|Status : Published||Published On : Aug, 2021||Report Code : VRAT4025||Industry : Automotive & Transportation||Available Format :||Page : 201|
The global smart parking system market was valued at USD 4.4 billion in 2020 and is anticipated to reach USD 11.89 billion by 2027, thus growing at a CAGR of 10.57% during the forecast period. The smart parking system is an intelligent parking system that uses a sensing device to define the vacancy at the parking space. It helps the driver for safe parking and notified the driver correctly about the availability of parking slots with the help of embedded software, sensors, and appropriate management of the vehicle. This will reduce the amount of time spent by an individual to find a vacant parking slot. Moreover, smart parking solutions offer various services such as online payments, parking time notifications, and car searching functionalities for massive parking slots results in the growth of the industry globally. Thus, the global smart parking systems market is growing at a significant rate, due to rapid urbanization, a rise in parking concerns globally, the escalating requirement for IoT-based technology, increase in the adoption rate of a number of vehicles.
Different types of systems contribute to the size of the smart parking system market. The market has witnessed high demand for smart park assist systems due to innovation and automation in vehicles, strict emission regulation, and environmental concerns, and mounting concern over parking damages and accidents instigated by human error during parking.
The COVID-19 pandemic has severely impacted the global smart parking system market as it has led to quarantine and shelter-at-home places and reduces parking activities. Moreover, airports had the largest revenue source of parking which had a negative impact due to global travel restrictions. The education and work organizations such s universities, offices, and schools have shifted to digital learning and working arrangement. These all factors have hindered the smart parking system market growth during the COVID-19 outbreak.
Insight by Vehicle Type
Based on vehicle type, the global smart parking system is segmented into hardware, software, and services. Hardware is further subdivided into wireless sensors, cameras & LPRs, smart meters, signage, and parking gates. Software is further subdivided into parking guidance systems and analytics solutions. Services are further subdivided into consulting service, engineering service, and mobile app parking service. The hardware segment dominates the market owing to the rising need for on-street parking spaces in various cities which led to the adoption of parking meters, rising use LPRs in-vehicle surveillance. Consulting services and smart parking systems can easily operate, maintain and customize facilities according to customer requirements.
Insight by System Type
Based on system type, the global smart parking system market is divided into smart park assist systems and guided park assist systems. Among all system types, the smart park assist system segment is expected to grow at a faster rate in the market, due to expanding innovation and automation in vehicles, strict emission regulation, and environmental concerns, and rising concern over parking damages and accidents instigated by human error during parking.
Insight by Parking Site
Based on the parking site, the global smart parking system market is bifurcated into off-street and on-street. Among both the parking sites, the off-street segment dominates the market and is expected to grow at a faster rate in the market as it offers an easy pay-and-park process and provides advanced facilities such as RFID cards and smart ticketing. Moreover, the off-street smart parking system provides parking for short and long durations, resulting in the growth of off-street parking during the forecast period.
Insight by Technology
Based on technology, the smart parking system market is segregated into ultrasonic sensors, radar sensors, and image sensors. Among these technologies, the ultrasonic sensor segment accounts for the largest share in the market as it helps drivers to identify an appropriate parking space, offers short-range detection of obstacles in the parking range. Moreover, the cost is less of the ultrasonic sensors as compared to other technologies.
Insight by Application
Based on application, the global smart parking system market is segmented into security and surveillance, valet parking management, license plate recognition, and parking reservation management. On-demand valet parking services along with the growing demand for parking management systems in shopping malls and stadiums in countries such as Japan and China are anticipated to drive demand for smart parking systems in the Asia-Pacific region.
Insight by Component
Based on the component, the smart parking system market is divided into parking sensors, a display unit, steering angle sensors, and an electronic control unit (ECU). Among all components, parking sensors account for the largest share in the smart parking systems market.
Insight by End User
Based on the end-user, the market is bifurcated into commercial, residential, and government. The commercial segment is further subdivided into academic, recreational, transportation, retail, and hospitality. The commercial and government segment accounts for the highest CAGR during the forecast period. The effective use of parking management solutions in commercial use can optimize performance, increase productivity and shorten the turnaround time of workers in the industry while providing sufficient and comfortable parking spaces for residents, guests, and travelers. As the demand for managing road vehicles and minimizing fuel emissions continues to increase, government agencies are expected to experience phenomenal growth.
Smart parking is the most adopted and convenient way to ensure vehicle safety, even in small places. The navigation systems help drivers to find parking themselves using GPS, rising consumer preference towards comfort and luxury and uses digital invoices sent directly to users' smartphones to replace cash payments, thereby reducing unnecessary paper consumption. These factors will lead to the growth of the smart parking system market. Furthermore, rising parking concerns, an increasing number of accidents triggered by vehicles reversing out of parking spaces, strict emission regulation, environmental concerns, and rising requirement for IoT-based technology for smart city programs are the growth drivers for the smart parking systems market.
Government initiatives and schemes of developing smart cities, rising demand for innovative vehicle and passenger safety systems in passenger cars, and progressions in independent cars and smart park technology are also facilitating the growth of the smart parking systems market.
Lack of funds, lack of organizational awareness about the benefits associated with smart parking, especially in underdeveloped economies, non-availability of supporting infrastructure, and high implementation cost are acting as a challenge for the growth of the smart parking system market globally.
The increasing investment to build driverless vehicles, smart park technology, and rising government initiatives to build smart cities globally are creating lucrative opportunities for the growth of the global smart parking system market.
Globally, the manufacturing companies trying to enter the smart parking systems market require a high level of capital which poses a major barrier to the entry of new players. The established companies in the industry are investing massively in research and development to fuel innovations This offers an edge to the established players in the industry competition.
Geographically, Europe is expected to be the largest smart parking systems market due to the presence of a large number of automobile manufacturers developing smart parking systems in the region. In addition, Asia-Pacific is observed to witness the fastest growth in the market due to the rising consumer awareness about smart parking. Furthermore, rising parking concerns, an increase in a number of vehicles, and government initiatives such as smart cities are surging the growth of the Asia-Pacific smart parking systems market.
The smart parking system market is highly consolidated and the industry players are catering to the demand by collaborating with small players and investing in technologically advanced products across the globe. Strategic mergers and acquisitions, along with cooperation with city authorities to provide smarter mobility solutions are some of the main expansion strategies of these market participants.
Valeo S.A. and Cisco Corporation collaborated to develop innovations in smart mobility service.
Amano Mcgann extended its partnership with one of its oldest dealers PSX to Colorado.
Robert Bosch GmbH, Aisin Seiki Co., Ltd, Cubic Corporation, Continental AG, Amano Corporation, Valeo S.A., Kapsch Trafficcom AG, Siemens AG, TKH Group–Park Assist, Delphi Automotive PLC, Xerox Corporation, and Nedap Identification Systems are the key players offering smart parking systems.
Source: VynZ Research
Source: VynZ Research