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The global automated parking system market size was USD 1.19 billion in 2020 and is projected to grow from USD 1.33 billion in 2021 to USD 3.62 billion in 2028 at a CAGR of 15.29% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with automated parking system witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of -6.7% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
An automated parking system (APS) is a mechanical device that optimizes the space or volume needed to park cars. An automated parking facility (APF) provides parking spaces for vehicles on multiple levels stacked vertically to optimize the available number of parking spots while limiting area utilization, similar to a multi-story parking space. Moreover, the car parking system uses a mechanical system to transport vehicles to and from parking spaces, saving space in multi-story parking garages.
Increasing vehicle numbers, limited parking land, rising need for green & sustainable parking solutions, strong demand for consumer comfort and convenience, growing demand for high-rise buildings, along with the government smart city initiatives are the key development drivers expected to fuel demand for this market during the forecast period.
Drop-in New Vehicle Sales And Declining Parking Activity Will Impede The Market Growth
A global economic downturn has occurred from the COVID-19 outbreak. Lockdowns imposed in several regions of the world to stop the virus from spreading triggered supply chain delays and the temporary shutdown of many production sites.
The COVID-19 pandemic had a significant impact on the robotic parking systems market. Due to the global lockdown limitation, new vehicle manufacture and sales, including passenger cars, have been halted. Due to the supply chain interruption, raw materials essential to manufacturing other automotive parts were unavailable, causing manufacturing delays. As a result, the industrial economy has experienced a rapid decline. Several countries worldwide have had and are experiencing varying degrees of lockdowns due to the COVID-19 pandemic.
Furthermore, cities are seeing a significant reduction in traffic overcrowding. According to SpotHero, Inc., a smart parking solutions provider located in the United States, requirement for parking systems has declined by 90% in the U. S. since mid-March 2020. This drop is projected to influence the country's market negatively and worldwide, at least for now. However, post covid-19 pandemic, Following the COVID-19 epidemic, people are predicted to use their cars for lonely travel and prevent shared mobility, such as public transportation. It is expected to increase traffic congestion in many cities worldwide.
Furthermore, traffic jams are expected to increase demand for global automated parking facilities during the forecast period. With increasing traffic congestion, demand for smart parking systems may help municipal administrations properly manage dispersed parking spaces and assist drivers in discovering available parking spots, which is expected to grow. These systems' capability to provide the required flexibility and scalability is further expected to trigger automated parking system market growth.
Although the duration of the pandemic is difficult to predict, the arrival of COVID-19 vaccines in early 2021 is projected to boost the automotive sector.
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Growing Adoption of Integrated Solutions to Set a Positive Trend
Machine-to-machine (M2M) connectivity, data analytics, advanced sensors, smart parking meters, and mobile applications for slot bookings and online payments are used to develop successful automated parking solutions. These technologies help determine if a parking lot is vacant or occupied and evaluate and transmit the data to mobile and online apps. The market is projected to be fueled by advancements in these technologies.
Automation has become more common in parking lots worldwide, and it is a valuable tool for increasing parking efficiency. The process is all about using machinery to automate the process of parking cars. Hence the growing adoption of automation will drive the market shortly.
Growing Smart City Initiatives From Government To Set A Positive Trend for Market Growth
The market is expanding due to high-rise structures, luxury projects, and real-estate developers' inclination to adopt automated solutions. According to the World Construction Network, the real estate industry is also expected to grow at a considerable CAGR during the projection period. An increasing fleet of personal and commercial vehicles, combined with a shortage of parking spaces, has resulted in traffic congestion in various locations worldwide. According to studies, drivers/vehicle owners searching for vacant spots account for about 35 percent to 40 percent of overall congestion in different major cities worldwide. Furthermore, the time and fuel spent looking for unoccupied places contribute significantly to emissions and air pollution.
