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The global advanced parking management system market size was USD 1445.1 million in 2019 and is projected to reach USD 1114.5 million by 2027, exhibiting a CAGR of 5.44% during the forecast period.
The parking management systems assist people to swiftly locate parking spaces and also offers the necessary direction to make the entire process easy and convenient. The parking management systems comprise of real-time vehicle tracking, traveler information systems, real-time parking alerts, video surveillance, and easy payment choices. Several parking management systems permit users to reserve and pay for a parking space via phone. The hardware system that is designed and developed to manage and maintain the availability of the parking spaces is known as advanced parking management solutions. These parking management solutions consists of RFID tags, monochrome displays, LED light indicators, centralized data management system, solar panel and battery sensors, and automated payment systems. These systems deliver high-level convenience to the drivers owing to simplified and automated functions.
The advanced technology such as the Internet of Things (IoT), e-payments, and wireless parking sensors are anticipated to enhance customer experience and increase the adoption of parking management solutions during the forecast period. Furthermore, the technological developments in sensors are expected to reduce the size and improve the accuracy of sensors, thereby making them highly efficient, cost-effective, and compatible. Also, the growing demand for electric vehicles is compelling the urban authorities to implement charging stations in cities. As, charging an electric vehicle requires one to four hours, which is further creating the demand for parking spaces. The accessibility of real-time parking data is expected to lessen the time spent by drivers in searching for available parking space and curb traffic congestion.
The rapid increase in the penetration of smartphones and the availability of mobile applications along with various features that assist drivers to navigate parking spaces are also expected to drive the growth of the parking management system market in the forecast period. Additionally, the usage of e-wallets and electronic payment systems in parking management is gaining high popularity among the smartphone and internet users. These features enable users to save important time spent on searching for the parking space and are expected to boost the demand for advanced parking management systems. Globally, the number of vehicles is rapidly increasing thus escalating the problems related to the shortage of parking space. Traffic congestion and other transportation-related problems arise owing to the vehicles not finding vacant space for parking. Therefore, the requirement for efficient and advanced parking systems is increasing. The parking management system reduces hardware and connectivity costs and also generates revenue for the parking site operators. Hence, the revenue generation and smoothing of the traffic movement are some of the main factors boosting the growth of the market.
The outbreak of COVID-19 in China and its spread across the world has affected the global economy. This pandemic condition, the overall lockdown, and the rapid increase in the number of infected patients have brought the whole manufacturing as well as service sectors to a halt. This has severely impacted the manufacturing supply chain and the service providers across the globe, particularly those businesses that are largely dependent on China for their unfinished and finished goods as well as services.
The automotive industry has not been severely impacted by various challenges owing to the outbreak of COVID-19. The current scenario wherein the various governments have imposed total lockdown owing to the spread of coronavirus, the global market share has dropped down drastically. This global economic crisis has affected the income of various industries. Therefore, the investment reserved for purchasing advanced parking management systems by various public or private sectors is disturbed as this amount is bound to be utilized for recovering the economical loss and for redeveloping the base of the business. This may create a low demand for the sales of new parking management systems. Also, this pandemic may affect the automotive industry owing to the decrease in the income level, people may focus more on the utilities rather than buying new vehicles and other luxury items. The shopping malls, amusing parks, restaurants, and other recreational activities may be hampered owed to social distancing, thus impacting the market and the parking space operators.
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Adoption of Smart Phones to Accelerate Market Growth
Globally, the number of mobile users is rapidly increasing. The penetration of smartphones is also increasing aggressively in developing economies over the past few years. This has led to the convenient availability of improved connected solutions related to the parking management system. The parking space operators generally use smartphones to write parking tickets, check for parking compliance, and navigate the parking violation vehicles. Whereas, the smartphones help the parking customers to determine vacant parking space availability, reserve parking space, and navigate them to the available parking spaces. The smartphones also assist in managing cashless payments for the customers and the parking operators. The parking management application uses various features of smartphones such as the camera, Near Field Communication (NFC), and GPS to find vacant parking spaces within the customer’s surrounding area. It also permits the customers to pre-book their parking spaces, thus reducing the time consumed in searching for vacant parking spaces. Additionally, the RFID solution integrated into mobile phones also identifies authorizations such as passes for handicapped people, residents, car sharing, taxis, and delivery vehicles. It also assists traffic police officers to receive immediate notification if parking spaces are occupied by unauthorized people. Furthermore, the software professionals are working on developing parking management applications that enable customers to automatically pay for the parking within a minute. Thus, deeper penetration of smartphones is estimated to offer high growth opportunities for parking management system dealers.
