The global parking management market was valued at USD 3682.1 million in 2019, and it is projected to be worth USD 5762.8 million by 2025, registering a CAGR of 10.3% during the period 2020-2025. Parking is a critical component of the current transportation system. According to the Victoria Transport Policy Institute, a typical automobile remains parked for 23 hours each day and uses several parking spaces each week. Further, a plethora of heterogeneous connectivity technologies is fuelling the evolving Internet of Things trend that integrates sensing devices and smart applications in parking management domains. For instance, in May 2020, the University of California and NTT Corporation announced a connected campus pilot project that will leverage IoT technology to transform the UC Berkeley Parking and Transportation Department by analyzing patterns, easing traffic congestion, and increasing pedestrian safety in the Bancroft Way area of campus.
- The increasing need for traffic management and fuel saving is driving the market. Traffic congestion is raising serious concerns, especially in large cities. Population growth, inefficient transportation systems, and urbanization are some of the reasons that the cities are difficult to navigate and travel around. The most common problem for commuters is the massive traffic congestion during their commute. According to INRIX, the United States loses USD 120 billion every year, owing to this congestion. Further, according to the INRIX study, drivers in New York wasted 107 hours per year searching for a parking spot that is cost more than USD 2,200 in time, fuel, and emissions per driver. Also, drivers in Los Angeles and San Francisco have nearly as rough as 85 and 83 hours spent searching for parking, respectively. Thus, the nationwide economic impact of USD 72.7 billion is incurred in lost time, fuel, and carbon emissions.
- Further, in Barcelona, the city is using intelligent vehicle technology to help manage traffic at its airport El Prat. In two months, the smart vehicle company, Sensefields, helped El Prat implement traffic control in short stay "parking express" areas located in departure terminals, as well as in taxi pick-up areas. "Control stations" have been introduced to collect data on the number of vehicles present at a location across different times.
- High adoption of cloud computing technologies is driving the market. Smart technology is being used to connect vehicles, infrastructure, public transit, and people to enhance mobility and safety. Streets can be outfitted with sensors to track data both on the roads and through citizens' cars and smartphones to gain insights on traffic flow patterns, road blockages, roadwork, road conditions, etc. These sensors, devices, and gateways are connected via. Communication networks to cloud services and applications. They are managed centrally in the cloud.
- For instance, in Dec 2019, Pango, Mobile Smart City's unit, announced a deal to expand its mobile smart parking platform into Spain, which will open the market to another 350,000 people. With the help of Pango's service, customers will be allowed to park using their smartphones on iOS and Android.
- However, the effects of the outbreak of the COVID-19 led to travel disruptions and restrictions across the world, leading to the decreased need for parking management, as almost all modes of transport were grounded for a certain amount of time, leading to less need of managing traffic congestion. Overall, the spending on traffic management systems may be affected in the short term.
- Further, with the COVID-19 pandemic, cloud-native parking management solutions are anticipated to propel demand. With parking operators running their entire infrastructure on a public hyper-scale cloud, it gives them the capabilities to scale up as and when required, besides access to advanced technologies with an increased level of agility in a complete pay-as-you-go model. Also, the Parking Index and Parking turnover as a result of off-street parking is high and increasing with optimistic growth rates. Further, due to the COVID-19 pandemic, several authorities are reinstating parking charges for off-street parking. For instance, in May 2020, Lancaster City Council reintroduced parking charges in some of its off-street car parks.
Key Market Trends
On-Street Parking Accounts for Significant Market Share
- On-street parking sites are those where the vehicles are parked on the sides of the street itself. On-street parking management is anticipated to reach goals using a variety of tools which includes the spaces where parking is allowed and prohibited by designing parking spaces and facilities and signs, limiting access to certain groups, setting a time limit, charging fees enforcing compliance with all the arrangements, and monitoring success.
- The majority of the on-street parking sites are usually controlled by government agencies. Given its convenient and inexpensive nature, most commuters prefer on-street parking. Despite being an organized and safe parking alternative, off-street parking has lagged behind due to the exorbitant parking fees, resulting in low occupancy levels.
- Nonetheless, authorities and parking owners are deploying smart parking solutions for efficient management of on-street parking, which is further driving the market for on-street parking management solutions. For instance, INRIX Inc., a provider of connected car services and transportation analytics, offers On-Street Parking service in the BMW 5 Series Sedan. INRIX delivers real-time on-street parking service in a connected vehicle, which further uses historical and up-to-the-minute parking data to predict the availability of different parking spaces.
