What are Key Factors Driving the Growth of Smart Parking Systems Industry?
With the surge in vehicle ownership rates and road congestion levels, public concerns regarding the lack of proper parking spaces are growing rapidly in several countries around the world. Moreover, the lack of adequate parking spaces is quickly becoming a major problem around the world, especially with the rise in unorganized and inadequate car parking in various countries. As per industry experts, around 30.0% of traffic congestion is caused because of the lack of proper parking spaces.
Additionally, many people park their cars incorrectly and violate parking regulations, which, in turn, leads to huge parking fines. According to reports, Germany witnesses the generation of huge parking fines (nearly $449 million) every year. Because of these reasons, many countries are increasingly deploying smart parking systems that can provide real-time information, which will help drivers search for available parking slots. Another factor fueling the demand for smart parking systems is the rapid development of smart cities around the world.
Apart from the above-mentioned factors, the mushrooming popularity of adoption technologies is also propelling the demand for smart parking systems across the world. This is, in turn, fueling the progress of the global smart parking systems market. As a result, the valuation of the market is predicted to grow from $3.4 billion in 2018 to $9.1 billion by 2024. Furthermore, the market is predicted to progress at a CAGR of 16.1% between 2019 and 2024.
Across the globe, the smart parking systems market will demonstrate the fastest growth in the Asia-Pacific (APAC) region in the coming years, as per the estimates of P&S Intelligence, a market research company based in India. In this region, the industry will boom in China, on account of the fact that country has a huge shortage of parking spaces. According to various reports, there are only 30 million off-street parking spaces and 800,000 conventional parking lots in the country.
Hence, it can be said with full confidence that the demand for smart parking systems will boom across the world in the coming years, mainly because of the lack of proper parking spaces and the launch of extensive smart city development projects in several countries.
