Vehicle Parking Industry - Market Analysis
Smart parking is expected become a disruptive trend around the world in the coming years. It is important to note that the parking industry (not just in the United States, but globally as well) is a fluid term because there are numerous ways that different sub-segments under parking can be classified. Valet parking may be classified as its own segment in some reports, or it will be rolled up into parking management in others. For this review, the parking industry is inclusive of parking lots, garages, management, valet, smart parking, and safety management. Below is an overview of the vehicle parking industry in the United States. Included information is as follows: United States overview, key players, and global analysis and trends. Global information has been included to give a holistic look at the parking industry, which could lead to projections of how future years will play out in the United States.
UNITED STATES MARKET
Parking lots and garages (a subsegment within the parking industry) across the United States have a current revenue of $10 billion, which has grown 3.3% from 2012 – 2017. There are over 153,000 employees, and 10,039 businesses in the United States that classify as a parking lot and/or garage. Parking lot and garages revenue is projected to increase through the end of 2018, and then decrease or plateau through 2022, due to many small private companies operating on their own, as well as the growth in smart parking. However, looking at the parking industry globally (noted later on), the industry is projected to continue growing overall.
Looking at the parking industry in the United States, inclusive of all sub-segments (parking lots, garages, management, smart parking, etc.), revenue was reported at $25 billion in 2016, and is projected to grow to $29 billion by the end of 2018. According to the National Parking Association (NPA), the parking industry in the United States employees more than 143,000 people nationwide, and roughly 120 million Americans “drive to work every day.” California ($1.4 billion) and New York ($1.2 billion) bring in the most revenue at a state level, while “New York City, Los Angeles, Chicago, Houston, and Phoenix have the most parking growth potential.”
The current and upcoming increase in the parking industry is due to population expansion. In 2015, the United States had a population of roughly 320 million, and is expected to grow to 400 million by 2050. Further, higher employment rates across the country are resulting in more commuters, which subsequently leads to more people driving for future vacations, which both require somewhere to park your car. However, there are a few factors that could lead to a decrease, or a slowing rate of growth in the parking industry when looking past 2018, including “rising fuel costs, decreasing growth domestic product, and zoning laws that limit parking lot construction.”
Key players in the parking industry in the United States are below. Please note, some of these key players are top companies in the United States, however they are considered North American companies, as they have locations throughout Canada. It has been noted within each description whether they are a key player in North America, or solely the United States.
SP+ is the largest parking company in North America, and acquired Millennium Garages in 2016. The company has 3.8 million square feet of parking space, with over 9,100 parking spaces in four garages (all of which are in Chicago). SP+ has a revenue of $1.62 billion.
Ace Parking is one of the largest key players in the parking industry in the United States, with more than 450 parking locations throughout the country and over 4,500 employees. They provide parking services for various industries, including hotels, restaurants, hospitals, airport, sports stadium, and event parking. As they are a privately held company, no financial information is publicly available, however it is estimated that their yearly revenue is $200 million.
Lanier Parking, part of Citizens Parking, is one of the largest parking companies in the United States, with over 8,000 employees and 1,200 locations (which is inclusive of the five brands underneath Citizens Parking). As they are a privately held company, no financial information is publicly available, however they have an estimated yearly revenue of $75 million.
Imperial Parking Corp (Impark) is a top parking industry contender in North America, with over 3,500 parking facilities, and “9,200 employees in 240 cities throughout the United States and Canada.” As they are a privately held company, no financial information is publicly available, however it is estimated they have a yearly revenue of $50 million.
TPS Management LLC (The Parking Spot) can be considered a key player in the parking industry within the United States, as they have 39 parking lot locations that surround 21 airports, nationwide. As they are a private company, no financial information is publicly available, however it is estimated they have a yearly revenue of $5.5 million.
Leading parking lots/garages in the United States, by availability of parking spaces:
Seattle-Tacoma Airport (13,000 cars)
Detroit Airport (11,500 cars)
Disney World (11,000 cars)
Universal Studios (10,200 cars)
Disney Land (10,000 cars)
Chicago Airport (9,266 cars)
Baltimore Airport (8,400 cars)
Dallas Airport (8,100 cars)
GLOBAL ANALYSIS AND TRENDS
The parking industry market, worldwide, was $285.85 billion USD in 2016, and at an estimated CAGR (compound annual growth rate) of 9.3%, is expected to reach $614.59 billion USD by 2025.
Smart parking is a growing trend (e.g. sensors in parking lots that detect if spaces are occupied, wireless entry sensors, self-parking vehicles), and globally, is expected to grow at a CAGR of 18% through 2021. Cashless payments have been beneficial for both the consumer and the parking operators. A simplified payment process “reduces congestion at the entrance and exit gates of parking lots.”
Technologies utilized include in-vehicle transponders, magnetic strip cards, smart cards, and vehicle-mounted bar codes. Leading vendors in the smart parking market (globally), include:
IPS Group (headquarters in United States)
Libelium Comunicaciones Distribuidas (headquarters in Spain)
Parkeon (headquarters in United States)
Transcore (headquarters in United States)
3M (headquarters in United States)
Aeris Communications (headquarters in United States and United Kingdom)
Cisco (headquarters in United States)
The Americas is the driving geographical region globally for smart parking, followed by APAC (Asian Pacific) and EMEA (Europe, Middle East, and Africa). Due to the increasing availability and cost-effective smart home automation systems in the Americas, which connects everything to IoT (Internet of Things), smart parking is expected to grow in popularity.
The parking industry in the United States is expected to grow to $29 billion by 2018, and either plateau or slightly decrease through 2022. More than 143,000 people are employed in the parking industry, with an estimated 120 million people driving to work each day. Key players in the United States and/or North America include SP+, Ace Parking, and Imperial Parking Corp, while a growing global trend includes an advancement in smart parking, with leading vendors such as 3M, IPS Group, and Parkeon.