On-Street Parking - Market Size
In Europe, specifically the EU-28 countries, about 80%, or 4 in every 5 parking spaces are unregulated, or it does not generate revenues. Unregulated on-street parking measures at 86.92%. In Stockholm, about 58,179 are on-street parking spaces or about 25% of the total on-street parking spaces in the country. Based on this data, the estimated market size of regulated on-street parking in Stockholm is €3.40 million. Below you will find detailed calculations, estimations, methodology, and assumptions made to derive these figures.
While there were no preexisting reports available in the public domain regarding the market size of on-street parking in Stockholm, Sweden, we were able to come up with an estimated figure using available data derived from different statistics for Europe, Sweden, and Stockholm market. By using a top-down analysis market sizing, we started by first analyzing Europe market, secondly, looked on figures for Sweden, then finally for Stockholm on-street parking market. While we endeavor to use any latest data from the last two years, our search resulted to figures and statistics from 2014 to 2013, though, they are released at a later year, i.e. 2015 and 2016. These figures were used, together with current figures available, to come up with an estimated market size for on-street parking in Stockholm.
EUROPE AND SWEDEN PARKING SPACE BY THE NUMBERS
According to a report released by Q-Park in relation to data from European Parking Association (EPA) in 2014 (the latest data available), there are about 440 million parking spaces in the EU-28 countries, and of these, 130 million is on-street parking. Of the 130 million on-street parking, 113 million is unregulated, this translates to about 86.92%. The average revenue of on-street parking per space in the EU-28 countries is €496 per year.
In Sweden, the total parking space counts at 1,160,788, off-street parking are totaled 933,211 and on-street parking is 227,577, which would mean that about 24.4% accounts for on-street parking.
(227,577 / 1,160,788) * 100 = 24.4% (share of on-street parking in Sweden)
An EPA report stated that the overall annual turnover for the European parking industry was totaled €23 billion in 2015.
ON-STREET PARKING IN STOCKHOLM
According to Car Parking Europe, on-street parking capacity is very limited in Stockholm. Paid parking costs differ for each day of the week and dependent on location, i.e. in Norrmalm, the rate is SEK 50 and in the rest districts of Norrmalm and Gamla Stan, they charge SEK 26 per hour on weekdays and about SEK 15 on weekends and holidays. Some places are charged SEK 10 to SEK 15 on weekdays and weekends respectively while the rest of Stockholm charge SEK 5 on an unlimited basis. A report from Euronews revealed that the average cost of parking space in Stockholm per hour is 7.65 euros.
From a study released in 2016 with data collected from 2015 and beyond, Stockholm's street parking (both on-street and off-street) accounts for 15% of all street surface in the city at a very high occupancy rate of 90%. Currently, Stockholm's road network has a total length of 7,630 kilometers (as compared to about 216,976 km length of the road network in the whole country of Sweden).
Total length of on-street and off-street parking in Stockholm
= 7,630 km * 15% = 1,144.50 km.
If the standard length of one parking space in Europe (including Sweden) as per EuroTest standard is 4.8 meters, then the estimated number of parking space in Stockholm is 238,438.
Estimated number of parking space in Stockholm
= total parking length in meters / standard length of parking dimension
= 1,144,500 meters / 4.8 meters
Earlier, we have already identified that about 24.4% of the total parking space in Sweden accounts for on-street parking. Using this percentage to calculate number of on-street parking space in Stockholm;
Total number of on-street parking space in Stockholm
= 238,438 * 24.4%
In Sweden, there are about 227,577 on-street parking spaces and if Stockholm has about 58,179, that's about 25.6% of the total country's on-street parking space.
The average on-street parking revenue per parking space in EU-28 countries is reported to be €496 per year. Since there were no figures found on public domain specific for Stockholm's on-street average revenue, we then assume that the average on-street revenue of €496 per year in the EU-28 countries carry similar trend in the city. Using this average value to calculate market size for Stockholm;
Estimated market size of on-street parking in Stockholm
= number of on-street parking space * average on-street revenue per space
= 58,179 * €496
= €28.86 million
The above-market size estimation is applicable assuming that 100% of the identified on-street parking spaces are regulated in Stockholm. If the overall trend for Europe, with 86.92% of the total on-street parking is unregulated and if we use this percentage for Stockholm, and including the reported 90% occupancy rate, then the estimated market size based on regulated on-street parking space is €3.40 million. Regulated parking space accounts for 13.08% (from 100%-86.92%).
Estimated market size based on regulated parking space and occupancy rate
= €28.86 million * 13.08% *90%
= €3.40 million
The market size of on-street parking in Stockholm is estimated to have a value of €3.40 million based on regulated parking space. If we consider the total number of on-street parking space (regulated and unregulated), the city of Stockholm would generate a revenue of about €28.86 million on its on-street parking industry, considering that occupancy rate is very high at 90%.