Executive Summary

The Global Parking Service market size was projected to be US$ 118.8 billion in 2023. By the end of 2024, the industry is likely to reach a valuation of US$ 126.2 billion. During the forecast period, the global market for Parking Service is expected to garner a 6.30% CAGR and reach a size US$ 232.6 billion by 2034.

The parking service industry is characterized by a wide range of segments that serve the diverse requirements of consumers. Service categories span from conventional valet parking to automated alternatives, thereby providing an extensive selection of options. Distinguishing between on-street and off-street facilities entails distinct complexities and prospects. Traditional pay-per-use pricing models are contrasted with subscription-based and dynamic pricing models, which reflect the changing preferences of consumers. The pervasive incorporation of technological advancements, such as mobile payment options and intelligent parking systems, is augmenting operational effectiveness and user satisfaction. Segmentation by end-user comprises public, residential, and commercial parking spaces, each of which necessitates specialized services.

Environmental initiatives, geographical distinctions, and security features all contribute to the market's complexity. Specific verticals served by the industry include hospitals, retail centers, and airports. Regulatory compliance is an essential factor in distinguishing private parking services from those administered by the government. Potential future developments encompass the integration of parking services designed for autonomous vehicles into more extensive Mobility-as-a-Service (MaaS) platforms. In order to thrive in this ever-changing market, organizations must expertly navigate and strategically align themselves with these complex segments in order to satisfy evolving consumer needs and industry trends. The operation of the parking industry has remained essentially unchanged for an extended period of time. It remains difficult for the general public to locate an appropriate parking space at the designated time. However, market participants are beginning to view parking spaces as investment opportunities as opposed to merely facilities for existing buildings and real estate.

Due to the increase in the number of vehicles on a global scale, parking spaces are in limited supply. In recent times, there has been a notable global proliferation of digital marketplaces dedicated to parking spaces. Innovative new entrants are venturing into the parking services industry with the intention of bolstering the current parking infrastructure and enhancing service offerings.

Certain emerging enterprises are not content with merely supplying the necessary technological infrastructure; rather, they are venturing into the highly competitive parking service sector by introducing cutting-edge features such as real-time space status updates and the ability to reserve parking locations in advance, among other things. Parking services are anticipated to become an increasingly congested marketplace, and the number of companies entering this sector with more technologically advanced services is anticipated to increase. The exponential growth of the vehicle population on roadways worldwide necessitates the development of sophisticated parking techniques. As traffic and parking issues increase, individuals are compelled to make do with less space for both. This is resulting in significant discomfort, substantial fuel waste, and substantial levels ofemitted substances. As a result, urban and city parking has emerged as a significant issue for both developed and developing countries, serving as the primary impetus for the majority of organizations to investigate intelligent parking system solutions.

Intelligent parking systems offer a remarkably adaptable, expandable, and effective solution for establishments and areas of any kind and magnitude, thereby guaranteeing an enhanced traffic flow and a substantial reduction in emissions. The latter is a matter of significant concern due to the fact that increasing emission levels are giving rise to numerous complications in the realms of climate change and human health. The primary users of intelligent parking systems in the majority of nations are local governments. Their active participation and interest facilitate the advancement of intelligent parking systems by means of a progressive increase in parking fees, which can be used to fund such improvements.

Definition

The provision of parking facilities and associated services, such as valet, self-service, and automated parking, comprises the parking service market. Parking encompasses a wide range of categories, including both on-street and off-street parking, and is remunerated through a variety of systems, including subscription-based and traditional pay-per-use models. Critical elements include technological integration, segmentation of end-users (commercial, residential, and public), geographical variations, and adherence to regulatory standards. The market is dynamic, accommodating particular industry verticals (e.g., retail centers and airports), and is influenced by developments such as intelligent parking solutions and autonomous vehicle considerations. To comply with industry developments and satisfy customer requirements, companies operating in this market must effectively manage these intricacies.

Trend

Parking Services: Navigating Transformation in the Era of Technology and Sustainable Mobility.

The parking service market is currently experiencing significant shifts due to technological advancements and the changing demands of consumers. An emerging pattern is the incorporation of intelligent parking solutions—comprised of mobile applications, IoT devices, and sensors—in order to optimize operations and deliver instantaneous data regarding available parking spaces. An additional noteworthy advancement pertains to the proliferation of sustainable practices, exemplified by the increased recognition of electric vehicle recharge stations and green parking services as responses to environmental apprehensions.

