Automated Parking System Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By Structure Type, By Platform Type, By Automation Level, By End Use, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global automated parking system market size was exhibited at USD 1.95 billion in 2023 and is projected to hit around USD 10.03 billion by 2033, growing at a CAGR of 17.8% during the forecast period of 2024 to 2033.

Key Takeaways:

• Europe held the largest revenue share of 35.0% in 2023.
• The hardware segment accounted for a market share of 83.9% in 2023 and is expected to grow at the fastest CAGR of 17.2%.
• The tower system segment accounted for a revenue share of 27.4% in 2023.
• The palleted segment dominated the automated parking system market and accounted for a revenue share of 68.7% in 2023.
• The commercial segment accounted for a revenue share of 46.0% in 2023.
• The fully automated segment held the largest revenue share of 68.8% in 2023.

Automated Parking System Market: Overview 

The automated parking system market has witnessed significant growth in recent years, driven by the increasing urbanization and the need for efficient space utilization. This market overview aims to provide insights into the key factors influencing the growth of the automated parking system sector.

Automated Parking System Market Growth

The growth of the automated parking system market is propelled by several key factors. Firstly, escalating urbanization and the resultant surge in demand for parking spaces in densely populated areas are driving the adoption of automated systems, offering an efficient solution for space optimization. Additionally, continuous technological advancements, incorporating IoT sensors, artificial intelligence, and machine learning, have revolutionized automated parking, enhancing overall system efficiency and user experience. As environmental concerns become more prominent, automated parking systems contribute to sustainability by reducing the need for expansive parking lots, curbing emissions related to searching for spaces, and optimizing energy consumption. Government initiatives, particularly in the context of smart city development, further bolster the market, addressing issues like traffic congestion and environmental impact.

Automated Parking System Market Report Scope

Automated Parking System Market Dynamics

The dynamics of the automated parking system market are intricately influenced by two primary factors. Firstly, the relentless pace of urbanization, particularly in densely populated areas, is a driving force behind the adoption of automated parking solutions. As cities grapple with limited space and escalating parking demands, automated systems emerge as a strategic response, efficiently utilizing available space through innovative stacking and storage mechanisms. This addresses the pressing need for optimal land use in urban environments.

Secondly, technological advancements play a pivotal role in shaping the dynamics of the automated parking system market. The integration of cutting-edge technologies, such as IoT sensors, artificial intelligence, and machine learning, has ushered in a new era for these systems. This infusion of technology enhances overall system efficiency, resulting in reduced retrieval times, improved reliability, and an elevated user experience.

Automated Parking System Market Restraint

The automated parking system market faces certain constraints that impact its widespread adoption. One significant restraint is the high initial capital investment required for implementing automated parking solutions. The sophisticated technology and infrastructure needed for these systems often involve substantial upfront costs, posing a financial barrier for potential adopters. 

Another notable restraint lies in the necessity for standardized regulations and industry guidelines. The automated parking system market lacks universally accepted standards, leading to variations in system specifications and functionalities. This lack of standardization can result in compatibility issues and hinder seamless integration, making it challenging for stakeholders to navigate the diverse landscape of automated parking solutions.

Automated Parking System Market Opportunity

The automated parking system market presents compelling opportunities driven by the increasing emphasis on sustainable urban development. One notable opportunity lies in the environmental benefits offered by these systems. Automated parking helps reduce the need for expansive parking lots, contributing to land conservation and mitigating urban sprawl. This aligns with the global push for eco-friendly solutions, creating opportunities for the market to position itself as a key player in sustainable urban infrastructure.

Furthermore, the ongoing smart city initiatives worldwide present a significant opportunity for the automated parking system market. Governments and municipalities are increasingly investing in technology-driven urban solutions to address challenges like traffic congestion and environmental impact. Automated parking systems, with their ability to optimize space, reduce emissions, and enhance overall urban mobility, fit seamlessly into the framework of smart city development. As cities continue to evolve into tech-savvy urban centers, the automated parking system market has the chance to capitalize on these initiatives, fostering widespread adoption and integration within the broader context of smart urban planning.

