Automated Parking System Market Size, Share & Industry Analysis, By Application (Commercial Parking and Residential Parking), By Automation Level (Fully Automated and Semi-Automated), By Component (Hardware and Software), and Regional Forecast, 2025–2032

The global automated parking system market size was valued at USD 3.51 billion in 2024. The market is projected to grow from USD 4.31 billion in 2025 to USD 8.37 billion by 2032, exhibiting a CAGR of 10.0% over the forecast period.The Europe dominated the automated parking system market with a share of 26.64% in 2024. Automated Parking System Market in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.55 Billion By 2032. An automated parking system is a structure where vehicles are stacked vertically to minimize the area required for parking cars. 

The system is designed to help transport vehicles from the entrance to a designated parking facilities without requiring a driver in a fully automated parking system. This system is designed to reduce the space requirement and eliminate the cost of building, elevators, ramps, stairs, and drive aisles. The COVID-19 pandemic had a substantial impact on almost every industry, including the global market. The pandemic disrupted the supply chain, causing delays in the production and delivery of different types of parking systems. This has resulted in increased lead times and higher costs for some projects. The pandemic reduced car usage and demand for parking spaces, particularly in urban areas. This demand reduction led to a slowdown in the automated parking system market growth.

The automated parking system market share is expanding due to increasing smart city projects, high-rise structures, luxury projects, and real-estate developers' inclination to adopt automated solutions. For instance, Dubai Plan 2021 aims to make Dubai a smart and sustainable city. Dubai's Smart City project aims to transform about 1,000 government services, focusing on six key sectors such as urban planning, transportation, communications, infrastructure, economic services, and electricity. Such initiatives will encourage the adoption of such autonomous systems over the forecast period. One of the current services essential for any smart city is the availability of enough parking spaces to ensure smooth and easy traffic flow.

Automated Parking System Market Trends

Growing Demand for Passenger Cars and Rapid Automation in Automobile Industry to Drive Market Expansion

The increasing rate of private car usage in urban areas, as a result of the rise in per capita income, is one of the significant causes making car parking one of the major concerns for transport and traffic management globally. According to the International Organization of Motor Vehicle Manufacturers (OICA), 57,054,295 passenger cars were sold in 2021. The total number of passenger cars on the road is anticipated to reach the two billion mark by 2040. The upward trend in the sales of passenger cars and commercial vehicles and rapid urbanization will create the urgency of parking management systems in the coming years.

The increasing trend for the installation of automatic parking systems in various commercial projects and places is expected to drive the market significantly during the forecast period. Moreover, growing usage of hydraulics in smart multi-level car parking systems to ease the operation and raising and parking the cars is a new trend in the market scenario. Several market players are adopting hydraulics as well as electro-hydraulic systems for automated parking solutions. Furthermore, the development of technologically-advanced infrastructure has further encouraged the public and private sectors to adopt automated solutions for eliminating parking problems and vehicle damage.

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Automated Parking System Market Growth Factors

Increasing Number of Smart City Projects to Drive Market Growth

The growing number of smart city projects is a major factor in propelling market growth. One of the current services essential for any smart city is the availability of enough parking spaces to ensure smooth and easy traffic flow. Furthermore, automated systems reduce the requirement for space and eliminate the cost of building ramps, elevators, stairs, and drive aisles. This represents significant savings in electrical, security, and other related maintenance expenses. Although regular and standard maintenance of the structure is to be expected, comparable operating and maintenance costs are reduced significantly. Governments from various regions are highly focused on smart infrastructure development, implementing IoT and connected technology in almost every structure. The rising number of real estate projects and on-road vehicles is further expected to propel the market growth for smart city projects, which require smart automated parking systems.

The investment and incorporation of technology into infrastructure, which creates a smart city to support growing population projections, economic stability, and sustainability initiatives is anticipated to support market growth. Smart cities use smart parking strategies to increase parking efficiency and address numerous issues. Smart parking systems reduce fuel use as the driver won’t be looking for a place to park as they’ll have a designated space. Drivers will also save money and time with more accessible parking.

RESTRAINING FACTORS

High Initial Capital Investment to Restrain Market Growth

The initial investment required to build high-quality parking systems is higher than the traditional ones. The automated parking systems have numerous equipment working in synchronous mode to perform automation. The technology is costly due to the ease of operation provided by the equipment, which ultimately adds to the overall cost of the system. This high capital requirement for building such systems may hinder market growth in several ways. For instance, the capital cost to implement a smart parking system having two roadside DMS units, an integrated web-based reservation system, and IVR support was estimated at USD 205,000.

