How is Rising Urban Road Congestion Driving Smart Parking Systems Market?

[Pramod Kumar]

It is true that the advent of vehicles and numerous advancements in the automobile industry has had countless positive effects, but vehicles these days are also causing a number of problems. As the disposable income of people has increased in various countries, owing a car stopped being a luxury since more than a decade. This has resulted in an alarmingly high number of vehicles on the roads, which further causes road congestion. Unorganized and inadequate parking spaces are also among factors which cause road congestion. As per industry experts, about 30.0% of the traffic congestion is on account of search for parking spaces.

People violating parking rules and parking their vehicles incorrectly further add to this problem. Because of all these factors, the demand for smart parking systems is growing rapidly. Smart parking basically refers to solutions such as smart parking sensors, counting sensors, or cameras, which are embedded into parking spots in order to detect whether a parking space is free or occupied. The data is collected in real-time and is transmitted to smart parking mobile application that lets the user know about the availability of the space in a parking area. 

The global smart parking systems market is predicted to generate a revenue of $9.1 billion in 2024, from $3.4 billion in 2018, registering a 16.1% CAGR during the forecast period (2019–2024). Smart parking systems help to park a car on both on-street and off-street parking sites. Off-street smart parking systems help in facilitating an easy pay-and-park process for both long and short durations, due to which off-street parking is more in demand. Hardware, service, and software technologies are offered under smart parking solutions.

Hardware components play a major role when it comes to detecting vehicle in parking spots. For example, smart meters are extensively utilized in both on-street and off-street parking systems, owing to the fact that they provide continuous gathering of large volumes of data for further processing and analysis. North America has been making the most use of smart parking systems till now because of the rising focus on adopting technologically advanced parking solutions and as mentioned above, rising number of vehicles on roads and surging traffic congestion in major cities in the region. The demand for these solutions is also projected to rise in the Asia-Pacific region in the coming years, owing to the growing penetration of this technology in China.

As smart cities are integrated with all kinds of connected technologies to make things more convenient for people, smart parking systems are bound to be a part of these cities. The major focus of smart cities is to offer managed operations to the residents and connected and advanced transportation facilities are a key component for accomplishing that. Smart parking solutions allow drivers to access real-time information regarding the availability of parking spots, before they set off on their journey. Considering these advantages, the smart parking systems market is expected to grow significantly in the coming years along with the development of smart cities.

Hence, smart parking systems are gaining popularity as they have the ability to tackle the problem of growing traffic on roads.    

Get More Details Smart Parking Systems Market Sales Data