Smart Parking Market

Smart Parking Market Size and Share:

The global smart parking market size was valued at USD 5.7 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 14.1 Billion by 2033, exhibiting a CAGR of 10.47% during 2025-2033. North America currently dominates the market, holding a significant market share of over 35.0% in 2024. The region’s smart parking market share is growing due to rapid urbanization and increasing number of vehicles, imposition of various government initiatives, rising environmental concerns, and increasing focus on customer convenience and time savings.

Automating parking processes, such as payment collection and space monitoring eliminates the need for manual labor. This reduction in workforce requirements allows operators to allocate resources more efficiently and lower labor-related costs. These optimize parking space usage, increasing capacity without additional infrastructure investment, leading to higher revenue generation. Internet of Things (IoT) sensors and real-time data analytics improve parking management, reducing maintenance costs, and ensuring smoother operations. Smart parking solutions also minimize issues like ticket fraud or mismanagement, cutting down on revenue losses. The integration of dynamic pricing further enhances revenue by adjusting rates based on demand, maximizing profit potential. These systems also enable better asset management by providing detailed reports and insights on parking patterns, helping operators make informed decisions. Additionally, by offering contactless payment and reservations, smart parking solutions provide greater convenience to users, increasing customer satisfaction and loyalty.

Real-time data from IoT sensors provides accurate parking space availability, thereby minimizing time spent searching for spots. This reduction in search time leads to lower fuel consumption, decreasing both costs and emissions. Smart parking systems enable dynamic pricing, optimizing parking revenues based on demand, which enhances financial efficiency. Parking operations are becoming more streamlined as automated payment solutions remove the need for manual processes. Integration with navigation apps also ensures drivers are directed to available spaces quickly, reducing congestion in busy areas. Automated parking solutions, including valet and robotic systems, further increase efficiency by minimizing human intervention. These advancements improve overall operational management, providing more parking capacity with fewer resources. The scalability of these systems allows cities to better manage their infrastructure, handling increasing vehicle numbers effectively. In December 2024, Detroit Metropolitan Airport announced to install a smart parking system to improve efficiency and passenger experience. The system will use sensors and real-time data, enhancing parking operations and reducing congestion, expected to complete by 2026.

Smart Parking Market Trends:

Rapid urbanization and increasing number of vehicles

Rapid urbanization is one of the main factors impelling the growth of the market. Cities worldwide are experiencing the pressure of accommodating a rising number of vehicles, causing congestion on roads and a lack of parking spaces. In this regard, smart parking systems serve as a solution to optimize the usage of available spaces. They use technologies like sensor systems, digital signage, and real-time data analytics to advise drivers about free parking spots available, thus shortening the parking search time. It not only minimizes traffic, but also aids in maintaining a more coordinated urban environment. Moreover, it maximizes parking space utility for more vehicles through automated parking solutions and well-thought-out design. In 2022, SUVs comprised about 46% of the global car sales, and their popularity was seen to surge dramatically in the United States, India, and Europe, according to reports. Increasing preference for SUVs drives the demand for efficient parking solutions even more significantly. The need for smart parking systems that can accommodate compact as well as larger vehicles are becoming a pressing concern as cities are trying to accommodate a wide variety of vehicles, making it an integral part of urban planning.

Recent technological advancements

The adoption of the Internet of Things (IoT) technology, which enables the integration of sensors and devices in parking areas, allowing for real-time monitoring and management of parking spaces, is impelling market growth. For example, in July 2021, Westfalia Parking released an integrated car parking solution, the Westfalia Parking app to enhance the efficiency and safety of automated parking facilities. This application provides contactless experience with a facility to track the vehicle which is convenient for the users. Furthermore, the utilization of artificial intelligence (AI) and machine learning (ML) algorithms to predict parking patterns and suggest optimal management strategies is positively influencing the market. Besides this, the introduction of automated parking systems, where vehicles can be parked using robotic systems, maximizing space utilization and reduces the need for human intervention, is favoring the smart parking market outlook. Moreover, the continual evolution of these technologies promises further enhancements in smart parking systems like better user interfaces, more accurate predictions, and seamless integration with other smart technologies.

