Parking Services Market

Parking Services Market Outlook (2023-2033)

The global parking services market is expected to reach a market value of US$ 114.8 billion in 2023. The market is further expected to achieve a valuation of US$ 211.5 billion in 2033 by growing at a CAGR of 6.3% during the forecast period.

The rapid adoption of smart technology in the parking industry has improved service offerings drastically. By the end of 2022, the smart parking solution market accounts for ~4% of the total parking services industry.

Report Attributes	Details
Parking Services Market Size (2022A)	US$ 108.0 Billion
Estimated Market Value (2023E)	US$ 114.8 Billion
Forecasted Market Value (2033F)	US$ 211.5 Billion
Global Market Growth Rate (2023-2033)	6.3% CAGR
North America Market Share (2022)	~31%
East Asia Market Growth Rate (2023-2033)	~7.5% CAGR
United States Market Growth Rate (2023-2033)	~4.3% CAGR
Key Companies Profiled	ABM Industries Inc Ace Parking Management Inc Diamond Parking Get My Parking Impark Indigo Lanier Parking LAZ Parking Ltd. LLC Park+ Park24 Parkwel Parking Services Llp SP Plus Corporation TPS Parking Wilson Parking Your Parking Space Zenpark

The Emergence of the Digital Parking Marketplace

Over a long period of time, the parking industry has remained the same in terms of how it functions. The general population still struggles to find a suitable parking space at the required time. However, the market players have now started seeing the parking space as an investment opportunity rather than just a facility for the existing building/real estate space.

The rise in the number of vehicles across the globe has led to a shortage of parking spaces. Lately, the industry has been witnessing the emergence of digital parking marketplaces globally. New technologically advanced companies are entering the parking services marketplace with a motive to help the existing parking infrastructure and improve the service offerings.

Some new edge companies are merely providing the technological infrastructure and some of the companies are entering the already fragmented parking service marketplace with digitally advanced offerings such as advance booking for parking spots, and real-time status of parking spaces among others. The industry is expected to witness a rise in new businesses entering the already crowded marketplace of parking with more technologically advanced service offerings.

• Short Term (2023 Q1-2026): The rise of ride-sharing services has been quite high in the recent past. This has certainly resulted in how we move from point A to point B. In the near future, ride-sharing businesses will have probably an adverse impact on the parking service market.
• Medium Term (2026-2029): With the continuous urbanization and shrinking land parcels in urban areas will result in a shortage of parking spaces. However, it appears that market players will have to look for technology or other solutions which can improve the uses of existing parking spaces.
• Long Term (2029-2033): The continuously rising population of the middle class coupled with growing disposable income across the globe will result in higher automobile ownership, ultimately leading to rises in the demand for parking spaces. Lately, with the entrants of tech-driven companies in the parking spaces, it is expected that the utilization rate of parking spaces will increase significantly.

As per the newly published report by Fact.MR, a market research and competitive intelligence provider, North America holds the largest market share with 31%, of the global parking service industry.

The above image represents a market analysis of the parking services market based on services and region. Under the type segment, off-street parking holds 66% of the total market shares in terms of value.

Factors Driving the Growth of the Parking Services Market

“Automobile Ownership on the Rise”

Across the globe, automobile owners have been significantly on the rise despite of rising prices of automobiles. Surprisingly, baby boomers have the highest rate of car ownership among the rest of the population. The rising disposable income across the globe has also escalated the demand for car ownership.

Especially countries in the Asian sub-continent are contributing the most to the increasing car ownership. Gradual increases in the ownership rate have led to increased demand for parking spaces as cars are used for only 15%-20% of the time and for the rest of the time it needs to be parked. It is expected that in coming years the demand for parking spaces will see exponential growth due to continuous rises in the number of automobiles on the roads.

“Shrinking Parking Spaces in Urban Areas”

Car parking has been one of the major problems in urban areas across the globe. Following the exponential growth in car ownership, many places are facing a shortage of parking spaces due to an imbalance between parking demand and supply. The imbalance exists due to poor planning and development of parking spaces and other sub-standard infrastructural development.

Rapid urbanization has led to a shortage of land parcels along with miscalculations in parking demands resulting in fewer parking spaces. Globally, urban areas have high population densities, and it is continuously increasing, as more people still continue to move toward cities, resulting in a lack of parking spaces.

The inefficient use of existing parking spaces is also one of the major issues people face. In general motorists/car owners do not have access to information regarding the available parking spaces in the neighborhood, and they spent a good amount of time looking for parking spaces.

The integration of technology in the parking services may result in optimal utilization of the existing parking spaces, ultimately leading to a reduction in problems faced by vehicle owners.

Factors that may impact the Growth of the Parking Services Market

“Rise of Ride-Sharing Services”

Majority of the people across the globe own a car because it provides a combination of benefits such as autonomy, privacy, and speed. However, the underutilization of privately owned cars has been an issue for a quite long time. The car owner uses it to commute back and forth between home and office and sometimes for a family trip/outing as and when required. Rest of the time during working hours and at night the car/motor sits idle.

Considering the underutilization of private cars, a new set of businesses have come into the market with services like ride-sharing services. The rise of companies like Uber, Lyft, Inc., and ANI technology (Ola) is changing the way people commute within the city.

