Parking Management Software Market Size, Share, and Growth Forecast for 2024 - 2031

Parking Management Software Market by Solution (Software, Services), End User (Commercial, Government, Transportation, Residential), and Regional Analysis from 2024 to 2031

Parking Management Software Market

Industry: IT and Telecommunication

Published Date: December-2024

Format: PPT*, PDF, EXCEL

Delivery Timelines: Contact Sales

Number of Pages: 191

Report ID: PMRREP35014

Report Price

$ 4900*

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Parking Management Software Market Size and Share Analysis

The parking management software market is estimated to increase from US$ 1.6 Bn in 2024 to US$ 3.9 Bn by 2031. The market is projected to record a CAGR of 13.7% during the forecast period from 2024 to 2031.

Rising car ownership and the ensuing parking problems in cities are directly related to the surging need for parking management software worldwide. Vehicle ownership has increased globally due to rising disposable income and rapid urbanization. These factors have made traffic congestion and parking shortages worse.

Parking management software is a key tool for both businesses and urban planners. This is due to its ability to provide features like contactless payment systems, real-time availability updates, and analytics to maximize parking spaces.

The RTA Smart Parking Project in Dubai is a recent example. It has shortened parking times by 30% by using AI to direct cars to open spaces. Similarly, parking management software is being adopted across Europe to address urban traffic issues due to Germany's Smart Mobility initiative.

parking management software market outlook, 2019-2031

Key Highlights of the Market

  • Based on solution, the software segment is set to lead with a parking management software market share of 60.5% in 2024 due to rising adoption of novel software for revenue management, parking reservation, and valet parking.
  • Based on end user, the commercial segment is anticipated to hold a market share of 29.9% in 2024 due to the rising need to optimize parking space utilization and enhance customer experience.
  • South Asia and Oceania is likely to register a CAGR of 12.3% during the forecast period with rising government expenditure on the development of smart cities.
  • Growing emphasis on interoperability and open data standards in the parking management ecosystem is likely to create novel opportunities.
  • Software providers are developing solutions that integrate seamlessly with other transportation systems, such as public transit networks and ride-sharing platforms.
  • Open data standards facilitate data sharing between different stakeholders, enabling better coordination and decision-making to address urban mobility challenges effectively.
  • Parking management software is transitioning toward cloud-based platforms, offering scalability, flexibility, and accessibility.

Market Attributes

Key Insights

Parking Management Software Market Size (2024E)

US$ 1.6 Bn

Projected Market Value (2031F)

US$ 3.9 Bn

Global Market Growth Rate (CAGR 2024 to 2031)

13.7%

Historical Market Growth Rate (CAGR 2019 to 2023)

10.5%

Europe to See Considerable Growth with Rising Smart City Initiatives

Europe parking management software market is set to continue its dominance with a share of 32.9% in 2024. One key factor driving the market in Europe is the increasing adoption of smart city initiatives. For instance,

  • Barcelona has implemented several smart city projects, making it a global leader in urban innovation. The city uses IoT-enabled sensors for real-time monitoring of traffic, air quality, and waste management.
  • Its smart parking system helps drivers locate available spaces, reducing traffic congestion and emissions. Additionally, the Barcelona Smart City Platform integrates data from multiple services to optimize energy use, public transport, and utilities.

Governments and municipalities across the region are investing in smart city technologies to improve urban infrastructure, reduce traffic congestion, and enhance sustainability. Parking management software solutions enable efficient use of parking spaces through real-time monitoring, automated payment systems, and analytics, aligning with the goals of these initiatives. Owing to the aforementioned factors, Europe is estimated to witness a CAGR of 3.2% through the forecast period.

Parking Management Services Gain Traction Amid Demand for Contactless Payment

It is anticipated that the services segment by solution will experience notably consistent growth throughout the projected timeframe at a CAGR of 11.4%. Parking management solutions are becoming more widely used, which is set to increase demand for support and maintenance services.

The parking management services industry is set to be driven by increasing urbanization, rising vehicle ownership, and growing need for efficient parking solutions to address urban traffic congestion. Moreover, government regulations promoting the adoption of sustainable and energy-efficient parking systems are anticipated to push demand. In addition, rising demand for contactless payment options post-pandemic propels growth. For example,

  • The European Union’s (EU) Green Deal emphasizes sustainable urban mobility, including efficient parking systems. Regulations like the EU Energy Efficiency Directive require public infrastructure, including parking facilities, to adopt energy-efficient solutions. Cities in Germany are installing solar-powered parking systems and LED lighting to meet sustainability targets.

Commercial Vehicle Owners Globally Demand Unique Parking Solutions

By end user, the commercial segment continues to be the leading category in the parking management system industry. It is projected to account for a significant share of 29.9% in 2024. Factors such as rising traffic of commercial motor vehicles, regulated time limits for driving, and tight schedules for delivery are leading to increased demand for commercial vehicle parking and parking management software. For instance,

  • As per the International Organization of Motor Vehicle Manufacturers (OICA), as of 2022, the global production of commercial vehicles was around 23.9 million units.
  • On average, over the last decade, commercial vehicle production has ranged between 20 and 25 million units annually.
  • The U.S., a leader in light-duty trucks and heavy commercial vehicles, accounts for a significant portion of the global total.

