The smart parking market is on the cusp of a boom, and a turning point in performance is imminent.

According to the Shenzhen Municipal Development and Reform Commission’s “Shenzhen Parking Industry Development Report” According to a 2017 report, the parking industry has grown into a new multi-billion‑yuan sector in Shenzhen, with the market size projected to exceed RMB 50 billion by 2020. “Internet Plus Parking” is set to become the primary driver of the industry’s development. According to data from the “Market Outlook and Investment Strategy Planning Analysis Report on the Smart Parking Industry,” In 2016, the scale of Shenzhen’s parking industry reached RMB 24.1 billion. Specifically, the upstream segment—parking lot investment and construction—accounted for RMB 8.4 billion, or 34.85% of total investment; the midstream segment—manufacturing and installation of parking equipment (including mechanical and smart parking systems)—totaled RMB 6.25 billion, representing 25.93% of overall investment; and the downstream segment—parking lot operation and management—stood at RMB 9.45 billion, or 39.21% of total investment.

The smart parking market is on the cusp of a major boom, and a turning point in performance has already emerged.

The report states that the continuous increase in China’s civilian vehicle ownership, particularly private car ownership, has generated substantial demand for parking, paving the way for new growth opportunities in the parking industry. It is projected that by… In 2020, the market size of Shenzhen’s parking industry will exceed RMB 50 billion. Specifically, the market for parking lot investment and construction will surpass RMB 17 billion, the market for parking equipment manufacturing and installation will exceed RMB 13 billion, and the market for parking lot operations and management will top RMB 23 billion.

The growing demand in the parking market has also… “Internet Plus Parking” has opened up vast prospects for development. The “Implementation Opinions of Shenzhen Municipality on Strengthening the Construction of Parking Facilities” explicitly states that it is necessary to advance the informatization and smart‑ification of the parking industry, proactively establish a city‑level smart parking cloud platform, achieve full network connectivity of parking information across the city, and promote the integrated development of parking and the Internet, thereby enhancing the efficiency of parking resource utilization.

Currently, the demand gap for parking spaces in Chinese cities stands at… More than 50%—in the smart parking industry, particularly within the private sector—there lies vast potential for growth.

As in road traffic, the parking sector also faces… “Daganzo’s Law” states that newly constructed road infrastructure tends to attract additional traffic, and traffic demand invariably outstrips available supply. In cities—particularly large ones—parking spaces are consistently in short supply. Accordingly, leveraging the mobile internet, an intelligent parking system that allows users to check parking availability in advance, automatically detect parking duration, and make payments independently could enhance parking efficiency and help alleviate the challenge of finding parking.

Parking is often dismissed as merely a municipal or transportation issue, but in fact it should be recognized as an independent industry with a long and extensive value chain. Smart parking currently occupies the mid‑stream segment of this chain and has significant potential to expand both upstream and downstream. Upstream activities include investment in and construction of parking facilities, while downstream services encompass car washing, maintenance, and other ancillary offerings, creating vast prospects for growth. In particular, the private sector, with its high degree of flexibility, can substantially enhance service quality and operational efficiency once it enters the parking industry.

From a policy perspective, in In early 2016, the State Council issued the “Several Opinions on Strengthening Urban Planning, Construction, and Management,” which stipulated that no new enclosed residential communities would be built. Existing residential neighborhoods and institutional compounds were to be gradually opened up, with internal roads made publicly accessible, in order to address issues in the layout of the transportation network. In the future, the Ministry of Housing and Urban–Rural Development and the Ministry of Land and Resources will introduce a series of policies on planning, land use, and related areas to resolve the bottlenecks hindering the development of parking facilities at the project’s outset.

As the security industry continues to evolve, intelligence and networking have become integral parts of our daily lives, ushering the sector into a new phase of development. Certain segments, such as the smart transportation market, are undergoing significant transformation. As early as several years ago, numerous parking‑system manufacturers began entering the smart‑transportation space, which holds promising prospects. Even today, this field remains an alluring frontier.