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The Automated Parking System (APS) Market size is estimated to increase by USD 2.33 billion and grow at a CAGR of 16.15% between 2022 and 2027. Market expansion relies on various factors, including the upward trend of urbanization, the emphasis on space optimization, and continuous technological advancements. However, the market faces certain challenges, such as the requirement for a substantial initial investment, the need for seamless integration with existing infrastructure, and the complexity associated with the machinery of APS. Overcoming these hurdles is crucial for the sustained growth and development of the market. Addressing the need for significant upfront investments can enhance accessibility and attract more stakeholders. Streamlining integration processes with existing infrastructure can facilitate smoother transitions and minimize disruptions. Simplifying the machinery of APS can improve operational efficiency and reduce barriers to adoption, fostering a more conducive environment for market expansion and innovation.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
This market report extensively covers market segmentation by end-user (commercial, residential, and mixed-use), component (hardware and software), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The commercial segment will contribute a major share of the market, due to rising demand from end-users of commercial space. The commercial segment showed a gradual increase in market share with USD 668.01 million in 2017 and continued to grow by 2021. Increasing demand from commercial end-users is expected to lead to significant growth in the market during the forecast period. As cities get denser and land becomes scarcer, the demand for effective, space-saving parking solutions is higher than ever. Commercial end-users such as office buildings, shopping malls, and airports are increasingly implementing automated parking systems to maximize available space, reduce parking-related congestion, and increase overall customer satisfaction.
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Recent technological developments in the commercial segment have also improved the reliability, effectiveness, and affordability, further driving the expansion of the market. They are popular in developed regions such as North America and Europe, but demand is also growing rapidly in developing markets such as APAC. Therefore, the adoption in the commercial sector is expected to increase, and this trend is expected to drive the growth of the market during the forecast period.
The effectiveness of an APS depends on the performance and reliability of hardware components. Therefore, it is a key component of the market. In APS, the hardware used to detect and guide vehicles to designated parking lots consists of sensors, cameras, controllers, and other electronic components. Demand from end-users in the commercial and residential sectors is expected to increase significantly between 2023 and 2027, which will boost the demand for hardware components in the market globally. As cities become more crowded and parking spaces become scarce, the demand for effective and reliable parking solutions is higher than ever. In addition, hardware components have become more effective, affordable, and reliable due to technological advances that have fueled market expansion. These systems are most commonly deployed in developed regions such as North America and Europe, but demand is growing rapidly in developing markets such as APAC. Due to the factors mentioned above, the demand for hardware components is expected to increase significantly, leading to the growth of the market during the forecast period.
North America is estimated to contribute 48% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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High urbanization and increasing demand for effective parking solutions have made in the North American market one of the most developed and mature markets in the world. This market is characterized by a large number of suppliers offering a wide range of automated parking solutions, from fully automated to semi-automated systems. Office buildings, shopping centers, and airports (the primary end users) are widespread in North America. Some of the largest providers of automated parking solutions are based in the region, including Westfalia Parking Solutions, CityLift Parking, and Unitronics. In addition to commercial spaces, they have a sizeable residential market in North America, especially in densely populated cities like New York and San Francisco. Therefore, the market in North America is expected to grow during the forecast period.
Market Customer Landscape
The demand for parking systems continues to escalate due to the increasing number of vehicles and the widespread use of cars amidst rising urbanization. This surge has heightened concerns over the construction footprint and pollution levels, prompting the adoption of sustainable parking solutions like solar-based automated parking. Smart cities initiatives are also driving innovation in urban mobility and the car parking industry, aiming to mitigate the effects of climate change and reduce fuel wastage. As CO2 emissions and energy consumption remain key challenges, the implementation offers a promising solution, optimizing time and addressing scarcity of land. In both commercial and residential areas, these systems alleviate traffic jams and enhance convenience for vehicle owners. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing urbanization is the key factor driving the global market growth. In recent years, global urbanization has reached unprecedented levels. The United Nations (UN) estimates that 56.2% of the world's population will live in urban areas in 2020, and this number is expected to rise to 68% by 2050. As cities become more densely populated, the need for parking spaces increases significantly. Lack of parking space leads to increased traffic, longer commutes, and environmental problems such as air pollution and CO2 emissions.
Innovative and effective parking solutions such as APS are developed to meet these challenges. These corrective actions can reduce commute times, reduce traffic congestion, and improve environmental sustainability. Hence, increasing urbanization is expected to be the driving force behind the growth of the market during the forecast period.
Integration with smart city initiatives will fuel the global Market growth. As cities become more densely populated, the need for parking spaces and transportation infrastructure increases. APS will be integrated with other smart city projects, such as traffic management systems, to address these issues and improve overall transportation efficiency. For example, the Singapore government has introduced an intelligent mobility system that combines automated parking and traffic control. The system uses real-time data to improve traffic flow, reduce congestion and increase overall transportation efficiency. The system reduces travel time by up to 25% and reduces CO2 emissions by 22%.