Market Introduction and Trend Analysis

Parking management software is a digital tool designed to simplify and optimize the operations involved in managing parking lots or garages. This powerful technology brings efficiency to the way one handles space allocation, payment processing, parking enforcement, and reporting in various types of parking facilities.

Parking management software comes packed with several benefits that can revolutionize the way to control the parking facilities. From enhancing efficiency to elevating user experience, these benefits can transform an often-stressful process into a smooth and streamlined one.

By providing real-time data access and automated reporting, the car parking management system allows for quick decision-making and better space utilization. This cuts down on wasted time and resources and leads to more efficient operation. Features like reservation systems and in-app payment processing make the parking experience highly convenient for drivers. This, in turn, can lead to rising customer satisfaction and loyalty.

There is a growing trend toward implementing smart parking solutions that leverage technology such as IoT sensors, real-time data analytics, and mobile apps. Smart parking software enables features like real-time parking availability, reservation systems, and digital payments, enhancing user experience and operational efficiency.

There is a growing popularity of mobile parking applications that allow drivers to find parking spots, pay for them, and manage parking sessions remotely. These help in integrating with smart parking systems for real-time information.

parking management software market insights and key trends

Historical Growth and Course Ahead

The COVID-19 pandemic profoundly impacted the parking management software market, causing disruptions in its historical performance. In 2020, the market experienced a significant downturn. Lockdown measures and travel restrictions led to reduced demand for parking services across various sectors such as commercial, retail, and hospitality.

The market witnessed a resurgence in growth from 2020 to 2023, driven by the increasing adoption of digital parking solutions to enhance safety, efficiency, and customer experience. The market recorded a CAGR of 10.5% from 2019 to 2023, indicating steady growth during the historical period.

The parking software solutions industry is projected to rise at a CAGR of 13.7% from 2024 to 2031. This growth trajectory is fueled by factors such as rapid urbanization, smart city initiatives, and technological developments.

The factors are set to drive demand for innovative parking solutions capable of optimizing space utilization, reducing congestion, and improving urban mobility. Additionally, growing focus on sustainability and environmental conservation is anticipated to propel market expansion. Automated parking systems are estimated to contribute to reducing carbon emissions and promoting eco-friendly transportation alternatives.

Market Growth Drivers

Surging Use of Smartphone Apps to Reserve Parking Spots Augments Demand

Mobile apps enable drivers to reserve parking spaces in advance, offering added convenience and peace of mind, especially in high-demand areas or during peak hours. By allowing drivers to pre-book parking spots through the app, operators can better manage parking demand, optimize space utilization, and improve operational efficiency. This feature is particularly valuable for event parking, airport parking, and other scenarios where demand for parking can exceed supply.

Increasing usage of smartphones and other mobile devices has given drivers access to mobile applications that makes parking options easier. These parking apps make use of features and services that smartphones have to offer. These include real-time data connectivity, GPS navigation, and mobile payment capabilities, which help to make parking easier for drivers.

Rising Automobile Ownership to Boost Demand Worldwide

The parking management software market is being driven by the increasing need for parking spaces, which is being driven by the rising global ownership of automobiles. Demand for effective parking solutions has surged as automobile ownership rates, particularly in the U.S., Europe, Vietnam, China, and India, reach previously unheard-of heights. For instance,

  • On average, worldwide automobile ownership is nearly 200 to 250 vehicles per 1,000 people, according to data from the International Transport Forum (ITF) and other transport-related organizations.
  • The U.S. has around 890 vehicles per 1,000 people, which is one of the most prominent ownership rates globally.
  • In China and India, there are around 220 vehicles per 1,000 people and 40 vehicles per 1,000 people, respectively.

Exponential growth in vehicle ownership, mainly in densely populated urban areas, has led to a pressing need for effective parking management solutions. Traditional approaches to parking management are no longer sufficient to address the challenges posed by the proliferation of vehicles. Consequently, there is a rising emphasis on adopting innovative technologies and strategies to optimize parking utilization, lower congestion, and enhance urban mobility.

Market Restricting Factors

System Integration Complexities to Hinder Growth

The widespread adoption and smooth operation of parking management software faces a significant challenge, i.e. system integration complexities. Consider a complex machine with several parts, each needing to work together flawlessly. Parking systems are similar, requiring seamless integration of a diverse range of technologies.

One key hurdle lies in the sheer variety of hardware components. These include sensors detecting occupancy, real-time messaging systems for data flow, traffic control devices like gates, and communication networks. The challenge arises when these components come from different vendors, each with their own specifications. This incompatibility makes them difficult to function as a unified system, hindering data exchange and creating isolated data pockets.

