Smart Parking Market - Forecasts from 2022 to 2027
The smart parking market is projected to witness a compound annual growth rate of 11.61% to grow to US$12.639 billion by 2027, from US$5.859 billion in 2020. the prime factor driving the demand for the smart parking market is the surge in the construction of smart cities and smart homes, which has created scope for the smart parking market. Furthermore, increasing disposable income and a rise in automotive sales have increased the requirement for safer and smarter parking, which hence drives the market demand. Moreover, increasing parking issues and high maintenance costs have heightened ] the need for safer parking which also supports the market growth. Infrastructure development and the proper construction of markets have further expanded the market growth opportunities.
The smart parking market, by region, has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The North American and European markets for smart parking are anticipated to hold a dominating share owing to the rise in the construction of smart buildings and smart homes. The regions have a technologically advanced infrastructure and have been inculcated with smart buildings for houses and businesses. Furthermore, a rise in the standard of living and surging demand for luxury lifestyles are forecasted to support the market demand. Increasing sales of passenger vehicles coupled with the rise in individuals' preference for private vehicles also supports the market. Moreover, robust investment and innovation in smart vehicles, such as self-driving vehicles, provide promising growth opportunities during the forecasted period.
The Asia Pacific smart parking market is forecasted to grow at the fastest rate owing to a surge in the construction of smart cities with robust urbanization and infrastructure development. Countries like India, China, South Korea, Japan, and Australia have been investing significantly in better economic development and hence have been investing in smart cities. Furthermore, the rise in disposable income has increased sales of automobiles, which has further created significant demand for smart parking. The rise in construction of multi-complexes and malls, along with smart buildings, has created notable scope for smart parking.
In-ground sensors are expected to dominate the market.
Based on technology, the smart parking market has been segmented into overhead indicator sensors, in-ground sensors, and surface-mount sensors. Due to the surge in the underground parking of vehicles, in-ground sensors are projected to dominate the market for smart parking. Smart parking software is expected to hold a notable share
By solution, the smart parking market has been segmented into hardware, software, and services. Software-based smart parking is expected to hold a notable share.
One of the prime reasons supporting the growth in the smart parking market is the rising demand for automobiles. Increased standards of living and innovation in the industry have raised vehicle sales. Data from OICA shows that motor vehicles sales globally increased in 2021. From January to June 2021, 44.401 million new vehicles were registered, from 34.321 million in 2020. The Asia Pacific and the Middle East saw the largest surge in sales during the period. Sales of vehicles reached 21.372 million in 2021, from 16.876 million in 2020. In the North American region, sales reached 11.521 in 2021, from 8.827 in 2020, while in Europe, sales reached 7.769 in 2021.
Another key factor that supports the market for smart parking is a surge in infrastructure development, which has resulted in a rise in the development of smart cities, particularly in the Asia Pacific region. In China, the government, through its projects Made in China 2025 and China Standard 2035, has laid out its plans that are expected to support the development of smart cities in the country. In India, the government has recognized 91 cities that have the capability to be converted into smart cities. Surat, Dehradun, Vadodara, Ahmedabad, and Hyderabad are a few cities in the country that are under development to be converted into smart cities. Australia and Japan are other countries in the region that are expected to provide robust demand for smart parking.
Increasing investment and a higher standard of living have increased the construction of multi-complexes and shopping malls, surging the demand for smart parking in these buildings. Consumers in their thousands visit complexes and malls, creating notable traffic and demand for space for effective parking.
The coronavirus pandemic hampered the market growth of smart parking, lowering its growth potential. The global lockdowns implemented to contain the spread of the virus severely affected the construction industry. A halt in construction projects of smart buildings, complexes, and malls halted the demand for smart parking, hence impacting the market growth.
Overhead Indicator Sensors
Middle East and Africa