The parking management market has experienced significant growth in recent years, and it shows strong indications of impressive expansion in the years to come. With the rapidly increasing global vehicle ownership, the rising need for efficient traffic management solutions, and the quickening development of smart cities, the demand for parking management services has reached new heights. In this article, we will delve into the market analysis, key findings, growth drivers, challenges, key segments, growth opportunities across regions, notable developments, and the key players in the global parking management market. Our aim is to provide you with a comprehensive understanding of this thriving industry and help you make informed decisions regarding parking management solutions.
Read More: https://www.fairfieldmarketresearch.com/report/parking-management-market
Market Analysis in Brief
According to recent reports, the parking management market size was estimated to have reached around US$4 billion in the year 2021. This remarkable growth can be attributed to various factors, including the increasing number of electric vehicles (EVs) on the road, which has led to a rising demand for efficient parking management. In 2021, EV sales reached 6.6 million units, accounting for approximately 9% of total vehicle sales and bringing the total number of EVs on the road to 16.5 million. As the adoption of EVs continues to rise, local government agencies are compelled to establish charging stations, thereby driving the demand for efficient parking management solutions.
Furthermore, advancements in technology, such as Artificial Intelligence (AI), machine learning, speed monitoring, picture recognition, and tracking capabilities, are expected to enhance the user experience and contribute to the growth of the parking management market. Rapid implementation of these technologies is likely to further propel the market’s expansion.
Key Report Findings
The key findings from recent reports highlight the following aspects of the parking management market:
- The global parking management market reached approximately US$4 billion in 2021, indicating substantial growth.
- The increasing need for efficient parking management is driven by mounting EV sales and improving EV charging infrastructure.
- Parking Access and Revenue Control (PARC) solutions remain the most sought-after category in the parking management industry.
- North America maintains its primacy in the market due to seamless early adoption and favorable market conditions.
Growth Drivers
Growing Need for Parking Spots
One of the primary drivers behind the growth of the parking management market is the growing need for parking spots. As developers construct additional parking spaces to comply with requirements governing the size and number of parking spaces, a significant proportion of these spaces often remains vacant. By implementing consistent parking management solutions, such as enhanced signage and real-time parking indicators, it becomes possible to reduce the wastage of parking spaces. These solutions alert consumers when and where a parking spot is available, leading to more efficient utilization of parking resources.
Furthermore, parking management systems enable better revenue management by combating overcharging and undercharging for parking spaces. By lowering parking needs by 20–40%, an efficient and integrated parking management solution contributes to the upkeep of city infrastructure, land conservation, increased government tax revenue, and user convenience.
Ascending Smart City Initiatives
The rise of smart cities worldwide has created new opportunities for parking management solutions. Smart cities leverage cutting-edge information and communications technologies to integrate residential, transportation, and economic operations. As governments around the world adopt smart city programs, there is a growing demand for parking management systems that can be seamlessly integrated with smart city solutions. Smart cities require parking solutions that are flexible, scalable, controllable, and space-efficient, and intelligent parking management systems can provide answers to these needs.
Increasing Shift of Companies to Advanced Technologies
Advancements in technology, such as electronic payment systems, the Internet of Things (IoT), and smart parking sensors, are driving the growth of the parking management industry. Businesses are striving to provide a better client experience and hassle-free parking to outperform their rivals. With the aid of real-time data and analytics, organizations can assign parking spaces, provide access control, and lower administrative costs for parking, thus driving the parking management market ahead.
Growth Challenges
Despite the tremendous potential for growth, the parking management market also faces certain challenges. One of the main obstacles is the expensive installation and additional costs associated with parking management systems. These systems encompass a wide range of hardware and software, including wireless and wired telecommunications systems, traffic control equipment, hardware sensors, computer servers, and application interfaces. Integrating all these components into a single platform poses a significant challenge, as data from multiple systems must be collected and evaluated. The need to merge data from various parking data archives, often scattered across incompatible hardware and software systems, further adds to the complexity. Overcoming these integration challenges is crucial for the continued expansion of the parking management market.
Overview of Key Segments
Parking Access and Revenue Control (PARC) Solution Likely to Dominate
Among the key segments of the parking management market, the parking access and revenue control (PARC) solution is expected to maintain a higher market size during the projected period. PARC solutions control the entrance and exit of vehicles from parking garages, handle payments for both temporary and permanent parking, and employ a combination of hardware and software for effective parking operations. These solutions include alarms, barrier gates, ticket validators, encoding stations, existing verifiers, and lane controllers.
Parking access control systems offer numerous benefits, including reduced staffing requirements, internal access restrictions, and the ability to control multiple entries and exits. These systems are further divided into categories such as biometrics, LPR-based automatic vehicle identification (AVI), and ID management. Parking revenue management, which deals with issues such as over or under-capacity, fluctuating demand, and prior reservations, also falls under the PARC category. These solutions assist parking managers in collecting parking fees from commuters who use their lots.
