“Global Smart Parking Systems Market to reach a market value of USD 33.47 Billion by 2031 growing at a CAGR of 21.5%”
The Global Smart Parking Systems Market size is expected to reach $33.47 billion by 2031, rising at a market growth of 21.5% CAGR during the forecast period.
The North America segment recorded 36% revenue share in the market in 2023. The region’s strong focus on integrating advanced technologies such as IoT, AI, machine learning, and cloud computing into transportation systems has propelled the demand for smart parking solutions. Government support in the form of funding and favorable policies, coupled with the presence of key market players, has further accelerated market growth.
Urbanization is accelerating at an unprecedented rate, posing significant challenges for cities around the globe. According to UN-Habitat, as of 2021, 56% of the world’s population lives in urban areas, which is projected to reach 68% by 2050. This corresponds to a rise of 2.2 billion urban residents in Asia and Africa. Hence, as urbanization continues to intensify, the issue of traffic congestion demands innovative, technology-driven solutions, which are beneficial for expanding the market.
Additionally, In order to optimize resource utilization, enhance urban infrastructure, and enhance the quality of life of residents, governments worldwide are investing significantly in smart city initiatives. A key component of these smart city initiatives is smart transportation, which includes intelligent parking systems designed to reduce congestion, enhance mobility, and lower environmental impact. Thus, government support and investment are key factors driving the adoption of smart parking systems.
However, the implementation of smart parking systems requires a substantial initial investment, making it a significant barrier to widespread adoption. The deployment process involves multiple cost-intensive components, such as advanced sensors, cameras, Internet of Things (IoT) devices, and sophisticated software platforms that enable real-time monitoring and management of parking spaces. Consequently, this financial hurdle slows the adoption rate of smart parking solutions, preventing their widespread implementation despite their long-term benefits in reducing congestion and optimizing urban mobility.
The analytics solutions segment witnessed 27% revenue share in the market in 2023. These solutions gather and analyze data from a variety of sources, including smart meters, cameras, and sensors, to offer actionable intelligence regarding customer behavior, peak usage periods, and parking space utilization.
City governments and municipalities are adopting smart on-street parking solutions to reduce traffic congestion, minimize illegal parking, and improve overall urban mobility. These systems typically include smart meters, sensors, and mobile applications that provide real-time parking availability information and facilitate easy, contactless payment options for users.
The mobile app parking service segment procured 18% revenue share in the market in 2023. By offering real-time information on parking availability, facilitating reservations, and supporting digital payment methods, these applications facilitate a streamlined user experience. As urban dwellers prioritize efficiency and time-saving solutions, mobile app parking services have become essential for reducing the hassle of finding parking spaces.
The parking gates segment acquired 11% revenue share in the market in 2023. Parking gates are in high demand due to their role in streamlining vehicle access control and improving security at parking facilities. Automated gates can integrate with LPR systems and mobile applications to enable seamless entry and exit, reducing wait times and operational costs.
The government segment acquired 38% revenue share in the market in 2023. The government segment is driven by increasing initiatives to modernize urban infrastructure, improve traffic management, and enhance public convenience. In densely populated urban areas, smart parking systems assist municipal authorities in the efficient management of on-street and off-street parking, the reduction of unlawful parking, and the alleviation of traffic congestion.
Free Valuable Insights: Global Smart Parking Systems Market size to reach USD 33.47 Billion by 2031
The Asia Pacific segment witnessed 29% revenue share in the market in 2023. The market for smart parking systems is now growing quickly in the Asia Pacific area due to factors such as increased vehicle ownership, population growth, and urbanization. Countries like China, India, Japan, and South Korea heavily invest in smart city projects emphasizing intelligent parking solutions to alleviate urban traffic congestion.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 7.18 Billion |
| Market size forecast in 2031 | USD 33.47 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 21.5% from 2024 to 2031 |
| Number of Pages | 367 |
| Number of Tables | 610 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Software, Type, Service, Hardware, Application, Region |
| Country scope |
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| Companies Included | BMW AG, Cisco Systems, Inc., Kapsch TrafficCom AG, Libelium Comunicaciones Distribuidas S.L., Nedap N.V., Robert Bosch GmbH, Siemens AG, SWARCO AG, INRIX, Inc., and Continental AG |
By Software
By Type
By Service
By Hardware
By Application
By Geography
This Market size is expected to reach $33.47 billion by 2031.
Rising Urbanization and Traffic Congestion are driving the Market in coming years, however, Substantially High Initial Investment Costs restraints the growth of the Market.
BMW AG, Cisco Systems, Inc., Kapsch TrafficCom AG, Libelium Comunicaciones Distribuidas S.L., Nedap N.V., Robert Bosch GmbH, Siemens AG, SWARCO AG, INRIX, Inc., and Continental AG
The expected CAGR of this Market is 21.5% from 2023 to 2031.
The Off-street segment captured the maximum revenue in the Market by Type in 2023, thereby, achieving a market value of $23.00 billion by 2031.
The North America region dominated the Market by Region in 2023, thereby, achieving a market value of $11.50 billion by 2031.
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