A new report from Navigant Research estimates that by 2024, there will be more than 1 million sensor-enabled on-street smart parking spaces globally. This forecast is somewhat more conservative than the one provided in Navigant’s 2013 Smart Parking Systems report, reflecting a slower-than-anticipated early adoption rate among cities, especially in North America.
The global market for smart parking systems is expected to be worth $40.9 million in 2015. Navigant Research expects annual revenue to grow to $324.6 million by 2024, representing a compound annual growth rate (CAGR) of 25.9%. On a cumulative basis, the market is expected to reach over $1.5 billion between 2015 and 2024. During this period, smart parking systems are expected to transition from a niche technology to an accepted solution for city management across the globe.
Several barriers exist to widespread adoption of these technologies, cost being a primary one. One key hurdle, according to the report, is convincing city leaders of the financial benefits and congestion reduction potential of smart parking solutions when deployed at city scale. Obtaining upfront funding is another hurdle.