Automated Parking System Market Size

Global Automated Parking System Market size was valued at USD 2.7 billion in 2023 and is poised to grow from USD 3.26 billion in 2024 to USD 14.68 billion by 2032, growing at a CAGR of 20.7% during the forecast period (2025-2032).

One of the main drivers of the global automated parking system market is the rapid growth in urban populations. As the population expands, land for conventional parking facilities becomes scarcer, resulting in escalating real estate prices. This has seen urban developers and city planners opt for automated parking systems as a means of maximizing the efficiency of parking and using limited space. In contrast to traditional parking lots, which demand significant surface space and maneuvering areas, automated parking systems rely on vertical stacking and robotic vehicle retrieval systems to cut down spatial needs by a substantial margin. This enhanced space utilization enables improved land use in high-density cityscapes, which directly drives the need for such systems. Consequently, real estate developers, municipalities, and commercial property owners are investing in automated parking technologies to deal with congestion and maximize land use, ultimately driving market growth.

A crucial factor influencing the success and adoption of automated parking systems is the integration of artificial intelligence (AI) and the Internet of Things (IoT). AI-driven algorithms facilitate real-time parking space assignment, vehicle tracking, and predictive maintenance, increasing overall system efficiency. IoT sensors gather and process data on vehicle traffic, occupancy levels, and system performance, minimizing downtime and increasing operational reliability. This technology leads to lower waiting times, improved user experience, and lower operating costs. Overall, incorporating AI into IoT systems both increases the efficiency of automated parking and attracts the interest of developers and city planners in standardizing it across smart city projects.

What role does AI-Driven Computer Vision Play in Automated Parking Systems?

AI is transforming the world automated parking system market by improving operational efficiency and user experience. AI-based computer vision and machine learning allow real-time detection of parking spaces, tracking of vehicles, and autonomous parking, easing congestion and human mistakes. Predictive analytics maximizes space allocation and reduces retrieval time, enhancing system reliability. AI-based chatbots and mobile apps improve customer engagement, simplifying payments and bookings. One such turning point is Tesla's Smart Summon feature, supporting AI-enabled self-parking, illustrating the increasing application of AI in parking automation. As technology improves, parking systems become more intelligent, efficient, and central to smart city planning globally.

In August 2024, Veer Savarkar International Airport in India opened an Advanced Automated Parking System (AAPS) to improve passengers' parking experiences. The latest system includes sensor-based boom barriers for automatic car management, CCTV monitoring for better security, and automatic ticket machines to automate the ticketing process. Aimed at reducing manual intervention and making parking charges transparent, the AAPS also includes timestamping at strategic points for better accuracy. This trend highlights the increasing uptake of automated parking systems in congested locations to enhance efficiency and customer satisfaction.

How are Startups Leveraging AI, IoT, and Robotics in Automated Parking Solutions?

The worldwide automatic parking system industry is growing tremendously due to high urbanization rates, growing numbers of vehicle possessions, and requirements for space-saving. Start-ups are using artificial intelligence, internet of things, and robotics in designing intelligent car parks that lead to improved performance and lessened traffic congestion. In cities, the development of connected and sustainable smart cities is catalyzed by innovations such as AI-based parking guidance and surveillance, autonomous valet systems, and digital payment mechanisms.

Founded in 2019, VEStellaLab, a startup in South Korea, specializes in AI-based smart parking solutions. The V2X-Smart Parking System applies Artificial Intelligence of Things (AIoT) to offer real-time information to drivers about vacant parking spaces and the best routes. Through the analysis of video streams and merging different sources of data, the system provides a digital map with empty spaces, directing drivers in an efficient manner to their destinations. This saves time spent searching, reduces traffic jam, and provides an overall improved parking experience. VEStellaLab has also created a non-GPS navigation solution that operates well in "GPS denied" environments, e.g., underground parking garages. This technology provides uninterrupted navigation and parking guidance, even in areas where the satellite signal is weak or missing. Utilizing AI and sensor fusion technologies, the system preserves precise vehicle location, resulting in smooth parking experience and enabling autonomous driving capability development.

Established in 2016, Steer is a Maryland-based autonomous vehicle technology company focusing on automated parking solutions. The firm seeks to reduce urban traffic and optimize parking through automation. Steer's Automated Valet Parking Ecosystem integrates low-speed vehicle automation with supervisory parking management. Through the retrofitting of vehicles, the system allows cars to park themselves in parking facilities with less human interaction. This technology is helping optimize space, streamline parking operations, and improve user convenience. Steer open-sourced its valet parking APIs to encourage interoperability between OEMs, parking management companies and digital curb management systems with an initiative that encourages collaborations, speeds the adoption of automated parking technologies, and helps build solutions standardized across the industry.

Established in 2017, Metropolis is a Santa Monica startup that deals with AI-driven parking solutions. Metropolis aims at revolutionizing the conventional parking stations into dynamic mobility centers using technology. Metropolis uses a computer vision platform that is driven by artificial intelligence to facilitate checkout-free payment at parking stations. Upon registering their vehicles on the Metropolis app, customers can enter and exit without the need for manual payment processes, making the experience more convenient and saving time. In October 2023, Metropolis made a move to acquire SP Plus, the biggest parking network in North America, for $1.5 billion. The strategic acquisition enabled Metropolis to expand its technology at an accelerated pace to 50 million customers in 4,000 locations. Merging SP Plus's vast network with Metropolis's AI-based platform is the perfect example of a milestone innovation in the automated parking sector, paving the way for more streamlined and user-friendly parking systems.