Technology, Services Can Sustain Parking Companies

Parking companies face a troubling future. Private car ownership in the U.S. is expected to decrease 80% by 2030, with the number of passenger vehicles on the road dropping from 247 million to 44 million.

At the same time, 10 million self-driving cars are expected to hit our streets by 2020. As a result, fewer people will own a vehicle and instead rely on self-driving, ride-sharing services. And, because these vehicles will continuously pick up and drop off passengers, there will be less of a need for cars to be parked in any one place.

This puts parking businesses at risk of becoming obsolete. To stay ahead of the curve, innovative parking companies are leveraging new technologies and adding services they hope will keep them relevant – and profitable – long into the future.

In preparation for a future where vehicles are fully or semi-automated, some forward-thinking parking companies are beginning to equip their garages with Internet of Things-enabled technologies. Using a combination of sensors, dedicated short-range communications, IP video cameras and Wi-Fi, vehicles will be able to communicate with the infrastructure around them to maneuver through the garage and park themselves.

For example, with these types of vehicle-to-infrastructure technologies, you could drive up to the entrance of the parking garage, get out of your car and engage an automated parking system by tapping a button on a smartphone application. As you go on your way, the vehicle drives itself into an open parking spot, intuitively navigating the multi-level garage by communicating with the sensors and other IoT-enabled technologies installed throughout the facility. At the end of the day, you use the same app to summon your vehicle, and the car drives itself to the designated pick-up area.

An Indigo parking garage in France is experimenting with a similar approach, providing a “cyber valet” system from Valeo that enables vehicles to safely park themselves.

Creating New Revenue Streams with New Services

Parking companies can further capitalize on IoT technologies by creating new revenue streams through additional services and offerings. For example, parking garages can offer services for automated vehicles such as car washes, battery-charging stations and even software upgrades while the vehicles are parked. This provides vehicle owners with a convenient, one-stop-shop for car maintenance and time-saving solutions.

Moreover, some parking companies are leasing out empty space on their roofs and lots to solar companies to generate additional revenue, while the solar panels can double as shade structures. Others are experimenting with providing higher-end concierge services. Through a mix of sensors, license-plate recognition and smartphone apps, a parking concierge can predict when you’re about to arrive and have your favorite coffee or other offerings available as you pull into the garage or lot.

These revenue streams from new services will be critically important for parking companies in the near future, as profits from parking fees and fines decrease due to the influx of ride-sharing services.

We also are seeing some parking companies aiming to “future-proof’ their business from the very earliest points in the design phase. New parking garages and lots are being designed and built today with the knowledge they will serve other purposes one day. For example, multilevel garages are being built with level rather than inclined floors. Ceilings are being made taller and are including pre-built components where future electrical equipment and ductwork can run. This allows for the easier conversion of the structures into retail or office space.

With the rise of automated and self-driving vehicles threatening traditional business models, parking companies will need to innovate now to stay relevant. Through the use of IoT technologies, smarter design and the introduction of new revenue-generating services, parking garages and lots can remain profitable and compete in the new automotive era.

Kyle Connor is Transportation Industry Principal at Cisco.