With the rising proliferation of smartphones around the world (over 78% penetration in 2020), connected mobile apps and integration with other services and technologies, there’s new opportunity emerging for systems integrators in the parking and property management markets.
Parking management is changing—ready to implement new technologies, according to an October 2021 report from Global Market Insights (GMI) Inc. The size of the parking management market surpassed $3 billion in 2020 and is expected to grow at a 12% compound annual growth rate (CAGR) through 2027 to $6 billion, according to the report.
Smartphones encourage connectivity
The emergence of mobile applications linked with systems to help customers to check availability, remotely book parking spots and make contactless payments has ignited interest by companies now focusing on business expansion initiatives in this space.
The need to effectively manage growing traffic has created a strong necessity for efficient parking solutions, said Vinisha Joshi, content team lead at GMI. “Elevating demand coupled with ongoing technological advancements is impelling the adoption of smart parking solutions. In addition, the integration of IoT and artificial intelligence (A.I.) technologies to enable system monitoring, data analytics and real-time information tracking is further strengthening the space.”
Various prominent companies operating in parking management are strongly focusing on the development of innovative solutions and forming strategic alliances to gain a strong foothold in the market, she said.
Safety, security and accountability
Market growth is also being positive effected by government investments in smart city projects, creating high demand for parking management systems. Parking management systems often include technologies to allow only authorized customers to enter the premises, designed to minimize property vandalism and reduce the possibility of car theft and vehicle damage, Joshi said.
Other influencing factors include high adoption of wireless technologies in the transportation industry, the move to autonomous vehicles and demand for advanced security and surveillance.
According to the report, access control, revenue management, analytics and security provide real-time system monitoring of parking spaces. Video surveillance equipment now has robust wireless connection functionality with cloud hosting for data storage, while analytics such as automated license plate recognition technology are popular applications synonymous with the use of video technologies.
Proptech for systems integrators
Another similar offshoot and opportunity is property technology or Proptech, a term coined by the real estate market and often referring to commercial property.
Proptech is a broad range of products, services and systems that deploy technology to enhance or streamline consumer interaction with a commercial or residential property. It focuses on the way people live and work in buildings today, using various solutions to improve those processes, add value and maximize net operating income.
According to Statista Inc., there is a new category of products, websites and mobile apps designed to streamline and modernize the real estate process and its technology. Proptech extends to intelligent buildings, space management and architecture. That’s where mobile connectivity, access control and other smartphone-based solutions come into play, as well as video intercoms, smart keypads and locks and other building management controls.
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