According to a 2017 INTRIX study, the average German driver spends 41 hours per year looking for a parking spot. The cost of lost fuel, time, and pollution are over USD 45 billion. The expanding population puts considerable pressure on parking infrastructure, necessitating the expansion of existing infrastructure in metropolitan areas. Furthermore, rising per capita income and improved lifestyles have increased demand for personal mobility, resulting in enhanced vehicle sales in urban areas. Due to this, the number of vehicles on the road significantly exceeds the number the available parking spaces in cities. These key market drivers push car parking systems to help people get more out of their parking spots. Other benefits driving global adoption of these systems include higher efficiency, expanded capacity, increased ROI, lower CO2 emissions generated while driving about looking for unoccupied places and enhanced safety and security.
High Initial Capital Investment May Hamper Market Growth
Despite the growing market across several regions, the initial investment required to establish high-quality parking systems is high. This high capital requirement for building such systems may hinder market growth in several ways. Furthermore, these are highly complex solutions with challenges with quality control. Creating an automated parking facility project is also a difficult task that necessitates the consideration of several elements. Manufacturers have considerable hurdles due to the lack of regulation for monitoring these devices' operation and quality control concerns. Fully car parking system cost is higher than semi-automated parking facility, which is a major restraining factor for the market growth. Furthermore, a fully automated parking system design is more complex than a semi-automated parking facility.
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Commercial Parking Dominates the Market Owing to Rising Vehicles on Road
The market is segmented into commercial and residential parking based on application type.
The commercial parking segment dominated the market with a revenue share of more than 70% in 2020. The commercial parking segment holds the largest market share owing to the rising demand for parking slots in commercial buildings and shopping malls. The constant increase in the number of vehicles on the road has reduced the availability of parking spots, resulting in traffic congestion and increased pollution in major cities throughout the world. Because of the numerous advantages of car parking systems in addressing these difficulties and benefits, such as improved space utilization and security, demand for these systems is expected to grow at a promising rate in the commercial area shortly.
The residential parking segment is expected to emerge as the fastest-growing market segment during the forecast period. It is due to increased residential buildings and the adoption of luxury facilities worldwide. Additionally, rapid urbanization and expanded per capita income have improved several countries' lifestyles. Furthermore, in recent years, increased purchasing power has resulted in a significant increase in new car sales. As a result of the rising need for vertical parking slots in ever-shrinking urban residential spaces, the demand for automated parking facilities is likely to rise.
Fully Automated Segment Holds Largest Market Share Due to High Efficiency and Less Space Requirement
The market is divided into fully automated and semi-automated parking based on the automation level.
The fully automated parking segment holds the largest market share in this market. The fully automated segment accounted for 62.70%. The fully automated segment is growing at a considerable CAGR. Customer desire for comfort and convenience, growth in the number of luxury projects, and the residential segment's increasing usage of fully automated parking facilities will contribute to the segment's dominance in the projection period.
The semi-automated segment has low growth and low penetration in 2020. The semi-automated segment accounted for 37.30 % market share in 2020. The segment will decline due to limited space for parking vehicles during the forecast period. These systems have a minimal initial installation cost and are simple to maintain. Semi-automated parking solutions can be used in an open space or a building's basement. The parking structure is based on lifting and moving a pallet that holds the car.
Hardware Segment led the Market Due to High Cost of Machinery
The market is divided into the hardware and software segments based on the component type.
The hardware segment dominates the market. Structural and hardware changes depend on the type of automatic parking system. Tower, Puzzle, RGC, Silo, and AGV are different robotic parking systems. A microprocessor, RF module, display, GSM module, motor driver, DC motor, ultrasonic sensors, and camera units are among the major hardware components of the automated parking facility. Various solutions, including web-based parking solutions, parking guidance systems, mobile-based parking and license plate recognition systems, sensor-based parking identification systems, and RFID systems, can be added into the systems depending on the budget. The hardware systems account for most of the total cost of an automated parking facility. Hence, the market is estimated to be the largest.
The software segment is anticipated to grow at a substantially high CAGR over the projected period. The software plays an essential part in the system's correct operation. The program's responsibility is to control, manage, and arrange the movements involved in parking and retrieving automobiles. The program also gives inventory accuracy that manual techniques are difficult to accomplish. As a result, the software category is likely to acquire substantial traction during the projection period, thanks to advances and increased automation in parking solutions.
