Introduction
As urban areas become increasingly crowded, the struggle to find parking is becoming a common frustration. The endless search for an available spot not only consumes valuable time but also exacerbates traffic and pollution.
But what if finding parking could be as easy as pressing a button? Fortunately, the rise of smart technology offers a promising solution. Intelligent parking apps are convenient services designed to simplify the lives of motorists in big cities and make the parking process more efficient.
Here are the main features and benefits that such apps usually provide:
- Search for available spaces. The app shows available parking lots and the number of spaces on the city map in real time. This saves time searching for parking and reduces traffic.
- Reservations. Many apps allow you to pre-book and pay for a parking space for a specific time. This ensures you’ll have somewhere to park your car when you arrive.
- Payment. Apps allow you to pay for parking right from your smartphone, postpaid. There is no need to carry cash or cards and waste time at parking meters.
- Reminders. The app can send push notifications when the paid parking time is coming to an end. This protects you from fines and unnecessary spending.
- Information about rates and rules. The app usually lists current parking rates for different city areas and special rules (e.g., free weekend parking).
Benefits for the city and parking lot operators
According to statistics, in major cities, using parking apps can reduce the time to find a space by 30-50% and traffic in “business zones” by 10%.
Here are some facts about how using apps to track available meters helps drivers:
- Increased congestion. By making it easy to find and pay, parking lots fill up more evenly, and more spaces are used efficiently.
- Increased revenue. Simplifying and automating payment incentivizes more drivers to pay for parking rather than searching for free spots.
- Traffic optimization. Online congestion information helps distribute traffic flow.
- Environmental friendliness. Fewer cars wasted driving around the city looking for parking – less traffic jams and emissions.
Hundreds of drivers use such services daily, saving hundreds of man-years and millions of liters of fuel.
The future of intelligent parking: how can businesses profit from it?
According to analytical agencies, the market for intelligent parking systems has grown in recent years.
Market size. The global smart parking market was valued at $5.1 billion in 2020 and is projected to grow to $11.1 billion by 2025 at a compound annual growth rate (CAGR) of 16.8% from 2021 to 2025.
Regional Distribution. North America is the largest intelligent parking market, accounting for about 40% of the global volume. It is followed by Europe and Asia Pacific. The market is growing fastest in Asia, at 18-20% annually.
Technology. The most common are smart parking systems based on sensors (occupancy sensor systems), which determine a space’s occupancy. They account for more than 50% of the market. RFID tags, computer vision systems, etc., are also used.
Number of installations. Calculating the exact number of existing “smart” parking lots and applications worldwide is difficult. However, as a benchmark, there were about 400,000 intelligent parking spaces in the U.S. alone at the beginning of 2021. In China and Europe, the number is measured in the millions.
Economic impact. On average, introducing smart parking can increase revenue from parking spaces by 30%, reduce traffic in business districts by 10%, and increase parking congestion by 8-10%.
Your innovative parking project: where to start
Let’s say you’re planning to create a 100-space intelligent parking system; here’s a rough action plan:
#1 Market research and design.
In the first stage, you need to study the features of your location, target audience, and competitors and think through the functionality and business model. This can be done in-house or with the help of a consulting company.
#2 Application development.
You will need a mobile application (for iOS and Android) and an administrative web panel. Development can be ordered from an IT company such as IT-Dimension or a studio. Here it’s better to look for a team that has an experience working on similar solutions.
#3 Equipment purchase and installation.
100 parking spaces will require:
- 100 occupancy sensors;
- 5-10 information boards;
- 2-3 entry-exit barriers.
Of course, such a solution will require a server for data processing and management. You can also use cloud-based solutions without having to maintain an on-site physical server. Companies like Amazon, Google Cloud, or Microsoft Azure can provide optimal rates.
#4 Integration and testing.
The final step is to install the hardware, connect it to the software, and run tests with debugging.
Revenue and profit expectations
In terms of profit, at an average parking rate in the US of $2-3 per hour and a 50% utilization rate, your monthly revenue could be:
100 spaces * 50% utilization * 12 hours per day * 30 days * $2.5 per hour = $45,000 per month
After deducting 30% for operating and maintenance costs, your net profit would be about $30,000 per month or $360,000 per year.
Project payback is six months to 1.5 years, depending on initial investment and utilization dynamics.
*the figures provided are reasonable as an approximation but should be adjusted based on specific local factors such as parking demand, rates, and the initial investment required.
Our experience in Parking App development
In our recent parking app project, we focused on creating both Android and iOS versions using the Xamarin.Forms cross-platform framework. Key features include real-time updates through Push Notifications, RTSP streaming via VLC, and a secure login system utilizing access codes. The app supports three user types — Regular, Technical, and Manager — ensuring efficient parking management, while localization enhances accessibility for a broad user base.
Shikma mobile parking app
Developed parking app significantly benefited the business by streamlining operations and enhancing user engagement. By addressing key operational challenges, we enabled more efficient management of parking resources and improved overall user satisfaction.
Get in touch with us if you’re looking for a robust parking solution or a similar application, and let’s explore how we can assist your business.
Links:
https://www.statista.com/statistics/622081/size-of-market-for-smart-parking-in-north-america
https://www.millioninsights.com/industry-reports/north-america-smart-parking-system-market
https://www.theinsightpartners.com/reports/smart-parking-market
https://www.marknteladvisors.com/research-library/smart-parking-market.html