Advanced Infrastructure of Smart Cities is Expected to Drive the Market Growth
With the rapid development of smart cities and an increase in vehicular movements owing to this there is a growing need for proper parking space. Although the regulations imposed by the local bodies to provide parking spaces for the construction, as a result, there is a rise in the need for extended parking provisions. The development and maintenance of these parking facilities are highly capital intensive. Thus the parking space providers are shifting towards the pay per use model for generating revenue through these parking amenities. This has become an integral part of the requirement of smart cities. Also, the development in the parking management solutions such as real-time parking indicators, and upgraded signage systems, decrease the wastage of parking spaces by notifying the customers about the availability of parking spaces. Also, with the emergence of smart cities, various steps are being taken to collect data through sensor networks. The cities are searching for reasonable ways to collect data through sensors, to rationalize their smart parking operations and save money.
To attain this, numerous players in the advanced parking systems industry are working on the development of systems that can help acquire data through sensors at a nominal cost. An effective and cohesive parking management solution can lessen the parking requirements by 20 to 40%, which helps in upholding city infrastructure, increasing revenue generation for the government, reducing land consumption, and improving user convenience. Besides this, the intelligent transportation system is also emerging worldwide which is expanding the space for smarter solutions for parking. With the advanced parking management system, the parking space operators offer various parking facilities such as minimal time wastage, enhanced vehicle security, pre-booking parking spaces, and cashless payment choices. Therefore, the rapid development of infrastructures and smart cities are driving the growth of advanced parking management system.
Growing Traffic Congestion Problems to Promote Parking Management System
Globally, the number of vehicles is rapidly increasing escalating the problems related to the scarcity of parking spaces. The increasing urbanization, expansion in the industrial sectors, improved standard of living, and rise in the disposable income is leading to an increase in the number of sales and production of vehicles. The increasing parking space concerns are driving the growth of the advanced parking management systems market. Traffic congestion caused by the growing number of automobiles has become a distressing problem across the globe, and also the inadequate and unorganized vehicle parking is a chief reason for these problems in cities. To overcome this issue, various countries across the globe are rapidly adopting advanced parking management systems that provide real-time information, which allows the drivers to find or reserve the available parking space. Moreover, these systems are efficient enough to provide enhanced convenience to the drivers as it simplifies and automates the operations and other various functions at the parking site. Furthermore, the demand and popularity of advanced parking management system market is expected to grow in the forthcoming years owing to rapid growth in the automobile industry and increasing adoption for smart city projects across the globe.
Complexity in System and High Cost are Factors that may Restraint the Growth of the Market
The parking management system is a complex system that involves various input and output devices and processors. The system comprises of a variety of sensors, traffic control devices, computer servers, real-time messaging systems, wireless and wired telecommunication devices, and application interfaces. The variability in the parking management software systems and hardware infrastructures are massive. The parking data collected, analyzed from different systems are stored to integrate the data and articulate the value.
However, the integration of software and hardware involved in the parking management composed of a single platform is quite complex and challenging. Although the parking management systems improve the parking operator’s profitability in the long run, they have high implementation cost. The high initial investment is required to set up the parking management system as it consists of advanced and massive mechanical and electronic components. The complexity of the systems requires professionally skilled laborers for the installation, operations, and maintenance which further increases the cost. Therefore, the complex system and its high cost is the main factor that may restrain the growth of the global market.
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Off-Road Parking Site is Expected to Dominate the Market
Based on the parking site, the market is segmented into on-road and off-road parking site. The off-road parking site has the maximum hold on the global advanced management system market and is expected to grow at a high rate in the coming years. The off-road parking site is a parking facility where it is not connected with the traffic movement on the road. The point of interaction between the road and the car park zone is tapered to a single point, normally known as the access point. The multi-level vehicle parking system provides a compact vertical provision for parking. It is easy for the owner to call for its car and therefore it’s convenient for the user and the operator. It also offers high security and protection from any damage to the vehicles.
Moreover, owing to the urbanization, development of business centers and other amenities, a cluster of activities take place in the commercial centers owing to high cost, satellite townships, have come up around the commercial centers. The easiest and comfortable mode of travel from the township to the commercial centers remains traveling by own vehicle. Hence, there is a need for parking management systems and as a result enhanced provision for parking the vehicles. Multi-level mechanical car parking systems have become the only viable option considering cost, easy installation, compact size, and secure solution. The off-road parking has observed some innovations to enable efficient parking and the multi-level parking authorities are spending a high percentage on implementing parking management systems in cities where there is high traffic congestions and less space for vehicle parking.
