Parking Management Market

Market Overview

The global Parking Management Market Size was valued at USD 4.56 billion in 2022 and is projected to reach USD 11.48 billion by 2031, registering a CAGR of 10.8% during the forecast period 2023-2031.

Parking management refers to various programs, strategies, and policies that result in more efficient use of parking resources. Parking management helps the driver to locate the vacant parking spot through sensors installed in each parking space. Managing the price and provision of parking, especially in high-activity and dense locations, can reduce the blockage of surrounding corridors. Significant factors such as demand for concern for safety, security, and connectivity and growing parking concerns due to the increasing number of vehicles driving the growth of parking management.

The increasing number of vehicles worldwide impacts the availability of parking lots. It, therefore, increases the need for a parking management system as it helps in systematic allocation and maximum utilization of space for parking. Furthermore, increasing adoption of the Internet of Things (IoT) in parking and increasing penetration of smartphones will likely boost the growth of parking management systems over the forecast period.

Furthermore, innovations like the development of electric and autonomous cars will likely provide further opportunities for the parking management market. The rising adoption of parking management systems by multi-storeyed parking services and residential & commercial sites propels the market's growth.

Market Dynamics

Global Parking Management Market Drivers

Maximum utilization of parking spaces

As developers construct different spots to comply with requirements governing the size and number of parking spaces, a proportion stays vacant. By telling clients when and where a parking space is available, parking spaces are consistently available. Through better revenue management, which balances overpricing and underpricing of parking spaces, parking management also leads to more effective use of parking resources. The need for parking can be decreased by 20–40% with an efficient and integrated parking management solution, which aids in preserving city infrastructure, conserving land, raising government revenue, and enhancing user convenience.

Easy scalability

The demand for parking management has led to the emergence of cloud-native parking management, with parking operators hosting their infrastructure on the cloud due to numerous advantages like simple scalability and a pay-as-you-go strategy. Poor parking management can result in difficulties like traffic congestion and noise pollution; as a result, businesses use parking management to prevent these issues and improve their brand's reputation. Throughout the forecast period, market growth is anticipated to be fueled by the rise in a smartphone, GPS, digital payment, and cloud service usage.

Global Parking Management Market Restraints

Operators of Parking Spaces' Cost Sensitivity

The business is expected to face difficulties due to parking space operators' cost sensitivity as they manage parking spots on behalf of parking space owners. The poor operating margins and high cost of modern, effective parking systems prevent the market from expanding in other ways.

Global Parking Management Market Opportunity

Technological advancement

Technology developments like the Internet of Things (IoT), parking sensors, and electronic payment systems also expand the market. Businesses strive to offer a better customer experience and hassle-free parking since doing so can give them a competitive advantage over rivals. Enterprises can use real-time data and analytics to assign parking spaces, regulate access, and save administrative costs associated with parking. Parking management also gives customers a sense of security because it increases the number of customers and the amount of time they spend at each outlet. Parking on the street is not thought to be the safest alternative.

Regional Analysis

Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA.

North America dominates the market.

North America

The significant growth in the parking management market in North America attributes to the technical advancements and early adoption of parking management in that region. Modern parking technologies such as Multi-space use meters that are more efficient than individual parking meters, State-of-the-art systems that can adjust rates based on occupancy, provide motorists with information about parking availability and accept a wide variety of payment methods are driving the growth of the market in North America. Furthermore, The U.S. transportation planner has become more aware of the impact of parking on air quality and the environment. For instance, The U.S. Department of Transportation (DOT) and the Environmental Protection Agency (EPA) is developing parking master plans for non-attainment areas for smog and particulate matter under the Clean Air Act as part of State Implementation Plans (SIPs).

Europe

The Europe parking management market is growing due to rising concerns about safety and security and an increasing focus on seamless traffic flow. Countries like France, the UK, Germany, and Italy play a significant role in parking management systems. Major key players in Europe are likely to continue expanding as they have a market share of less than 50% in their domestic markets.

