Parking is a rapidly changing industry estimated to be worth nearly $100 billion. Following a tumultuous couple of years, 2022 saw growth across the various parking sectors. Now, with the pandemic behind us, we wonder which of the parking niches will experience the most growth in 2023. During our latest Quick Question video, four industry experts shared their predictions for the year ahead, but could they reach a consensus?
Watch the video below, and read on for our very own predictions:
Matt Brooker, Regional Sales Manager at ParkMobile
According to Matt Brooker, the municipal parking niche will experience growth not just in 2023, but in the years to come. Here is a summary of his predictions:
Many communities out there had paid or managed parking decades ago, but pulled out the meters and made parking free in the 70s, 80s, and 90s. Now that we’re moving out of the pandemic, people are visiting downtown again, there is economic development and these communities are continuing to flourish.
And so, the pain points that a managed parking program is designed to address are going to become more prevalent. And conversations about reinstating paid or managed parking programs are going to gain traction in those communities.
Luca De Vivo, Export Manager at SELEA
Similarly to Matt Brooker, Luca De Vivo argues that smart cities will experience the greatest growth in 2023:
The smart planning of parking areas and the implementation of advanced technological solutions will play a key role in improving the quality of life for the inhabitants of our cities. Parking garages will act as a hub for mobility services and will become the EV charging stations of the future.
Martin Kieroth, Team Coordinator Sales International INTEGRA-pw at projekt w
For Martin Kieroth, both retail and residential parking will likely experience growth in 2023:
Retail is becoming increasingly synonymous with shopping malls, and these shopping malls are most frequently being built outside of our city centers where parking spaces need to be created.
Meanwhile, in city centers, residential construction is typically focused on multi-tenant dwellings and apartment blocks. These buildings require multiple parking spaces, putting strain on available city center parking.
As a result, Park & Rides could become more commonplace, creating new infrastructure to ease the demand for parking in city centers and encourage the use of public transport.
Joe Parker, VP of Customer Success at ParkEngage
For an overview of the key parking sectors we turn to Joe Parker:
With the lockdowns behind us, 2022 was a good year for the parking industry, with significant growth across all sectors.
We expect that trend to continue in 2023, particularly in the aviation industry where business and personal travel continue to grow, and airport and off-airport parking with them.
As people become more comfortable with getting together in large groups, stadiums and other event venues will see significant growth.
During Covid retail switched to almost 100% online, but now that’s behind us, mixed-use retail is going to experience significant growth, with entertainment complexes and retail shopping districts experiencing a nice uptick this year.
On the municipal side, the delegislation of required parking minimums might not make a nationwide impact yet, but it will likely have localized effects in certain municipalities and will have an ongoing impact in the mid to long term.
Most people are predicting an economic slowdown in 2023, and whilst that could spell some trouble, academia usually does well in that sort of environment. So if there were an economic slowdown we would expect to see a significant uptick in university and college parking.
The Parking Network View
With the rise of e-commerce, shopping centers have had to adapt to changing demands by offering additional services such as restaurants, entertainment, and events. More people require additional parking spaces, and this trend is expected to continue in 2023 as shopping centers continue to offer more amenities to their customers.
As medical technology advances and people’s healthcare needs become more complex, demand for healthcare services is expected to increase over the next few years, and with it, the need for parking.
Whilst working from home has remained a popular option for employees and employers, many companies are now returning to office or hybrid work. This new way of working presents different pain points for office parking which will lead facility managers to search for new solutions.
The aviation industry will continue to rebound following the pandemic and, with passenger numbers increasing, investments will be made in both the construction of new facilities and the improvement of existing garages and lots. As advancements continue to be made in parking technology, airport parking will continue on a similar growth curve as it keeps pace with the latest developments.
As the digital revolution gains pace and the parking and mobility industries continue to merge, municipal parking will undergo a huge transformation, and so we believe that this sector has the greatest potential for growth in 2023. As governments work to reduce emissions and create livable cities, inner-city mobility, and the role that parking has to play in it, will become more important than ever. As mobility hubs gain in popularity and EV charging infrastructure develops, investment and growth in municipal parking will be essential.
So, what do you think? Which parking niche will pull ahead in 2023? And, will anyone be left behind?
