This post is one in a series of feature stories on trends shaping advanced energy markets in the U.S. and around the world, drawn from Advanced Energy Now 2015 Market Report, which was prepared for AEE by Navigant Research.
Drivers searching for parking are estimated to be responsible for about 30% of traffic congestion in cities. Historically, cities, businesses, and property developers have tried to match parking supply to growing demand for parking spaces. It has become clear, though, that simply creating more parking spaces is not sufficient to address the problem of congestion. New approaches using smart parking systems look to provide a more balanced view of parking that better manages the relationship between supply and demand.
Smart parking can be defined as the use of advanced technologies for the efficient operation, monitoring, and management of parking within an urban mobility strategy. The global market for smart parking systems reached $93.5 million, with the United States representing 46% market share, and offering a strong growth opportunity for companies offering services in the United States and overseas. A number of technologies provide the basis for smart parking solutions, including vehicle sensors, wireless communications, and data analytics. Smart parking is also made viable by innovation in areas such as smartphone apps for customer services, mobile payments, and in-car navigation systems. At the heart of the smart parking concept is the ability to access, collect, analyze, disseminate, and act on information on parking usage. Increasingly, this information is provided in real-time from intelligent devices that enable both parking managers and drivers to optimize the use of parking capacity.
Large-scale smart parking pilots in San Francisco and Los Angeles, as well as smaller projects in other cities, have put North America at the forefront of the smart parking market. Many cities are looking at their parking strategies, and it is likely that smart parking systems will have role to play in at least some parts of those cities. A detailed assessment of San Francisco’s SFpark program demonstrated benefits to the city and drivers. Drivers have been able to find parking spots five minutes quicker on SFpark blocks, vehicle miles traveled have been significantly reduced, and local sales tax revenue has gone up. Navigant Research forecasts the smart parking system market in North America will grow at a 22% compound annual growth rate (CAGR) through 2020, reaching a market size of $136.7 million.
Smart street parking is the most complex and dynamic sector of the smart parking market. Today, many projects are in the pilot stage in cities in North America and Europe, but initial successes suggest that many of these pilots will expand rapidly into full-scale city projects. Cities in Latin America and Asia Pacific faced with growing congestion problems are already showing an interest in learning from North American and European experiences and will look to adapt smart parking solutions to their own requirements. Navigant Research estimates that by 2020, there will be more than 950,000 sensor-enabled on-street smart parking spaces globally.
Much of the innovation in the parking market is coming from startups and small companies. Smart parking solution providers, parking data aggregators, and mobile payment companies are changing the way parking is seen by operators and users. Other players in the parking and smart city market also see the potential for advanced parking solutions. Information technology companies, telecommunications providers, city infrastructure suppliers, and service companies are all looking at parking as a spearhead application for their other smart city solutions and services. Navigant Research projects annual revenue will grow to $356.5 million by 2020, representing a CAGR of 29%. During this period, the smart parking systems market will rapidly transition from the pilot stage to becoming an accepted technology for city management.
Learn more about smart parking, advanced transportation, and the whole advanced energy industry by downloading Advanced Energy Now 2015 Market Report.