Global Parking Management Software Market: Drivers & Restraints

There has been a significant technological development in the field of global parking management software market because of integrated mobile software and apps for parking, RFID technologies and cashless payments. There is scope in potentially utilizing Internet of Things through the technological developments in the field of parking management software. Smart features such as electronic payment scanning, image analysis, automatic retrieval and vehicle measurement are being enabled by the Internet of Things (IoT). Rising disposable income is increasing the purchasing power of people in the developing regions and in turn increasing the vehicle consumption along with rising concerns of security are the driving factors of this market. However, integration with existing parking systems and installation are challenges for the market.

The rising thefts of automobiles across the world has increased concern for the safety of vehicles. Parking management software system improve the safety and security of vehicles because of the real time vehicle counting, automated access control systems, video surveillance systems and full proof security systems. The reduced number of thefts because of the advanced security software systems will lead to a boost in demand for parking management software. Therefore, concerns regarding safety have an important role to play in the parking management market growth.

Some of the software used for parking management systems are Sentry Meter by IBM, Streetline’s Parker Software which is connected smart parking software of CISCO, SAAS Software Systems and Mobile Parking app by TCS (TATA Consultancy Services), etc. With software maintenance consisting of nearly 10%-20% of 2016 original software licensing, the software maintenance cost has increased phenomenally. Earlier in 2009, it was approximately 90%. With new functionalities like single touch parking facility, etc. the parking software is developing significantly.

There are a lot of factors restraining the growth of parking management software system. One such restraint is the cost. Integration and operating software, sensors, security system, display system, communication system, power supplies and electronic payment system are the components of the parking system. The implementation cost of high tech equipment for communication and installation of the software significantly increases the implementation costs of parking management software systems. The amount of software installed is directly proportional to the cost of implementation. The total implementation cost has different parts namely; management and coordination cost, system development costs, static signs cost, system planning and design cost, a system software start-up, parking facility equipment, electronic sign equipment, testing and training costs. Approximately 10% of the cost is absorbed by maintenance and operations. However, 90% of the cost incurred is because of the equipment, coordination, installation and management. These phenomenal costs can’t be afforded by small entities which in turn affects the growth of parking management software systems market.

Parking software systems are becoming more and more expensive and complicated with new types of upgrades. According to an Analysis, the largest percentage cost share is 50% for the total software maintenance effort concerning all the processes in the global parking software development. The major component of the overall cost structure of the parking management system is technical analysis. Software maintenance cost adds up to almost 23% of the global parking management software. Designing required 10% of the cost and documentation required 12% of the entire cost of the parking management software. Implementation of the software adds up to 7% of the maintenance cost.

Many companies that develop smart parking option or solution such as Indigo, Inrix Inc., Skidata AG, etc. are striving on establishing well-known cloud-based services that can uniquely achieve significant amounts of parking management solutions deployment, across a number of facilities as well  as probably million of smart parking spaces.

The global players of smart parking solutions or companies such as Amano Corporation, Omnitech Corporation, Xerox Corporation etc. are actively working in cooperation with large number of operators to deploy such smart parking solutions at a large scale to integrate all types of parking facilities those operating on airport/transit, hotel/shopping, campus, and city on-street and off-street.