Furthermore, these are highly complex solutions creating challenges with quality control. Manufacturers have considerable hurdles owing to the lack of regulation for monitoring these devices' operation and quality control concerns. Fully automated 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.

Automated Parking System Market Segmentation Analysis

By Application Analysis

Commercial Parking Held the Largest Market Share Owing to Rapid Urbanization

Based on application, the market is bifurcated into commercial parking and residential parking. The commercial segment accounted for the largest market size of USD 2.56 billion in 2024 and is expected to grow at a CAGR over the forecast period. The commercial parking segment held the largest market share and is anticipated to maintain its dominance over the forecast period. The constant increase in vehicles on roads has elevated the demand for parking slots in commercial buildings and shopping malls. Moreover, the rising investment and government spending on infrastructure development focusing on commercial spaces will propel segmental growth in the coming years.

The residential parking segment accounted for a significant market size and is expected to grow at the highest CAGR of 11.2% over the forecast period. The residential parking segment is anticipated to be the fastest-growing segment over the forecast period. The rising number of residential buildings with the adoption of advanced facilities across the globe is fueling the demand for residential parking. The increasing number of luxury tower projects in metro cities is also one of the major factors influencing the market growth for this segment. In addition, the rising disposable income level and growing demand for vertical parking spaces in shrinking urban residential spaces are expected to drive segment growth over the forecast period.

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By Automation Level Analysis

Fully Automated Segment Captured a Major Share Owing to Advanced Functionalities

The market by automation level is categorized into fully automated and semi-automated. The fully automated segment accounted for the largest market size in 2024 and is expected to grow at the highest CAGR of 10.5% over the forecast period.

Rising innovative city projects across the globe are fueling the demand for fully automated parking systems over the forecast period. Smart cities are leveraging technologies such as Internet of Things (IoT), data analytics, and 5G connectivity to solve parking problems and address traffic congestion issues. Technological opportunities help to meet parking demands, ranging from conventional ramp type to fully automated type. Major cities, universities, and transportation leaders are adopting parking analytics and smart parking systems. All such factors are anticipated to propel the fully automated segment growth.

The semi-automated segment accounted for a decent market size in 2024 and is expected to grow at a CAGR of 8.8% over the forecast period. This parking system is the most suitable choice for residential applications owing to its low installation cost and less maintenance. Increasing urbanization and rising sales of the vehicles in APAC & MEA are anticipated to create a major contribution in this market share in the coming years.

By Component Analysis

Hardware Segment Accounted for the Largest Share Owing to Growing Demand in Commercial Buildings

Based on component, the market is bifurcated into hardware and software. The hardware segment accounted for a market size of USD 2.63 billion in 2024 and is expected to grow at a steady rate throughout the forecast period. The growth in this segment is driven by soaring demand for construction projects in developing countries across the globe. The hardware segment consists of moveable pallets, motor drives, bearings, and hydraulic pulleys, among other major hardware components in automated parking systems. Additionally, installing electric car charging devices in parking spaces is another factor fueling the segment growth over the forecast period. The growing number of parking slots in commercial spaces will increase the deployment of hardware components to ensure the seamless functioning of the automated and semi-automated parking system.

The software segment was also acquired at a decent size and is the fastest-growing segment, with a growth rate of 11.7% CAGR over the forecast period.  Growing demand for autonomous cars and connected vehicles have encouraged vendors to develop advanced parking solutions. This factor, in turn, is fueling the demand for the software segment over the forecast period. OEMs are developing smart solutions to ensure hassle-free parking.

REGIONAL INSIGHTS

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Europe is the largest market in terms of value. It will dominate in the forecast period due to increased vehicle sales, latest technologies, digital platform, and cloud technologies adoption.

The presence of leading manufacturers in the region such as Wohr, Westfalia, and Klaus Multi Parking, among others in Germany, the U.K., and Switzerland is supporting the development of the market. European countries are encouraging commercial and governmental sectors to implement robotic parking systems to manage parking issues properly. For instance, in January 2023, Bosch and APCOA announced the installation of automated valet parking technology in 15 other parking garages in Germany. Such developments are anticipated to drive regional growth over the forecast period.

