The demand for smart parking technology to create a more efficient and enjoyable commercial parking experience for the consumer while streamlining operations for owners and operators is on the rise. From hybrid work schedules requiring more flexible subscriptions to tech-savvy consumers expecting to use their smartphones to make payments, the parking industry is undergoing a rapid transformation to adjust to the change in consumer behavior—and do so in a way that compliments commercial real estate business goals. 

The dramatic rise in popularity of electric vehicles (EVs), which heavily rely on public charging stations, also contributes to this shift. Parking structures were designed to accommodate traditional gas vehicles in terms of size and building structure. In addition, as more facilities add EV charging stations, they'll need to monitor occupancy and demand more accurately to ensure they are getting the mix right. This strategy will help CRE owners and operators attract and retain high-value drivers and boost revenues. 

The Rise of Electric Vehicles

As climate concerns continue to deepen, more drivers are turning to EVs and hybrid cars to reduce their carbon footprint—that's because EVs produce no tailpipe emissions when running on electricity. They offer significant economic incentives, too. Drivers see substantial savings on maintenance costs and gas and receive a federal income tax credit of up to $4,000 (plus state rebates and incentives). Over the course of an electric vehicle’s life, drivers will see thousands of dollars in savings.

While EVs still cost slightly more to purchase than gas-powered cars (on average, $55,353 vs. $47,401 as of January 2024), that gap is closing. Due to increased production, the average price of a new EV dropped nearly $15,000 between September 2022 and September 2023. Battery prices have also declined. 

With EVs more affordable than in the past, it’s no surprise that sales grew by around 25% in the first quarter of 2024, according to the IEA’s Global EV Outlook 2024, compared with the first quarter of 2023–2022 saw the same growth over the same period. And there are no signs of sales slowing down. By 2030, it is estimated that half of all cars sold globally will be electric, up from more than one in five this year.

Changing Parking Needs and Behaviors

In the U.S., this growth of the EV market will largely be dependent on the country continuing to build up a nationwide charging network. Even though 64% of Americans now live within 2 miles of a public charging station, they are largely concentrated in urban areas. Analysts note that adding charging stations to more public spaces, such as parking structures in offices or retail areas, will decrease "range anxiety," giving drivers more confidence that they'll be able to charge wherever and whenever they need. EV drivers are more likely to research parking facilities and search for those that include charging stations ahead of reaching their destination. It's this behavior, along with spending power, that makes EV drivers so attractive. 

Traditional parking structures will require upgrades to keep up with the rapid growth of the EV market and tap into this new revenue source. In urban areas where EVs are most abundant, parking owners and operators are adding dedicated spots, installing charging equipment, and often updating electrical. 

The Role of Smart Parking Solutions and Revenue Generation

Just as there are financial incentives for consumers who purchase EVs, there are also programs and generous tax credits for businesses that install EV charging stations. In addition, a new analysis by Consumer Reports shows that retail locations that install EV chargers in their parking facilities could "increase foot traffic by an average of 4% and revenue by 5%."

Installing charging stations in conjunction with other technology upgrades such as digital or smart parking platforms can help owners and operators maximize these benefits. Parking structures that are already working to incorporate smart parking technologies are much better equipped to cater to the EV-owning crowd, who are generally well-educated, high earners. This is a group that prioritizes convenience and appreciates being able to manage daily tasks–like finding and paying for parking–from their smartphone.

Most notably, digital parking solutions enable owners and operators to make data-driven decisions. By understanding points such as usage patterns and occupancy, owners can create targeted marketing, determine revenue strategy, and make market-backed pricing decisions. That may include accurately assessing how many EV charging stations are needed, offering pricing incentives to EV drivers, or even adding EV spaces to flexible pass programs. 

The Future of EVs and Smart Parking 

By 2030, it’s estimated that 17% of cars on the road will be electric. To accommodate these trends, parking owners and operators should have plans in place to retrofit traditional parking structures to accommodate EV charging stations. 

Schedule a demo. Learn how implementing Vend’s parking management solutions will increase revenue, decrease expenses, and improve the driver experience for your facility.

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