Advancements in internet of things technology is opening gateways to new opportunities for smart parking solution developers to explore. Innovations in ubiquitous computing coupled with the developments in cloud platforms are opening up new avenues for smart parking solutions companies to venture into. The rising popularity of data-driven operations and the benefits associated with it are causing an increase in the adoption of parking software around the world.
According to a recent Fact.MR study, the smart parking solutions market was valued at over $3000 million in 2018. IoT proliferation, couple with the strengthening wireless infrastructure around the globe continues to uphold demand for system devices in the smart parking solutions market. The system devices segment of the smart solutions market is expected to be valued at over $1500 thousand in 2019. Demand for parking software is anticipated to closely follow the suit of system devices.
A huge inflow and outflow of consumer vehicles in the premises of these institutions makes manual management of parking spaces complicated. Often manual management of parking spaces leads to inefficiencies and leakage of revenues. With parking management software, parking lot owners are being provided with an efficient system to manage their spaces while boosting their revenues.
Demand Remains Robust for Valet Parking Management Systems
The study opines automated valet parking solutions to witness highest growth in the foreseeable future. Automated valet parking management solutions are gradually replacing the conventional valet parking systems. Valet parking has become a popular trend in urban areas, and companies are launching automated valet parking management solutions to meet the needs of the urban population.
The automated valet parking system uses a combination of technologies to find the consumer a perfect place to park thus unburdening them of the hassle to find a parking space. Additionally, smart valet parking management solutions offer the convenience of drivers retaining their keys, knowing the exact place of parking and the way to their spot. According to the study, smart valet parking solutions witnessed a Y-o-Y growth of 9.9% in 2018 over 2017.
Continued Investment of Government and Municipalities in Smart Parking Solutions
A Rapid rise in the number of automobiles coupled with the scarcity of parking spaces is one of the leading causes of traffic congestion in urban areas. Recent studies have concluded that over 25% of traffic congestion incidences around the world can be attributed to the scarcity of parking spaces. Further, the demand for flexible payments systems for parking has been on the rise. In addition to these, smart parking solutions contribute to a healthier environment by ensuring a free flow of traffic which, in turn, aids in the substantial reduction in pollution. Due to these factors government and municipalities are looking to streamline the parking management throughout cities in order to comprehensively reduce commute time while offering the convenience of hassle-free parking systems.
North America will continue to maintain the largest share of the smart parking solutions market owing to the presence of some of the major OEM in the region. Further, increasing investments in smart city solutions in the region will drive smart parking solutions market growth in North America. Owing to these factors, the total investments made on smart parking solutions in the continent surpassed the $900 million mark in 2018.
Apart from North America the smart parking solutions market is expected to grow at an exponential rate in Japan. The upsurge of the smart parking solutions market in the region can be attributed to the rapid technological advancements coupled with the scarcity of parking spaces in the country. Investors in the region are realizing the potential that the smart parking solutions market holds and are investing heavily in it. For instance, SoftBank announced it would be launching its own application that would allow people to book and pay for parking spaces in advance. Akippa, a firm which operates an IoT-based parking lot in Japan, raised $22 million to expand its services and launch a new mobility app to further streamline the parking procedure in Japan.
According to the report, smart parking solutions market is projected to grow at 9% CAGR through 2028.
The insights presented here are from a research study Smart Parking Solutions Market by Fact.MR.