Asia-Pacific

Asia Pacific region is expected to record the fastest growth in parking management systems due to increasing urbanization in developing countries. The development of innovative city projects, which focus more on infrastructure, connectivity, and parking management system, is a crucial factor contributing to the smart city project.

LAMEA

LAMEA is expected to show healthy growth in the parking management market, raising concerns about the safety and security of vehicles. Recent developments in the parking and transportation market in UAE with intelligent transportation, IoT, autonomous vehicles, intelligent parking systems, and big data offer significant opportunities in this region. The Department of Transport (DoT) announced in 2009 the launch of its Parking Management Programme 'Mawaqif' to tackle the shortage of parking in the commercial center of Abu Dhabi Island. Launching the parking management program made the AD parking enforcement program one of the largest in the world. It operates more than 90,000 on-street and 4,000 underground parking spaces in 51 city sectors.

Segmental Analysis

for a better understanding of the market segmented by component, deployment type, solution, parking site, and region.

Based on components, the market is segmented into software and services.

Software

For private garages, public parking, local governments, and educational institutions that provide on-premises parking facilities, parking software automates tasks connected to enforcing, issuing, and enabling parking.

Based on the solution, the market is segmented as Parking Guidance, Reservation Management, Permit, Enforcement, access control, Security & Surveillance.

Reservation Management

Due mainly to the lack of parking spaces in residential and commercial areas, these solutions allow drivers to reserve spaces in advance and forego the bother. Systems for managing reservations include hardware and software that contribute to the security and traffic flow, including cameras, parking meters, wireless sensors, and automatic gates. Businesses that use this solution can gain several benefits, such as improved customer satisfaction, increased customer loyalty, lower operating costs, and less need for human intervention, all of which are anticipated to support the growth of the parking management market.

Based on deployment, the market is segmented into On-Premises, Cloud, where the cloud dominates.

Cloud

The cloud-based software makes sure that parking spots are used strategically. It maintains social distance by offering necessary information, such as details on nearby free parking so that drivers may park securely. A driver has other filter options besides distance, including price, parking time, and rating. These advantages are anticipated to encourage the adoption of parking management technologies, particularly during the epidemic. Furthermore, the transition from on-premise to cloud-based solutions has been crucial in enhancing the reliability and simplicity of deployment. These factors have positively impacted the demand for the products and services provided in this market.

On-Premises

Data does not leave the organization's grounds, giving organizations better control and data protection. Regarding compliance concerns, the on-premise deployment may have a clear advantage. The increased stability of this deployment is another reason why many businesses rely on it; employees can still access the data even in the event of a network breakdown or a lost internet connection, preventing downtime.

Based on parking sites, the market is segmented into on-street and off-street parking.

On-street Parking

On-street parking dominates the market and is expected to grow at a significant CAGR during the forecast period. On-street parking management is necessary to achieve goals using a variety of techniques, including areas where parking is allowed and prohibited by designing parking spaces, facilities, and signage, limiting access to specific classes, enforcing a time limit, charging fees to enforce compliance with all agreements, and tracking progress. Government entities typically run the majority of the on-street parking spaces. Given its simplicity and accessibility, on-street parking is preferred by the majority of commuters. 

Off-street Parking

The use of assistive devices, better ticketing and payment options for parking advice, and higher mobile app penetration all contribute to the growth of the off-street category. Both transient and permanent customers use off-street parking systems. The off-street category is expanding due to rising mobile device penetration, improved parking advice, ticketing and payment options, and the advent of assistive devices. Both short-term and long-term consumers take advantage of off-street parking schemes.

Recent Developments

In November 2022, Conduent launched the BenePath® Suite of Solutions to Help States with Medicaid, SNAP, and Other Benefits Program Eligibility and Enrollment.

In September 2022, With the opening of a new office in Brandon, CHETU will expand its presence in Florida.

In July 2022, Chetu opened a third software delivery center in India to house a growing talent pool.