Smart Parking

Smart Parking refers to a next-generation parking management model that integrates technologies such as the Internet of Things (IoT), artificial intelligence (AI), big data, cloud computing, mobile terminals, and GPS tracking to deliver end-to-end intelligent management of urban parking bays. At its core, it breaks down information silos across parking resources through technology, creating seamless synergy across "motorists, vehicles, parking bays, and car parks" whilst transforming fragmented parking assets into highly efficient, dynamically dispatchable digital assets.

Core Definition and Technical Architecture

Smart parking encompasses full-cycle services, including parking bay data collection, real-time status monitoring, online booking, route navigation, reverse vehicle search, and seamless cashless payment. Introduced in 2023, the national standard "Smart City - Smart Parking - Part 1: General Requirements" (GB/T 42442.1-2023) established the overarching architecture for smart parking, defining essential requirements across six key areas: IoT sensing, network communications, computing and storage, data infrastructure, application services, and security.

From a technical architecture standpoint, a smart parking system typically comprises four core layers: the perception layer captures parking bay status via geomagnetic sensors, video recognition units, and ETC terminals; the network layer enables real-time data transmission via NB-IoT, LoRa, and 5G communications; the platform layer manages data storage and analytics via cloud computing; and the application layer delivers management and mobility service functions for local authorities, operators, and motorists.

Current Industry Landscape

Smart parking has expanded on a massive scale across China. As of April 2026, 245 prefecture-level and higher cities alongside 855 counties (county-level cities) nationwide have rolled out intelligent on-street parking management, bringing the total number of smart on-street parking bays to 5.03 million—an 18% increase year-on-year. City-wide smart parking infrastructure continues to accelerate, with 1,054 new projects launched in 2025 representing a tender value of approximately RM460,000,000,000.

The smart parking market value is now approaching RM30,000,000,000, anchoring an interconnected industry ecosystem valued at RM1,000,000,000,000. In detailed figures, as of June 2026, the cumulative tender value for intelligent on-street parking projects under the "14th Five-Year Plan" reached RM571,000,000,000; over 1,000 municipal-level smart parking platforms have gone live nationwide, with more than 60% of prefecture-level cities having deployed city-wide parking management platforms.

Core Technologies and Application Scenarios

Deep AI Integration has emerged as a cornerstone of smart parking development. AI technology is applied across intelligent parking bay recommendations, in-facility video navigation, and dynamic dispatch decision-making, substantially driving up parking efficiency. For instance, following the deployment of an AI spatial management system at Zhengzhou Financial Island, the average bay search time during peak hours dropped from 8 minutes to under 2 minutes, whilst the parking bay turnover rate surged from 0.8 to 1.64 rotations per day.

In terms of Intelligent Front-end Hardware, across the 5.03 million smart on-street bays currently active, geomagnetic sensor bays account for 42.9%, high-position video bays represent 22.7%, whilst video poles, automated parking flaps, and kerbside units have also seen widespread, mature deployment.

City-level Parking Platforms are expediting the rollout of unified "single network" systems. Platforms including Shanghai Parking, Yongcheng Parking, and Guangzhou Parking have integrated real-time dynamic data covering all municipal on-street bays and over 80% of off-street car parks. Parking functionality has evolved from basic payment processing to value-added features such as shared parking, reserved parking, integrated EV charging facilities, and unified city-wide park-and-pay networks.

Evolution of Operational Models

Smart parking management is transitioning from conventional manual operations towards platform-based, digital-intelligent management. Cooperative operating models are becoming the new norm, accounting for 36% of on-street parking operation projects in 2025 and overtaking the traditional Build-Operate-Transfer (BOT) model for the first time. Integrated on-street and off-street arrears recovery has been deployed in prime urban areas across one-quarter of smart-enabled cities, whilst ETC-assisted payment systems are active in city-centre districts of one-third of these cities.

Data-driven Refined Operations continue to gain traction. Leveraging operational data, Zhengzhou Financial Island introduced tailored "preferred bay" monthly packages—including weekday daytime, night-only, and long-stay options—bundled with EV charging privileges, effectively doubling facility service capacity without adding a single physical parking bay. This platform-based operational model is now being rapidly rolled out nationwide.

Key Development Trends

The smart parking sector is demonstrating three major trends: first, deep AI integration, creating an intelligent closed-loop ecosystem covering bay demand forecasting, operational efficiency optimisation, and payment recovery; second, accelerated consolidation of city-wide platforms, with intelligent on-street coverage slated to rise further through the "15th Five-Year Plan" as platform-centric operations take centre stage; and third, ecosystem expansion, as smart parking transitions from standalone parking management into multifaceted ecosystems encompassing "parking + EV charging", "parking + retail commerce", and "parking + autonomous driving", unlocking an associated industry market value exceeding RM1,000,000,000,000.