The smart parking management system has become an increasingly pressing issue for the government and companies with rapid population growth and car ownership increase. An inefficient car parking management system is responsible for traffic congestion and chaos in an urban environment.

This is where technological advancements like the Internet of Things, IoT, come in. They create smart parking systems to provide an organized, hassle-free car parking management operation. 

This article discusses how IoT creates smart parking management and improves car parking management activities.

Let’s take a look. 

What is an IoT-based smart parking management system? 

An IoT-based smart parking system uses a connected wireless system and software to enable drivers to search and reserve parking spots on their phones. 

Its hardware sensors identify vacant parking slots and inform drivers of the location. It also updates drivers about peak times and prices. As a result, drivers don’t have to worry about where to park and can maximize the parking space for a seamless and efficient parking experience. 

How does the IoT-based parking management system work?

With an IoT-based parking control system, parking systems are installed inside and outside buildings. The installed IoT detects empty spaces, transferring the data over a wireless connection to a cloud server. All information is gathered and analyzed instantly to produce a map of vacant parking slots for drivers seeking space. 

The sensors detect when a car accesses the building and identify available parking spaces. Afterward, they send the information to the drivers’ app. Then, drivers analyze the parking map to discover vacant parking spots in the building.

Additionally, drivers receive updates about their available parking spaces in an area via their app to choose their best option. This eliminates the rigor and time of manually finding a spot, reducing traffic congestion and time wastage. 

How IoT creates a smart parking management system 

IoT uses different components and procedures to create an efficient parking system. Let’s discuss them below: 

  • Smart parking maps 

IoT creates a smart parking system with maps. Rather than go from place to place searching for parking space traditionally, IoT provides drivers with maps to find vacant parking slots in their location. 

Drivers receive real-time traffic data and the possibility of maximizing available parking slots with maps. For example, they will know the empty parking spaces in their area using a map. They will also receive regular updates about the open parking slot as they move closer to the location. 

  • Smart signage 

IoTs are installed in road-sign systems to enhance safety and organize pedestrian and vehicular movements on the road. This includes traffic lights that signify peak hours and traffic volumes to efficiently control cars’ and pedestrians’ directions on the streets. 

  • Smart detectors 

IoT creates smart parking systems through parking monitoring systems that consist of sensor detectors. They help drivers know how many vehicles are available in a parking space and how many slots are vacant. In addition, the sensors identify if the parking space is free or occupied to direct drivers to the correct parking locations. 

  • Sensors 

IoTs use sensors to detect available spaces for an intelligent parking system. They can also be connected to LED indicators to let drivers know how many vacant parking spots are available using red or green light signs.

How IoT sensors detect free parking space to create smart parking systems 

IoT sensors adopt an ultrasonic wave to identify the distance to a thing or place. Every sensor is connected to a parking space surface. It detects the interval to the undercarriage of a car if the parking space is occupied. The IoT sensor detector is used to identify two  prominent detection conditions, including:

  • Occupied space: The IoT sensor detector detects if a parking space is full.
  • Free space: The IoT sensor detector checks if a parking space is vacant.

Types of sensors for IoT-based smart parking management 

IoT sensors consist of different types. Let’s check them out below: 

  • Ultrasonic: The ultrasonic sensor type uses ultrasound to improve the accuracy of what it senses. However, its major downside is that it is very susceptible to blockage by dirt. 
  • Electromagnetic field detector: This sensor type identifies little changes in the magnetic field when metallic objects are close to the sensor. 
  • Infrared sensor: An infrared sensor tracks the changes in the environment’s temperature and detects movement. 

How IoT enables an improved parking management system 

IoT enhances an efficient parking management system in many ways. Let’s examine the most prominent ways below:

  • An automatic license recognition system 

IoT makes check-ins to parking lots more straightforward and faster for drivers through a license plate recognition technology. 

