Smart Parking Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Component:

Based on the component, the market is segmented into hardware, software, and services.

Trends in the component:

• There has been a shift towards cloud-based apps/portals for operators and consumers for various parking solutions.
• More businesses are offering B2B services for operators to manage their parking spaces and help end users to find parking space related information like nearest parking spots and reserving the spots.

Hardware accounted for the largest revenue share of 54.23% in the year 2024.

• Cameras help in image recognition to identify free parking spaces, helping automate the parking process
• Smart meters allow users to park and pay for the duration of their parking and detect data like license information to store information about the vehicle.
• IOT sensors have witnessed a huge increase in the intelligent parking space due to ease of use in tracking movement of cars which in turn drives market.
• For instance, SmartParking ltd. offers ANPR camera system to read and digitalize a vehicle’s number plate in real time. The ANPR system is useful for storing information about a vehicle in the database for security and tolling.
• Therefore, the rising advancements in parking hardware like sensors, cameras, and smart meters has resulted in the smart parking market expansion during the forecast period.

Software is anticipated to register the fastest CAGR during the forecast period.

• Intelligent parking software/apps are experiencing rapid growth given the widespread adoption of smartphones and the ease of using apps to book parking spots.
• Many apps today are designed to address the growing needs of consumers to park easily and securely. The apps/software help end-users find information like the nearest parking bays/areas, online payments, and bookings.
• The growing adoption of the apps, especially cloud-based apps, has fueled the market due to the ease of use of cloud technology.
• For instance, Park Help Technologies offers “ParkManager”, a parking management platform that integrates IoT with software offering features like Unified Map GUI. The software platform also helps in managing all the sensors being used within a parking site in one place and helps in configuring the sensors remotely through the web application.
• Hence, the use of software is projected to increase the utilization of intelligent parking solutions, in turn, driving the smart parking market size during the forecast period.

By Type:

Based on the type, the market is segmented into on-street and off-street.

Trends in the type:

• Off-street parking facilities, whether privately owned (such as gyms or restaurants) or publicly owned are facing an increasing demand for smart parking solutions.

Off-street accounted for the largest revenue share in the year 2024 and it is anticipated to register the fastest CAGR during the forecast period

• Growing commercial sectors, which include supermarkets, retail stores, and offices among others is driving the market.
• The increasing demand for real estate, especially in housing and shopping malls, is driving a greater need for smart parking solutions in off-street parking areas.
• The growing congestion in cities has increased the need for intelligent parking solutions since many urban cities today are technologically advanced to support the infrastructure.
• Therefore, adoption of automated parking in off-street parking is expected to drive the smart parking market size during the forecast period.

By Application:

Based on the application, the market is segmented into real-time parking availability, automatic number plate recognition, real-time decision making, and others.

Trends in the Application:

• Increasing adoption by parking operators to offer users real-time parking availability and contactless payment options are driving the smart parking market growth.
• Rising use of ANPR for tracking vehicles that are stolen and growing enforcement of rules in a parking space is leading to enhanced security.

Automatic Number Plate Recognition accounted for the largest revenue share in the year 2024.

• ANPR using smart meters allows for quick entry and exit without human intervention and has made it possible to park vehicles without human intervention at the entrance or exit gate.
• Enhanced security with ANPR due to tracking of vehicles that are flagged or vehicles that are stolen has resulted in the smart parking market expansion.
• IoT sensors are also being used in automated parking to guide car drivers to the nearest available parking spot, allowing for less human intervention and more automation.
• Therefore, growing adoption of smart meters for ANPR is expected to increase the smart parking market share during the forecast period.

Real-time parking availability is anticipated to register the fastest CAGR during the forecast period.

• Real-time parking availability makes it easier for users to find real-time data about nearest parking spots near them and occupancy in the parking spots to get free space data and other analysis.
• Apps today offer services where users can track real-time parking availability information conveniently through apps or website, which has increased the smart parking market demand.
• For instance, Parking Rhino offers users the option to find the nearest parking options and book these spaces through their app.
• Real-time parking also allows operators to monitor traffic inflow, outflow, and data analysis of customers in their parking lots in real time.
• Hence, rising adoption of real-time parking availability for finding parking spaces is expected to drive the smart parking market share during the forecast period.

By End-User:

Based on the end user, the market is segmented into commercial, government, corporate, and residential.

Trends in the end user:

• End users consisting of commercial, corporate, governments are increasingly using intelligent parking solutions to serve their parking needs, resulting in smart parking market growth.
• Factors like investment in smart cities by governments and growing technological adoption are driving the commercial and corporate parking market.

Commercial accounted for the largest revenue share in the market in 2024.

• Increasing numbers of commercial spaces and the need to offer smart solutions to maximize efficiency has driven the need for intelligent parking in this space.
• The rising adoption of contactless parking post-COVID has resulted in a growing need for intelligent parking spaces in hospital.
• Moreover, there has been an increase in the number of airports being built due to the increasing investments in the aviation industry which in turn drives the market.
• For instance, according to the IATA, the number of air passengers globally is projected to rise at a CAGR of 3.4% during the forecast period of 2019-2040. The growth in passengers will increase the need for airports to accommodate vehicles of these passengers in their parking spaces using smart solutions.
• Therefore, as per the smart parking market analysis, the increasing developments in contactless parking in the commercial sector are propelling the smart parking market trends.

Corporate is anticipated to register the fastest CAGR during the forecast period.

• The increase in corporate office spaces results in more parking spaces for the employees who commute using their personal vehicles.
• Office spaces/buildings can keep track of their employee vehicles, security of these vehicles, effective parking of these vehicles using various intelligent parking solutions.
• Therefore, the growing need for employee vehicle tracking and security in corporate is projected to drive the smart parking market trends during the forecast period.