North America held a significant size and is projected to grow at a CAGR of 9.4% over the forecast period. In North America, especially in the U.S., market growth is driven by the increasing number of vehicles, decreasing parking spaces, emphasis on consumer convenience, and government smart city initiatives.

The Asia Pacific market accounted for decent size and is expanding at the second fastest CAGR over the forecast period. Asia Pacific is expected to see considerable growth in the upcoming years due to its large population and high prevalence of vehicle parking on the road. Various cities in this region have reached their parking capacities, which have given rise to implementing urban planning and smart city solutions. This factor, in turn, is increasing the market growth in this region.

The Middle East region is expected to grow at the fastest growth rate during the forecast period owing to increasing focus from major economies, such as Saudi Arabia, UAE, Turkey, and several other well-established countries focusing on expanding their infrastructure to lure businesses and the populace to stay there. Additionally, higher willingness from various consumers to opt for the latest fully automated parking technology in the region is further driving the automated parking system market growth.

The rest of the world market also accounted for decent share and is expected to grow at a steady CAGR over the forecast period. The growth in this region is anticipated to be more sluggish than in other regions. This is due to fewer sales of vehicles and the availability of conventional parking spaces across the region. Additionally, lack of awareness regarding the benefits of automated smart parking is restraining the market growth in this region.

List of Key Companies in Automated Parking System Market

Companies are Focusing on Partnerships and Building Advanced Parking Systems to Gain a Competitive Edge over Others

The Automated Parking System Market is fragmented, with several global as well as regional players operating in this industry. It is observed that both global, as well as regional players have a diverse product portfolio with a increased focus on geographic expansion. The major players in the market are highly motivated towards acquiring a larger customer base and are actively expanding their operations in neighboring markets.

The key players are focusing on cost-reduction strategies, strategic partnerships, and acquisitions to enhance their product offerings. They are leveraging the digital platform and cloud technologies to enhance their products and strengthen their footprint in the global market. For instance, in December 2022, Klaus Multiparking constructed a fully automatic parking system for a luxurious condominium in New York, U.S. The fully automatic system includes 24 parking spaces for vehicles. The company also provided e-parking charging solutions integrated into the parking platforms to accommodate 10 electric vehicles.

LIST OF KEY COMPANIES PROFILED:

• Westfalia Parking (Germany)


• Klaus Multiparking GmbH (Germany)


• Utron Parking (Israel)


• Wohr Parking Systems Pvt. Ltd.(India)


• Skyline Parking (Switzerland)


• City Lift (India)


• Lödige Industries(Germany)


• Park Plus, Inc. (U.S.)


• ShinMaywa Industries, Ltd. (Japan)


• MAG Royal Solutions (MRS) (UAE)


• ParkPiu (Italy)


• ALS Logistics Solutions (Germany)


• Samara Group (KSA)


• Makani Parking (KSA)


• Mech Parking (KSA)


• Clans Machina (India)


• Park Plus (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2023: Utron announced the completion of its project for slide system vehicle parking operations for one of the commercial buildings in the Financial District of Boston. The company’s automated parking system features 6 parking floors, 256 conveyors, 235 parking spaces, and 24 EV charging locations in the building.


• May 2023: Shijiazhuang Shopping Center in China showcased its latest fully automated underground parking system. The project features 156 parking spaces for vehicles with additional upgradation capacity to support the growing need for parking spaces in the future.


• January 2023: Germany announced plans to begin infrastructural development to support nationwide after introducing an automated parking system for Stuttgart Airport. The parking operator APCOA and technical partner Bosch announced further to create spaces available for the use of this system at 15 additional garages across the country.


• January 2023: NTT DATA, one of the global leaders in digital business and IT services, in partnership with Valeo, and Embotech, a software scale-up for autonomous driving systems, announced its decision to provide automated parking solutions. The three companies have built a consortium VEN.AI that aims to be the go-to solution provider for production-ready parking automation with global rollout capabilities.


• April 2022: Klaus Multiparking partnered with Unipark, a Denmark-based automated parking system provider. The company has been associated as a sales partner with Klaus Multiparking. With the help of this partnership, the company will expand its brand presence in Denmark.

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The market research report provides an in-depth market analysis and focuses on key aspects such as leading companies, product/service types, and leading product applications. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market growth in recent years.

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