The parking industry in Europe and North America is rapidly innovating towards Smart. In addition to adopting high-end automation solutions and software for parking reservations and payments as well as becoming increasingly integrated with other mobility solutions, the parking industry in these regions is getting set to use adapted technologies from the communications and IT industry.
Migration to intelligent parking systems, rapid progression of wireless technologies, 2G, 3G, 4G, and big data analytics, and evolution of contactless near-field communication and other payment methodologies will be some of the trends pervading the market.
New analysis from Frost & Sullivan, Strategic Analysis of Smart Parking Market in Europe and North America (http://www.frost.com/ma83), finds that the market earned revenues of US$7.05 billion in 2014 and estimates this to accelerate up to $43.084 billion in 2025 at a compound annual growth rate (CAGR) of 17.89 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, UK, 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. "The emergence of new business models such as peer-to-peer (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 unprecedented 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 parking lots and garages. 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.
Approximately 20 potential private-public joint initiatives such as SFpark, ParkIndy, and LA Express Park have implemented smart parking and helped in the recycling of unused parking lots and garages. These initiatives make use of smart, real-time, sensor-based parking information.
"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 like JustPark, ParkingPanda, ParkMe and the social media.
New mobility business models, autonomous driving and the connected car are just three of the current trends in the automotive and mobility space, which will be discussed during Frost & Sullivan's annual industry event "Intelligent Mobility: Future Business Models in Connected and Automated Mobility", taking place at the House of Lords and the Royal Garden Hotel in London on 1 and 2 July 2015.
Strategic Analysis of Smart Parking Market in Europe and North America (MA83-18) is part of the Automotive & Transportation (http://www.automotive.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Future of Vehicle Parking Management Systems in North America and Europe, Competitive Benchmarking and Comparative Analysis of Mobility Strategies of Key Global OEMs, Business Models and Opportunities in the European Traditional and Peer-to-peer Carsharing Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.