Concerns about car overloading and traffic jams in metropolitan areas, which are the primary sources of air and noise pollution and can stifle economic activity, are rising due to bad traffic management. Real-time data details provided by the smart parking system can be used to address these issues and evaluate whether parking spaces are available. Furthermore, these systems can considerably reduce vehicle emissions by eliminating the need for vehicles to circle city blocks in search of parking spaces pointlessly.
Governmental visions of smart cities influence the smart parking industry
Governments worldwide are looking forward to creating smart cities because of growing traffic congestion, environmental concerns, and population growth. These cities will increase the quality of life while assisting authorities in resource conservation. Therefore, it is anticipated that favorable government policies in this area will considerably contribute to the growth of the smart parking industry. For instance, the Australian government announced funding of USD 50 million in April 2021 to support the adoption of smart parking nationwide.
The M2M Connectivity
The expansion of integrated automated solutions and improvements in wireless and digital payment technologies are anticipated to fuel the expansion of the smart parking industry. Machine-to-machine (M2M) connectivity, data analytics, sophisticated sensors, smart parking meters, and mobile applications for slot bookings and online payments are the technologies used to build these systems. These technologies are intended to identify if a parking lot is vacant or occupied, assess the data, and communicate it to mobile and web applications. It is anticipated that these technological developments will fuel market expansion.
The commercial segment led the market with an overall revenue share of more than 40% in 2021. Among other public venues, the rising use of smart parking systems at shopping centers, sports facilities, office buildings, and theaters is predicted to accelerate the commercial segment's growth throughout the forecast period. Furthermore, smart parking systems' high levels of convenience and mobile payment choices are anticipated to support the commercial segment's expansion.
Due to an increase in air travel, the transport transit segment is anticipated to grow considerably during the projection period. Parking spaces can be reserved through airport authorities' websites and mobile apps worldwide. Several airport ticket sellers, like Ryanair, are now providing the ability to reserve airport parking spaces. This is anticipated to fuel the segment's growth throughout the projected period.
Smart parking industry expansion as a result of increasing automobiles
In 2021, North America had the highest revenue share of over 35%. Throughout the forecast period, the regional market for smart parking systems will be anticipated to expand due to the rising number of automobiles. Civic officials in the US and Canada are working to ease traffic congestion, which has worsened as the car ownership demand has increased. Along with service providers, governments are also launching campaigns to expand the use of smart parking technologies, which offer safe and legal parking for both individual and business vehicles, expanding the smart parking industry. Additionally, the development of smart parking systems in the area is driven by the growing popularity of smart city programs.
Europe to show substantial growth
Due to government measures supporting intelligent parking systems as part of the fight against pollution, the Europe region is anticipated to grow at a substantial CAGR throughout the projected period. Additionally, one of the key factors influencing the expansion of the market in the area is worries about a lack of parking spots. For instance, the International Road Transport Union (IRTU) took part in a study funded by the EU that found a severe shortage of safe and secure parking spaces in Europe. According to the study, 90% of drivers and transport operators believe there is not enough parking.