Smart Parking System: How to Build IoT-Based Smart Parking Management Software Solution?

Urbanizing is expanding, but at what cost? Traffic. Overcrowding.

According to research, 30% of traffic is caused by parking, especially in big cities! This percentage could be even higher by 2025. Mismanagement of available parking spaces and an increasing number of vehicles on the road – such traffic congestion has forced the introduction of a smart parking system! This modern technology optimizes parking space usage and helps streamline traffic flow. So, what is exactly smart parking? How building a smart parking solution can be beneficial to your company? Let’s discuss it all in detail.

What is Smart Parking System?

A smart parking system is a software solution that incorporates IoT technologies such as sensing devices, cameras, or counting sensors to identify which parking area is occupied or available and often uses this sensor data to design a real-time parking map.

Such sensors communicate with the gateway and transfer the real-time data to the cloud. The availability of parking slots is then automatically demonstrated by vehicle detection sensors. It can also be seen on the software or app mounted on the available slots so that space can be quickly detected by the drivers.

How Does Smart Parking System Work?

Before you directly jump into the development process, you must know how the web application works from the user’s point of view. So, here are the steps to consider.

How Smart Parking System Work

1. User Send Car’s Location

  • Smartphone navigator enables GPS location in the app once downloaded
  • Users send the car’s location to the parking provider in the smart city

2. Look for Space Availability

  • The app provides a variety of parking slots for a better experience
  • The user checks the occupied and available parking spaces of the area

3. Parking Space Allotment

  • The app, if available, recommend the parking spot to the navigator
  • Drivers also compare recommended slots by price or distance to find the perfect match

4. Book & Start Parking

  • The users reserve the selected parking lot and get an access code
  • A location-based solution then would direct the vehicle to start parking in the available lot

5. Offer Parking Discount

  • If any, the service provider would offer a discount on the go before finally settled on the real-time parking space
  • Once the transaction is done, the navigator starts parking

6. Finish Parking & Billing

  • After the parking period is over, the app will notify the provider
  • User unpark the vehicle and pay the billing amount as the fee

Thinking to build such a smart parking app for your company? Want to share your idea?

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Benefits of Smart Parking Management Software Solutions

While the IoT-based parking management system software help finds vacant spaces faster, it also benefits the company with revenue and much more. Let’s discuss all those benefits.

Benefits of Parking Management Software Solutions

  • Reduced Traffic & Pollution: When the driver knows where to go exactly, it decreases excessive driving, thereby improving traffic movements in built-up areas. Also, as the smart parking systems gives an option for a quick vehicle park experience, it lowers the pollution of cars standing idle in the parking lot waiting for space.
  • Real-Time Monitoring: Automated parking solutions tend to simplify the search and speed up the parking process, resulting in less guesswork and less unpredictability in the search for available space. IoT (internet of things) technologies help locate a space in a new town and track the occupancy of parking facilities in real-time to guarantee that the time of drivers is not wasted when driving through jam-packed parking lots.
  • Optimized Parking: The smart parking systems encourage drivers to find the best available position easily, which saves time, money, and effort. This way, the available area will be effectively used, depending on the different variables when assigning the position, such as vehicle height, weight, etc.
  • Reduced Costs: Another benefit you get from providing an efficient system of parking management is the cost. You save more cash because it runs on low manpower. More mechanization and less manual action save money on work costs. By automatic processes, data, and delivering targeted compliance operations, smart parking technology will reduce these overheads.
  • Enhanced Services: With the cutting-edge technology and accessibility considerations, visitors will certainly be satisfied, whether the destination is a convenience store, an airport, or a corporate business office. Such a seamless parking experience would fully skyrocket the brand image of the customer of a corporate or commercial enterprise.
  • Increased Revenue: Vehicle detection sensor data reveals clear visibility into which spaces or locations have higher and lowest traffic. That ultimately allow businesses beyond working hours to decide where more parking is to be expanded and where to cut back accordingly to generate incremental revenue from their parking lots.

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How to Build IoT Based Smart Parking Solution?

Going ahead, here we have mentioned step by step parking guidance for the app building process that you may want to look at.

Build IoT Based Smart Parking Solution

Step 1. Identify Your Goals

To be a parking industry leader, a strongly structured business strategy will assist you to achieve success. It all starts with the core appeal of your IoT app. You may consider asking questions like,

  • What are the tangible parking demand and parking challenges that you can solve?
  • Is that going to be a map of parking control or just assistance?
  • Will it have features for identifying and paying for parking spots?
  • Who will be your target audience?
  • Which latest software technologies you can use for development?
  • How much time will it take to reach your profits equal to your costs?

Outline all of these and you will realize your business potentials.

Step 2. Form a Legal Entity

Next, you may want to create a corporate legal entity like LLC. If the parking lot is charged, this would prevent parking lot owners from being directly responsible. To do so, you should use a licensed agent that can protect your privacy and remain compliant.

Step 3. Find Funding

For parking spaces where you wish to have a car parking facility, you can gather information about the average sale price. To check if you have appropriate credit ratings to apply for a commercial loan, contact a loan officer or a credit union. You may also contact small business administrations who provide entrepreneurs who want to launch their venture with low-interest loans.