The parking industry is being impacted by the continuous transition to autonomous vehicles, as evidenced by the rise of parking services specifically tailored to accommodate these vehicles. Parking infrastructure will likely be influenced by this trend in the future, necessitating modifications to accommodate autonomous vehicle navigation and parking. Furthermore, there is increasing interest in the notion of Mobility-as-a-Service (MaaS), which promotes the smooth incorporation of parking services into more extensive mobility platforms. This emerging trend proposes a holistic strategy in which parking is seamlessly integrated with various modes of transportation, thereby offering users a streamlined and expedient means of transportation.

Parking services are increasingly adopting dynamic pricing models, which enable price adjustments in response to demand, time of day, and special events, among other variables. This adaptability accommodates the preferences of customers and maximizes profits for parking operators.

Drivers

Parking Predicament: Navigating the Global Challenge Amidst Surging Automobile Ownership.

Automobile ownership has increased substantially worldwide despite the escalating cost of vehicles. Surprisingly, among the remaining population segments, baby boomers have the greatest rate of automobile ownership. Additionally, the worldwide increase in disposable income has increased the demand for automobile ownership.

Particularly, Asian subcontinent countries are the largest contributors to the rise in automobile ownership. A rise in the ownership rate has resulted in heightened need for parking spaces, given that automobiles are utilized for a mere 15%-20% of the time and must be parked for the remaining duration. It is anticipated that the demand for parking spaces will increase exponentially over the next few years as the number of vehicles on the road continues to rise.Automobile parking has emerged as a significant challenge in urban regions worldwide. The escalating prevalence of automobile ownership has resulted in a scarcity of parking spaces in numerous locations, owing to a mismatch between the demand and supply for parking spaces. As a result of inadequate planning and construction of parking spaces and other substandard infrastructure development, the imbalance has arisen.

Due to miscalculations in parking demand and a scarcity of land parcels, rapid urbanization has resulted in a reduction in the number of available parking spaces. Urban areas are characterized by high population densities on a global scale, and this trend continues as an increasing number of individuals migrate to cities, thereby causing a scarcity of parking spaces.

Additionally, inefficient utilization of available parking spaces is one of the most significant problems that individuals confront. Generally, information pertaining to the availability of parking spaces in the vicinity is not accessible to motorists or car proprietors. Consequently, they invested a considerable quantity of time in their search for parking spaces.The incorporation of technological advancements into parking services has the potential to maximize the utilization of current locations, thereby mitigating challenges encountered by vehicle proprietors.

Restraints

Ride-Sharing Revolution,Transforming Transportation and Redefining Car Ownership Trends Globally.

The worldwide prevalence of automobile ownership is propelled by a multitude of advantages it provides, encompassing independence, seclusion, and velocity. Nevertheless, the enduring problem of inadequate utilization has become progressively conspicuous. Private automobiles are generally employed for traveling between residence and place of employment or for sporadic family outings, being left inactive throughout the day and night. The aforementioned trend of underutilization has given rise to inventive enterprises that exploit the sharing economy by providing ride-sharing services as a remedy for the inefficiency associated with private automobile usage. This transition has been led by Uber, Lyft, Inc., and ANI Technology (Ola), which have significantly transformed the landscape of urban transportation.

Ride-sharing services offer an economical substitute for the traditional practice of car ownership in regards to daily commuting, thereby questioning the established concept of personal vehicle ownership. The increasing prevalence of these services is expected to induce a change in consumer behaviour that could potentially result in a decline in the overall automobile ownership rate, thereby mitigating the need for parking spaces. The dynamic nature of the impact that technology-driven services have on conventional notions of personal vehicle ownership and the potential ramifications for urban infrastructure planning are highlighted by this shift in transportation patterns.

Opportunities

Parking Services, Navigating Opportunities in Urban Transformation and Technological Evolution.

At this time, the market for parking services is confronted with a substantial opportunity propelled by the transformation of urban environments and shifting consumer preferences. A confluence of rapid urbanization and a growing global population has resulted in an unprecedented proliferation of motor vehicles. Due to this, the demand for parking spaces has increased significantly. This presents a significant opportunity for the parking service industry to grow and develop novel approaches in order to address the increasing demand for effective parking solutions.

Furthermore, the emergence of smart city initiatives and technological progress offers the parking service sector a potentially fruitful trajectory. By integrating intelligent parking solutions—including IoT devices, sensors, and mobile applications—the parking experience can be significantly improved through the provision of real-time data on available spaces, optimization of utilization, and alleviation of congestion. This technological advancement not only satisfies the increasing desire for convenience but also corresponds to the expanding anticipations for an urban environment that is digitally interconnected and streamlined.

