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What is the United States market-size (TAM) for the University Parking industry?
Hello! Thanks for your question about the United States market-size (TAM) for the University Parking industry. The sources I found the most useful in addressing your question include the Campus Parking and Transportation Association, National Center for Education Statistics, and Complete College.
In short, the estimated TAM the University Parking industry in the US is $497.6 million. Please read on for a deep dive of my findings, assumptions, and calculations.
METHODOLOGY
You mentioned that you were unable to find any public information on annual parking revenue generated by universities. After a thorough search, it appears that no pre-existing statistics for this market exist. However, I was able to triangulate an answer using back of the envelope calculations based on available information. Please see below for my research strategy:
1. First, I looked at the Campus Parking and Transportation Association, an American organization that represents the parking industry on the campuses of colleges and universities. From there, I found a compiled list of fee rates for 11 large universities in the US. I averaged those fees to come up with a representative figure for an estimated monthly parking expenses.
Campus parking averaged $29.69.
2. Secondly, I set out to find out how many students park on campuses across the US. I was able to determine that approximately 75% of college students in the US are commuters. We can safely assume that that demographic will rely heavily on university parking facilities.
3. Finally, I was able to find statistics for the total number of college students there are in the US. At 20.5 million (2016 figures), the number of students who would need parking spaces would be 20.5 million X 75%, that's 15.38 million students.
SIZE OF FACULTY THAT USES COLLEGE PARKING SPACES
The average number of faculty in degree-granting postsecondary institutions from 2005 through 2013 is 1.24 million. Using the definition from The Balance, I also determined the year-on-year growth in the number of faculty in degree-granting postsecondary institutions from 1995 through 2013; the average YoY growth in the number of faculty in degree-granting postsecondary institutions for this stretch of time was 5.8%.
1997 growth - 6.24%
1999 growth 3.84%
2001 growth 8.30%
2003 growth 5.43%
2005 growth 9.96%
2007 growth 6.27%
2009 growth 4.94%
2011 growth 5.93%
2013 growth 1.29%
Assuming that this growth continued at this average of 5.8%, for the next 2 periods (i.e. years 2015 and 2017), then the size of faculty can be calculated thus:
Given:
a) 1,544,060 is total faculty in degree-granting postsecondary institutions in 2013.
b) 5.8% average YoY growth
In 2015 the total faculty in degree-granting postsecondary institutions would be...
1,544,060 X 5.8%
= 1,633,615
In 2017 the total faculty in degree-granting postsecondary institutions would be...
1,633,615 X 5.8%
= 1,728,365
Using figures from Hedges & Company, which states that in the US 261.8 million people own cars in 2016, and Worldometers says that US population as of 2016 was 324,118,787, meaning that approximately 80% of US households own a car. If we assume that this number applies to faculty members, then we can say that 1.38 million (i.e. 80%) of faculty own, at least, one car.
CONCLUSION: AN ESTIMATED U.S MARKET-SIZE (TAM) FOR THE UNIVERSITY PARKING INDUSTRY
Based on our calculations above, 15.38 million students use parking spaces on campuses, and the total faculty in degree-granting postsecondary institutions who are eligible to use campus parking spaces is estimated at 1.38 million persons across the US. This totals to 16.76 million.
At an average parking cost of $29.69, the TAM for the University Parking industry in the US would be:
$29.69 X 16.76 million
= $497.6 million (i.e. nearly half a billion US dollars).
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