Japan Smart Parking Market

Japan Smart Parking Market Overview:

The Japan smart parking market size reached USD 336.3 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 937.8 Million by 2033, exhibiting a growth rate (CAGR) of 10.8% during 2025-2033. ​The market is driven by increasing urbanization and vehicle ownership, leading to traffic congestion and rising demand for efficient parking solutions. Moreover, advancements in IoT and AI technologies enhance parking management, and government initiatives promoting smart city infrastructure that further support market expansion.

Japan Smart Parking Market Trends:

Urbanization and Increasing Vehicle Ownership

Japan’s dense urban areas face growing pressure from rising vehicle ownership, leading to congestion and a shortage of parking spaces. According to industry reports, based on vehicle type, trucks rose by 0.2% to 5,938,350 units, mini vehicles grew by 0.4% to 31,148,992 units, whereas passenger cars fell by 0.4% to 39,017,038 units. The proportion of mini vehicles in total ownership increased by 0.2% points to 39.9%. Cities like Tokyo and Osaka, with limited land availability, need efficient parking solutions. Smart parking systems help reduce traffic caused by vehicles searching for spots, optimize space utilization, and improve overall urban mobility are propelling the Japan smart parking market growth. As more people move to urban centers and car ownership persists, demand for intelligent, space-saving parking infrastructure rises. These systems also enhance driver convenience, encouraging their adoption across residential complexes, commercial hubs, and public facilities, particularly in space-constrained and high-traffic urban environments.

Technological Advancements in IoT and AI

The integration of AI-based analytics, IoT sensors, and real-time data systems is transforming the parking experience in Japan. Smart parking technologies use sensors to detect space availability and transmit real-time data to users via mobile apps or digital signs. AI algorithms optimize traffic flow and predict demand, improving operational efficiency. These innovations reduce parking time, emissions, and frustration for drivers, creating a positive impact on the Japan smart parking market outlook. As Japan remains a global tech leader, the adoption of cutting-edge parking solutions is supported by domestic innovation and tech-savvy consumers. The country’s strong digital infrastructure further accelerates the deployment and scalability of intelligent parking systems.

Government Smart City Initiatives

The Japanese government actively promotes smart city development through policies and funding aimed at improving urban infrastructure and sustainability. Smart parking is a key component of this agenda, helping reduce CO2 emissions, improve traffic management, and support efficient land use. Public-private partnerships and pilot programs encourage the rollout of smart parking systems in municipalities, which is fueling the Japan smart parking market share. Programs like “Society 5.0” and the Ministry of Land, Infrastructure, Transport and Tourism’s (MLIT) initiatives emphasize digital transformation, including smart mobility. These efforts create a favorable environment for companies investing in parking technology and ensure regulatory support for scalable and sustainable growth.

Japan Smart Parking Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on system, technology, component, solution, vertical type, and parking site.

System Insights:

• Guided Park Assist System
• Smart Park Assist System

The report has provided a detailed breakup and analysis of the market based on the system. This includes guided park assist system and smart park assist system.

Technology Insights:

• Ultrasonic
• RFID
• IoT

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes ultrasonic, RFID, and IoT.

Component Insights:

• Hardware
• Software
• Services

A detailed breakup and analysis of the market based on the component have also been provided in the report. This includes hardware, software, and services.

Solution Insights:

• Security and Surveillance
• Valet and Parking Reservation
• License Plate Recognition

A detailed breakup and analysis of the market based on the solution have also been provided in the report. This includes security and surveillance, valet and parking reservation, and license plate recognition.

Vertical Type Insights:

• Government and Municipalities
• Commercial Institutions
• Transport Facilities

A detailed breakup and analysis of the market based on the vertical type have also been provided in the report. This includes government and municipalities, commercial institutions, and transport facilities.

Parking Site Insights:

• Off-Street Parking
• On-Street Parking

A detailed breakup and analysis of the market based on the parking site have also been provided in the report. This includes off-street parking and on-street parking.

Regional Insights:

• Kanto Region
• Kansai/Kinki Region
• Central/ Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kansai/Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Japan Smart Parking Market News:

• April 2025: A beta version of ‘SmartCheck,’ a smart parking app that enabled small and medium-sized restaurants to generate ‘additional income’ by utilizing vacant parking spots after operating hours, was announced to be launched in the vicinity of major stations in Saitama Prefecture. The application would run live on April 10, 2025.
• April 2025: Mitsubishi Heavy Industries Machinery Systems (MHI-MS) completed domestic development of an autonomous vehicle and automobile transportation and storage system, referred to as ‘a vehicle transport robot’ that could autonomously move cars. It commenced trial operations and endurance testing at its manufacturing facility in Japan. For automated valet parking at commercial establishments, the robot would position the vehicle in an available spot, transforming distant parking areas that individuals often neglected into nearby parking spaces. It also removed the issue of drivers getting distracted while searching for an available spot.
• October 2024: UrbanChain Group Corporation, Limited. announced the launch of a proof-of-concept trial for its fourth AI-based cashless parking facility in Japan, beginning on October 30, 2024, in the Edogawa Ward of Tokyo. This cutting-edge system streamlined parking management and payments exclusively via AIoT cameras, improving user ease and operational effectiveness. It acted as a site for tours and showcases for parking lot operators, evolving into an important case study for upcoming smart parking applications.
• October 2024: Kia introduced its in-car payment feature that allowed customers to purchase goods and services while seated in the car, beginning with the EV3. The initial application offered would be through Parkopedia, assisting drivers to find available parking spots and make payments easily via the vehicle’s navigation display. It sought to address parking issues in major urban areas, as 92% of motorists struggled to find vacant parking spaces in Japan, France, Germany, Italy, the UK, and the US.
• July 2024: USPACE, the renowned intelligent parking platform, revealed a major acquisition of the Japanese shared parking company Nokisaki for a multi-million dollar amount. This strategic decision would boost USPACE to the status of the largest smart parking platform in Asia, overseeing almost 2,000 parking locations with nearly 90,000 smart parking spaces and more than 1.4 Million registered users, positioning itself as a leading smart parking enterprise. This purchase would enable users in Japan to locate and book parking spots instantly, offering flexible payment choices for optimal efficiency.

Japan Smart Parking Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan smart parking market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Japan smart parking market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan smart parking industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.