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The parking management market was valued at USD 3.36 billion in 2019 and is expected to reach USD 5.1 billion by 2025, with a CAGR of 8.42% during the forecast period 2020 - 2025. Organizations are increasing their parking spaces and are increasingly depending on parking management solutions, which has attracted a huge investment for these solutions. This scenario has changed in the urban areas with the decreasing real estate space and rising prices of parking resources which are set to drive the growth of the market. Annually parking searching time has cost 4.3 billion to vehicle drivers in Newyork in 2017 according to INRIX.
- Technology enhancement in communication and connectivity is expected to make it more affordable and sought out a solution. App support for these solutions is expected to grow, with high mobile penetration and the vendors with a solution that integrates the end-users, customers’ base with their solution are expected to gain more traction in the market and remain strategically more competitive.
- AI machine learning, image recognition, speed monitoring, and tracking capabilities are expected to further improve and enhance the consumer’s experience in the market over the next decade, as their adoption has become possible with the affordability of these services.
- Evolution for on-premise to cloud-based solution has been clinical in making the solutions more robust and is having a positive impact on the demand for the solution and services offered in this market.
- Governments have been acting strictly in the cities to push the commercial institutions and organization to manage their parking space Both on the street and off the street. It has led to shopping malls, industrial complexes, and businesses to invest in improving their parking space utilization.
- However, Complexity in integration, lack of awareness and skill among users and high costs may hinder the growth of the market.
Scope of the Report
Parking management system refers to various policies and programs that result in more efficient use of parking resources. The parking management system constitutes the access control system, revenue management, security system, boom barrier, and statistical information.
Key Market Trends
On-street Parking Has the Largest Share in the Market Presently
- The on-street parking management is expected to reach goals using a variety of tools including where parking is allowed and prohibited, designing of parking spaces and facilities and signs, limiting access to certain groups, setting a time limit, charging fees enforcing compliance with all arrangements and monitoring success.
- The on-street market is expected to have the largest share due to the rapid adoption of on-street parking management by government authorities across the globe which has allowed the government authorities to legitimately generate revenues through public properties.
- Data analytics and telematics can be used for managing the on-street parking which will help frictionless parking based on the size of the vehicle, demand, and supply.
- Moreover, the increase in shared ride and cab services, especially in developing economies is also driving the market. As the on-street parking which can be used for a cab or rideshare services as well as for public use which will increase revenues for the government at the same time the efficient use of space.
- Besides, according to Accident Exchange, the number of crashes and scratches while parking on road was costing UK insurers about 1.4 billion GBP per year. Parking-related incidents now account for more than 30% of all accidents, adding that more than 675,000 parking collisions are now registered every year according to accident exchange which increase the adoption of on-street parking.
North America to Hold the Major Share
- It is estimated that motorists in the United States spend an average of 17 hours a year searching for parking spots. These sums up to an estimated USD 345 per driver in wasted time, fuel, and emissions, according to the INRIX 2017 report.
- The United States and Canada had 11,18,9985 and 21,99,789 cars and commercial vehicles on the road in use in 2017, according to OICA data.
- These stats are the indicator of continued stress on the parking management to efficiently and effectively manage the parking spaces. In the past, the use of parking management system has been high in the region making the demand origin limited to new solutions, and new facilities, as the region, have been among the early adopters of these solutions.
- The increasing urban real estate cost is expected to further drive the end-users towards adopting these solutions. Federal Housing Finance Agency’s seasonally adjusted purchase-only U.S. house price index, which rose by 5.76% y-o-y in November 2018, compared to 6.275 in 2017.
- The US population is growing and shifting from rural to urban areas. Nearly 83% of the population lived in urban areas in 2018, and this is expected to rise to more than 85% by 2030. Similarly, in Canada, the current urban population is about 82% and is further growing.
- These factors are expected to push for further improvement in the parking management system. Aging infrastructure is also likely to drive the demand due to replacement based requirement in the market.
The parking management system is highly fragmented due to the presence of a large number of players. Some of the key players in the market include Siemens, SAP, Parkmobile among others. Some key recent developments in the market are:
- February 2019 - Parkmobile partnered with the city of Amarillo which will enable residents to pay with mobile devices and skip the meter.
- November 2018 - Siemens Mobility was awarded a major contract in the United Kingdom. London Underground (LUL), a subsidiary of Transport for London, responsible for the urban rail system in Britain’s capital, signed a contract with Siemens Mobility to design and build 94 new generation Tube trains worth around EUR 1.5 billion GBP (EUR 1.54 billion), to replace the existing 1970s fleet. The trains will serve the Piccadilly line and delivery will begin in 2023.
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