Imposition of various government initiatives

Governments are actively promoting smart city projects, which often include smart parking solutions as a key component. These initiatives are driven by the need to address urban challenges like traffic congestion, environmental concerns, and the efficient use of urban space. According to the European Commission, the EU is adopting a series of proposals meant to reduce net greenhouse gas emissions to at least 55% by 2030 in comparison to levels reached in 1990; sustainable urban solutions, including smart parking. Furthermore, governments provide support in various forms, including funding, policy formulation, and regulatory frameworks that encourage the adoption of smart parking technologies. The introduction of policies that prioritize the allocation of urban space for smart parking facilities and the inclusion of smart parking systems in new commercial developments is strengthening the smart parking market growth. Moreover, the involvement of the public sector ensures that smart parking systems are aligned with broader urban planning and sustainability goals, making them integral to the future of urban development.

Rising environmental concerns

Environmental concerns are increasingly influencing the adoption of smart parking solutions. According to the European Commission, transportation accounted for 23% of the total greenhouse gas emissions in the EU in 2021, while passenger cars contributed more than half of this amount. This underscores the enormous impact of conventional transportation practices on the environment, including parking systems that are inefficient. Conventional parking methods often lead to excessive fuel consumption as drivers circle around, looking for available spaces, contributing to increased emissions and air pollution. Smart parking systems address this issue by significantly reducing the time and distance drivers spend searching for parking. It leads to lower fuel consumption and, consequently, a decrease in vehicular emissions. Furthermore, smart parking can be integrated with eco-friendly practices like electric vehicle (EV) charging stations, promoting the use of cleaner energy sources. Moreover, the data collected from smart parking systems can also be utilized for environmental analysis, helping city planners in designing more sustainable urban spaces.

Increasing focus on user convenience

The aspect of offering convenience and time savings technology is a significant factor impelling the market growth. Smart parking systems provide real-time information on parking availability, either through mobile apps or digital signage, allowing drivers to directly navigate to available spots. Research based on GSMA reveals that by deploying smart parking systems, the time spent by a user looking for a parking space can be minimized by up to 43%, vehicle miles travelled can be reduced by 30%, and a reduction of 8% in traffic volume can be ensured. Furthermore, they offer automated, cashless payment options, which adds to the ease of the parking experience. Additionally, the predictability and reduced stress associated with finding a parking space enhance the overall user experience. It is not just a boon for individual drivers but also for businesses, as it can increase the accessibility and attractiveness of commercial areas. Moreover, the rising user expectations for seamless and efficient services is facilitating the smart parking market demand as they offer time-saving and convenient features.

Smart Parking Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels for 2025-2033. Our report has categorized the market based on system, technology, component, solution, vertical type, and parking site.

Analysis by System:

• Guided Park Assist System
• Smart Park Assist System

Guided park assist systems lead the market with around 62.9% of market share in 2024. These systems leverage advanced technologies like cameras, sensors, and machine learning algorithms to streamline the parking process. The demand for such solutions is fueled by increasing vehicle density in urban areas, where drivers often face challenges locating and navigating tight parking spaces. They enhance convenience by providing real-time feedback, reducing the risk of collisions, and saving time for users. Automotive manufacturers are integrating these systems as part of their advanced driver assistance systems (ADAS), which further enhance their market penetration. Premium vehicle brands offer guided park assist as a standard or optional feature, influencing individual preferences. The trend is supported by smart city initiatives promoting efficient urban mobility. A growing number of parking facilities, particularly in developed regions, are adopting guided park assist systems to enhance customer experiences and operational efficiency.

 Analysis by Technology:

• Ultrasonic
• RFID
• IoT

Ultrasonic technology holds the largest share in the market due to its reliability, affordability, and ease of integration. Ultrasonic sensors are commonly used in parking systems to detect objects and measure distances, which makes them indispensable for parking guidance and assistive systems. Their ability to provide accurate, real-time data for parking applications is a key factor driving widespread adoption. Automotive manufacturers frequently incorporate ultrasonic sensors into vehicles for parking assistance, as they are cost-effective and perform well in various environmental conditions. These sensors are also extensively used in parking lot management systems to detect the occupancy status of parking spaces. Their compatibility with existing infrastructure makes them an ideal choice for retrofitting older parking facilities, further expanding their market reach. The simplicity of ultrasonic sensors ensures low maintenance costs and enhances their durability, which appeals to both manufacturers and end-users.

Analysis by Component:

• Hardware
• Software
• Services

Hardware components dominate the market due to their critical role in enabling system functionality. These components including sensors, cameras, parking meters, and control systems, are the backbone of smart parking solutions. Their demand is driven by the need for reliable, real-time data collection and analysis in parking management systems. Sensors, such as ultrasonic and infrared, are essential for detecting vehicle presence and occupancy in parking spaces. Cameras equipped with license plate recognition (LPR) technology enhance security and streamline access control. Additionally, parking meters and payment kiosks facilitate seamless user transactions, improving the overall parking experience. The growing trend of automated and connected vehicles is also fueling demand for advanced hardware. For instance, high-resolution cameras and radar systems are increasingly used in autonomous parking solutions. Governments and private enterprises investing in smart city infrastructure are focusing heavily on deploying robust hardware systems in parking facilities.