Some of the main specifications of the off-road parking management system comprise of valet parking management, parking enforcement management, simplified revenue management system, guidance management, parking slot, and parking reservation management. These parking management solutions have a great demand from end-use sectors such as the government infrastructures, municipalities, commercial parks, airports, commercial institutions, and healthcare.
The Commercial Segment is Expected to Hold the Largest Market Share
Based on the application type, the market is segmented into commercial and government. The commercial segment holds the largest share of the global market and is expected to maintain its leading position in the forecast period. Commercial spaces such as shopping malls, restaurants, amusing parks, commercial complexes, private hospitals, and other commercial infrastructures are majorly installed with advanced parking management systems. A high volume of patrons are observed in these various commercial spaces regularly. These commercial places mostly have advanced infrastructures and high density of population. Thus, the penetration of the system is more in the commercial places. The local bodies have imposed regulations on all constructions to build a parking space according to the density of people and vehicles. the multi-level parking spaces are widely observed especially in areas where there is less space for on-road parking. The on-road commercial complexes in cities where the traffic congestion is more, the multi-level parking spaces are created in such places which also benefits the parking space owner to generate revenue from the parking management systems.
The government sector market also holds a significant share in the market owing to the growing number of smart cities projects in developed and developing regions. The advanced parking amenities help the local authorities to implement parking charges and encourage the drivers to park at parking spaces. The transport system is also increasing owing to the high investments by the government in developing advanced public transport parking infrastructures.
Europe Advanced Parking Management System Market Size, 2019 (USD Million)
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Europe has the maximum hold on the global market owing to the various initiatives taken by the European Government to encourage the implementation of parking management system to reduce traffic congestion and ensure the appropriate use of parking spaces. The prominent manufacturing companies in this region have invested highly in developing advanced parking management system. Also, the growing adoption of parking assistance systems in the advanced driver assistance system has propelled the growth of the market in this region. Moreover, the development in the infrastructure and rising number of vehicles on road is also adding up to the growth of this market in Europe.
North America holds the second-largest share of the global advanced parking management system market owing to the increasing population, rising number of sales and production of vehicles, and the changing parking regulations. Also, the high investments for developing infrastructure facilities, rising demand for enhanced driver and commuter convenience are leading to the growth of the market. Developed economies such as the United States and Canada have been implementing parking management system on a large scale coupled with the increasing adoption of mobile devices as well as increasing the focus on managing the ever-rising traffic congestion. The swift inclination toward advanced mobility is encouraging the customers to operate the parking system from their own devices. Furthermore, the Internet of Things and other cloud-based solutions have also penetrated the market to offer cost-effective methods of managing the parking services.
SKIDATA offers advanced parking management solutions.
SKIDATA AG is a leading company that provides a wide range of hardware and software systems for access solutions and visitor management. The company offers various products for vehicle access management at several places such as amusement parks, stadiums, malls, etc. from columns and barriers, automated payment machines, cash desks & validation systems to access readers, marketing & customer loyalty solutions and tickets as well as the SKIDATA tools for reporting, controlling and monitoring.
APT SKIDATA is a joint venture between two Austrian companies SKIDATA AG and Swarco AG. The JV has introduced a new APLR based ticketless parking system for those parking operators who offer initial free parking period before the applying charges. This system has replaced the traditional paper tickets and RFID cards with a virtual ticket which is obtained by accessing the vehicle’s license plate. The new technology has enabled the drivers to gain swift and easy access to parking space, without any issues of loss or damages of tickets.
The advanced parking management system market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.
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Value (USD million)
By Parking Site Type
By Application Type
Fortune Business Insights says that the global market size was USD 1445.1 million in 2019 and is projected to reach USD 1114.5 million by 2027.
In 2019, the market value stood at USD 1445.1 million.
The advanced parking management system is projected to grow at a CAGR of 5.44% and will exhibit steady growth in the forecast period (2020-2027).
The off-road parking site segment is expected to be the leading segment in this market during the forecast period.
Advanced infrastructures of smart cities are fueling the demand for advanced parking management systems.
SKIDATA AG and Conduent, Inc. are the leading players in the global market.
Europe dominated the market share in 2019.
Increasing traffic congestion problems is one of the main reason expected to drive the adoption of advanced parking management system.
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