In addition, the expanding utilization of electric vehicles (EVs) plays a role in the dynamic transformation of the parking service industry. The automotive sector stands to benefit from the demand for electric vehicle (EV) charging infrastructure in parking facilities by accommodating environmentally conscious consumers. With the global shift towards sustainable and integrated urban mobility solutions, there is an opportunity for the parking service market to establish itself as a vital element within the broader ecosystem. By investigating potential collaborations and partnerships with transportation sector stakeholders, the industry can facilitate the achievement of interconnected and seamless urban mobility.

The parking service market stands to gain by adopting technological innovations, satisfying the increasing need for parking spaces, and cooperating with the overarching objectives of developing intelligent, environmentally conscious, and productive urban settings. The manner in which the sector reacts to these prospects will presumably influence its course of expansion in the forthcoming years.

Challenges

Rapid change in technological advancements

At present, the parking services industry is confronted with substantial obstacles arising from the dynamic changes brought about by urbanization, disruptions in technology, and evolving consumer demands. A significant obstacle that arises is the increasing need for parking spaces in urban regions that are expanding at an accelerated rate. A disparity between supply and demand has resulted from the increase in population and vehicle ownership, leading to congestion and a dearth of available parking spaces. The aforementioned difficulty is compounded by inadequate urban planning and the swift exhaustion of land designated for parking infrastructure.

Furthermore, the conventional methodology towards parking services encounters disturbances as a result of the proliferation of alternative modes of transportation, including ride-sharing platforms, and the growing prevalence of electric vehicles. Prominent ride-sharing platforms, such as Uber and Lyft, are significantly transforming commuter routines and diminishing the dependence on individual vehicle ownership, thus exerting an influence on the conventional parking service paradigm. The transition to electric vehicles introduces an additional level of intricacy, which requires the incorporation of charging infrastructure into parking facilities in order to accommodate the evolving demands of environmentally aware consumers.

A persistent challenge is the inefficient utilization of available parking spaces, which is further compounded by the dearth of real-time information provided to drivers regarding space availability. This causes drivers to expend time searching for parking spaces, which in turn exacerbates traffic congestion and causes driver frustration. Addressing this obstacle necessitates a significant technological investment in order to deploy intelligent parking solutions that improve visibility and maximize space utilization.

Regulatory and compliance concerns further complicate the parking services industry. Parking restrictions, permit prerequisites, and zoning regulations in specific regions can impede the construction and operation of parking facilities, thereby impeding the expansion of the industry.In order to effectively navigate the evolving landscape and surmount these challenges, it is imperative for the parking services market to adopt a proactive approach by addressing urban planning concerns, making technological investments, adapting to shifting mobility trends, and collaborating with regulatory bodies. In order for parking services to maintain their future viability and significance, it will be critical to overcome these obstacles through the application of innovation and resilience.

Impact of COVID-19

The parking service market has been significantly altered as a result of the COVID-19 pandemic, which presented the sector with unprecedented challenges arising from the worldwide health emergency. A notable and immediate consequence has been the decrease in travel and commuting activities as a whole. The prevalence of lockdowns, travel restrictions, and remote work has led to a significant decrease in the demand for parking services, especially in urban regions. Due to reduced vehicular traffic and the transition to remote work arrangements, parking spaces have been underutilized, presenting parking operators with revenue challenges.

Moreover, consumer behavior has been impacted by the economic uncertainties and financial constraints brought about by the pandemic, which have in turn affected choices pertaining to the ownership and utilization of vehicles. A considerable number of individuals chose to delay or reassess the acquisition of new vehicles, resulting in a reduction in the demand for parking services, particularly in downtown and commercial areas. Significant contributors to the demand for parking services, including businesses and event venues, were forced to close or impose capacity restrictions, which reduced the demand for parking spaces even further.

Additionally, pre-existing trends toward contactless and digital solutions were accelerated by the pandemic. To guarantee the welfare and security of patrons, parking operators were compelled to modify their operations by integrating mobile applications for reservations, touchless payment systems, and improved sanitation protocols.With the incremental reopening of cities and businesses and the resumption of more routine activities, the parking service market is currently confronted with the task of adjusting to the "new normal." In the aftermath of the pandemic, the parking service industry must prioritize technology-driven solutions—including contactless payments and real-time occupancy information—and adaptability, innovation, and these factors are crucial for its recovery and prosperity.

The parking service market has been profoundly affected by the COVID-19 pandemic, which has necessitated a reassessment of conventional models and a transition towards more robust and technology-oriented strategies in order to accommodate the evolving requirements and anticipations of a world following the pandemic.