It registers the vehicle’s license to scan it for identification when the car is coming or leaving the parking space. This way, drivers can perform the license plate recognition online before getting to the parking space, preventing random checks that cause delays.

  • Automatic parking 

IoT allows drivers to navigate parking spaces without extra help from a parking space operator. Sensors provide all the information they need to park efficiently, from detecting available and non-available parking spaces to directing them to spots they can pack into.

Automatic parking increases efficiency because it’s faster. It also provides actionable data that allows parking operators to oversee activities and make prompt decisions.

  • It displays information 

IoT-based smart parking management promotes an easy communication system between drivers and car parking managers. For example, parking operators can display specific information on the board to welcome, inform, and bid drivers farewell. 

  • It enhances security 

An IoT-based intelligent parking software is equipped with enhanced security features to improve IoT security and provide adequate privacy and safety. Only authorized people can use a parking lot and access the IoT parking system.

  • It minimizes search traffic on the streets 

IoT-based parking management software decreases the number of vehicles driving slowly and looking for places to park, enhancing traffic flow and reducing congestion.

Why parking owners need an IoT-based parking management system

An IoT smart parking system doesn’t benefit users alone; parking owners also enjoy its perks. Let’s examine why parking owners need an IoT-based parking management system. 

  • It reduces management costs through automation 

IoT allows for the automation of the parking management system, streamlining activities. It uses sensors, maps, signage, and a parking management app to track available and non-available parking spaces, reducing the need for manual interference. 

This means a decrease in the number of staff required in the parking lot, helping managers cut costs and save money.

Also, using an IoT-based smart parking system allows parking owners to spend less time tracking and searching for vacant parking spaces, saving time. 

Therefore, they can spend more time on other jobs they usually would outsource for lack of time, enabling them to reduce hiring and employee expenses. 

  • It offers real-time data 

Unlike traditional parking management systems, an IoT-based parking management software provides data and insights for an efficient parking management process.

The instant, accurate data will allow car parking owners to make proactive decisions regarding management. 

It will also notify them of all activities in the parking lots. So, in case of theft or violence, parking managers can take control of the situation before it escalates.

  • It generates reports automatically

After accessing data, you can configure the parking management system to generate reports with IoT. You can also do this daily, weekly, or monthly as often as possible. 

Turning the data into reports will help you track your progress, monitor outcomes, and know what areas need improvement. Also, since it generates the report automatically, parking managers can easily skip manual documentation and access reports. 

  • It promotes easy maintenance

IoT-based technology is easy to use, flexible and versatile. Parking spot operators and drivers can regulate it easily for efficient parking activities. It also offers clock maintenance services that handle technical issues with the system. 

What to consider before choosing an IoT-based smart parking system 

There are specific factors to consider when selecting an efficient IoT-based smart parking system. They include: 

  1. Purpose 

Other than space availability detection, IoT-based smart packing software offers reports, security analysis, real-time vehicle counting, etc. 

So, identify the additional purposes you want IoT smart parking software to serve. Doing this will guide you on the must-have features to look out for when choosing the software. 

  1. Price 

IoT-based smart packing software prices are determined by the features they offer. So while you may be on a budget, ensure the software chosen has the needed features. 

  1. Support 

A responsive technical team is a must-have quality of an excellent IoT-based parking management tool. 24-hour assistance will provide timely solutions to security and technical issues. Therefore, research carefully to ensure the software company has a responsive customer support team before choosing your IoT-based parking management software. 

  1. Integration 

An efficient IoT-based parking management system enables seamless integration with third-party apps,  keeping your system connected for a smooth management process. 

So, ensure to opt for IoT-based parking software that syncs easily to other relevant tools, including a display system and ANPR software.


IoT is crucial to creating a smart parking system. It has all the components that make a parking system efficient, including sensors, maps, and apps. This article discusses how IoT creates a smart parking system, its benefits, and the factors to consider when choosing an IoT-based parking system that works.