Don't miss PART II of the Smarter Parking Series:
Driving the Parking Industry into the 21st Century
There is no doubt the world is changing; more than half of the world’s population is living in urban centers and this is expected to increase to more than 65 percent by 2050 [1] Traditional transportation methods face serious threats if they do not adapt to the global trend of urbanization and connectivity.
This global trend of connectivity has encouraged the rapid development of the Internet of Things (IoT), spawning an unprecedented level of interconnectivity throughout our lives - and our cars are no exception. Connected cars are on the rise. Similar to where the smartphone was in 2010, the market position of connected cars today has taken off and is "ready to explode."[2] Over the next ten years, vehicle connectivity is expected to dramatically alter the car ownership model, create a new platform for consumers to access content, prompt further development of fully autonomous vehicles, and perhaps most importantly, revolutionize the auto industry as a whole.
While just 20 percent of cars on the road today are connected, BI Intelligence expects that to rise to 75 percent by 2020. GM alone has 12 million connected cars on the road worldwide.[3] As more people migrate toward cities, connectivity will be critical to the success of the transportation industry keeping pace with city development.
Connected cars collect, analyze and share data to improve the driving experience. They send 25 gigabytes of data into the cloud every hour, equal to about a dozen HD movies.[4] This information includes the vehicle’s route and speed, the wear and tear on its components and even road conditions. Vehicles today have about 40 microprocessors and dozens of sensors that can provide vital feedback for cities and states about traffic volume and roadway design.[5]
The impact of this data will be massive. City planners can now develop smarter, more responsive infrastructure, drivers can avoid traffic and prepare for imperfect driving conditions, and at a macro level, connected data can play a role in preventing as many as 10,000 driving-related fatalities and 500,000 injuries in the United States alone.
Additionally, this technology provides the backbone for intelligent transportation, extending beyond cars into municipal planning, public transportation and car sharing services. In fact, between 2017 and 2022 the global market for connected mobility is expected to grow by nearly 25 percent. In countries like Germany, virtually all new cars sold today are cloud-enabled – providing real-time traffic data, emergency call services and music streaming via internet access.[6]
The proliferation of connected car capabilities will not only steer automobiles more efficiently from point A to point B, but it will also provide drivers with a seamless parking experience. Within the vehicle, drivers can compare parking options with access to information on real-time availability, pricing and parking restrictions. In-vehicle systems, combined with mobile applications, can help drivers determine the best place to park and then intelligently route them directly to the open parking spot.
As businesses and consumers embrace a variety of digital payment platforms, the auto industry is beginning to integrate payment functionality directly into cars. In 2016, INRIX partnered with the two leading providers of on-demand and prepaid mobile parking payments, Parkmobile and PayByPhone, to integrate availability, reservations and payments into a seamless, end-to-end experience. Ultimately, dynamic parking in the connected car will create a streamlined solution to find, compare, reserve and pay for a spot, saving drivers time and money on the go.
Owning a car is no longer a necessity like it once was. As the popularity of ridesharing and carsharing continues to balloon, the public and private sectors are ramping up investments in ways to ingrain themselves within the connected vehicle space. As you can imagine, this shift is also impacting the parking industry. With increased connectivity, drivers’ expectations are changing and their willingness to circle the block for parking is waning.
The need for parking has ridden side-by-side with cars since the first automobiles wobbled down an unpaved road. Because parking is as much a part of the driving experience as the trip itself, it won’t be long before, drivers simply won’t consider purchasing a car without these connected capabilities to ease parking pains. A recent INRIX study of more than 5,000 drivers around the world found that real-time parking availability was the most desired navigation feature in a connected car.
Many navigation systems already offer parking information, but it is limited to static data that does not change in real-time or without software updates. Dynamic parking information is the next frontier and it is already being rolled out by a handful of automakers, including Audi, Porsche and BMW.
Parking facilities rely upon discoverability. A driver is more likely to park at an easily noticeable and convenient location than one they struggle to find. Making sure a parking facility is connected to the cloud is the first step in keeping pace with the connected age. Companies like INRIX work with parking operators to digitize parking information and beam it to millions of connected cars and mobile devices.
Another critical advancement for parking operators is the opportunity to offer dynamic pricing based on real-time inventory. Since pricing is based on occupancy levels, this can help operators fill unsold spaces and maximize revenue when facilities are nearing capacity. Operators who understand and utilize new technologies in mobile apps and connected cars will find the most success adapting to the new vehicle landscape.
Connected parking options will help decrease congestion and improve the utilization of existing infrastructure. By reducing the amount of time drivers spend searching for parking, fewer drivers will be on the road at any given time, especially during peak hours when a single hotspot can trigger widespread congestion. Cities can also connect their owned parking inventories – such as on-street parking meters – to better manage the supply and demand of spaces.
The world is changing and it is changing fast. To succeed in the changing automotive landscape, it is not enough for the parking industry to focus solely on revenue control and established marketing channels. Becoming connected can help increase brand awareness, boost revenue and help provide valuable insights into customer behavior surrounding parking.
With governments worldwide planning to invest $16.5 billion in intelligent transportation systems by 2017[7], developing a parking model that is complementary to the growing trend of urbanization will be critical to the continued success of the parking industry.
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[1] World Urbanization Prospects, United Nation’s DESA’s Population Division, July 2014.
[2] The Transformation of the Automobile 2016: Forecasts, trends, and analyses on the disruption of the automotive industry, Business Insider, June 2016.
[3] 12M connected cars gives General Motors a massive IoT fleet, Network World, March 2017.
[4] Connected cars will send 25 gigabytes of data to the cloud every hour, Quartz, 2015.
[5] Connected cars need to play well with smart cities, Readwrite, August 2016.
[6] Bosch’s Volkmar Denner: "The car as we know it will soon be history," Asset Finance International, November 2016.
[7] Connected cars need to play well with smart cities, Readwrite, August 2016.
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