Analysis by Solution:

• Security and Surveillance
• Valet and Parking Reservation
• License Plate Recognition

Security and surveillance solutions lead the market as they address critical concerns related to safety, theft prevention, and traffic management. These systems utilize advanced technologies like high-definition cameras, motion sensors, and AI-based video analytics to monitor parking facilities in real time. Their ability to deter vandalism and theft enhances the appeal of smart parking solutions to both facility operators and end-users. As urbanization increases, parking facilities are being integrated into high-density areas where security risks are heightened. Security and surveillance systems help mitigate these risks by ensuring comprehensive monitoring and providing evidence in case of incidents. The rising adoption of automated parking systems further underscores the need for robust surveillance to protect vehicles and ensure smooth operations. Government regulations mandating surveillance in public parking areas and smart city initiatives promoting integrated security solutions are additional drivers for this segment.

Analysis by Vertical Type:

• Government and Municipalities
• Commercial Institutions
• Transport Facilities

Commercial institutions lead the market with around 42.6% of market share in 2024. Commercial institutions dominate the market as they face the highest demand for efficient parking management systems. These institutions include shopping malls, office complexes, airports, and hotels, which often experience high traffic volumes, necessitating advanced parking solutions to enhance user convenience and operational efficiency. Smart parking systems in commercial settings optimize space utilization, reduce congestion, and improve customer satisfaction. For instance, shopping malls benefit from parking guidance systems that direct customers to available spaces, minimizing the overall time spent looking for parking and increasing footfall. Airports and hotels leverage these systems to streamline operations and enhance user experiences, particularly in premium or valet parking services. The increasing focus on sustainability and energy efficiency also aligns with the adoption of smart parking solutions in commercial institutions. Features, such as EV charging stations and dynamic pricing models are becoming integral to parking management in these facilities.

Analysis by Parking Site:

• Off-Street Parking
• On-Street Parking

Off-street parking leads the market with around 73.3% of market share in 2024. These facilities are better suited for implementing smart technologies, given their controlled environment and larger capacity compared to on-street parking. Off-street parking solutions offer higher revenue potential for operators through features like dynamic pricing, automated payment systems, and value-added services like EV charging. They are also a preferred choice for urban developers looking to optimize land use in high-density areas. The integration of smart parking systems in off-street facilities improves user convenience by providing real-time space availability and automated entry and exit processes. Governments and private operators are increasingly investing in off-street parking infrastructure as part of smart city initiatives. These facilities often incorporate advanced security systems, sustainable energy solutions, and IoT-enabled technologies, making them more attractive to users.

Regional Analysis:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

In 2024, North America accounted for the largest market share of over 35.0%. The region’s focus on smart city initiatives and urban mobility solutions has spurred investments in smart parking systems. These systems are crucial in urban centers like New York, Los Angeles, and Toronto. The strong presence of key market players and technology innovators in the United States and Canada contributes to the region’s leadership in the market. Companies in North America are leveraging IoT, AI, and cloud computing to develop cutting-edge parking solutions that cater to both urban and suburban areas. For example, in September 2024, Tesla launched two features, Actually Smart Summon (ASS) and Dumb Summon, enhancing parking convenience. ASS autonomously navigates parking lots, reaching user-specified destinations with advanced precision. Dumb Summon enables basic forward and backward vehicle movements for easier parking adjustments. These innovations improve vehicle mobility and parking system efficiency. Government initiatives promoting sustainable transportation and reduced traffic congestion are also driving the adoption of smart parking systems. For instance, cities across the US are implementing dynamic pricing and real-time parking availability solutions to optimize space utilization and reduce emissions.

Key Regional Takeaways:
 

United States Market Analysis

The United States hold 85% of the market share in North America. The market for smart parking is expanding in the United States due to the rising demand for passenger cars. According to CEIC data, United States motor vehicle sales for passenger cars reached 3,116,647 units in December 2023, marking a notable increase from 2,858,575 units in December 2022. This upward trend in vehicle sales directly contributes to the rising requirement for efficient parking solutions. The increasing number of vehicles on roads influence the demand for smart parking systems, optimizing the use of parking space, reducing traffic congestion, and ensuring general convenience in use. These systems are becoming crucial in cities where parking spaces are scarce, with the incorporation of smart parking technologies like tracking of real-time parking space availability, automated payment systems, and integrated navigation applications. These systems help reduce traffic volume and vehicle emissions, thus helping to meet sustainability goals in cities. With increasing population, the demand for seamless parking experiences is rising due to the expanding vehicle sales in the region.

