Smart Parking Systems Market Size, Share, Growth Analysis, By Type(off-street parking and on-street parking), By Component(sensors, cameras, parking meter, a central server), By Region - Industry Forecast 2025-2032

Smart Parking Systems Market size was valued at USD 0 Billion in 2023 and is poised to grow from USD 0 Billion in 2024 to USD 0 Billion by 2032, growing at a CAGR of 22.1% during the forecast period (2025-2032).

Smart parking systems play a crucial role in efficiently managing dispersed parking spaces for cities and assisting drivers in finding available spots, thereby reducing traffic congestion. The integration of transport systems, geospatial data, and wireless sensor information has been made possible through technological advancements, enabling the use of smart parking meters, License Plate Recognition (LPR) cameras, and parking guidance systems. These technologies have streamlined vehicle parking, saving time and fuel and driving the growth of the smart parking system market alongside the increasing global vehicle sales.

The challenges posed by the growing urban population, including traffic congestion, are being addressed through the development of smart cities, offering governments opportunities to tackle these issues effectively. Various countries like India, the U.S., South Korea, China, Australia, Japan, Germany, and Brazil have initiated smart city projects, creating a favorable outlook for the smart parking system market. Notably, Indonesia's PT PP (Persero) Tbk collaborated with South Korea's LG CNS to plan a smart city project for Indonesia's new capital Nusantara, highlighting the industry's trend.

The market growth is further driven by the integration of automated parking solutions with advanced wireless and digital payment technologies. These solutions incorporate technologies like advanced sensors, data analytics, smart parking meters, Machine-to-Machine (M2M) communication, and mobile applications for slot reservations and online payments. The continuous advancements in these technologies are expected to fuel the growth of the smart parking systems market.

Despite the positive outlook, the main restraint for market growth during the forecast period is the lack of awareness about the benefits of smart parking solutions. Additionally, electromagnetic interference disrupts RFID-tagged smart parking solutions, leading to inaccuracies in vehicle detection. Overcoming these challenges, market players are collaborating with technology providers to develop innovative solutions. For instance, Park+ partnered with MyGate to create RFID-equipped smart parking solutions tailored for the residential market in November 2020.