Parking Management Industry Overview
MarketsandMarkets forecasts that the Global Parking Management Market is estimated to grow from USD 3.03billion in 2016 to USD 5.00billion by 2021, at an estimated CAGR of 10.6%. An increase in the number of vehicles across the world is impelling the demand for an effective system to find solutions to parking concerns. The issues of traffic congestion are rising at alarming rates across the world, impelling the need for effective and flexible park-assist solutions. According to industry data, 30% of traffic congestion occurs due to vehicle drivers struggling to find parking space. This, in turn, is magnifying the necessity of smart and efficient parking systems and valet parking operations. Today’s intelligent parking management systems are capable of providing convenience to the drivers, as well as simplifying and automating the business operation and administrative functions of the parking site owners.
The escalating adoption of park-assist systems at avenues such as corporate campuses, airports, and shopping complexes, among others is projected to energize the market growth.
The table to the right highlights the expected parking management revenue from 2014 to 2024. The parking management market is estimated to grow from $1,517.6 million in 2014 to $8,630.76 million in 2019.
Why is Parking Technology Triggering Growth?
Parking management systems are apt for the smart transportation environment. It automates the parking management functions by providing solutions such as access control, revenue management, parking enforcement and permit management, security and surveillance, automated valet parking, and parking guidance and slot management. These solutions result in efficient parking management in terms of automating and easing parking payment method for the vehicle drivers, saving their time, and also increasing vehicle holding capacity of the parking garage.
The high growth rate in the registration of new cars will open the window of opportunities for parking management business. The ongoing and upcoming smart city projects will create room for intelligent parking management systems across the nation.
The market is expected to grow in tandem with the growth in vehicle ownerships and parking facilities development. Need for smooth traffic flow, business benefits to the parking site operators, and decreasing hardware and connectivity costs are the key drivers for the parking management industry.
Parking Technology Advancements
The ongoing and upcoming smart city projects are creating business opportunities for smart parking management systems nationwide. License Plate Recognition based technologies are gaining high popularity in the parking management sector. The major License Plate recognition based parking management solutions such as Automatic Vehicle Identification and Pay-by-Plate are expected to experience high adoption rate reducing the market share of the traditional technologies used in parking access control and parking revenue management.
The world is moving towards intelligent transportation systems, which is broadening the space for smarter ways of parking. With advanced parking management systems, the parking spots operators can offer their customers various parking conveniences such as minimal time wastage, cashless and contactless payment options, enhanced vehicle security, and options for pre-booking parking spots. The parking management systems are also useful for ensuring security through vehicle and cargo surveillance, vehicle registration, and dynamic parking tariff management. These customer-centric and business operation-centric advantages are making parking management system extremely lucrative. The major companies who are focusing on the parking management sector are Parking Technology Services, StreetLine, ParkWhiz, SpotHero, ParkingPanda, Luxe, T2 Systems, SKIDATA, and various others.