Automated Parking System Market Size

Automated Parking System Market Size

Automated Parking System Market size was valued at USD 2 billion in 2023 and is estimated to register a CAGR of over 16.5% between 2024 and 2032. The market growth is driven by the accelerating rate of urbanization and space constraints. According to the World Bank, presently, more than half of the world's population (56%), approximately 4.4 billion people, currently lives in urban areas.

Forecasts suggest that this trend of urbanization will continue, with the urban population expected to more than double its present size by 2050. By that point, nearly seven in ten individuals are projected to be residents of cities. Rapid urbanization and population growth in cities have led to increased demand for parking spaces. Automated Parking Systems provide a solution to the limited availability of space in densely populated urban areas by utilizing vertical and compact designs, allowing for more efficient use of available land.

Ongoing technological advancements, particularly in sensor technologies, robotics, and artificial intelligence, have improved the efficiency and reliability of automated parking systems. Integration of smart technologies, such as IoT (Internet of Things) sensors and automated vehicle guidance systems, enhances the overall performance of APS, making them more appealing to developers and end-users.

Quoting an instance, in December 2023, Affordable Robotic and Automation Limited (ARAPL) unveiled its entry into the realm of machine shop automation, introducing two power train robots. The company has partnered with its subsidiary, ARAPL RaaS, to pioneer India's inaugural mobile robotic multi-level car parking system, employing automated guided vehicles (AGVs). These innovative efforts will help shape the automated parking systems market outlook in the forthcoming years.

However, the upfront costs associated with designing, installing, and implementing automated parking systems can be relatively high. This includes expenses for specialized technology, robotics, sensors, and infrastructure modifications. Some potential users, such as property developers or parking facility operators, may find these initial costs to be a barrier to entry, which may impact market dynamics in the long run.