Smart parking systems are gaining popularity due to the growing adoption of these systems by various end-users, such as governments and commercial buildings. Furthermore, favorable government initiatives for developing smart cities and smart parking infrastructure are also driving the growth of the global smart parking systems market..
A study recently conducted by the strategic consulting and market research company BlueWeave Consulting revealed that the global smart parking systems market was worth USD 4.5 billion in 2020 and is further projected to reach USD 17.2 billion by 2027, at a CAGR of 21.2% during the forecast period (2021-2027). Smart parking systems are gaining popularity due to the growing number of autonomous vehicles, technology integration, growing concerns related to traffic and parking issues, and the increasing adoption of these systems by various end-users, such as governments and commercial buildings. Furthermore, favorable government initiatives for developing smart cities and intelligent parking infrastructure are also driving the growth of the global smart parking systems market. For instance, Patna Municipal Corporation (India), in July 2021, announced the project to develop 38 smart parking systems across the city on a pilot basis.
Increasing Concerns Related to Parking Across the Globe is Expected to Drive the Growth of Global Smart Parking Systems Market
Finding a vacant parking space in a downtown area or a crowded city is difficult in most develop and developing countries. Moreover, finding vacant parking spaces in hospitals, shopping complexes, commercial buildings, hotels, airports, etc., is an equally challenging task. The growing number of car sales around the world and the requirement to park them appropriately has propelled the global smart parking system market to new heights. IBM conducted a study in 2018, which found that around 30% of city traffic is caused by drivers trying to find a parking spot.
Smart parking systems solve the problem related to parking by linking the parking system with an intelligent parking system. Moreover, prior booking, SMS & live updates regarding reservations help users overcome parking challenges. For instance, in May 2021, L&T Technology developed an A.I. solution for a smart parking system. Intel Corporation assisted in developing this technology. This new intelligent parking system recognizes license plates, shows the actual parking occupancy rate in real-time, and provides real-time parking availability information. It will save a lot of time for drivers and can lead to reduced traffic on roads. These factors expected to drive the global smart parking systems market.
Growing Investment in Smart City Projects and Government Initiatives Are Propelling the Market Forward
Smart city projects have led to the growing demand for smart parking systems around the world. Moreover, the governments of different countries are promoting smart city projects and implementing smart parking systems to ensure smooth traffic in the city. The integration of AI (Artificial Intelligence) further supports the growing implementation of smart parking systems in smart cities around the world. AI provides facilities like dynamic messaging, parking sensors, real-time occupancy data of parking spots, and available parking spots to ensure smooth parking of the vehicle.
According to Libelium Comunicaciones Distribuidas, a Spanish Smart Parking company, smart parking can reduce traffic volume by 8%, gas emission by 40%, and time spent by 43%, with an increase of 35% in parking revenues. The Australian Government’s USD 50 million smart city projects also cover the implementation of smart parking across the country. The “Integrated Smart Parking System” project is one such project in Australia to increase parking in public spaces for the people. To control traffic and parking, governments are promoting the latest technologies in smart cities, which is projected to drive the global smart parking market during the forecast period.
The Hardware Segment Holds the Largest Share in the Component Segment
Based on components, the smart parking systems market is segmented into hardware and software. The hardware segment consisting of pucks, cameras & LPRs, smart meters, signage, and parking gates holds a significant share in the smart parking system market. Cameras, and smart meters, are widely deployed in on-street parking. The growing demand for on-street parking in cities has resulted in widespread hardware implementation. Since most people park their cars on-road for several hours, governments are installing more hardware and cameras on-road to maintain traffic flow, driving the growth of smart parking systems. In July 2021, Sony published a new showcase of how its IMX500 sensors, backed by artificial intelligence (AI) processing, are at the core of three “smart city” trials in Rome, Italy.
Impact of COVID-19
The COVID-19 affected many industries negatively, and the smart parking systems market was no exception. In the wake of the lockdown, the demand for smart parking decreased dramatically. According to NAIOP, the Commercial Real Estate Development Association, the New York City is projected to lose around USD 600 million in parking revenues in 2020. On the other hand, TomTom Traffic Index reveals that traffic decreased in 387 major cities around the world in 2020. Additionally, the 2020 Global Traffic Scorecard by INRIX states that the number of hours spent by the US drivers in traffic went down from 99 hours in 2019 to 26 hours in 2020. For German drivers, the number went down from 46 hours to 26 hours. Fewer hours in traffic directly means less traffic on roads and decreased demand for smart parking systems.
Reduced traffic on roads and closing of offices, malls, gyms, restaurants, among others, led to reduced parking demand. The Chicago Mayor announced that, based on first six months of the year, the city was poised to write 52% fewer parking tickets in 2020. Smart parking systems markets, however, are expected to rebound by the end of 2021 due to mass vaccination campaigns and companies planning to call in their employees.
Global Smart Parking Systems Market: Regional Insights
Geographically, the smart parking systems market is categorized into North America, Europe, the Asia-Pacific, the Middle East & Africa, and Latin America. North America accounted for the largest share in the smart parking system market in 2020 and is likely to dominate during the forecast period. The presence of global leaders, enormous traffic jams, colossal vehicle fleet, and integration of the latest technology are some of the factors supporting the dominant market share of North America in the global smart parking systems market. For example, the State of Michigan has teamed up with Ford, Bedrock, and Bosch to launch America’s first-of-its-kind test lab for emerging parking technology – the Detroit Smart Parking Lab. The lab opens in September 2021, allowing companies to test parking-related mobility, logistics, and electric vehicle charging technologies.
Some of the key players in the smart parking systems market are Altiux Innovations, Amano McGann, Inc., Amco S.A.., BMW AG (ParkNow GmbH, Parkmobile LLC), Cisco Systems, Inc., CivicSmart, Inc., Deteq Solutions, Flowbird, gtechna, INDECT Electronics & Distribution GmbH, KapschTrafficCom, LibeliumComunicacionesDistribuidas S.L., Robert Bosch GmbH, Siemens AG, Municipal Parking Services, Inc., Nedap N.V., and other prominent players. The growing applications of smart parking systems and extensive R&D in this domain are creating lucrative opportunities for the key players. Additionally, the market players are collaborating with each other and partnering with the government to gain an advantage over competitors.
In August 2021, Bhubaneswar Smart City Limited (BSCL) announced that the much-awaited smart parking project in the city between SishuBhawan and Vani ViharChhak would start from September 2021. After the project is implemented, commuters will be required to reserve a parking spot via mobile applications before leaving their houses for any destination within the smart city.
In August 2021, Smart Parking Limited announced the acquisition of Enterprise Parking Solutions (EPS) Limited. EPS was founded in 2017 and manage 68 parking sites across the UK. All 68 sites will be added to the Smart Parking Limited enterprise and will also be integrated to the Smart Parking back office system to create synergy between supply chain, processing and account management.