Smart Parking Market Size, Share, Trends, Growth and Forecast 2032

Smart Parking Industry Prospective:

The global smart parking market size was worth around USD 7.16 billion in 2023 and is predicted to grow to around USD 27.85 billion by 2032, with a compound annual growth rate (CAGR) of roughly 18.50% between 2024 and 2032.

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Smart Parking Market: Overview

Smart parking is a novel parking solution to detect free parking spaces and relay the information to the end-users to make informed decisions related to vehicle parking. In most cases, smart parking technologies consist of cameras, smart parking sensors, and counting sensors as the three main components.

Furthermore, they are mostly embedded in parking spots to detect information such as free or occupied parking spaces. Smart parking technologies provide real-time information and hence have shown extensive applications in urban areas that are densely populated with vehicles. In addition, the industry is projected to witness higher growth during the forecast period as a result of increased investments in smart city projects worldwide. Tools designed for intelligent parking solutions are a part of smart cities and areas.

Furthermore, these technologies are known to improve the overall driving experience along with promoting higher safety and reduced pollution. The coming years are anticipated to deliver exceptional growth opportunities for the smart parking industry players especially as the demand for intelligent vehicles continues to grow. The leading growth barrier for the market is the lack of sufficient awareness and the high cost of technology installation.

Key Insights:

• As per the analysis shared by our research analyst, the global smart parking market is estimated to grow annually at a CAGR of around 18.50% over the forecast period (2024-2032)
• In terms of revenue, the global smart parking market size was valued at around USD 7.16 billion in 2023 and is projected to reach USD 27.85 billion by 2032.
• The smart parking market is projected to grow at a significant rate due to the rising investment in smart city projects.
• Based on the system type, the guided park assist system segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the application, the commercial segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Smart Parking Market: Growth Drivers

Rising investment in smart city projects to drive market revenue in the coming years

The global smart parking market is expected to be driven by rising investments in smart city projects worldwide. Smart parking tools and applications are developed to improve the overall quality of living especially in urban areas. These regions are home to millions of vehicles being driven from one end to another every day, thus requiring sufficient parking spaces across residential, commercial, and other properties. The growing rate of traffic on the road will create more growth scope for smart parking solutions as finding free parking spaces is becoming more difficult.

For instance, according to a recent report by Park NYC, a driver in New York City generally spends nearly 107 hours per year seeking parking spaces. In the meanwhile, the drivers incur several losses including monetary and non-monetary. Smart City projects tend to offer better parking facilities in addition to other features.

According to the latest reports, the European Union is expected to invest nearly EUR 7 billion in the coming years to fund the development of safer and smarter transport infrastructure in the region.

Increasing the launch of new solutions in the market to encourage more customers toward the industry

In the backdrop of increasing demand for novel and effective solutions for parking management, the number of solutions in the market has considerably improved.

For instance, in January 2025, Park+, a technologically advanced smart parking solutions provider, announced the launch of the first smart parking management system in Prayagraj, India as the city hosts Maha Kumbh 2025, a holy pilgrimage. The tool will allow pilgrims to book and pay for parking spaces using the application, thus promoting a safer driving experience during the over-a-month-long event. Other investments in the global smart parking market include Artificial Intelligence (AI)-powered applications relaying real-time information and offering seamless integration with payment gateways.

Smart Parking Market: Restraints

Cost constraints and limited awareness limit the industry’s growth rate according to research

The global smart parking industry is expected to be restricted due to the cost constraints associated with the technology. For instance, the installation of sensors or cameras across parking lots can cost over USD 50 per unit.

In addition to this, the expenses associated with application development and deployment are considerably high leading to increased initial investment. The limited awareness about the benefits of using smart parking systems can further restrict the final revenue obtained in the industry in the coming years.

Smart Parking Market: Opportunities

Rising sale of new vehicles in the automotive industry to generate growth opportunities

The global smart parking market is expected to generate growth opportunities due to the rising sale of new vehicles in the market. In recent times, across the globe, vehicle density in rural and urban areas has drastically increased. Automotives including two-wheel and four-wheel vehicles are no longer a luxury, especially with the introduction of affordable automotives.

