Automated Parking System Market Trends

Growth Drivers

• Decreasing parking space in cities: Lack of parking space has become an alarming issue causing traffic deadlocks. With tremendous pressure on roads, high emission rates, and charting out land for residences, offices, and other development projects, parking spaces in cities are rapidly declining. For instance, according to UNSW Business Think in 2024, by the end of 2025, parking demand will reach 600 million spots in China. Automated parking is preferred due to benefits such as labor cost reduction, enhanced revenue management, improved record keeping, etc.
• Increase in smart city projects: There has been increased establishment of smart all across the globe. According to the World Economic Forum in 2022, smart city governance initiatives have included 36 cities worldwide. An automated parking system is one of the vital elements of making a smart city efficient. The notion of automatic parking systems is flourishing because of the safety and comfort they provide to drivers. These factors are bolstering the market growth in the coming decade. The incorporation of technology into infrastructure supports growing population projections.
• Rising need for sustainable solutions: A fully automated parking system requires no drivers or attendants. By reducing waste and optimizing processes, automated parking systems help lower greenhouse gas emissions. According to the U.S.  Environmental Protection Agency in April 2024, a typical passenger vehicle emits 4.6 metric tons of CO2 per year. By lessening the time that drivers spend looking for the parking space, an automated parking system helps in remarkably reducing traffic and vehicle emissions.

Challenges

• High Initial Cost of Installation: The cost of initial installation of these parking systems is high which emerges as a challenge for the automated parking system market. These systems use advanced technology features which are usually of high cost, thereby final price of the overall system becomes exorbitant. Owing to this, many developing and under-developed countries, are not able to plan out to deploy such parking systems.
• Apprehension of electrical and mechanical failure: Electricity shortage is a very common problem globally. Also, due to mechanical failure, the refurbishment process takes ample time. These malfunctions stop the services causing disruptions.