- Further, according to Accident Exchange, the number of crashes and scratches while on-road parking costs the UK insurers around GBP 1.4 billion per year. Parking-related incidents account for more than 30% of all the accidents in the UK. More than 675,000 parking collisions are now registered every year, according to the Accident Exchange. This factor increases the adoption of an on-street parking management system.
- Furthermore, in the United States, on average, paid spaces cost USD 4.00 for the first hour and USD 6.75 for the second hour. While there is a positive correlation between the number of paid spaces, and the likelihood of finding a space, the extremely low likelihood of finding a parking space indicates that the prices are set too low.
- Although the inability to find a parking space itself is an inconvenience and more importantly, contributing to traffic congestion, lost time, and increased pollution, the presence of both paid and free spaces means drivers will likely forego available paid parking spaces instead of loitering to find an open free parking space.
- While most of the parkers, save in terms of parking fees, the presence of cars on the road incurs costs. On average, Americans nearly lost 99 hours a year due to congestion, costing them nearly USD 88 billion in 2019, an average of USD 1,377 per year. From the year 2017 to 2019, the average time lost by American drivers increased by two hours as economic and urban growth continues nationally.
- Further, on-street parking management can reduce on-street parking congestion, and this anticipated to propel in demand. On-site parking management helps local commerce, residents, bus service, bicycle users, people on foot, and vehicle users of all kinds. It further enables the efficient and fair use of street space and can ease local traffic problems at a low cost.
Asia-Pacific to Witness Significant Market Growth
- Asia-Pacific is witnessing a significant market growth. The increasing population and the rising migration of people to urban cities of China have been rapidly driving the utilization of vehicles in the Chinese market. According to OICA, in 2019, the number of passenger car sales in China amounted to 21.44 million, and commercial vehicle sales amounted to 4.32 million.
- The rapid growth of the vehicle market in the country and the increasing population, coupled with limited parking space, have been driving the parking management market in China. According to the Ministry of Public Security, China, there were 258 millions of car in 2019 that was on the road.
- Moreover, with only an estimated 800,000 parking lots and 30 million of-street parking spaces, on an average, first and second-tier cities have 0.8 parking spaces available per car, with the availability in the small and medium-sized city dropping as low as 0.5 parking spaces per car, according to the Tsinghua University, which has been making China face parking crisis.
- Further, in Japan, on-street parking spaces with parking meters do exist, but they are really only a tiny part of Japan's parking management. On-street parking is considered a temporary expedient and not a long-term fixture of any street; in line with this, parking-meter spaces are sometimes added when construction reduces local off-street parking supply.
- The company in the Japan region has been significantly expanding its foothold by acquisition strategy as well by developing an innovative product to meet consumer demand. For instance, in July 2019, Sumitomo Corporation and Sumitomo Corporation Europe acquired an equity stake in Yellow Line Parking Limited, a UK digital parking platformer. This investment in a startup company utilizes the SCEU R&D investment scheme.
- Also, in July 2019, ShinMaywa Industries Ltd received the first order for its elevator-type car parking system, ELEPARK, in Bangkok, Thailand, and commenced local manufacturing operations though G-Park. G-Park is a sales company for mechanical car parking systems, with the second-largest share in the Thailand market. In April 2019, it entered into a distributor agreement with the company in relation to ELEPARK and received first order in a development project by a private developer, and it aims to complete two ELEPARK (middle entry type) towers accommodating 32 mid-size passenger cars in a Bangkok office building by June 2020.
The parking management system is fragmented owing to the presence of a large number of players. The market caters to an intense rivalry due to partnerships along with new innovations in parking management. Some of the key players in the market include DELOPT, Bond Traffic Solutions, etc. Recent developments in the market are -
- May 2020 - FlashParking announced a national service partnership with Burroughs Inc. This announcement will help Flash parking to provide a unique maintenance service to its users and reduce the risk of hardware downtime.
- March 2020 - Q-Free Deployed a comprehensive parking guidance system at the Victorian Square parking garage in Sparks, Nevada. This system will provide real-time information on available spaces, making it easier for drivers to find parking. This contract will help Q-Free to mark its strong presence in the US market.
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