Europe Automated Parking System Market Size, 2020 (USD Billion)
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The European market accounted for USD 0.50 billion in 2020 and is projected to reach USD 1.42 billion by 2028, at a CAGR of 14.2% over the forecast period. Europe led the market with a revenue share of over 40% in 2020. Some of the leading manufacturers of automated parking facilities, such as Wohr, Westfalia, and Klaus Multi Parking, among others in Germany, the U.K., and Switzerland, will be key in supporting the development of the market. The automated parking facility is widely used in the U.K., Germany, Denmark, Norway, Switzerland, Spain, and the Netherlands. The growing use of robotic parking systems will improve parking solutions, save space, and lower vehicle emissions while parked. Europe has a cutting-edge technological foundation and is home to the world's leading providers of automated parking systems. It has prompted commercial and governmental sectors to implement robotic parking systems to manage parking issues properly.
North America is anticipated to show significant growth in the market. The boost in automated parking system sales and the early adoption of advanced technology in North America. The market is expected to develop significantly due to the region's growing number of vehicles. Civic authorities in Canada and the U.S. are working to relieve traffic congestion, which has become increasingly severe as the number of cars on the road has grown. Increased use of robotic parking systems, which help offer safe and legal parking for businesses and individual vehicles, is one of the initiatives. The growing popularity of smart cities and related technology such as self-driving cars will fuel regional market expansion.
The Asia Pacific region is anticipated to see a considerable increase in demand for automated parking facility solutions over the projection period. Due to the large population and the high prevalence of vehicle parking on the roads. The region is home to 40% of the worldwide people and some of the world's fastest-growing economies. Furthermore, several cities in the region have reached capacity, making additional infrastructural expansion nearly difficult. As a result, governments in the region are concentrating on urban planning and deploying smart city solutions to maximize existing infrastructure value.
The Rest of the World contributes 6.49% of the total market share due to fewer automotive OEMs, low technology adoption, and less presence of all typed vehicles. However, it is expected to grow in the future at a CAGR of 12.2%. Additionally, the Middle East and Africa will show lucrative opportunities to the market growth.
Leading Players seek Supply Contracts from Construction Enterprises and Government Bodies
Leading players in the market, such as Robotic Parking Systems, Inc., and KLAUS Multiparking GmbH, are putting more emphasis on R&D to explore long-term growth opportunities. KLAUS Multiparking GmbH, for instance, introduced 3D models of their automated parking facilities for use in Building Information Modeling (BIM) applications in February 2020. The company's BIM models are now available for two Parkers MultiBase 2072i and 2078i variants. These models help design and plan to build structures, including parking, before the construction, allowing for more precise project execution.
Some of the other key players like Wohr Parking Systems Pvt. GmbH. Robotic Parking Systems, Inc. CityLift Parking; Nissei Build Industry Co., Ltd .; Westfalia Parking has long-term supply contracts with well-known construction companies and government agencies. These companies are adopting new product development, partnerships, and supply contracts as crucial strategies for entering the market.
An Infographic Representation of Automated Parking System Market
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The automated parking system market research report provides a detailed analysis and focuses on crucial aspects such as leading companies, product types, competitive landscape, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors contributing to the Market's growth over recent years.
Value ( USD Billion)
By Application Type
By Automation Level
By Component Type
Fortune Business Insights says that the global market size was at USD 1.19 billion in 2020, and it is expected to reach USD 3.62 billion by 2028.
In 2020, Europe stood at USD 0.50 billion.
The Market is projected to grow at a CAGR of 15.29% and exhibit steady growth during the forecast period (2021-2028).
The commercial parking segment is the leading segment in this market.
The increasing number of vehicles, rising adoption of advanced technologies, and smart cities initiative from the government will be the driving factors for market growth
Robotic Parking System, Westfalia Parking Inc, and Wohr Parking System are the major players in the market.
Europe dominated the market share in 2020.
The increasing adoption of electric mobility coupled with favorable government initiatives will drive market growth. Increased demand for comfort and safety will boost the demand for automated parking facilities, increasing the purchase of autonomous vehicles.
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