Automated Parking System Market Challenges

The automated parking system market encounters notable challenges that impact its widespread adoption. Firstly, the high initial capital investment required for implementing automated parking solutions poses a significant hurdle. The sophisticated technology and infrastructure needed for these systems involve substantial upfront costs, deterring potential adopters who may find the initial financial commitment prohibitive. Overcoming this challenge requires innovative financing models and a compelling business case to demonstrate the long-term benefits and return on investment associated with automated parking systems.

Secondly, a lack of standardized regulations and industry guidelines presents a considerable challenge for the market. The absence of universally accepted standards leads to variations in system specifications and functionalities. This lack of standardization can result in compatibility issues, making it challenging for stakeholders to navigate the diverse landscape of automated parking solutions. Establishing comprehensive and widely accepted regulations is crucial for fostering market growth, ensuring interoperability, and instilling confidence among potential users and investors alike.

Segments Insights:

Component Insights

The hardware segment accounted for a market share of 83.9% in 2023 and is expected to grow at the fastest CAGR of 17.2%. The hardware components include microcontrollers, GSM modules, RF modules, displays, motor drivers, ultrasonic sensors, DC motors, and camera units, and the structure of the entire system varies across projects in a parking system. Depending on the budget, several solutions such as guidance systems, web-based solutions, sensor-based recognition, license plate recognition solutions, mobile-based parking, and RFID solutions can be integrated into the systems. Hardware systems contribute to the highest share of the total cost of the automated parking system. Hence, the segment is expected to continue its dominance over the forecast period.

The software segment is anticipated to expand at the fastest significant CAGR of 20.2% over the forecast period. The software plays a vital role in the proper functioning of the system. The expansion of this segment is majorly driven by controlling, managing, and orchestrating the moves involved in parking and retrieving vehicles with the help of parking sensors that provide information about vacant and occupied parking areas using analytics solutions. The software also includes inventory accuracies that are not easily achieved through manual systems. Therefore, with advancements and further automation in parking solutions, the software segment is expected to gain significant momentum over the forecast period.

Structure Type Insights

The tower system segment accounted for a revenue share of 27.4% in 2023. Tower system are the most efficient systems as they save significant horizontal space and utilize the advantages of vertical space. These solutions can be built and designed in lower configurations to accommodate different height restrictions. With the increase in advancement and further automation in the parking solution, the segment is expected to gain significant momentum over the years.

The puzzle system segment is estimated to register the fastest CAGR of 18.9% over the forecast period. The growth is attributed to the increase in demand for space-efficient parking solutions, lower cost of installation and maintenance, and Improved safety features. Puzzle parking systems are very space-efficient, which is important in urban areas where space is limited, and are relatively easy to install and maintain, which can save businesses money.

Platform Type Insights

The palleted segment dominated the automated parking system market and accounted for a revenue share of 68.7% in 2023. These solutions simplify the movement of vehicles in the parking space as the vehicles cannot be moved or lifted without the driver. As the number of people preferring the work-from-home option is increasing, these parking solutions are estimated to have an attractive growth in the future as they increase the security of the vehicles, improve cityscape, and higher parking density compared to conventional car parks. No accommodations for car size are required in these solutions, which minimizes the complication of transport mechanisms.

The non-palleted segment is expected to expand at the fastest CAGR of 18.5% over the forecast period. These solutions directly lift, transfer, and park the vehicle in empty spots, eliminate the movement of empty pallets, and enhance the overall system’s efficiency. These solutions automatically adjust themselves according to the size of the vehicle, eliminate the drawbacks of palleted solutions, and also reduce the parking and retrieval time by up to 30%. These factors, along with the growing number of vehicles globally, are expected to boost the growth of the market in the forthcoming years.

End Use Insights

The commercial segment accounted for a revenue share of 46.0% in 2023. This can be attributed to the increasing demand for parking spaces in commercial buildings and shopping complexes. The growing number of vehicles on the road has lowered the availability of spaces, leading to traffic jams and a rise in air pollution across major cities around the world. Owing to the several benefits of automated parking systems in tackling these issues, combined with benefits such as optimal use of space and enhanced security, the demand and adoption for these systems is expected to expand at a promising pace in the commercial space soon.

