The parking management market size was estimated to have reached around US$4 Bn in the year 2021. The market shows strong indications of impressive growth in the years to come.
Market Analysis in Brief
Rapidly increasing global vehicle ownership, the rising need for efficient traffic management solutions, and the quickening development of smart cities are driving the expansion of parking management market. The time it takes for vehicles to discover the available parking spaces and traffic congestion can be decreased with effective parking management, a dependable and cost-effective solution. Additionally, the rising use of electric vehicles (EVs) forces local government agencies to set up charging stations, which raises the demand for efficient parking management.
EV sales increased by over double to 6.6 million, or roughly 9% of total sales, in 2021 over 2020, increasing the total number of EVs on the road to 16.5 million. In 2021, the EV sales share rose by four percentage points. Furthermore, it is anticipated that technologies like Artificial Intelligence (AI), machine learning, speed monitoring, picture recognition, and tracking capabilities would enhance and improve the user experience. Faster implementation of technology is thus likely to favor the growth of the parking management market.
Key Report Findings
Growing Need for Parking Spots
As developers construct additional parking spots to comply with requirements governing the size and number of parking spaces, a proportion stays vacant. By alerting consumers when and where a parking spot is available, consistent parking management solutions, such as enhanced signage and real-time parking indicators, it becomes possible to reduce the wastage of parking spaces. This is expected to drive the demand in parking management market.
Through better revenue management, which combats overcharging and undercharging for parking spaces, parking management also leads to more effective use of parking resources. 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
Major cities are becoming smart cities due to the explosion in newly developed technologies. Smart cities combine their residential, transportation, and economic operations by utilizing cutting-edge information and communications technologies. It is projected that as governments around the world adopt smart city programs, new parking management markets will emerge for businesses that provide smart parking management systems that can be integrated with smart city solutions. Smart cities require parking solutions that are flexible, scalable, controllable, and space efficient. Intelligent parking management systems may deliver these answers.
Increasing Shift of Companies to Advanced Technologies
Technology advancements like electronic payment systems, the Internet of Things (IoT), and smart parking sensors are also promoting the growth of the parking management industry. Businesses strive to provide a better client experience, and hassle-free parking to outperform rivals. Organizations may assign parking spaces, provide access control, and lower administrative costs for parking with the aid of real-time data and analytics, thus, driving the parking management market ahead.
Expensive Installation, and Additional Costs
Parking management encompasses wireless and wired telecommunications systems, traffic control equipment, hardware sensors, computer servers, and application interfaces. Parking management uses a remarkably wide range of hardware and software. To implement the dynamically charged parking concept, data from multiple systems must also be collected and evaluated.
The data from these multiple parking data archives, occasionally scattered across incompatible hardware and software systems, are challenging to merge. The expansion of the parking management market is constrained by the need to integrate all the software and hardware used in parking management into a single platform.
Overview of Key Segments
Parking Access and Revenue Control (PARC) Solution Likely to Dominate
It is anticipated that the parking access and revenue control (PARC) solution will maintain a higher parking management market size during the projected period. PARC controls the entrance and exit of automobiles from parking garages. Additionally, it handles the payments for both temporary and permanent vehicle parking. A combination of hardware and software is employed for effective parking operations, including alarms, barrier gates, ticket validators, encoding stations, existing verifiers, and lane controllers.
Parking access control systems provide many benefits, including fewer staffing needs, internal access degrees of restriction, and access and limitation to numerous entries and exits. Biometrics, LPR-based automatic vehicle identification (AVI), and ID management are the other categories into which these systems have been divided.
The parking management market also employs parking revenue management to deal with issues including over or under-capacity, fluctuating demand, and prior reservations. PARC assists parking managers in collecting parking fees from commuters who use their lots.
Professional Category Leads with Higher Efficiency
The professional sector held the biggest market share. Before and after installing parking management systems, staff employees need direction and training. The professional division also offers services for mobile application enhancement to make apps more compliant with the most recent operating system (OS) upgrade. To reduce downtime and ensure smooth system operation, preventive maintenance is necessary for the hardware and software used in parking management projected to fuel the parking management market's further expansion.
The parking management market is predicted to grow at the fastest rate over the forecast period due to benefits including customization, add-on functionality, and centralized data management strategies. The customer experience can be enhanced, and businesses can get a competitive edge by using features like digital signs, license plate recognition, and quick upgrades without altering existing hardware. Thanks to the system's integration and deployment, it is simpler to import payments, import demographic data, export receivables, locate car owners, and authenticate users.
Growth Opportunities Across Regions
North America to Acquire a Major Market Share
With a sizable market share, the North American region dominated it. A smart parking solution is required to lessen traffic congestion because the number of cars in nations like Canada, and the US is increasing. With the ease of utilizing cell phones, and the availability of mobile apps for finding parking spaces, locals are also quickly adjusting to modern parking alternatives. This widens the scope of expansion for the parking management market in the region.
According to the INRIX report, hunting for a parking space in New York costs drivers more than US$2,200 in wasted time, fuel, and emissions each year (107 hours). Additionally, it takes cars 85 and 83 hours, respectively, to find parking in Los Angeles, and San Francisco. Thus, the combined economic impact of lost time, wasted fuel, and carbon emissions are US$72.7 Bn.
Over the forecast period, it is expected that the Asia Pacific region will have significant growth. Growth in this area is fueled by the government's growing interest in creating smart cities and the requirement for a systematic, efficient traffic flow. The Indian government's Smart Cities Mission aims to raise the standard of living for citizens in cities and towns by utilizing best practices, information and digital technology, and greater public-private partnerships.
Additionally, a special purpose vehicle (SPV) is established in every state, led by the CEO, to handle mission execution. The mission will be funded to success with INR 7,20,000 crore. The Asia Pacific region is rapidly urbanizing and industrializing, which will assist the growth of parking management market as industrialization demands smart logistics and transportation increase. Additionally, more municipalities support intelligent traffic management methods in growing nations like China, South Korea, and India.
Key Players - Global Parking Management Market
A few of the major players in the global parking management market space include 3M company, Amano Corporation, Cubic Corporation, International Business Machines Corp., Kapsch TrafficCom., Siemens AG., Skidata Company, Swarco Corporation, T2 Systems, and Rober Bosch GmbH.
Recent Notable Developments
Regional Classification of the Global Parking Management Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Parking Management Market
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