Furthermore, the introduction of strategic financial aids allowing consumers to buy vehicles on loan and equated monthly payments (EMIs) has further encouraged vehicle sales worldwide. The global automotive industry in 2024 was primarily dominated by electric vehicles (EVs) across passenger and commercial variants. Government support to build a more robust infrastructure for the manufacturing of advanced and affordable EVs worldwide has soared in the last few years.

In January 2025, India’s Mahindra & Mahindra, a leading player in the automotive industry, announced the inauguration of its state-of-the-art manufacturing and battery assembly unit in its Chakan plant which is a fully functional unit for producing Electric Origin sports utility vehicles (SUVs). Rising investments in developing charging infrastructure worldwide for smoother driving experience will be crucial to increased demand for EVs subsequently converting to higher usage of smart parking solutions.

Smart Parking Market: Challenges

Integration with legacy infrastructure and data privacy concerns to challenge market expansion

The global smart parking industry is projected to be challenged by the complexities of integrating novel technologies with existing parking infrastructure. Significant modifications will be required from older parking solutions to integrated advanced solutions.

Furthermore, cloud-based smart parking applications are at the risk of digital crimes leading to data theft while also compromising the privacy of the end-user. These factors will inhibit hassle-free growth in the industry.

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Smart Parking Market: Segmentation

The global smart parking market is segmented based on system type, product, application, and region.

Based on the system type, the global market segments are smart park assist systems and guided park assist systems. In 2023, the highest growth was listed in the guided park assist system which held control over 62.5% of the final revenue. The increasing focus of regional governments to improve parking infrastructure in urban and populated areas will fuel segmental revenue in the coming years. Furthermore, increasing partnerships with guided park assist system providers and automotive companies will open new avenues for further growth.

Based on the product, the global smart parking industry is divided into software, hardware, and services.

Based on the application, the global market segments are government, commercial, corporate, and others. In 2023, the highest growth was listed in the commercial segment. The rising number of vehicle-owners globally as well as increasing demand for parking space is helping the segment thrive. According to market estimates, the government section is projected to generate a CAGR of nearly 11.01% during the forecast period as official initiatives for improving parking solutions continue to grow worldwide.

Smart Parking Market: Regional Analysis

Asia-Pacific to lead the market growth rate during the forecast period

The global smart parking market will register the highest growth in Asia-Pacific during the forecast period. Countries such as China, India, South Korea, Singapore, and Japan will lead the regional market revenue, according to research. China and India are expected to deliver a CAGR of 15.01% during the forecast period as the regions continue to boost increased demand for vehicles in passenger and commercial ranges. These countries are densely populated regions with an increasing number of vehicle owners.

On the other hand, the countries are also facing land availability issues due to increased infrastructure development projects resulting in greater demand for smart parking solutions. China introduced Shanghai Parking in 2020 to manage the region’s growing traffic and parking-related problems. The application, since its launch, has covered more than 4290 public parking spaces.

Furthermore, Shanghai Parking 2.0 was also recently launched with several new upgrades. On the other hand, Hyundai Motor Group launched Parking Robot solutions in South Korea. The system leveraged automated robots for parking vehicles in compact spaces further fueling regional market expansion.

Smart Parking Market: Competitive Analysis

The global smart parking market is led by players like:

• Pillar Palatal LLC
• Inspire Medical Systems Inc.
• Vyaire Medical Inc.
• LinguaFlex LLC
• Nihon Kohden Corporation
• Nyxoah SA
• Fisher & Paykel Healthcare Corp. Ltd.
• LivaNova PLC
• Linguaflex Inc.
• Medtronic Plc
• SomnoMed Ltd.
• Siesta Medical Inc.
• Somnowell Ltd.
• Respicardia Inc.
• Nox Medical

The global smart parking market is segmented as follows:

By System Type

• Smart Park Assist System
• Guided Park Assist System

By Product

• Software
• Hardware
• Services

By Application

• Government
• Commercial
• Corporates
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa