Built Environment: Parking sector motors on
At the beginning of the year, I discussed opportunities in the parking sector: how the reservation market is changing; the pace and impact of ANPR rollout within private off-street car parks; uncertainty around penalty charge price caps; and the importance of electric vehicle charging. Read my article here.
A year on and investor enthusiasm remains. Growth is achievable across the operator, payment facilitator, enforcement and software segments of the market; with the sector continuing to digitise, investors backing management teams that are willing to adapt to new technologies could reap the rewards.
What’s changed and what hasn’t?
The online reservation market is evolving; we’re expecting nationwide rollout of the National Parking Platform by autumn 2024. This means motorists will no longer require a variety of apps to pay for parking, instead having the ability to select from any provider. This will result in increased competitive intensity amongst payment facilitators. In the longer term, additional payment services e.g. EV charging could also be integrated – providers offering multiple services, with the easiest-to-use technology, should eventually win.
We are continuing to see ANPR rollout across private off-street car parks. Operators are benefiting from significant growth in PCN issuance, and currently no downside with respect to potential price caps (see below). However, with motorists increasingly resentful of unfair charges, commercial landlords might be better placed to focus on the data and insight new technologies can provide to maximise the value of their parking assets.
Penalty charge price caps
The parking sector is still waiting to hear the government’s plans for penalty charge price caps, the team looked at three scenarios and their potential impacts on the sector. You can read our findings here.
The electric vehicle market is no longer the darling of the current government as it steps away from its goal of net zero by 2050. However, with charging times decreasing, EV ownership (and the demand for charge points) remains a long-term trend; parking market service providers would be wise to keep this in mind when investing and developing new products.
Speak to a member of the team about opportunities in the parking sector.
Jack HibbsEmail Jack