The Global Smart Parking Systems Market, By Parking Site (On-street and Off-street), by Component (Hardware, Software, Services (System Integration and Installation, Parking Management and Maintenance), by Application (Airports, Government and Municipalities and Corporate and Commercial institutions) and by Region (North America, Europe, Asia Pacific, RoW) - Global Forecast to 2027, is expected to be valued at US$ 385.0 million by 2027, exhibiting a CAGR of 17.5% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
A smart parking system is a sophisticated parking solution designed to provide drivers an ultimate solution on their journey from the beginning to end without searching for parking, cost, and travel. Smart parking systems modify parking functions by providing solutions such as access control, parking enforcement, permit management, revenue management, security and surveillance, parking guidance, automated valet parking, and slot management. Smart parking systems are designed in such a way that drivers have easy access to parking facilities in their ultimate destination without needing to search and can avoid other uncertainties related to cost and travel time.
The global smart parking system market is estimated to account for US$ 385.0 Mn in terms of value by the end of 2027.
Rising need for scalability, space efficiency, and flexibility is expected to boost the global smart parking systems market growth over the forecast period
There is a high demand for sustainable transportation policy. The primary objective of sustainable development is to increase welfare in the present while ensuring good economic, social, and environmental conditions for future generations. Currently, there is a requirement for better land-use planning and housing development, in order to reduce the generation of traffic. In many places, failure to integrate land use planning sufficiently with transport policy has been the cause of traffic congestion, which is difficult to manage. They can be easily relocated and deployed in small land spaces, owing to the small footprint of smart parking systems. This allows for better planning and for optimum utilization of land space. Smart parking is highly scalable and can be deployed whenever needed. Therefore, these factors are expected to propel the global smart parking systems market growth over the forecast period.
Growing focus on improving customer service can present lucrative growth opportunities
Key companies in the market are focused on improving customer service. Better customer service leads to a longer operational cycle of smart parking systems at lower costs. Moreover, during recent years, the number of electric vehicles has been increasing which is also aiding the demand for electric vehicle charging stations. Further, some companies are focusing on installing solar electric vehicle charging stations at parking spaces. For instance, in September 2014, Lumos Solar launched its SmartPark solar electric vehicle charging station, in order to tap the growing electric vehicle charging solutions market using clean technology.
Non-availability of supporting infrastructure is expected to hamper the global smart parking systems market growth over the forecast period
A smart parking system requires supporting infrastructure for proper functioning. This infrastructure includes robust building, adequate space, and advanced technology. Moreover, such infrastructure requires significant investment, which is not affordable for every government authority. Hence, these factors are expected to hamper the global smart parking systems market growth over the forecast period.
Large smart parking projects in major cities such as San Francisco, New York City, and Los Angeles, as well as small projects in the rest of the region, have made North America a major market for smart parking systems. For example, San Francisco’s SFpark program has provided many benefits to the city and drivers both. Drivers can find parking spots up to five minutes faster on SFpark blocks than on those equipped with the old mechanized parking systems, which has significantly reduced the distances traveled by various vehicles and increased sales tax revenues. For instance, in March 2014, Streetline, Inc. announced a project with Stationnement de Montreal, which manages the parking for the city of Montreal in Québec, Canada. The major goal of this project is to improve the parking experience by increasing parking availability for motorists.
Europe has some of the oldest cities in the world, are full of narrow roads. With reserved land resources, large populations, and old infrastructure, cities in Europe are ideal environments for the implementation of smart parking in their existing infrastructures. Instead of building any new structures, which can be expensive, many cities across Europe are adopting the smart parking solutions of various vendors. For instance, in March 2014, Manchester City Council, NSL Services Group, and Streetline, Inc. launched a complete integrated parking solution that would enable drivers to find parking space using Streetline’s smartphone application, Parker, while businesses guide their customers in finding parking through Streetline’s website, ParkerMap. In 2012, Siemens AG and Streetline, Inc. launched a smart parking project in Braunschweig, Germany. This advanced parking solution checks parking space availability provides real-time parking information through the Parker app and helps city officials manage parking throughout the city.
Global Smart Parking Systems Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. The ongoing COVID-19 pandemic has adversely affected smart parking system market. This is due to lockdown imposed by several countries to stop the spread of coronavirus. Many companies worldwide have closed their premises and all the workforce are working from home and this have impacted smart parking system in a huge manner. As parking system is not getting used and data is not transmitted over IoT system and due to this there is no new enhancement in the parking system. As payment gateway are also integrated with smart parking system and this have also impacted the payment gateway business. This will severely impacted the growth of smart parking system market.
Major companies involved in the global smart parking systems market are Streetline, Inc., Worldsensing, Smart Parking Limited, Swarco AG, Amano McGann, Skidata AG, Nedap N.V., ParkMe, Inc., Cisco System, Inc., Parkmobile LLC, and Urbiotica.
Major companies are focused on partnerships and collaborations, in order to expand the market presence. For instance, in June 2020, Parkmobile LLC partnered with City Birmingham, Alabama to allow residents to pay for parking through their mobile devices.
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