Europe Market Analysis

The market in Europe is majorly driven by the growing registrations of new cars. In 2023, for the first time since 2019, the new car registrations increased across all Member States. The International Council on Clean Transportation reported that around 10.6 million new cars were registered, an increase of 14% compared to 2022. This rise in automobile sales indirectly enhances the requirement for efficient parking facilities. As there are so many more automobiles running on roads, smart parking systems can make a huge difference with the management of sparse parking locations. These systems assist in reducing congestion and offer real-time availability of parking lots and automated payments, resulting in a convenient experience for users while parking their cars. Furthermore, expansion in car registration, coupled with the need for smarter and greener urban space is strengthening the market growth in the EU.

Asia Pacific Market Analysis

Electric vehicles growth in the Asia Pacific region is majorly driving the market for smart parking solutions. According to the International Energy Agency, China witnessed a 35% rise in new electric car registrations, reaching 8.1 million in 2023. With the increasing usage of electric vehicles (EVs), there is an escalating demand for high-end parking solutions. As more electric vehicles are on the roads, there is an increased need for smart parking systems that can efficiently manage both vehicle parking and charging infrastructure. This trend is further supported by ongoing smart city initiatives across major countries like China, Japan, and India, where the integration of smart technologies in urban development is a priority. These factors are causing this market in the Asia Pacific region to be expanded at a fast rate.

Latin America Market Analysis

According to data published by CEIC, data Motor vehicle sales for passenger cars in Brazil reached 1,721,400 units in December 2023 in comparison to 1,576,662 units reported in December 2022. The growing traffic in the city and lack of parking spaces increases the need to have effective, efficient, and smart parking strategies. Thus, smart parking strategies that utilize optimum space with fewer congestions would be more prominent in meeting all these demands and challenges. Continued sales of vehicles in Brazil are also expected to propel the market growth for smart parking technologies. This pattern is a result of the growing regional need for innovative solutions in improving parking efficiency and contributing to the development of smarter and more sustainable cities.

Middle East and Africa Market Analysis

The Middle East market for electric vehicles is steadily growing, estimates suggest that it might reach USD 54 Billion by 2035 as per industry reports. This boom in the EV market is influencing the demand for smart parking, as more people are opting for electric vehicles with optimized parking infrastructure like charging stations. In parallel, sales of motor vehicles for passenger cars in Saudi Arabia reached 645,723 units as of December 2023, according to CEIC data. The rise in vehicle sales coupled with growth in the EV market necessitates the integration of smart parking technologies within the region. The systems will be instrumental in managing the challenges posed by parking but will also serve as an integrative component toward the incorporation of sustainable practices, including EV charging. The number of electric vehicles and the sales of cars in the region are expected to increase, thus leading the overall growth of the market across the Middle East and Africa.

Competitive Landscape:

Key players are actively engaging in various strategic activities to enhance their market presence and meet the growing demand for efficient parking solutions. They are investing heavily in research and development (R&D) to innovate and integrate advanced technologies like the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) into their products, enabling more efficient and user-friendly parking management systems. Furthermore, several companies are forming partnerships and collaborations with government bodies, technology providers, and automotive companies to expand their reach and tailor their solutions to diverse urban environments. Additionally, they are focusing on offering end-to-end solutions that encompass hardware, software, and services. For instance, in January 2024, Skidata AG partnered with Kopernikus Automotive to launch advanced smart parking solutions. The collaboration focuses on enhancing parking management with intelligent infrastructure, offering greater convenience and efficiency for users and providers.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Valeo S.A.
• Continental AG
• Robert Bosch GmbH
• Kapsch TrafficCom AG
• Cubic Corporation
• TKH Group
• Cisco Systems Inc.
• ParkMe Inc.
• Urbiotica
• Skidata AG
• Amano McGann Inc.
• Swarco AG
• Smart Parking Ltd
• Nedap N.V.
• Delphi Automotive PLC
• Aisin Corporation
• Siemens AG
• Xerox Corporation

Recent Developments:

• June 2024: DESIGNA India introduced a smart parking system at Puri's Shri Jagannath Temple, designed to streamline parking for visitors.

Smart Parking Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the smart parking market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global smart parking market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the smart parking industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.