The residential segment is estimated to register the fastest CAGR of 18.7% over the forecast period. The growth of the segment can be attributed to the rising number of high-rise residential buildings and the increasing adoption of these solutions in luxury residential facilities across the globe. Moreover, factors, such as rapid urbanization, increased disposable income, and increased purchasing power, have resulted in a significant rise in the sales of vehicles in the past few years. The demand for automated parking systems is also anticipated to increase due to the rising need for vertical parking spaces in constantly shrinking urban residential spaces.

Automation-Level Insights

The fully automated segment held the largest revenue share of 68.8% in 2023 and is expected to grow at the fastest CAGR of 18.1%. The advantages offered by fully automated parking systems such as higher efficiency, increased capacity, reduced emission, and enhanced safety & convenience over semi-automated solutions are highly in demand in developing economies. However, the choice between fully automated and semi-automated solutions varies based on factors such as the available budget, location, and application of the project. Often, systems with higher capacity tend to be fully automated, while low-capacity systems remain semi-automated. Considering the COVID-19 pandemic, fully automated parking solutions are completely touchless, and designed to work without human intervention.

The semi-automated segment is anticipated to register considerable growth over the forecast period. Semi-automatic solutions are deployed in various residential, commercial, and mixed-use applications. The installation cost for these solutions is low and they are easy to maintain. The structure is based on lifting and sliding the pallet holding the vehicle for the parking. These systems are generally adopted when a limited number of vehicles are to be parked in a given space. Furthermore, factors such as increasing urbanization and rising disposable income are the key driving factors for the growth of the market.

Regional Insights

Europe held the largest revenue share of 35.0% in 2023. The rise in the initiatives for the development of smart cities and growing demand from commercial and residential buildings will provide beneficial opportunities for the growth of the market in the region. The adoption of automated parking systems is also high in these countries to save space and reduce vehicle emissions while parking the car. The presence of technologically advanced infrastructure has further encouraged the public and private sectors to adopt automated solutions for eliminating parking problems.

The Asia-Pacific region is expected to grow at the fastest CAGR of 19.3% during the forecast period. This can be attributed to the huge population and prevalence of vehicle parking on the roads. The region is home to 40% of the global population and some of the fastest-growing economies, such as India. Moreover, various smart city projects are unrolled to enhance citizen services. These projects affect challenges associated with transit, infrastructure, connectivity & utilities, and are certain to reinforce the expansion of the market for automated parking systems. Therefore, governments in the region are focusing on urban planning by implementing smart city solutions to derive benefits from the existing infrastructure.

Recent Developments

In February 2023, BMW and Valeo formed a strategic cooperation to jointly develop the next generation of Level 4 autonomous parking technology. The system ranges from automated deploy assistance to level 4 automated valet parking and is based on sensors and technology in the car. The companies also collaborate on infrastructure-based services to enable entirely automated parking and charging in equipped public parking facilities and venues.

In January 2023, Thiruvananthapuram International Airport, India deployed a fully automated parking system. As per the airport authorities, this system represents a significant enhancement in passenger safety, vehicle security, and the overall convenience of the airport experience.

In November 2023, Mercedes-Benz, in collaboration with Bosch, obtained approval for a fully automated self-parking software. This software empowers vehicles to autonomously navigate to a predetermined parking space within a parking lot at Stuttgart Airport.

Some of the prominent players in the automated parking system market include:

• Skyline Parking AG
• Westfalia Parking
• Unitronics
• Klaus Multiparking GmbH
• Robotic Parking Systems, Inc.
• City Lift Parking, LLC
• Park Plus Inc.
• Wohr Parking System Pvt. Ltd.
• Parkmatic
• AutoMotion Parking Systems

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global automated parking system market.

Component

• Hardware
• Software

Structure Type

• AGV System
• Silo System
• Tower System
• Rail-Guided Cart (RGC) System
• Puzzle System
• Shuttle System

Platform Type

• Palleted
• Non-palleted

Automation Level

• Fully Automated
• Semi-automated

End Use

• Residential
• Commercial
• Mixed-use

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)