The parking industry has long been segmented into two types: on-street parking and off-street parking. On-street parking (i.e. parking meters), represents about one-third of all parking-related revenue in the US and is typically controlled by cities and municipalities. There has been some progress on-street within the realm of mobile payments and way-finding initiatives, but no truly scalable parking innovation has yet occurred in this segment. Parking equipment vendors should look more into this and come up with more innovations.
Off-street parking (i.e. garages and surface lots), which represents about two-thirds of all parking-related revenue in the US, is largely owned by private enterprise, parking equipment vendors 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.
According to new analysis by Frost & Sullivan, the $100 billion worldwide parking industry of which is heavily involved with parking equipment vendors 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.
Having the right equipment vendors also plays a big part in the future of the parking industry because it is all about the quality and the innovative solutions making it into the market. If your seeking equipment vendors for a more personalized solution then be sure to check their past dealings with clients and their experience as vendors
Over the next few years, parking will undergo a shift that will be a tipping point for the industry. Some of the changes we may see include a single source solution from key players in the industry including parking equipment that combines off-street and on-street parking availability at the time you need it. Or it may include urban mobility solutions that will focus on getting consumers from point A to point B to point C, whether that involves taking a car, public transit, biking, or walking. Parking facilities and equipment vendors will also integrate relatively low-cost 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.