Technavio analysts forecast the global smart parking market to grow at a CAGR of over 18% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global smart parking market for 2017-2021. To determine the market size, the study considers revenue generated from parking site/facility providers, parking management firms, and online payment technology providers.
The market size of smart parking industry is expected to reach USD 26.2 billion by 2021, with maximum incremental growth originating from EMEA. The increasing
connected car shipments and increasing incorporation of the Internet of things are expected to drive the healthy growth in EMEA.
Online payment technology providers will register the highest growth during the forecast period, showcasing a CAGR of over 36%. Mobile payment methods like Apple Pay and CellOPark Australia are increasingly used to make on-street parking payments. This integration of payment apps and parking license apps with smart parking meters will enhance the customer’s parking experience, and drive the market growth.
Technavio analysts highlight the following four factors that are contributing to the growth of the global smart parking market:
- Increased adoption of smart parking sensors
- Growing adoption of intelligent transportation systems
- Advanced analytics on telematics to reduce traffic congestion
- Growth of automotive industry
Increased adoption of smart parking sensors
“Smart parking systems use sensors that are deployed in the center of a parking area to aid in the reduction of traffic congestions in highly populated areas. The data gathered from these sensors is analyzed to make highly efficient use of available parking space,” says Abhishek Sharma, one of the lead analysts at Technavio for M2M and connected devices research.
Smart parking uses real-time monitoring and control of the available parking space. A two-way M2M communication takes place between smart parking sensors and connected cars that reduce parking-related issues. The data regarding parking space availability is updated in real-time to a central software application, providing seamless data flow to the consumers.
Growing adoption of intelligent transportation systems
There is an increasing need for safe, efficient, and accessible public transport solutions in urban areas where congestions lead to an extension of travel times. Intelligent transportation systems (ITS) provide application-enabling network services to enable the operators to securely gather, analyze, and distribute networked resources in real time. Since smart parking has features such as traffic management, vehicle diagnostics, and video surveillance, it aids in smart management of transportation systems, thus pushing for market growth.
Advanced analytics on telematics to reduce traffic congestion
“To attain transparency in data and gain customer trust, companies have started applying advanced analytics to telematics data. This helps automotive companies not only understand customers better but also deliver personalized solutions in a completely connected environment,” says Abhishek.
Telematics provides control and understanding of recall issues that have the potential to save billions of dollars for original equipment manufacturers (OEMs). The partnerships between OEMs and telecom service providers, and adoption of cloud-based services are expected to generate huge profits for the smart parking market.
Growth of automotive industry
With the increase in electronic components in automotive vehicles, the integration of connectivity solutions in automotive industry has been steadily increasing. IoT connectivity in automotive vehicles through innumerable sensors and processors integrated into a car provide accurate and real-time information about the surrounding environment to the driver. Additionally, autonomous vehicles, which are a major innovation in the automotive industry, have the potential to secure social, economic, and mobility benefits, thus driving market growth.