The State of the Parking Industry and Where the Road Leads in the Future
The past few years have been one of the most difficult for all involved, as we make significant changes to our everyday lives and routines. Now that the world has headed to some form of normalcy, lives have started going back to a normal state, however, some routines and changes from the pandemic are here to stay. The parking industry is no exception as the industry has several key trends and growth areas that have motivated change in the industry.
The Market of Parking Management
When surveyed in 2020, the parking management market had a market value of a staggering $3527.6 million US dollars. This is projected to increase significantly by the year 2026 with an estimate worth $6481.6 million US dollars. One of the changes being seen in the market is the use of cloud based parking management solutions in part to demands brought about by the COVID-19 pandemic. This allows for all parking management facilities no matter the location, size, and growth the ability to scale up and provide for a growing market and demands through an entire infrastructure built on a cloud database. This also allows for access to more advanced technologies and the ability to grow with a more technologically advanced and dependent society. Many of these models are a pay as you-go model, as well as others being reservation such as residential parking for condos, apartments, and other urban based parking areas for housing areas.
There has also been a marked increase in off-street parking charges brought about also by the COVID-19 pandemic. When asked, the Victoria Transport Policy Institute responded to the increase of new off street charges as a necessity as, “ a typical [vehicle] remains parked for 23 hours a day and takes up several parking spaces each week.” The increased use of these areas has a need to control the parking areas in some way to not only generate income to keep with upkeep and maintenance, but also as a way to ensure fair parking practices. Parking convenience has also had an impact on the ease of reaching a destination and does impact overall accessibility.
With the use of digital parking software and cloud-based technology, the control over rising prices of parking resources can be mitigated, as well as a way to help with the strain being placed on residential areas for parking as urban populations rise. Digital parking software also offers a solution in decreasing the amount of time spent searching for a parking space in heavily populated areas, reducing carbon footprints, emissions, and saving drivers time and money. In New York, drivers were found to be spending a substantial amount of time searching for parking spaces equating to an approximate combined total 4.3 billion dollars in 2019 alone.
Significant Rise in Revenue of Parking Areas
According to the US Census Bureau, the growth in the parking management industry can be seen as the years progress. When charting the data points from the Parking industry with the parking garage and facility revenue streams, there is a positive trend in the data. In 2015, the market value of the parking garage industry was 9033 billion US dollars. The value in 2022 is estimated to be 9823.9 billion US dollars. This shows a positive growth in the industry that is also not ran by a few large corporations or businesses. Instead, the market is one that has not only the room for growth, but also the opportunities for everyone to expand and grow with the market.
*Data from US Census Bureau
**2022 is an estimated value
A Noted Rise in Digital Technology in Parking Management
There is a marked rise in the use and integration of technology in parking and parking management. Technology enhancement with connectivity and communication is expected to make it more affordable and a wanted solution for parking facilities and areas. With app support for parking estimated to grow with high mobile use. Vendors and companies that have integrated digital equipment and technology are expected to gain more traction and are strategically marked to be more competitive in the parking industry market. This technology includes the use of a cloud based application platform for the operation of parking areas great and small. These systems use a wide variety of technology ranging from camera, sensors, apps, signage, lighting, and more.
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