4 Reasons Parking Management Is Important For Smart Cities

4 important reasons why smart cities need parking management systems

The parking management system has become integral to urban or smart city development. The bottlenecks in traffic and logistical movement continue to be a key concern for the government, forcing it to automate the system. The alarming increase in private vehicles makes the traffic flow and parking lot allocation unpredictable. Hence, we cannot call a city smart unless it features an automated parking system. Because vehicle mobility is a city's lifeline, an uncontrolled system works against the city's objective of fast-moving, congestion-free traffic and making life easier.

Acknowledging the importance of parking management, smart cities around the globe began to embrace the system, reflecting a significant change in the market share.

Quick statistics of parking management system:

According to market and market research, the parking management market is expanding at a CAGR of 7.4%

The market will touch 5.4 billion USD by 2025, up from 3.8 billion USD in 2020.

Driving factors: Surge in the number of vehicles; smart city adaption, several automakers are focusing on automated parking management, etc.

Increase in pay and park systems in urban areas. Parking Access and Revenue Control (PARC) is dominating the market.

Why is a parking management system required?

A parking management system helps to maximize the utilization of parking lot allocation and benefits transport operators. According to a study conducted by Inrix, the inefficiency of parking management has cost Germany €45 billion and the United States $72 billion. A well-planned parking management system can help to overcome this financial loss and environmental issues.

4 Critical reasons why smart cities require parking management systems

1. Automatic and perfect control over parking space:

Automatic perfect control over parking space

Parking management is not just controlling entry and exit and distributing parking tickets. Unless it controls the parking lot allocation and automatically charges, we can't call it parking management. The automatic parking management updates the parking space available for parking and allocates it accordingly as cars arrive at the lot.

The latest systems feature an automated payment facility that helps to avoid bottlenecks at the entrance and exits completely. Each car equipped with an RFID tag (its ID) will be read at the entry and exit using the readers for registering the entry and calculating the amount to debit. The RFID linked to the owner's bank account will automatically debit money from their account, no stopping to pay.

2. Saving the environment

Besides the financial impact on individuals, searching for better parking space create environmental issues. Several surveys indicate searching for parking spots burns almost one million barrels of oil daily. A sound parking management system will optimize the driving time, letting burn less fuel. Apart it helps reduce noise pollution and hassles in the city.

3. Turning parking into a profitable business

Turning parking into a profitable business

An easy and fast parking management system is an attraction in a busy and noisy urban environment. Keeping in mind that parking management is a service in hospitals, government buildings, enterprises, restaurants, etc., the system can increase profits for entertainment buildings, resorts, commercial buildings, and parking garages. The automated system offers accurate payment for the parking time and an easy amount distinction for different types of vehicles.

Since the system accurately records vacant parking spaces, it is possible to prebook and pay for parking spaces in advance, reducing traffic congestion and inadequate parking spaces.

4. Cut down operating costs

The parking management system won't become a financial burden above service providers anymore. With low maintenance costs, the system won't take much expense for daily activities except power. All functions are performed by technology, which eliminates all human mistakes and frees up human personnel for more productive jobs.


Aside from parking management, the system has been touted as a perfect option for efficiently and swiftly solving problems, including decongesting traffic, decreasing pollution by restricting carbon emissions and increasing the quality of life in major cities. In addition, authorities in countries such as India are considering merging the electronic toll collecting ID with parking systems at metros, airports, and other public locations.


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