Professional Category Leads with Higher Efficiency
The professional sector holds the largest market share in the parking management industry. This segment provides direction, training, and support to staff employees before and after the installation of parking management systems. Additionally, the professional division offers services for mobile application enhancement, ensuring compliance with the latest operating system (OS) upgrades. Preventive maintenance is another crucial service provided by the professional category, ensuring the smooth operation of hardware and software used in parking management. The professional sector’s efficiency, customization, add-on functionality, and centralized data management strategies contribute to its significant market share. By leveraging features such as digital signs, license plate recognition, and quick upgrades without altering existing hardware, businesses can enhance the customer experience and gain a competitive edge.
Growth Opportunities Across Regions
North America to Acquire a Major Market Share
With a sizable market share, North America dominates the parking management market. The increasing number of vehicles in countries like Canada and the United States necessitates the adoption of smart parking solutions to alleviate traffic congestion. Moreover, the ease of using cell phones and the availability of mobile apps for finding parking spaces have facilitated a quick adjustment to modern parking alternatives among the local population. This creates a wide scope for market expansion in the region.
According to the INRIX report, drivers in New York spend over US$2,200 per year on wasted time, fuel, and emissions due to the search for parking spaces, amounting to 107 hours annually. Similarly, drivers in Los Angeles and San Francisco spend 85 and 83 hours, respectively, searching for parking. The economic impact of this lost time, wasted fuel, and carbon emissions in these cities alone amounts to US$72.7 billion. Such staggering figures highlight the urgent need for efficient parking management solutions in North America.
Significant Growth Opportunities in the Asia Pacific Region
The Asia Pacific region is expected to experience significant growth in the parking management market over the forecast period. The region is witnessing rapid urbanization and industrialization, with governments showing a growing interest in creating smart cities and improving traffic flow. The Indian government’s Smart Cities Mission, for instance, aims to raise the standard of living for citizens by leveraging best practices, information and digital technology, and public-private partnerships. The growing industrialization in the region also demands smart logistics and transportation, which further drives the need for parking management solutions. Moreover, increasing support for intelligent traffic management methods from municipalities in countries like China, South Korea, and India will contribute to the growth of the parking management market in the Asia Pacific region.
Key Players – Global Parking Management Market
Several major players are actively contributing to the global parking management market. These include:
- 3M Company
- Amano Corporation
- Cubic Corporation
- International Business Machines Corp.
- Kapsch TrafficCom.
- Siemens AG.
- Skidata Company
- Swarco Corporation
- T2 Systems
- Robert Bosch GmbH
These companies play a pivotal role in shaping the parking management market and driving innovation in the industry.
Recent Notable Developments
The parking management market has witnessed notable developments that reflect the industry’s dynamism and commitment to innovation. Here are a few recent highlights:
- L&T Technology Services and Intel Corporation collaborated to create a smart parking solution utilizing AI. This solution comprises a digital camera, a mobile app for user interface, a digital signage module for secure access, and an operator portal with user data. The components are seamlessly connected through the AWS cloud platform, making the solution easily accessible and available.
- FLASH, a global leader in cloud parking software and mobility transformation, acquired Ticketech, New York City’s parking technology pioneer. This acquisition expands the network of FLASH’s Mobility Hub Operating System clients and connects New York City’s US$22 billion parking market to the expanding mobility marketplace.
- Passport, a leading provider of transportation software and payment services, introduced a powerful platform that consolidates and aggregates a city’s parking, enforcement, and digital permitting data into a single location. The platform also integrates additional data insights with embedded payment capabilities, empowering customers to manage a wide range of mobility management complexities in one place and make data-driven decisions to improve curbside operations.
- Robert Bosch GmbH announced a collaboration with Mercedes-Benz to introduce an autonomous self-parking software. With this software, designated parking slots at Stuttgart Airport’s parking lot are meant to be occupied by vehicles autonomously.
These notable developments highlight the industry’s commitment to leveraging technology and innovation to enhance parking management solutions.
Conclusion
The parking management market is witnessing tremendous growth and presents substantial opportunities for businesses operating in the industry. With the increasing need for parking spots, the rise of smart cities, and the shift of companies to advanced technologies, the demand for efficient parking management solutions is expected to continue its upward trajectory. However, the industry also faces challenges, such as expensive installations and the integration of diverse hardware and software systems.
As the market expands, it is crucial for businesses to stay ahead of the competition and leverage innovative solutions to meet the evolving needs of customers. The key players in the industry are continuously pushing the boundaries of technology to deliver enhanced parking management experiences.
In conclusion, the parking management market offers significant potential for growth, and businesses that embrace innovation and provide comprehensive, user-centric solutions are poised for success in this thriving industry.
