Rapid urbanization and the increasing number of private vehicles have intensified parking-related challenges, leading to traffic congestion, fuel consumption, and greenhouse gas emissions. The Internet of Things (IoT) has enabled the development of Smart Parking Systems (SPS) to improve parking management and support sustainable urban mobility. This study aims to systematically review recent advances in IoT-based Smart Parking Systems, focusing on technological trends, sustainability contributions, implementation challenges, and future research directions. A Systematic Literature Review (SLR) was conducted following the PRISMA 2020 guidelines. Publications published between 2020 and 2026 were retrieved from Scopus, IEEE Xplore, ScienceDirect, and SpringerLink, resulting in 68 studies included in the qualitative synthesis. The findings show that Smart Parking Systems increasingly integrate IoT, Artificial Intelligence, Machine Learning, cloud-edge computing, AIoT, and Digital Twin technologies to improve parking efficiency and intelligent traffic management. Despite these advancements, interoperability, cybersecurity, scalability, and data privacy remain key challenges. This review provides comprehensive insights for developing intelligent and sustainable Smart Parking Systems.
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