North America Smart Parking System Market (2023 - 2030)

Market Size & Trends

The North America smart parking market was valued at USD 2.31 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 20.5% from 2023 to 2030. The increasing global urbanization and accelerated use of automobiles are expected to propel the market growth over the forecast period, as they lead to city congestion. The rising use of analytics for developing applications that provide parking solutions further accelerates the industry's growth. Consumers are increasingly adopting smartphones and devices that support mobile applications that aid in reserving, paying, and checking the availability of parking slots.

Technological proliferation has resulted in the development of equipment that enables easy parking of vehicles. Indoor and outdoor Parking Guidance Systems (PGS) direct the vehicle drivers, which saves their time and fuel consumed.

However, the increasing regulations in North America pose a few challenges as manufacturers must comply with the regulations, such as the layout of parking slots in terms of dimensions and safety mirrors at parking slots. The solution providers are further required to maintain precision to avoid mishaps and congestion arising due to the mismanagement of apps and solutions.

The smart parking system includes an on-site deployment of an Internet of Things (IoT) module, which is used to signalize and monitor the state of availability of parking spaces. A mobile application enables end-users to check the availability of parking spaces and book a parking space accordingly.

Component Insights

The hardware segment accounted for the largest revenue share of 54.1% in 2022. With the integration of smart sensors, cameras, and signage, real-time data collection and analysis are made possible, enabling efficient parking space detection and monitoring. Additionally, the proliferation of smart city initiatives and the desire to optimize parking utilization further contribute to the growth of the hardware segment. Technological advancements and increased awareness about the benefits of smart parking also drive the demand for innovative and reliable hardware components.

The cameras and LPRs segment is expected to emerge as the fastest-growing segment, owing to the LPR camera’s ability to detect vehicles and capture license plates of automobiles in motion. The information related to vehicles, their entry, exit time, and license plate numbers are recorded.

The smart meters have captured the largest market share, owing to their applications in the on-street avenue. Easy collection of fines using smart meters for illegal positioning and identification of fraudulent tickets has reduced the burden of traffic police in cities.

The application of pucks, signage, and barrier gates is rising in various metro cities. Signages provide directions to drivers and enable wayfinding. Wireless sensors have been increasingly used for underground slots and outdoor sites as they provide a count of vehicles surpassing these locations.

The market for analytics solutions is expected to witness faster growth over the forecast period, owing to the presence of a large number of key players in the region. The companies are adopting analytical tools to gather information regarding locations, vehicles, availability, and slot reservations. It is further propelling North America smart parking market growth.

The service segment is expected to grow at the fastest CAGR of 21.4% during the forecast period. Industry participants focus on developing various applications that enable easy booking of slots and update users with notifications regarding the validity of their tickets. Such apps are on the rise due to the increased use of smartphones.

Application Insights

The commercial segment held the largest revenue share of 44.5% in 2022. Increased adoption of smart parking systems at sports complexes, stadiums, commercial complexes, shopping malls, and multiplexes, among others, has led to large-scale adoption of these systems in the commercial segment.

The government segment is expected to grow at the fastest CAGR of 22.1% over the forecast period. This is attributed to the increasing number of smart city project initiatives across the U.S. and Canada.

Type Insights

The off-street parking segment held the largest revenue share of 70.5% in 2022 and is expected to witness the highest CAGR of 20.9% over the forecast period. There is a substantial rise in the number of garages and lots that allow the parking of many vehicles due to the increased use of automobiles. Moreover, the off-street segment is expected to grow over the forecast period due to smart cities and infrastructure initiatives. Also, the off-street parking segment is further sub-segmented into the garage and lot.

In countries such as the U.S. and Canada, available plots are converted into lots, thereby providing large spaces for the positioning of vehicles. Several sites have installed PGS and analytics solutions that enable users to check the availability of slots for booking.

The on-street parking segment is anticipated to grow at a significant CAGR during the forecast period. The segment growth is attributed to rising urbanization and the need for convenient parking solutions that can allow drivers to park closer to their destination.

Regional Insights

U.S. dominated the market and accounted for the largest revenue share of 85.2% in 2022. The presence of a large number of key market players in the U.S. has resulted in the exceptional growth of smart parking systems in the country. The demand for these solutions is increasing owing to the increasing congestion issues.

Canada is expected to grow at the fastest CAGR of 23.5% during the forecast period, owing to the increasing number of smart cities and smart infrastructure in the country. It has increased the number of non-residential and private parking spaces in the country. The Canadian government supports the initiative of parking service providers as it helps in traffic management in the cities, thereby boosting regional growth.

Key Companies & Market Share Insights

The key players focus on developing new solutions and products that can be deployed in traffic management to avoid city congestion. Companies emphasize incorporating the latest technologies into their solutions to avoid wasting time and fuel. For instance, in February 2022, the Western Development Commission (WDC), Cisco, and Danalto collaborated to introduce the new Ennis Smart Parking initiative. This project aimed to offer intelligence that enabled better traffic management in the Ennis town core.

Recent Developments

• In January 2023, Robert Bosch GmbH and APCOA PARKING announced to provide automated valet parking technology in parking garages across Germany. Bosch offered driverless parking in 15 more APCOA parking garages throughout Germany. This technology is expected to be gradually introduced to a sizable market in several hundred parking garages worldwide.

• In October 2022, a parking technology provider, Amano McGann, declared that Chicago's Soldier Field now offers Amano ONE, the most user-friendly, potent, and reliable parking access and revenue control system. The cloud-based platform from Amano ONE provides seamless upgrades, minimal maintenance expenses, and simple quick-scan onboarding. Using this platform, guests and spectators can reach their parking locations more quickly, owing to the installation of 20 lanes of equipment.

• In April 2020, TASS International and Siemens collaborated on the newly launched project "UrbanSmartPark." It was the first project in the KIC Urban Mobility program, a European initiative supported by the EIT. In the area of automated/smart parking, the "UrbanSmartPark" would investigate a number of issues, including how parking solutions could be made more intelligent, potential technical solutions, prospective commercial models, and the present or desired regulatory environment.

North America Smart Parking Market