To improve the efficiency of Los Angeles traffic, the city of Los Angeles is also integrating APS into its traffic management system. In areas with high parking demand, the system uses real-time data from parking sensors to redirect traffic and ease congestion. APS integration is an emerging trend with the potential to significantly increase transport efficiency, reduce traffic and improve environmental sustainability. As technology advances to address issues related to urbanization and transportation, more cities are likely to implement these integrated systems. Therefore, the integration of APS with other smart city initiatives is a trend expected to drive the growth of the market during the forecast period.
The high initial investment can majorly impede the growth of the market. An automated parking system (APS) is an innovative way to address the urban parking problem, but its high initial cost can be a major obstacle for certain consumers. System size, level of automation, and installation complexity are some of the variables that affect APS pricing. For example, a fully automated parking lot that can accommodate 200 cars has a price range between USD 4 million and USD 7 million. A conventional parking lot with an equivalent capacity would cost between USD 2 million and USD 4 million. Also, they can have higher ongoing maintenance costs than traditional systems. The high initial cost can make it difficult for property owners and developers to justify the investment, especially in areas of low or uncertain parking demand.
For smaller properties or properties on a tight budget, this challenge can be even more difficult. As such, it can be difficult for prospective clients to purchase their APS, especially for smaller properties or properties on a tight budget. Despite their advantages, the price of these systems may discourage some landowners and developers from making investments. Therefore, the high initial cost of APS is a potential challenge that could impede the growth of the market.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the automated parking system (APS) market.
AJ Automated Parking Systems Co. Ltd: The company offers different types of smart automated parking systems such as Cart type, Tower type, Rotary type, Puzzle type, and Robot type.
Amano Corp: The company offers different types of car parking solutions such as automated parking systems, mechanical parking systems, and robotic parking systems.
We also have detailed analyses of the market’s competitive landscape and offer information on 18 market companies, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The market is witnessing significant growth due to the increasing demand for sustainable parking solutions in urban areas, driven by factors like rising urbanization and the scarcity of land for parking. Luxury buildings, smart city initiatives, and the adoption of IoT-based technology further fuel market expansion. These systems address challenges such as limited parking infrastructure and traffic congestion, offering comfort and convenience to vehicle owners. With features like solar-based automation, electric vehicle charging points, and fully automated systems, they cater to the needs of luxury residential buildings, hotels, and commercial complexes. However, ensuring quality control, effective construction, and regulatory compliance remains essential for sustainable growth in this market.
The integration of Smart Cities initiatives with advancements in Urban Mobility has led to a surge in Car Sales, propelling the Car Parking Industry forward. The increasing demand for Parking Systems is fueled by concerns over Climate Change, Fuel Wastage, and Energy Consumption. To address these challenges, innovative solutions like Solar-based Automated Parking, IoT-based Technology, and Fully Automated Systems are being deployed. Luxury Projects and High-Rise Constructions are embracing Non-Palleted Automated Parking with features like Lifts, Transfer Vehicles, and Robots. With the advent of technologies such as Hydraulics, IoT, and 5G Connectivity, Underground and Fully Automated Parking Systems are becoming more prevalent, catering to the rising number of vehicles amidst Traffic Jams and Pollution concerns. Real Estate Developers are incorporating these solutions into Sustainable Homes and Luxury Construction Projects to enhance Personal Mobility and Parking Capacity while addressing Safety Concerns and Quality Control Issues. Regulatory compliance and effective Construction and Management remain crucial for the successful deployment of these Hardware and Software Systems, which encompass Microcontrollers, GSM Modules, RF Modules, Displays, Motor Drivers, Ultrasonic Sensors, DC Motors, Camera Units, Analytics Solutions, and Inventory Accuracies within the Tower System framework.
Automated Parking Systems Market Scope |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.15% |
Market growth 2023-2027 |
USD 2.33 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.16 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 48% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AJ Automated Parking Systems Co. Ltd., Amano Corp., Automated Robotic Parking, AutoMotion Parking Systems LLC, Danieli and C. Officine Meccaniche Spa, EITO and GLOBAL Inc., Expert Parking Systems Pvt. Ltd., fehr Lagerlogistik AG, IHI Corp., KLAUS Multiparking GmbH, Konecranes, Mitsubishi Electric Corp., Nissei Build Kogyo Co. Ltd., Park Plus Inc., Parkmatic, SHANDONG TADA AUTO PARKING CO. LTD., STOPA Anlagenbau GmbH, Unitronics Inc., Westfalia Technologies Inc., and Wohr Parking Systems Pvt. Ltd. |
Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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