As in other business areas, digital transformation in parking management can create new opportunities to drive growth, increase net operating income (NOI), automate manual processes, and bring new levels of flexibility to the consumer and the operator. To achieve these goals, the savviest organizations must adapt quickly and leverage technology as a competitive advantage.

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According to research by Deloitte, "The future of parking will be driven by those able to develop innovative solutions to manage demand, optimize supply, and better meet consumer needs with the support of digital technologies and processes." Here's a snapshot of the most critical technology to support those requirements and a few examples of how technological innovation in other areas, such as autonomous vehicles, will require the parking industry to adapt or fall behind.

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Digital and Contactless Payments

Digital and contactless payment methods are now a standard expectation for today's drivers. Paper tickets are a hassle, challenging to validate, and often lost. Consumers want the same seamless experience they have in other areas of their lives, whether scanning their phone at Starbucks or paying for groceries with an Apple Watch. 

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Smart parking systems integrating mobile payments can facilitate frictionless payments and improve traffic flow (and time spent idling on entry and exit), significantly enhancing the user experience and operational efficiency. Drivers can finally ditch the ticket.

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Read more: Learn how Constitution Wharf improved traffic flow with Vend, decreasing exit times by an average of 23 seconds.

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AI-Driven Insights Delivered the Cloud

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Artificial Intelligence (AI) is becoming a "must-have" for developing and maintaining smart parking solutions. AI enabled by agile cloud-based platforms can turn static data into accurate insights at every moment of operations. Operators can better manage facilities remotely and make real-time adjustments based on business goals.

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There's no need to analyze last week's spreadsheets — which historically fell short or contained errors. Instead, you'll get timely insights that drive more precise decision-making. With the touch of a button, operators can understand parking behaviors, predict demand, optimize space utilization, and enable dynamic pricing models.

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License Plate Recognition (LPR) and Automated Vehicle Recognition (AVR)

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Advancements in LPR and AVR technologies are streamlining the parking experience by automating vehicle entry and exit processes. The technology eliminates the need for tickets, creates a frictionless driver experience, and provides the business with more accurate data about parking trends. 

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Vend's technology combines the accuracy and reliability of LPR with AVR to create a data snapshot of every driver's vehicle. The system captures the vehicle's license plate number, as well as the vehicle's make, model, and color. The result is faster vehicle identification, the ability to provide more personalized services, and increased security measures. 

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Autonomous Vehicles and Smart(er) Parking

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As autonomous vehicles (AVs) become more prevalent, smart parking technology must adapt further. Parking facilities that can accommodate AVs have the potential to increase NOI significantly. Driverless vehicles can drop passengers off at the entrance or destination and park in a much smaller space because there's no need to leave room for an open door or a passenger. A study conducted by the University of Toronto found that parking lots designed with AVs in mind could accommodate 62% to 87% more cars than those strictly designed for conventional vehicles. 

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How fast is this market expected to grow? The Insurance Institute for Highway Safety (IIHS) expects there to be 4.5 million self-driving vehicles on the road by 2030. While all of those cars are not likely to be fully autonomous, they should have automatic features that enable more streamlined parking. Looking even further ahead, the Institute of Electrical and Electronics Engineers predicts that 75% of cars on the world's roads will be autonomous by 2040.

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Electric Vehicles (EV) and Charging Integration

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Electric vehicles are expected to comprise 40% to 50% of new car sales by 2030. With that rise, consumers will be more selective about where and when they park. In addition to convenience and price, they will be looking for options that integrate EV charging stations into parking facilities.

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Digitizing every aspect of parking operations is a first step to leveraging EVs as an additional source of income. Detailed data about drivers and their vehicles make predicting charging station demand much easier (and more accurate). Using this data, along with other information about their facility, owners and operators will have the tools they need to offer dynamic pricing for charging and parking. Maximizing every data point for smarter business decisions.

‍Get a demo and learn how Vend can help you integrate the most up-to-date parking technology into your facility.