building driverless vehicles, and government initiatives in building smart cities across the globe are the factors that are expected to offer growth opportunities for the market during the forecast period.
The market segmentation is based on the type, technology, application, end user, and region. On the basis of type, it is bifurcated into off-street and on-street. On the basis of technology, it is classified into IoT, Ultrasonic, and RFID. On the basis of application, it is categorized into security & surveillance, smart payment system, e-parking, and license plate recognition. On the basis of end user, it is bifurcated into commercial and government. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Some major companies operating in the smart parking market report include Amano McGann, Inc., Continental AG, Dongyang Menics Co., Ltd, IEM SA, IPS Group Inc., Klaus Multiparking Systems, Robert Bosch GmbH, Smart Parking Limited, Swarco AG, and Urbiotica. The leading companies are adopting strategies such as product launch, product development, and expansion to strengthen their market position.