Parking is evolving. Here’s what you need to know.

The future of parking is an exciting one.

Changes in transportation and cars will cause structural shifts in how carparks operate. These changes will unlock new value for providers and better experiences for customers, leading to overall improvements for the entire parking market.

We will now look at what developments are driving these key changes and what this will mean for carpark operators and customers.

Key Developments in the Parking Space

Bloomberg New Energy Finance predicts that by 2040 more than 50% of all vehicles on the road will be electric. Carparks will be built with electric charging stations so that electric cars automatically charge while their owners are out.

Australian developments in hydrogen storage also means that commercially available vehicles could be available by 2021. Carparks will have hydrogen infrastructure installed, so that customers can shop, refuel their cars, and drive off again.

Deloitte Insights suggest that parking is being transformed by several forces, such as increasingly connected vehicles, shifts in how generations pay for mobility, and the emergence of autonomous vehicles. These will vastly improve consumer benefit from automobile usage but may also reduce customer demand, and parking spaces will need to change how they provide value to their users in order to continue operating.

Impact on Carpark Providers

Carpark providers will benefit greatly from these developments. Dynamic pricing systems will maximise revenue and improve return on investment, profits, and other financial metrics. Integration of more and more sensors will generate large amounts of data about customers and carpark operations that can be used to decrease costs and increase revenues further – such as upselling memberships to recurring customers, valet parking to customers from a higher socioeconomic background, and car washes to customers with dirty cars.

Ancillary services like installing electric and hydrogen infrastructure will enable value-add activities to further increase profits. As automated and semi-automated vehicles become more common, too, this will benefit both customers and carpark providers. Vehicle damage will become less problematic, and carpark damage will decrease. Automated vehicles will likely reduce demand for parking in many areas, but residential demand will increase.

Automated parking will lead to automated valet parking, which will increase parking density. This will dramatically increase parking supply – reducing prices for customers. Some carpark operators will cease to operate, reducing parking supply until the equilibrium supports low-cost providers and payments aren’t too high for customers.

Impact on Parking Customers

As parking becomes a space transformed by converging forces, customers will benefit greatly from innovations in the parking space. Changes in pricing models means that customers will be able to purchase parking on a long-term basis as a renter, by pre-booking a parking spot, or by use.

Vehicle-to-infrastructure technologies will provide additional value to customers, too. No longer will you need to worry about finding a spot while trying to get your last-minute Christmas shopping done – a couple taps on your phone and you’ll have reserved a car spot just for you.

Ticketless systems will become increasingly powerful and integrate into loyalty programs, rewarding customers for consistently choosing a parking space operator to deal with. Guidance systems will improve in functionality and show customers currently in the parking spot the nearest empty parking spot, while managing traffic as well.

Technological developments will continue to drive change in the parking arena. Parking is set to be revolutionised, unlocking huge value for customers and providers alike.