The smart parking industry is changing the way we park by using new technologies like the Internet of Things, Artificial Intelligence, and cloud computing. These systems help find parking spots, allow people to book spaces through mobile apps, and even use automated parking. This makes parking easier, reduces traffic, and saves time.

More cities are using smart parking because there are more cars, and they want to reduce congestion. Big companies are creating sensor-based and AI-powered parking solutions to improve the experience and cut pollution. Smart parking is common in busy places like cities, airports, malls, and office buildings.

The industry is growing fast, with future improvements like self-parking cars, charging stations for electric vehicles, and smarter ways to use parking spaces.

Increased Wait Time to Find a Parking Space

The world’s population is growing at a fast pace and it’s especially faster in developing economies, especially in the Asia-pacific and Africa region. As of 2024, the world population has reached 8.1 billion and is projected to grow by approximately 25%, reaching around 9.8 billion by 2050. Currently, over 24% of the global population resides in cities, which contributes to more than 80% of the world’s GDP. This rapid urbanization, combined with rising passenger vehicle sales, has intensified congestion and traffic in urban centers, posing significant challenges for city infrastructure and mobility.

For instance, as per data from Amsterdam-based location technology company TomTom N.V., London had the slowest city center traffic in 2023, with vehicles averaging just 15 mph. Meanwhile, Dublin topped the list for congestion, with commuters losing a staggering 153 hours to traffic over the year. TomTom's analysis of 387 cities revealed that traffic speeds remained unchanged in 82 cities, while 228 saw a decline. In both London and Dublin, the travel time for a 6-mile journey increased by one minute compared to 2022.

The growing population in cities is leading to higher density of vehicles in cities. Additionally, as more and more people are migrating to cities, it is creating more demand for parking spaces. Similarly, a lot of parking spaces go unused because people don’t have the right information. To fix this, parking providers are using modern technology like IoT solutions, mobile apps, and real-time updates to show available spots, making better use of their space.

Growing Sales of Passenger Vehicles

Automobile production and sales have grown rapidly in recent years, mainly due to improvements in electric and hybrid vehicle technology. More people can afford cars now, and demand is rising in countries like China, India, Brazil, Indonesia, and Mexico. As cities are growing and populations are increasing, more vehicles are needed. At the same time, high fuel prices are making hybrid cars more popular since they use 20%–35% less fuel than regular gasoline cars.

The below graph depicts the global sales of passenger vehicle from 2019 to 2023.

The graph shows how long it took, on average, to travel 10 km in major cities worldwide in 2024.

Upcoming Trends in The Smart Parking Industry

Increase in the Use of IoT in Vehicles

The adoption of IoT-based vehicles is rising due to growing demand for connected automotive solutions. These vehicles feature real-time data exchange, predictive maintenance, and enhanced safety. Consumers want easy connectivity, increasing demand for IoT in vehicles. IoT also improves smart parking by saving time and money. In the U.S., drivers spend 17 hours a year looking for parking, costing $73 billion. Automotive IoT helps by finding open spots, guiding routes, and reducing traffic, boosting the smart parking industry.

Traffic Prediction through the Use of AI And Machine Learning

Modern smart parking uses IoT sensors in CCTV cameras and highways to track traffic. This helps adjust parking prices in real time and manage spaces better. Connected cars share data to predict and report traffic patterns. By analyzing traffic flow, IoT-enabled vehicles help drivers optimize routes and compare parking prices in specific areas, enhancing overall efficiency in urban mobility and smart parking management.

Industry Players and Innovations

The smart parking market is highly competitive, with established manufacturers utilizing their financial and technical strengths to maintain a competitive edge. Key players are investing in technological advancements to enhance smart parking solutions. For instance, on January 23, 2023, Robert Bosch GmbH and APCOA Parking launched automated valet parking technology in Germany. They installed 15 parking garages and deployed an SAE Level 4 driverless parking system, aiming to equip hundreds of garages worldwide in the next decade. Their initial focus was on key German cities like Hamburg, Berlin, Cologne, Frankfurt, and Munich, particularly in high-traffic areas such as airports and event venues.

On July 25, 2022, IPS Group, Inc. introduced high-precision stereoscopic vehicle detection sensors to improve intelligent parking operations. These sensors provided real-time data, historical occupancy trends, and demand-based pricing insights. With greater accuracy, longer battery life, and easy maintenance, they outperformed other market solutions. On October 19, 2022, Amano McGann, Inc. partnered with Soldier Field stadium in Chicago to deploy smart parking technology. Amano ONE's cloud platform cut maintenance costs, enabled remote updates, and made parking lane management smoother. On August 3, 2021, Continental AG invested in Kopernikus Automotive, a German AI firm specializing in automated parking.

They developed infrastructure-based automated parking for garages, factories, and logistics centres, offering a cost-effective, scalable solution for hotels and airports. These strategic advancements are reshaping the smart parking industry, driving innovation, efficiency, and user convenience.

Future Scenario

The future of smart parking is evolving with technology, urban growth, and the need for sustainability. AI-powered systems are helping manage parking spaces better by analyzing real-time data, while IoT sensors improve vehicle detection, cutting down search time and traffic congestion. With the expansion of 5G, data transmission in parking solutions is becoming faster and more reliable. In crowded cities, automated parking garages with robotic systems and multi-level stacking are being explored to save space.

Sustainability is a key focus, with more parking areas integrating EV charging stations to support electric vehicles. Some governments and companies are also testing blockchain-based payments for secure and hassle-free transactions. Smart city projects in Europe, the U.S., and Asia are increasing investments in AI-driven and automated parking solutions. At the same time, Mobility-as-a-Service (MaaS) platforms are encouraging better connections between parking, ride-sharing, and public transport, making urban mobility more efficient and eco-friendlier.

Winding up

The future of smart parking is expected to transform urban mobility by integrating cutting-edge technologies such as AI, IoT, and cloud computing. With urban growth and increasing vehicle ownership, the need for better parking solutions is rising. Advances in automated parking, real-time space detection, and EV charging make parking easier, help reduce traffic, and cut emissions. Also, with ongoing investments in smart city projects, AI-driven parking is gaining attention. Smart parking comes with the potential to support smoother, more sustainable urban mobility indeed.

Allied Market Research aims to equip stakeholders with comprehensive knowledge about the smart parking technology within the automotive industry. Vendors can use smart parking technology to improve efficiency, reduce risks, and grow their business. By adopting this innovation, they can streamline operations and stay competitive in the fast-changing automotive and transportation industry. For more insights into smart parking technology, contact our specialists today!