If you want to understand a complete app funding guide, refer to our detailed blog where you may find answers to all your questions.

Step 4. Design All Specifications

Once you have enough resources and funds, you can start designing the important aspects where you can,

  • Find the location of your vehicle space
  • Estimate prices you want to charge to your users
  • Organize space lot and battery life for improved parking experience
  • Think of safety and security

Step 5. Find App Development Team

It’s time to take your company online once settling on all of the above steps. You need to create a smartphone IoT app, and for that, we suggest recruiting a custom mobile app development company that helps you from the idea to the launch of your mobility solutions.

Step 7. Build & Test

This stage is handled by your hired app development team where you find ideas and features blend into a clearer picture. To create both the backend and the frontend, the team will set up databases, servers, APIs, storage solutions, etc. After the team develops the smart solution, the quality analyst will run the IoT product through quality assurance and make it a complete bug-free, so that you can release it effectively.


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Unique Features of Parking Mobile Apps

While you think of creating a mobile app project for the parking industry, here are the features that you may want to integrate.

Unique Features of Parking Mobile Apps

GPS Vehicle TrackingIt’s necessary to allow GPS monitoring to make the program easier to use. This technology allows the location of the car to be found and the distance to the closest parking lot to be calculated.
BookingThis function enables a parking space to be reserved. On a regular, weekly, and monthly basis, the user can select parking spots that suit the budget and pre-pay it. It helps daily boring reservations to be avoided.
Price ComparisonIt helps drivers to conveniently compare prices and locate the cheapest lot in their smart city. Parking locator applications with the vehicle sensor notify consumers in advance of the price and equate a more cost-effective price at the closest destination.
MAP SearchingMaps help drivers to locate the precise location for street parking and the fastest way to reach their destination. And this method of searching should be as simple as possible like it must be possible in one tap to locate the closest location.
Heat Map ViewIn real-time mode to the parking space availability monitoring, this app feature help to display the busiest route on the street. App integrated with vehicle detectors enable consumers to make an acceptable booking decision for the parking availability in that smart city.
In-App PaymentsIt is necessary to incorporate in-app multiple payment options, such as Paypal, credit card, and cash, keeping the customer happy and secure. This also helps companies to increase customer retention.



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Traditional vs Automated Parking System

For a long time, conventional systems have been in operation for the car park. Technology took over with time and automatic garages came into being. So, let’s take a look at how the conventional vs. automatic parking system varies.

Traditional Parking SystemAutomated Parking System
TPS does not need a power supply to run the systemAPS requires a constant supply of energy ((power consumption)
TPS has a high operating cost as it needs more spaceAPS has an operating cost of approximately half of that of a traditional car park
There may be a lack of security as the vehicle information is not recorded properlyNo chance for theft or any other misleading activities as the parking occupancy data of the vehicle is properly recorded
Long waiting time for street parking space utilization due to the manual systemNo time wastage due to the automatic parking technology and vehicle detection data

Want to convert your traditional parking products into a large-scale automated system? We can help.

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Frequently Asked Questions

  1. What is a parking management system?

    A parking management system software automates a vehicle part service that helps to optimize the parking spot and make operations successful.

  2. What are the components of Smart Parking?

    • Vehicle Detection Sensors
    • Processing Unit/Gateway
    • Cloud
    • Mobile App
  3. Why Smart parking is needed?

    Tracking the real-time details and insight in car park available lots is one of the main reasons for implementing the parking guidance framework.

  4. What are the 3 types of parking?

    • Angle parking slot, where vehicles are designated to go one way
    • Perpendicular parking slot, where spaces marked at a 90-degree angle to the curb or a building
    • Parallel parking, where you curb in the space between two parked cars
  5. How do the parking sensors work?

    The smart parking sensors that are integrated into the app relay the information and generally use high-frequency sound waves, if the object is detected.

  6. What is smart parking in IoT?

    Smart parking in IoT (internet of things) is a system integrated with a sensor that sends parking data via web application about free and occupied parking places.

  7. Which type of parking is best?

    With angle parking, it is not only easy to park, but it is much quicker and where the parking spaces are smaller, it is possible to adjust few more vehicles.


Despite the parking sector flowing with a lot of parking solutions already, there is a lot of scopes for start-up companies to develop user-friendly parking applications that have far more functionality than current market apps. However, the development of such apps needs planning and there are a lot of variables to pay attention to and functionality to incorporate. So if you have any app ideas for your company, contact us. We are a leading software development agency to help you in each process development. For more queries, you can schedule a free consultation with our experts!

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Author Bio
Rakesh Patel
Rakesh Patel
Designation: Co-founder and CEO of Space-O Technologies

Mr. Rakesh Patel is a Founder and CEO of Space-O Canada. He has 28 years of IT experience in business strategies, operations & information technology. He has expertise in various aspects of business like project planning, sales, and marketing, and has successfully defined flawless business models for the clients. A techie by mind and a writer at heart, he has authored two books – Enterprise Mobility: Strategy & Solutions and A Guide To Open311.