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Market trends

CHICAGO, Aug. 22, 2019 /PRNewswire/ — According to the new market research report “Automated Parking System Market by Automation Level (Semi-Automated, Fully-Automated), End-User (Commercial, Residential, Mixed-use), System (Hardware, Software), Platform, Design Model, Parking Level, Region – Global Forecast to 2027”, published by Markets and Markets™, the Automated Parking System Market is estimated to be USD 1.3 billion in 2019 and is projected to reach a market size of USD 3.6 billion by 2027, at a CAGR of 13.1% during the forecast period. The market is driven by factors such as the increasing number of vehicles across the globe, rising urbanization, and scarcity of land for parking vehicles.

“Residential segment is projected to be the fastest-growing Automated Parking System Market, by end-user type”

The residential segment is estimated to be the fastest-growing market for automated parking system. High demand for automated parking system in luxury residential facilities, an increasing number of high-rise buildings, and developers’ focus to build low emission sustainable residential building are expected to drive the Automated Parking System Market in the residential segment.

“Fully automated parking system is estimated to be the largest and the fastest-growing segment of the Automated Parking System Market”

The choice of a fully automated and semi-automated parking system is made based on several factors such as the size of land, type of the project, surrounding area, throughput, available budget, and requirement of parking spaces. A fully or semi-automated parking system offers advantages such as higher capacity & efficiency, reduced emission, and increased safety & convenience. Due to these advantages, the demand for the fully and semi- automated systems is higher, particularly in the developed countries. However, the choice of an automated parking system depends on many factors such as the available budget, location of the project, and application. High capacity systems would tend to be fully automated, while low-capacity systems and low throughput systems would be semi-automated.

Additional sources of income enabling very fast R.O.I.

The facades of the automated and semi-automated parking structures can be fitted with adverting panels. Also the interior of the parking/retrieval bays can offer opportunities for advertising, installation of automated selling machines, ATMs, phone charging stations etc. In addition, these parking systems can produce revenue by being fitted with EV charging stations.

Tax Advantages

Automated and semi-automated parking systems may offer property developers and investors significant tax advantages in the form of accelerated depreciation as compared to the car parks or conventional parking garages. Numerous countries permit faster, or accelerated, depreciation rates for equipment based on the notion that equipment value declines at a faster rate in the earlier years of its useful life. Compared to the 25 to 50-year depreciation of buildings such as car parks, large percentages of automated and semi-automated parking systems may be eligible for much higher depreciation rates increasing profitability.