Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
A parking management system automates a car parking system by optimizing parking space and making the process efficient. It provides real-time car parking information such as available slots display, vehicle & slots count, reserved parking, easy payments, pay-and-park options, reports, and more. On-street parking is vehicle parking on street or roads though it requires permits which depends on the rules and regulations of each country. A parking management system offers various benefits including cost savings to customers, developers, governments and businesses, mobility management, improved quality of service, and revenue generation.
The global off-street parking management system market is estimated to account for US$ 9657.2Mn in terms of value by the end of 2027 and is expected to grow at a CAGR of 9.1% during the forecasted period 2020-27.
Market Dynamics- Drivers
- Growing concerns for parking facilities are expected to drive growth of the global off-street parking management system market during the forecast period
Increasing the population worldwide has increased the demand for new vehicles on the road, thereby resulting in increased traffic congestion. Furthermore, parking convenience is crucial and hence, parking facilities are becoming the main point of concern across nations. Rising demand for parking spaces, effective traffic management, and facilities that offer viable travel and parking options to consumers are expected to boost the demand for enhanced parking facilities. According to Coherent Market Insights’ analysis, car parc size in China is estimated to be around 200 Mn units as compared to 262 Mn units for the U.S., by 2020. Moreover, rapidly increasing motorization due to rising population are other factors expected to drive growth of the global off-street parking management system market in the near future.
- Increasing vehicle-in-use is expected to propel the global off-street parking management system market growth over the forecast period
Growing concerns regarding safe and obstacle-free walking space for pedestrians is another factor boosting the demand for off-street parking facilities. As a result of this, concerns towards the construction of parking garages and lots. Moreover, increasing car parc size has a direct impact on utilization of parking spaces in various nations. Thus, these factors are expected to propel the market growth over the forecast period.
North America held dominant position in the global off-street parking management system market in 2019, accounting for 29.6% share in terms of value, followed by Europe and Asia Pacific, respectively.
Figure 1: Global Off-Street Parking Management System Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
- High initial deployment cost is expected to restrain growth of the global off-street parking management system market during the forecast period
Initial deployment cost of off-street parking management systems is comparatively higher than on-street parking. This is typically due to high cost of products such as automated paying stations, validation systems, connected entry/exit terminals, wirelessly connected computer systems and sensors, and total cost installation. Furthermore, off-street parking includes high construction costs, which in turn, is expected to restrain growth of the global off-street parking management system market in the near future.
- Low availability of parking spaces is expected to hinder the global off-street parking management system market growth over the forecast period
Growing vehicle parking across the globe has led to demand for more available parking spaces primarily in countries such as Canada, China, and a few other European countries. This is owing to growth of commercial sectors, increased travel, and rising demand for safe and improved parking solutions. Furthermore, the demand for land availability is increasing rapidly, in order to mitigate the rising demand for parking space and parking management solutions. Thus, these factors are expected to hinder the global off-street parking management system growth over the forecast period.
- Rising demand for flexible payment solutions can provide major business opportunities
Consumers are increasingly preferring solutions that offer a wide range of payment options with ease of payment. Furthermore, consumers are gradually shifting to e-payment options across the globe. Rising trend of real-time communication due to increased smartphone usage is expected to boost the demand for flexible payment solutions among users in the near future. Market players can capitalize on such opportunities and enhance their market revenue.
- Collaboration with local government offices can provide significant growth opportunities
Many companies in the market are focused on collaboration activities with local governments, in order to develop infrastructure for future projects such as e-mobility and smart city. For instance, in April 2015, Swarco AG entered into a contract with the City of Timisoara, Romania, to implement a traffic management system and video surveillance. Moreover, there have been long-term agreements between international players and local governments for the development of parking management solutions.
Figure 2: Global Off-Street Parking Management System Market Value (US$ Mn), 2017 - 2027
The global off-street parking management system market was valued at US$ 4786.0 Mn in 2019 and is forecast to reach a value of US$ 9657.2 Mn by 2027 at a CAGR of 9.1% between 2020 and 2027.
- Advancements in existing technologies and services is a major trend in the market
Manufacturers and solution providers in the market are focused on investing in research and development activities, in order to upgrade existing systems and develop newer technologies so as to adhere to safety regulations associated with specific regions. Demand for effective parking management solutions, which include payment methods, dynamic parking guidance systems, and enforcement methods are fueling growth of the market in the near future.
- Rising preference for automated parking systems is another major trend in the market
Commuters are increasingly preferring automated parking systems, especially in urban areas, owing to increased traffic congestion, preference for convenience, and time optimization. Furthermore, increased safety of parked vehicles is expected to drive growth of the global off-street parking management system market. Moreover, new technologies for vehicle occupancy detection, real-time information access, and mobile applications for parking guidance and slot management are gaining traction among new as well as established companies operating in the parking management market space.
Major companies involved in the global off-street parking management system market are Nortech Control Systems Limited, 3M Co., Swarco AG, Cubic Corporation, Amano Corporation, Kudelski Group (SKIDATA AG), TIBA Parking LLC, IBM Corporation, Kapsch TrafficCom AG, and Xerox Corporation.
- Key players in the market are focused on product development, in order to expand the product portfolio. For instance, in February 2019, Nortech Control Systems Limited, introduced a new 8 Series detector range, next-gen ANPR Access V2 automatic license plate recognition (ALPR) camera system, and variable message sign (VMS) system.
- Major market players are involved in partnerships and collaborations, in order to attain a competitive advantage in the market. For instance, in October 2019, 3M Co. partnered with Continental AG, a Germany-based automobile company, to develop V2I interfaces.