Report Overview

Traffic congestions, increased number of automobiles on the road, and rising number of smartphone users across the country which are increasing the number of users who park, pay, and book slots in advance via mobile apps, are expected to drive Japan smart parking systems market during the forecast period between 2023 and 2029.

Japan Smart Parking Systems Market - Industry Trends & Forecast Report, 2029

Japan smart parking systems market size was estimated at USD 201.36 million in 2022. During the forecast period between 2023 and 2029, Japan smart parking systems market size is expected to grow at a significant CAGR of 18.89% reaching a value of USD 662.4 million by 2029. The effective increase in vehicle numbers raising concerns about parking solutions is the primary factor driving the growth of the Japan smart parking market. The Japan smart parking systems market is also being driven by the growing demand for and adoption of IoT-related technology. The government's program to create smart cities in the region and the rise in funding for the creation of driverless vehicles both offer the potential for the Japan smart parking systems market to grow.

Japan Smart Parking Systems Market - Overview

Through automated admittance control systems, parking guidance systems (PGS), parking reserving barriers, and ticketing systems, a smart parking system (SPS) improves parking spaces. It employs mechanical arrangements to transport cars from one parking space to another, thereby eliminating empty space in a multistory or single-story garage. It uses vehicle counting equipment, video cameras, automatic number plate recognition readers (ANPR), and pavement sensors to regulate parking lot occupancy and transmit data to a control center in real-time. It aims to improve traffic flow in congested areas and provide a systematic parking operation.

Growth Drivers

Increasing Number of Vehicles and Shrinking Parking Space

The number of vehicles on the road increases significantly each year, causing traffic congestion. Parking has become a major issue in major cities due to a large number of vehicles. The parking space supply-demand gap is growing year after year. Excessive traffic jams and congestions frustrate drivers, waste fuel, pollute the air and noise, and stymie productive economic activity. During the forecast period, these factors are expected to drive the global smart parking systems market.

Providing Bundled Services in Parking Areas

Valets, repair services, washing, maintenance, car sharing, and electric vehicle charging can be bundled with parking transactions in the long run. Such bundled services have the potential to increase occupancy, especially in commercial facilities geared toward travelers.

Restraints

Challenges in System Integration and Interoperability

System integration is a significant challenge with smart parking systems because there are numerous hardware and software platforms involved. Concerns about system scalability are brought up by the availability of so many different solutions and the lack of interoperability between them. Various hardware sensors, messaging systems, traffic control devices, wireless and wireline telecommunications systems, hardware and server drivers, and application interfaces are used by permit and enforcement (P&E) and parking access and revenue control (PARC) systems. Putting all of these devices together on a single platform is very difficult because their configurations are from various vendors. These elements are therefore anticipated to restrain market growth shortly.

Impact of COVID-19 on the Japan Smart Parking Systems Market

The smart parking market suffered as a result of the strict lockdowns and social seclusion used to stop the spread of the COVID-19 pandemic. The uncertain economy, a partial business shutdown, and low consumer confidence all impacted demand for smart parking. During the pandemic, the supply chain and logistics operations were hampered. However, as restrictions are eased, the smart parking market is expected to pick up steam in the post-pandemic scenario.

Japan Smart Parking Systems Market

Segmental Coverage

Japan Smart Parking Systems Market - By Type

Japan smart parking systems market is segmented into two types: off-street and on-street. The off-street market segment holds a significant market share. The rise in off-street parking can be attributed to the growing number of businesses offering applications for using spaces for parking in single slots. Several smart city and road development initiatives call for robust parking space utilization using sensor-based vehicle detection technology to address parking issues. The segment's growth during the forecast period will also be aided by an increase in the number of industries that require parking and smart detection facilities.

Japan Smart Parking Systems Market - By Technology

Japan smart parking systems market is divided into three segments based on technology: Internet of Things (IoT), Ultrasonic, and RFID. The ultrasonic segment is expected to dominate the smart parking system market in Japan. The primary use of ultrasonic sensors in smart parking is to assist drivers in finding a suitable parking space and to detect objects in the parking range over a short distance. Ultrasonic sensors are preferred over image and radar sensors due to their lower cost.

Japan Smart Parking Systems Market - By Application

Japan smart parking systems market is categorized into Security & Surveillance, Smart Payment Systems, Parking, and License Plate Recognition. The License Plate Recognition (LPR) segment is expected to grow at the fastest rate during the forecast period. This is due to the increased use of LPRs for vehicle surveillance, which reduces the workforce or time required to complete these tasks significantly. As technologies, such as image processing and human-computer interaction advance, cameras are increasingly being used in smart parking systems to detect vehicle entry and exit in a parking lot.

Japan Smart Parking Systems Market – By Hardware

By hardware, Japan smart parking systems market is segmented into Pucks, Cameras & LPRs, Smart Meters, Signage, and Parking Gate. The market share leader in the segment of smart meters. As Japan becomes more urbanized, on-street parking spaces are in greater demand in the country's cities, which has led to the widespread use of parking meters. These meters track the number of parked cars and the number of parking spaces available using sensors and mobile applications. For a long time, most people leave their cars parked on the streets. Governments were compelled to erect smart parking meters as a result, which also help to distribute on-street parking spaces.

Japan Smart Parking Systems Market – By Software

The Japan smart parking systems market is divided into two segments based on software: Parking Guidance Systems and Analytics Solution. The segment of parking guidance systems dominates the Japan smart parking systems market. These guiding systems have grown in popularity because they assist people in finding open slots, provide parking instructions, display how many spaces are available and how long they will be available, and save people time. Industry players are focusing on showcasing their cutting-edge guidance systems to increase their market share in the Japan smart parking systems market.

The analytics solutions segment is expected to grow significantly during the forecast period. Parking sensors installed on various structures, such as light poles, can thoroughly collect accurate information about occupied and vacant spaces.

Japan Smart Parking Systems Market – By Service

Japan's market for smart parking systems is segmented into three service categories: consulting, engineering, and mobile app parking. The engineering services segment holds a majority share in the market. The adoption of autonomous and semi-autonomous vehicles increased during the forecast period, particularly in developed cities across Japan. These vehicles require instrumentation installations, robotic engineering facilities, and specially designed parking garages and lots.

The market for parking services for mobile apps is expected to grow significantly during the forecast period, due to the widespread use of smartphone applications that support smart parking services.

Japan Smart Parking Systems Market – By End User

Japan's smart parking systems market is segmented into three categories based on end users: commercial, government, and transit. The commercial segment dominates the Japan smart parking systems market. The commercial segment growth is expected to be driven by the growing adoption of smart parking systems in office buildings, theatres, sports arenas, shopping malls, and other public locations. The growth of the segment is expected to be fueled by the proliferation of adaptable mobile payment services and a high level of parking convenience.

Competitive Landscape

Major companies in Japan smart parking systems market include Aisin Seiki, Altiux Innovations, Amano Corporation, Amano McGann Inc, BMW Group, Continental AG, Daimler AG, Eito & Global Inc., Giken Limited, IHI Parking System, Nissei Build Kogyo, Siemens AG, Valeo S.A, and Volkswagen AG. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Type

• Off-Street

• On-Street

By Technology

• Internet of Things (IoT)

• Ultrasonic

• RFID

By Application

• Security and Surveillance

• Smart Payment Systems

• Parking

• License Plate Recognition

By Hardware

• Pucks

• Cameras and LPRs

• Smart Meters

• Signage

• Parking gate

By Software

• Parking Guidance System

• Analytics Solution

By Service

• Consulting Services

• Engineering Services

• Mobile App Parking Services

By End User

• Commercial

• Government

• Transport Transit