Parking Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Parking Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Parking Management Market is prevised to grow at a CAGR of 10.3% during the forecast period. The steps toward creating a smart and connected transportation environment include parking as an essential parameter to be addressed.​ Hence, the rise in the smart city concept's smart transportation projects is expected to boost the demand over the forecast period.

Key Highlights

• The cloud-based platform ensures intelligent usage of parking spaces. It maintains social distancing by providing vital information, such as information about nearby free parking so that drivers can park safely. Besides distance, a driver can select other filters such as price, parking time, and rating. Such benefits are expected to aid in the growth in the adoption of parking management solutions, especially during the pandemic. Moreover, the evolution from on-premise to cloud-based solutions has been critical in making the solutions more robust and easily deployable. These factors have positively impacted the demand for the solution and services offered in this market.
• Moreover, technology enhancement in connectivity and communication is also expected to make it a more affordable and sought-after solution. Mobile-based App support for parking solutions is expected to bring new growth opportunities to the market.
• Further, technologies such as AI, machine learning, speed monitoring, image recognition, and tracking capabilities are expected to improve and enhance the user's experience in the market. For instance, in May 2021, L&T Technology Services developed a smart parking solution collaborating with the Intel Corporation. The solution comprises four essential parts and uses AI's effective capabilities. They are a digital camera, a mobile application for the end-user interface, a digital signage module for safe and secure access, and an operator portal that contains user information. The AWS cloud platform connects all of these parts, making it readily available and reachable.
• Parking management encompasses wireless and wired telecommunications systems, traffic control tools, hardware sensors, computer servers, and application interfaces. A remarkably wide range of hardware and software exists within the parking management infrastructure. Hence, integrating all the hardware and software involved in parking management into one single platform is difficult and acts as a restraint to the growth of the parking management market.
• The effects of the COVID-19 outbreak have led to travel disruptions and restrictions worldwide, leading to decreased need for parking management. Also, since almost all modes of transport were grounded for a certain amount of time, it leads to less need for managing traffic congestion.

Key Market TrendsOn-Street Parking Accounts for Significant Market Share

• To create more pleasant public areas, improve conditions for walking and bicycling, and improve access to public transportation stops and stations, on-street parking sites are expected to experience significant growth throughout the projected period. The development of this market is fueled by the rise in the usage of effective on-street parking locations, which increases the financial viability of off-street parking facilities and eases the load on common property resources.
• On-street parking spaces are often under the supervision of governmental organizations and are highly preferred by most commuters due to their simplicity and affordability. Off-street parking is a planned and secure alternative to on-street parking, but due to the exorbitant parking fees, it has not gained popularity, leading to poor occupancy rates.
• The market for on-street parking management solutions is being further stimulated by the authorities and parking owners' deployment of smart parking solutions to manage on-street parking effectively. The BMW 5 Series Sedan can be well parked on the street due to the On-Street Parking service provided by INRIX Inc., a connected automotive services and mobility analytics provider.
• Inrix Inc., which provides transportation analytics and connected car services, U.S. commuters lost 3.4 billion hours due to traffic congestion in 2021. Hence, the average time lost by American drivers increases as the economic and urban growth continues nationally. This is where the need for efficiently on-street parking comes into action by which it can save time on both sides, i.e., the vehicle parker and the road traffic in the United States.
• According to OICA, the motor vehicle sales of passenger vehicles increased by 5 percent compared to the previous year when some 53.92 million cars were sold worldwide. This increase in the sales of motor vehicles globally will considerably drive the need for on-street parking.

North America to Witness Significant Market Share

• The North American region dominated the market, holding a significant portion of it. Due to the increase in car numbers in countries like Canada and the U.S., a smart parking solution is needed to reduce traffic congestion. People in the region are also easily adapting to modern parking alternatives owing to the simplicity of using cell phones and the availability of mobile apps for finding parking spaces. The region's growing commercialization and desire to offer a customized user experience are driving the demand for parking management.
• The United States, with a rising number of vehicles on the road and limited parking space, faces huge costs for parking. According to a study by INRIX, parking is the highest cost of driving. The average United States driver faces a total driving cost of USD 10,228 made up of direct (maintenance, fuel, insurance, and parking and toll fees) and indirect/hidden (wasted time and carbon, parking fines, and overpayments) costs. But traffic- and parking-related prices made up nearly half (45%) of the total cost of ownership in the United States. Also, drivers spend more than USD 3,000 yearly on parking-related prices.
• On the other hand, the overall rate of car ownership in the U.S. has been trending upward. According to OICA, in 2021, almost 9.2 million motor vehicles will be produced in the United States, and the number is expected to increase in the upcoming years. Thus with the rise in the number of cars, the need for parking spaces and efficient management will also increase, which will facilitate the overall market growth in the region.
• As per the INRIX study, drivers in New York waste 107 hours per year searching for a parking spot that costs more than USD 2,200 in time, fuel, and emissions per driver. Additionally, finding parking in Los Angeles and San Francisco takes drivers 85 and 83 hours, respectively. Thus, lost time, fuel, and carbon emissions have an overall economic effect of USD 72.7 billion.
• Moreover, the United States population is growing and shifting from rural to urban areas. According to the world bank, about 83% of the population will live in urban areas in the year 2021. This is expected to increase to more than 85% by 2030. These factors are expected to push further improvements in the parking management system.

Competitive Landscape

Due to the existence of numerous players, the parking management system is fragmented. Moreover, the sector is characterized by fierce competition because of partnerships and recent advancements in the parking management market. DELOPT, and Bond Traffic Solutions, among other companies, are some of the major participants in the field. Recent changes in the market include:

• July 2022 - The UK's fastest-growing parking technology provider, YourParkingSpace, has been acquired by the global leader in urban mobility, Flowbird. This acquisition sees Flowbird join forces with YourParkingSpace to expand Flowbird's off-street and digital offerings rapidly.
• June 2022 - Flowbird Group, a global leader in unattended payment technology and mobile payment applications, has announced the deployment of an Automated Parking integrated fee collection system for Palisades Interstate Park Commission in partnership with a local distributor, Devo & Associates.
• April 2022 - FLASH, the global leader in cloud parking software and mobility transformation, announced the acquisition of Ticketech, the parking technology leader in New York City. The acquisition expands the network of customers running FLASH's Mobility Hub Operating System and connects New York City's USD 22 billion parking market to the emerging mobility marketplace.

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