Stringent Government Regulations to Hamper Demand

Presence of strict government regulations on parking spaces poses significant challenges and limitations for the parking management software market. These rules, enforced through laws like the Maharashtra Municipal Corporation Act, 1949 and the Motor Vehicle Act, 1988, impact various aspects of parking provision, fees, and enforcement.

The regulatory landscape surrounding parking spaces reflects broader urban planning objectives, transportation policies, and environmental considerations. While regulations serve to maintain parking activities and promote public interests, they can also pose challenges for the implementation and operation of parking management solutions.

Market Growth Opportunities

Companies Launch Smart Parking Solutions to Make Parking Safe with Technology

In the dynamic landscape of parking management software, the fusion of robotics and automation has revolutionized the way drivers experience parking. Automated car parking systems are redefining convenience by autonomously maneuvering vehicles into designated spots. These are eliminating the hassles of manual navigation in cramped spaces, particularly beneficial in densely populated urban settings where parking is at a premium.

The integration of technology offers a myriad of opportunities to enhance user experience within the automated car parking domain. Through sophisticated data analytics and AI algorithms, parking operators can gain deep insights into individual parking preferences and behavior patterns.

It empowers them to tailor parking experiences. They are set to hence offer personalized services such as preferred parking spots, guidance, and reservation options based on historical usage data or user preferences. Such tailored experiences not only enhance customer satisfaction but also foster loyalty toward the parking facility.

Emergence of Parking Kiosks to Push Revenue Generation

Parking kiosks serve as a versatile and convenient payment solution for drivers, offering multiple payment methods and flexible payment options. By allowing drivers to pay for parking using coins, credit/debit cards, mobile payment apps, or prepaid parking cards, these kiosks cater to diverse preferences and enable seamless transactions for drivers.

The convenience factor enhances user experience, reduces friction in the parking process, and encourages compliance with parking regulations. It helps in ultimately contributing to increased revenue generation for parking operators.

Parking kiosks offer a platform for additional revenue generation through various means such as advertising, promotions, and partnerships. By leveraging the display screens and interactive interfaces of these kiosks, operators can deliver targeted advertisements to drivers, thereby generating advertising revenue. Promotional offers and partnerships with local businesses or events can also be facilitated through parking kiosks, providing further revenue opportunities.

Competitive Landscape for the Parking Management Software Market

The global parking management software industry is fragmented. Vendors are investing in unique technologies such as artificial intelligence, machine learning, and IoT. They aim to improve the functionality and efficiency of their parking enforcement software.

By leveraging these technologies, they can offer innovative solutions that provide better insights, automation, and decision-making capabilities to their customers. Vendors are also exploring opportunities in untapped markets such as emerging economies, where urbanization and the need for efficient parking solutions are on the rise.

Recent Industry Developments

  • In 2024, Germany-based SKIDATA and Kopernikus Automotive forged a partnership to elevate Smart Parking solutions. This strategic partnership aims to harness the potential of AI and innovative technologies to transform the parking industry.
  • In October 2024, Park+, a start-up based in Gurugram, joined hands with the Howrah police to provide novel parking solutions at the Howrah Railway Station. The company unveiled Kolkata’s first-ever FASTag parking management system. With the help of this new technology, car owners can just pull into the parking lot and leave without stopping to pay.

Parking Management Software Market Report Scope

Attributes

Details

Forecast Period

2024 to 2031

Historical Data Available for

2019 to 2023

Market Analysis

US$ Billion for Value

Key Regions Covered

  • North America
  • Europe
  • East Asia
  • South Asia and Oceania
  • Latin America
  • Middle East and Africa

Key Market Segments Covered

  • Solution
  • End User
  • Region

Key Companies Profiled

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization and Pricing

Available upon request

Parking Management Software Market Segmentation

By Solution

  • Software
    • Standalone Software
    • Access Control
    • Security and Surveillance
    • Revenue Management
    • Parking Reservation
    • Parking Enforcement and Permit Management
    • Parking Guidance Management
    • Others
    • Integrated Parking Management Software
  • Services
    • System Integration and Deployment
    • Support and Maintenance
    • Consulting

By End User

  • Commercial
  • Government
  • Transportation
  • Residential
  • Others

By Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia and Oceania
  • Middle East and Africa

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Companies Covered in This Report

  • SKIDATA (Kudelski Group)
  • Amano McGann
  • Scheidt and Bachmann
  • Passport Labs, Inc
  • ParkMobile (easyparkgroup)
  • SWARCO AG
  • Bosch Group
  • Flowbird Group
  • APCOA PARKING
  • FlashParking
  • T2 Systems

Frequently Asked Questions

The market is estimated to increase from US$ 1.6 Bn in 2024 to US$ 3.9 Bn by 2031.

Increasing demand for parking spaces amid rising automobile ownership is propelling the parking management system industry.

ParkMobile, SKIDATA, Amano McGann, Scheidt and Bachmann, SWARCO AG, and APCOA Parking are few of the leading players.

The market is projected to record a CAGR of 13.7% during the forecast period from 2024 to 2031.

A prominent opportunity lies in the development of parking kiosks that offer multiple payment methods and flexible payment options.

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