Smart parking, including P2P (peer-to-peer) parking, digital and mobile payments and real-time parking is being predicted to lead to huge opportunities for cities and to boost parking operations to reach $43 billion by 2025.
Frost & Sullivan research says the parking industry in Europe and North America is rapidly innovating towards Smart technology. It says that, in addition to adopting high-end automation solutions and software for parking reservations and payments, its becoming increasingly integrated with other mobility solutions and getting ready to use adapted technologies from the communications and IT industry.
Migration to intelligent parking systems, rapid progression of wireless technologies, 4G and big data analytics, plus evolution of contactless near-field communication and other payment methodologies will be some of the trends pervading the market.
The research, "Strategic Analysis of Smart Parking Market in Europe and North America" suggests that the market earned revenues of $7 billion in 2014 but this will accelerate to $43.1 billion in 2025 at a compound annual growth rate (CAGR) of 17.9 percent.
Smart parking is going to be more associated with the travel mode and involve multiple stakeholders from the automotive, telecommunication and infrastructure industries. Moreover, the smart parking concept will be crucial for mobility in cities and offer a dependable revenue generation model.
'Megacities in the United States, United Kingdom, France and Germany will be considered the nodes of growth before smart parking expands into other parts of these countries,' said Frost & Sullivan Automotive & Transportation Industry Analyst Neelam Barua, who continued: 'The emergence of new business models such as P2P parking, smart parking with minimum hardware, parking analytics, demand-based pricing, and real-time parking sessions will help popularise parking solutions in new territories.'
Across Europe and North America, the rise in vehicles on the road and clogging of cities is a persistent challenge for traffic authorities and municipal councils. Efforts are being made to improve the city's traffic and parking management system to cater to the needs of commuters and to remove or optimise unused car parks. City councils and local residents are working together to free up urban areas and several companies are partnering with local governments in both regions to resolve issues surrounding traffic congestion and parking availability.
'Real-time smart parking and navigable parking lots will proliferate into the European and North American markets and become future trends in parking, along with autonomous parking services for cars,' noted Barua. 'Numerous smart multi-space and wireless parking meters will deliver real-time parking information with the help of sensors to motorists and parking operators, simplifying parking operations and business.'
Moreover, P2P parking, online parking reservation, and mobile parking payment solutions are expected to grow at a CAGR above 20 percent during 2014'2025. This will create a large market for mobile-based parking solutions and the supporting ecosystem. P2P parking will open up opportunities for city dwellers and establishments to list and rent out their parking space with the aid of online marketplaces.
