Parking Management Market is expected to USD 8.6 billion at a CAGR 12.50% during the forecast period. Parking is a very important component of the transportation system. According to data, an automobile remains parked for 23 hours each day and uses different parking places in a week. Parking impact the ease of reaching destinations. Parking management handles different programs and policies to make the best use of parking resources. With the growing urbanization in all the areas, the number of vehicles is also increasing; hence the need for packing management is also growing. The main reason for the growth of the parking management market is the need for easy traffic flow and the increasing number of vehicles. The concern for safety is also one of the major reasons behind the parking management market on the rise.
Poor parking management can lead to various problems such as overcrowding of vehicles and rise of air and noise pollution with traffic congestion. It is hard to imagine a transportation system without parking. The parking management market is the reason behind we are using our vehicles comfortably. The component is then segmented into software and service. The scenario of parking has changed due to increasing parking resources rising prices, and it is driving the growth of the parking management market. The advancement of technology is expected to grow more, and it will come up with a more affordable solution. App for parking management is expected to grow with high mobile penetration. The service providers are providing service to their customers, in addition to make their parking experience more simple.
The covid-19 has slowed down the growth of the parking management market, and the reason is obvious. The covid-19 has hit the economies around the world, resulting in a slowdown in industrial activities. And the effect is noticeable in the market. The majority of construction projects all over the world have been put on a pause, and it is expected to be like this for at least 2 years. And with this, the advanced parking projects are also withheld. Another sector that is largely affected is the automotive industry. The rising number of automotive is one of the major drivers of the parking management market, but due to the covid-19 pandemic, the automotive industry is facing a decline in terms of production. Since the production of the vehicles has been very poor, the parking management is largely affected due to this. Due to the poor performance of the world economy and less growth of automotive and construction industries, the global market will be badly impacted.
The market is giving so many advantages to people by solving traffic issues. The growth of the parking management market depends on its major drivers.
Key drivers of parking management market
One of the key drivers of the parking management market is the growing demand for best utilization for parking spaces. So many parking spaces remain unutilized just because the developers end up building additional spaces. Consistent parking management solutions like real-time parking indicators and improved signs reduce the wastage of parking space by informing the customers about where and when a parking space is available. Parking management also causes the more efficient use of paring resources through better revenue management by differentiating over-pricing and underpricing parking spaces. A good parking management solution can solve the parking problems by 20-40% that will help the city infrastructure and increasing revenue generation for the government.
Restraints in the parking management market
Though parking management is very important, there are some restraints that affect the parking management market growth. Parking management deals with different hardware sensors, traffic control devices, computer servers, wireless and wired systems, and application. The analysis of parking data collected from different systems is necessary to implement the concept of dynamic-priced parking. These parking data are present in some incompatible hardware, and it makes it difficult to integrate the data. The addition of all hardware and software involved in parking management into one makes the process difficult, and it is the restraints in the market.
Challenges in the parking management market
The parking management process is very complex, and it requires so many input and output devices and processors. So, the parking space operators find it difficult to use new parking management systems. Although the parking management systems are highly effective, it is very costly to implement. The parking management systems will be beneficial in the long run, but to use them, huge initial investments are required. Setting up a parking management system requires many things such as management and coordination, multiple hardware, electronic signs, communication lines, static signs, testing, software component, and training. Small businesses have to pay a big amount to implement parking management solutions, and that can become a burden for them, except that the parking management solution will need skilled labor for the installation and maintenance, and that can add more to the cost. And it is a big challenge for the parking management industry.
The technology has transformed the urban areas into smart cities, and the smart cities maintain their mobility, housing, and economic functions by utilizing innovative technologies. The smart city initiative has been adopted by the government to tackle the increasing rate of traffic problems. The government across the world is expected to provide great opportunities for smart parking management solutions. This is a great opportunity for the parking management market. Smart cities need easy and space-efficient parking solutions that can be provided by the parking management systems.
The key players play a vital role in the growth of the parking management market, and they are contributing to the market in a big way. The key players know the worth of parking management, and they want the market to grow more in upcoming years.
Value chain analysis
The parking management business is expected to grow at a rate of 12% CAGR between 2017 and 2023, and it is expected to grow at approximately $7 billion by 2023, according to the parking management market analysis.
The segmentation of the parking management market is on the following:
By Parking Site Type
The regional analysis of the parking management solution is a part of studies in different regions such as North America, Asia-pacific and Europe, and the rest of the world. North America has the highest share of the market and Asia-pacific is the fastest growing market.
North America has the largest parking management market share because it has developed economics such as the US, and it one of the large contributors to the market. The market growth in that region is driven by the large IT sectors that are technically advanced. The well-established economics of the country is one of the main factors of the parking management market growth, and there are many parking management projects undergoing in that region.
The Asia-pacific region is expected to grow faster than any other region. The mainly driven factors will be the adoption of automation technologies across the regions and investments by the top IT companies for developing AI technologies.
Competitive landscape analysis
The key players are the main reason behind the growth in parking management market size, and some of the major key players in the market are:
Some of the key players are contribution the most in the parking management market, such as Cubic Corporation (U.S.), XEROX Corporation (U.S.), SWARCO AG (Austria), Siemens AG (Germany), INRIX, Inc. (U.S.), INDIGO (France), T2 Systems, but among them, XEROX Corporation (U.S.), is the top contributors in the market growth.
|Market Size||USD 8.6 billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Component, Parking Site Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Kapsch TrafficCom AG (Austria), Siemens AG (Germany), T2 Systems, Inc. (U.S.), AMANO Corporation (Japan), XEROX Corporation (U.S.), SWARCO AG (Austria), Cubic Corporation (U.S.), INRIX, Inc. (U.S.), INDIGO (France), SKIDATA AG (Austria)|
|Key Market Opportunities||
|Key Market Drivers||
Urbanization, increasing commercial spaces, rising sales of vehicles, etc. are supposed to drive growth of the parking management market.
The parking management market is poised to mark 12.50% CAGR over 2030.
The parking management market is expected to value at USD 8.6 Bn by 2030.
Off Street Parking and On Street Parking are the segments of the parking management market on the basis of parking site.
North America is projected to holds the maximum share of the parking management market.