Segmentations:

By Service Type:

The parking service industry comprises a wide array of service categories in order to accommodate a variety of operational requirements and consumer preferences. A notable classification is Valet Parking Services, which entail the supervision of parking customers' vehicles by trained personnel in order to offer a convenient and individualized experience. This service is frequently preferred due to its time-saving and efficient nature, especially in densely populated urban areas or venues with heavy footfall.

Self-Service Parking is an additional widely used model that permits patrons to position their vehicles in designated areas independently. This method is frequently implemented in public parking areas, granting patrons independence and authority over their parking encounter. Self-Service Parking is frequently favored due to its adaptability and simplicity, as it accommodates a wide range of parking needs.

In addition, automated parking services are well received by the market, which makes use of cutting-edge technologies like robotic systems and automated machinery. This novel methodology reduces reliance on human involvement, optimizing the parking procedure via space-efficient and effective layouts. Automated parking services are becoming increasingly popular due to their capacity to maximize the utilization of parking spaces and improve overall operational efficiency.The strategic diversity of the parking service market is evident in its segmentation into Valet Parking Services, Self-Service Parking, and Automated Parking Services. This diversity enables the industry to provide a wide array of options that cater to various parking scenarios and user preferences.

• Valet Parking Services
• Self-Service Parking
• Automated Parking Services
• Others

By Facility Type:

The parking service market is comprised of a wide variety of facility types, each of which caters to particular requirements and environments within the urban environment. On-street parking is an essential element that consists of specifically designated spaces along public thoroughfares. This category of establishment is frequently encountered in densely populated urban regions and residential zones, providing expedient access to parking for brief periods of time. Payment for on-street parking may be mandatory in accordance with local regulations and usage duration.

On the other hand, Off-Street Parking pertains to a unique category of facilities, including garages, parking lots, and other structures that are not situated directly along public highways. Designed to facilitate a greater number of vehicles, these facilities are frequently encountered in commercial zones, retail centers, and event locations. Off-Street Parking offers a regimented and methodical approach to parking, frequently incorporating diverse payment structures including fixed fees or hourly rates.

The distinction between on-street and off-street parking underscores the flexibility of the parking service industry in accommodating various urban settings and customer needs. In urban environments, On-Street Parking accommodates short-term and urgent parking requirements. In contrast, Off-Street Parking provides a more organized and adaptable alternative for longer parking periods and larger gatherings, thereby enhancing the overall operational effectiveness of the parking service sector.

• On-Street Parking
• Off-Street Parking
• Services

By Payment Mode:

The manner in which parking services are paid for significantly influences business models and user experiences. A widely adopted payment model is Traditional Pay-per-use, which imposes charges on consumers in accordance with the length of time they park. This uncomplicated method requires users to pay only for the duration that their vehicle occupies the parking space, rendering it accommodating to individuals with diverse parking requirements. The conventional pay-per-use model is widely utilized in both on-street and off-street parking facilities to offer users flexibility by requiring them to pay only for the time they actually utilize the space.

Conversely, Subscription-Based Parking embodies a payment model characterized by greater predictability and organization. Parking services are typically leased to users for a specified duration in exchange for a recurring payment, such as an annual or monthly subscription fee. Providing a convenient and economical solution, this model is advantageous for businesses and individuals with recurring parking-related needs. Subscription-based parking offers users the confidence that they will be assigned a specific parking space, which can be especially beneficial in commercial or residential environments.

The differentiation between traditional pay-per-use and subscription-based parking demonstrates the industry's flexibility in accommodating a wide range of user preferences and requirements. In contrast to the former, which provides adaptability for infrequent users, the latter accommodates individuals desiring a more consistent and foreseeable parking arrangement, thus exemplifying the multifaceted nature of the parking service industry.

• Subscription-Based Parking
• Traditional Pay-per-use
• Others

By Technology Integration:

The parking service industry is currently undergoing a significant shift as a result of the incorporation of numerous technologies that aim to improve operational capabilities, user experience, and overall efficacy. Smart Parking Solutions are an innovative methodology that utilizes Internet of Things (IoT) devices and sensors to deliver up-to-date data regarding the availability of parking spaces. This novel solution facilitates the efficient utilization of parking spaces and reduces congestion, thereby enhancing the overall parking experience for patrons.

Mobile payment solutions are an additional significant integration that enables parking service transactions to be conducted in a cashless and convenient manner. The proliferation of smartphones has enabled individuals to make parking payments via specialized mobile applications, thereby obviating the necessity for physical permits or tokens. By implementing this technology, the payment process is optimized, providing users with a streamlined and contactless experience. Additionally, parking operators benefit from enhanced payment management systems.