Such ride-sharing services are quite cost-effective in comparison to driving your own car for commuting. It is expected that the rise of such services might result in a low rate of car ownership ultimately leading to lower demand for parking spaces.

Country-wise Insights

US Continues to be the Largest Market

The US has one of the highest rates of car ownership among the major economies of the world. As per the US Census Bureau in 2021, 91% of US household owns at least one car and more than half of these cars are present in urban areas. It is estimated that in the US alone on average car owners spend around 15-20 hours of time annually looking for a parking space, which surprisingly results in the waste of billions of dollars (driver cost, fuel cost, and emission).

It is to be believed that the US has ample of parking spaces allocated throughout the country. However, it is just that these spaces are not well planned and distributed to meet the ongoing demand. Most cities like New York, Chicago, San Francisco, and Washington DC among others, have a shortage of parking spaces.

Currently, the available existing infrastructures are underutilized. This gives an abundance of opportunities for the parking services company to look after. The US parking services market is expected to achieve a market value of US$ 32.1 billion in 2023. The companies are coming up with high-tech solutions for the parking industry like the real-time status of the parking spaces, pre-booking of parking spaces, and advance notification of parking congestion.

China to Witness the Fastest Growth During the Forecast Period

Around ~72% of the Chinese population owns a car. Given its large population, this results in a high number of cars on the road. Currently, the majority of the parking spaces available in the country are off-street parking, which is currently being underutilized due to reasons such as illegal parking, inadequate pricing, and poor management structure.

Lately, China’s industry is witnessing multiple new edge technology/companies and solutions coming to the marketplace. In August 2022, ETCP, China’s largest parking payment service provider has entered into a partnership with Parkopedia, one of the world’s largest smart parking service providers to enable both in-car “access and pay” QR code parking payments.

Currently, there is an acute shortage of parking spaces in China due to the large number of cars on the road totaling around ~280 million. The parking services market is expected to grow exponentially with a CAGR of 7.8% over the next 10 years on the back of a rising middle-class population along with increasing disposable income.

Category-wise Insights

Commercially Owned Parking Spaces are the Future

Currently out of all the parking spaces available, more than 50% of them are owned privately. However, in the recent past, things are changing, and apart from the spaces available in the residential buildings and a few privately owned spaces, the rest are slowly and steadily being owned and operated by private/commercial/government companies.

The growing car ownership and shortage of parking spaces have given an opportunity for real estate and other firms to treat parking spaces as an investment.

In urban areas, as parking is becoming one of the major pain-point for car owners as well as business owners, parking services providers are coming up with a tech-driven solution that can help both car owners and parking spaces owners to fully utilize the existing parking spaces at the fullest.

Entry of investment firms in the parking spaces has led to cutthroat completion among the service providers with improved services at an affordable rate. In August 2021, GB & Partners, a private equity firm through its portfolio company, Asura Technology, completed the acquisition of Parking Revenue Recovery Services, Inc.

Off-Street Parking Will Grow Rapidly

Parking your vehicle anywhere but the on the streets can be termed as off-street parking. Off-street parking can be both indoors as well as outdoors. Due to the lack of parking spaces across urban cities in both developed and developing economies, the demand for off-street parking is rising.

As these off-street parking spaces can be garages, driveways, and private lots and these are well-managed and also easy to access in comparison to on-street parking, the demand for such places witnessed exponential growth.

As of today, globally 2/3rd of the total parking spaces can be termed off-street parking spaces. Off-street parking services are expected to reach a market valuation of US$ 75.8 billion in the year 2023. Given the problems associated with on-street parking like illegal parking, double parking, and uninformed parking among others, off-street parking seems to solve all such issues and provide the best experience for vehicle owners.

Competitive Landscape

The prominent parking services providers are ABM Industries Inc, Ace Parking Management Inc, Diamond Parking, Get My Parking, Impark, Indigo, Lanier Parking, LAZ Parking Ltd. LLC, Park+, Park24, Parkwel Parking Services Llp, SP Plus Corporation, TPS Parking, Wilson Parking, Your Parking Space, Zenpark.

The global parking services industry is highly competitive and fragmented, due to the presence of multiple small and medium enterprises. Lately, the industry also witnessed increased interest from non-real estate firms entering the already overcrowded parking service industry. The market is also witnessing the entry of technology companies independently or partnerships of tech-driven companies with existing parking service providers.

• In January 2021, Flash Parking, Inc. one of the leading technology companies in the parking industry, announced its merger with Arrive, a leading provider of smart parking solutions to create a touchless digital mobility platform.
• In January 2022, Cloudastructure, a leading service provider of cloud-controlled video surveillance systems, completed the acquisition of Visionful.

Fact.MR has provided detailed information about the providers of parking services positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of the Parking Services Market

• By Type :

  • On-Street Parking
  • Off-Street Parking

• By Ownership :

  • Commercially Owned
  • Privately owned

• By Location :

  • Government/Municipal
  • Airport
  • Retail
  • Corporate
  • Educational Institute
  • Hospital/Healthcare
  • Others (Not Mentioned Elsewhere)

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa