PARKING MANAGEMENT MARKET ANALYSIS

The global parking management market size was valued at USD 4,300 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.10% from 2023 to 2030. Increasing number of vehicles on the road is driving demand for smart parking solutions. The need for effective parking spaces and efficient utilization of available resources are also driving the market. Smart city initiatives are also expected to drive revenue growth for this market. Furthermore, high adoption of mobile applications is also projected to propel growth the market.

Global Parking Management Market: Regional Insights

The global parking management market is geographically divided into North America, Latin America, Europe, Asia Pacific, and Middle East and Africa.

Among regions, North America is expected to gain dominating share in the global parking management market over the forecast period. Countries across the region such as the U.S. and Canada are witnessing growing number of vehicles on the road. The use and sales of passenger vehicles as well as commercial vehicles increasing in these countries. Along with all these factors, the lack of parking space in the region is creating huge demand for parking management. It has been playing an important role in maintaining the congestion-free cities and harmony across the region. These factors are in turn expected to drive growth of the market in the region.

Furthermore, Asia Pacific is also projected to show strong growth in the global parking management market over the forecast period. This growth can be attributed to growing implementation of various parking management strategies by companies and city municipalities in the countries such as China for making efficient and smooth parking systems. For instance, in February 2020, government of a Chinese city, Yangzhog launched Hungarian smart parking system by EPS Global, the first one in the country to receive benefits of the technology, which helps drivers find available parking space with the use of smartphones. Moreover, growing parking issues in countries such as South Korea are also expected to drive growth of the market in the region.

Figure 1: Global Parking Management Market Share (%), By Region, 2023

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Global Parking Management Market Drivers:

Rise in demand for fuel saving and traffic management to boost the market growth

Management of parking system mainly requires traffic management strategy, as it helps control the flow vehicles into a restricted or parking area. Traffic flows observed in modern cities are highly complex, which makes the traffic management a difficult task. The networking of each traffic control systems is important for making efficient and meaningful decisions for the entire system. Thus, the demand for traffic management solutions is increasing all over the world along with the need for saving fuel used in these scenarios. This in turn is expected to fuel growth of the global parking management market over the forecast period.

Increase in adoption of cloud computing technologies to drive the market growth

The adoption of Internet of Things (IoT) is increasing rapidly all over the world. This is further driving growth of the parking management platforms in several regions. Various devices equipped with IoT technology consist devices such as actuators, sensors, and smartphones that are connected in different environments. These devices, sensors, and gateways are connected through communication networks to cloud applications and services, and are centrally managed in the cloud. Such cloud-based solutions offer several advantages in parking management, which is leading to rise in adoption of these technologies all over the world. This is further likely to boost the market growth in coming future.

Global Parking Management Market Opportunities:

Increasing number of market vendors leveraging advanced technology in parking management is anticipated to create a lucrative environment for growth opportunities in the global parking management market over the forecast period. Increasing demand for parking capacity is likely to create challenge, as the scarcity of available urban spaces is growing all over the world. Thus, many of the major vendors in the market are focused on leveraging newer business models, advanced analytics, and experience engineering to boost the efficient of parking management systems with an urban optimization strategy fringing both dimensions of mobility and space. This is anticipated to create several growth opportunities in the market over the forecast period.

Moreover, increasing motorization across smart cities is expected to provide market players with multiple opportunities in the global parking management market over the forecast period. Due to increasing motorization, smart cities are facing traffic congestion, and are focusing on strategizing the implementation of smart parking management systems by development and deploying advanced technological solutions. Such plans of smart cities are likely to take place in the coming five years. Moreover, the parking management systems will be leveraging external ecosystems and will be involving bigger community. This in turns is anticipated to benefit the global parking management market.

Global Parking Management Market Trends:

Rise in investments in automation and automotive sectors among others is a recent trend

In recent years, sectors such as automation, automotive, IT, and telecom are witnessing strong investments for the development of smart parking solutions to cater the rising demand for new, innovative solutions for parking issues. Various automotive OEMs are vertically integrating their product portfolio to become a mobility ecosystem enabler from being a standalone mobility provider. This is with interests in EV charging, car sharing, parking, and payment solutions. This trend is anticipated to continue in the global parking management market over the forecast period.

Growth in Intelligent Parking Exchange (IPX) is a growing trend

Currently, many parking spaces are locale-specific, and parking operations are managed within the facility perimeters. This is leading to rapid growth of Intelligent Parking Exchange (IPX). IPX is expected to be responsible for management of end-to-end parking services for multiple facilities in suburban or urban districts. This will be integrating a parking lot with other parking lots and will incentive a person near a congested parking facility towards moving to a garage nearby having lesser occupancy. Therefore, growth in IPX is anticipated to boost the market growth in the near future.

Global Parking Management Market Restraints:

Complexity in integration of system and security concerns to obstruct the market growth

The adoption of IoT platforms used for parking management is increasing around the world due to the strong demand for IoT. This has further resulted into increase in vulnerabilities of smart parking systems to data breaches. The demand for uniform security platform is growing, as many providers offer multiple solutions. For instance, as per the IBM X-Force threat intelligence report, the number of IoT vulnerabilities increased by 74% in 2021 compared to the numbers reported in the previous year. Moreover, this adds into the cost of deployment and integration of these systems in order offer secure environments. Thus, these factors are expected to impede growth of the market in the coming future. However, market players are focusing on providing solutions to reduce such vulnerabilities and overcome the security concerns of parking management systems, which is likely to support the market growth.

High cost and lack of awareness regarding benefits of parking management solutions to limit the market growth

The tight budgets in security domain in organizations poses risk, if they are not managed appropriately. Many regions face lack of resources and economic constraints to deploy proper parking management solutions. Moreover, the high cost of deployment and management of smart parking systems restrains the adoption of parking management, which in turns is expected to obstruct growth of the global parking management market over the forecast period. Along with this, lack of awareness regarding benefits of parking management solutions in underdeveloped and some emerging countries, is also anticipated to restrain the market growth in the near future.

Figure 2: Global Parking Management Market Share (%), By Deployment, 2023

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Global Parking Management Market Segmentation:

The global parking management market report is segmented into Deployment Type, Parking Site, and Offering Type

Based on Deployment, the market is segmented into On-Premise and Cloud-based. Out of which, On-Premise is expected to dominate the global market over the forecast period and this is attributed to the increasing number of vehicle users around the globe creating the need for more parking space. Thus, this in turn is creating demand for on-premise parking management solutions, which is expected to support growth of the segment.

Cloud-Based segment is also expected to witness significant growth in the near future and this is owing to the rapidly growing demand for data-driven operations and various benefits offered by these services. This is leading to rise in adoption of use of web services via implementing Platform as a Service (PaaS), as it offers less complicated, quick, and simple application development. This in turn is leading to growing adoption of cloud-based parking management services, which is likely to boost the segment growth in the near future.

Based on Parking Site, the market is segmented into Off-street, On-street. Out of which, Off-Street is expected to dominate the global market over the forecast period and this is attributed to the rise in number of public spaces such as stadiums and malls leading to increasing demand for multi-level off-street parking systems. For instance, as per the U.S. Census Bureau data, the number of shopping malls in the U.S. grew from 103 thousand in 2005 to 116 thousand in 2017. Thus, the need for off-street parking is increasing around the world, which is driving growth of the segment.

On-street segment is also expected to witness significant growth in the near future and this is owing to the increasing deployment of smart parking solutions for proper management of on-street parking. For instance, INRIX Inc., who offers analytics for connected car services and transportation, provides On-Street Parking services in the BMW 5 Series Sedan.

Based on Offering Type, the market is segmented into Solution, Service. Out of which, Solution is expected to dominate the global market over the forecast period and this is attributed to the lack of parking spaces in commercial and residential areas. Using parking management solutions, drivers are allowed to pre-book spaces and avoid the hassle. Thus, the adoption of parking management solutions is growing all over the world.

Services segment is also expected to witness significant growth in the near future and this is owing to the various advantages services such as centralized data management techniques, customization, and add-on features. Such various advantages of parking management services are creating strong demand for the segment. This is likely to fuel growth of the market in the near future.

Global Parking Management Market: Key Developments

In June 2022, Flowbird Group, a leading unattended payment technology and mobile application provider in partnership with Devo & Associates, a local distributor, deployed an Automated Parking integrated fee collection system for Palisades Interstate Park commission.

In April 2022, FLASH, a leading mobility transformation and cloud parking software provider, acquired Ticketech, a leading parking technology company in New York City. With this acquisition, the company expanded the customer network running on Mobility Hub Operating System of FLASH and connected US$ 22 billion parking market of the New York City to the growing mobility marketplace.

In May 2020, FLASHPARKING and Burroughs Inc. entered into a national service partnership to offer unique maintenance services to its user and for reducing the risk of hardware downtime.

In March 2020, Q-Free announced the deployment of a comprehensive parking guidance system at the Victorian Square parking garage in Sparks, Nevada, which will be offering real-time information on available spaces to make finding parking easier for drivers.

Global Parking Management Market: Key Companies Insights

The global parking management market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global parking management market are Siemens AG, DELOPT, Parkmobile USA Inc., Bond Traffic Solutions, Q-Free ASA, FlashParking, SAP SE, TIBA Parking, Amano McGann, Infocomm Group LLC, Nex Valet LLC, and Passport Inc.

*Definition:

Parking Management is an important component of Location Efficient Development. It involves determining the type of parking that is most useful for the neighborhood. These strategies can improve access to destinations, reduce congestion, and reduce the need for vehicle travel.