Future of Parking is Smart
With the increase in number of vehicles to more than a billions globally, today the Parking industry needs smarter parking operations. As the holistic idea of smart cities is taking off with significant momentum, Smart transport clearly indicates growth potential of a smart parking management system.
According to new analysis by Frost & Sullivan, the $100 billion worldwide parking industry is expected to attract $200-$250 million of strategic investment over the next 3–5 years. The lion’s share of this capital will go to improve inefficiencies in the ways that we currently park.
The parking industry’s long road to innovation
The parking industry in India has been segmented into two types: on-street parking and off-street parking. On-street parking, represents about 80-85% of all parking in India and is typically controlled by municipalities. No parking innovation has yet occurred in this segment.
Off-street parking (i.e. garages, lots), which represents about 15% of all parking is largely owned by private enterprise and therefore, theoretically, should be faster moving when it comes to innovation. But even this segment of parking has been slow to change, mostly because a) off-street parking is a multi-layered ecosystem with many different players and b) consumers typically delay parking purchasing decisions, usually looking for parking after they reach their destination.
The emergence of the online parking marketplace
Despite challenges, there are a few types of parking where innovative models have begun to emerge. One is “event parking”, or securing a space that is tied to a particular pre-planned activity with a known start and end time. This type of parking activity now happens on Smartphone apps, via an e-Parking marketplace PParkE in India. These types of pre-booked parking events make sense for the driver, who gets cost certainty and the benefit of guaranteeing a parking space amid a potentially stressful trip. Suppliers or parking operator can premium price the spots and improve their asset utilization without interfering with any regular drive-up customers.
The market of e-parking is very likely to scale with the rise in smartphone penetration, inadequate parking supply and the Smart move of real estate. Another factor that should aid expansion of this type of pre-booking is the ability for the garages to accept mobile parking passes, the kinds that live on your smartphone until you arrive at the garage, and open the access control gate. And of course, the promise of a “connected car,” which makes these kinds of parking decisions for you – finding an open on-street spot or purchasing an off-street spot optimally and entering and exiting you from the garage without any friction, should expand this marketplace even further. PParkE team have worked OEM partner like Bosch, Jaguar Land Rover and many more to make it live in India for the 1st time.
Future of parking
In the next few years, parking will undergo a shift that will be a tipping point for this industry and City. Some of the changes may include single source solution that combines off-street and on-street parking availability at the time you need it. Parking facilities will also integrate relatively technology solutions to streamline and better the customer experience through the smartphone and the connected car. Lastly, demand-based pricing will become a tenet to parking, maximizing revenue by matching driver to the right space at the right time at the right facility.
The future of improved parking has begun and should be an exciting ride to innovate, renovate and sophisticate.