License Plate Recognition (LPR) technology represents an additional significant development within the realm of parking services. LPR systems identify and store license plate information via optical character recognition, thereby automating the entry and exit procedures. By decreasing the dependency on conventional ticket-based systems, this not only improves security but also enhances the overall efficacy of parking operations.

In addition to the aforementioned technologies, the "Others" category comprises a wider range of inventive solutions that contribute to the integration of technology in the parking service industry. This may encompass developments such as automated payment terminals, artificial intelligence applications that forecast the availability of parking spaces, or the integration of technologies that prioritize sustainability.

• Smart Parking Solutions
• Mobile Payment Solutions
• License Plate Recognition
• Others

Geography Chapter

Parking Predicament: Navigating Challenges and Technological Innovations in the US.

The United States has one of the greatest automobile ownership rates among the world's main economies. In 2021, 91% of American households will own at least one automobile, with more than half of these vehicles residing in urban areas, according to the US Census Bureau. Car proprietors in the United States alone are estimated to spend between 15 and 20 hours per year searching for parking, which is quite surprising. Billions of dollars are wasted as a consequence (costs associated with petroleum, drivers, and emissions).

It is commonly believed that parking spaces are abundantly distributed throughout the United States. However, the distribution and planning of these spaces are inadequate to accommodate the ongoing demand. Numerous cities, including San Francisco, New York, Chicago, and Washington, D.C., among others, suffer from a parking space shortage.

The infrastructures that are readily accessible are being underutilized. This providing the parking services company with an abundance of opportunities to manage.  Companies are developing advanced technological solutions for the parking sector, including real-time space status updates, pre-booking capabilities, and proactive notification of parking congestion.

Parking Challenges and Innovations, Navigating China's Automobile Boom.

Large substantial population, this causes an excessive volume of automobiles to be present on the road At present, off-street parking comprises the majority of available spaces in the country. However, this form of parking is underutilized for various reasons, including illegal parking, insufficient pricing, and inadequate management structure.

Recently, China's industrial sector has witnessed the introduction of a multitude of cutting-edge technologies, companies, and solutions. ETCP, the leading provider of parking payment services in China, and Parkopedia, a global leader in smart parking services, partnered in August 2022 to facilitate "access and pay" QR code parking payments within vehicles.

At present, China is confronted with a severe scarcity of parking spaces as a result of the substantial automobile population, which approximates 280 million. Over the next decade, the market for parking services is anticipated to expand at an exponential rate, propelled by the rising middle class and rising disposable income.

Company Landscape

The market for parking services is characterized by a variety of established competitors and novel entrants. Prominent organizations, including ParkMobile, Parkopedia, and SpotHero, have established a specialized market by providing cutting-edge technological solutions—such as congestion alerts, real-time space updates, and pre-booking capabilities. These businesses respond to the increasing need for parking services that are both user-friendly and efficient, tackling issues such as insufficient space allocation and underutilization.

Furthermore, the partnership between ETCP and Parkopedia in China serves as an illustration of the industry's capacity to adjust and incorporate state-of-the-art technologies. In light of the ongoing evolution of the market, it is probable that organizations will utilize technology to improve user experiences and tackle the persistent parking issues in different geographical areas.

Company Profile

ABM Industries Inc (ABM) is a provider of end-to-end, integrated facility management solutions in urban, suburban and rural areas to properties of various sizes. The company’s services include electrical solutions, energy solutions, facilities engineering, EV charging stations, clinical engineering, HVAC and mechanical services, janitorial services, landscape and turf services, and parking and transportation services. It offers services to various industries such as banking and financial services, aviation and transportation, biopharma, commercial buildings, government, residential, retail, sports and entertainment, healthcare, hospitality, industrial and manufacturing and higher education. The company has an operational presence in the US, Canada, Saudi Arabia, and the UAE. ABM is headquartered in New York, the US

Conclusion:

The parking service industry is currently experiencing substantial changes as a result of urbanization, technological progress, and shifting consumer preferences. Despite the ongoing challenges of limited parking availability and underutilization, the industry is proactively devising inventive resolutions. Technology integration is significantly transforming the environment and enhancing the satisfaction of users, primarily by means of intelligent parking solutions and mobile payment services. Regional variations distinguish the global market, with the United States grappling with the repercussions of high automobile ownership and China addressing the effects of rapid industrialization.

The presence of new entrants and the cooperation of industry titans indicate a dynamic and competitive environment. With the market shifting towards sustainable practices and accommodating changing mobility trends, there are numerous prospects for organizations to revolutionize parking services and make valuable contributions to the advancement of intelligent and effective urban environments.