Car ownership on the rise, parking space industry growing

In China, rising car ownership in large cities makes parking space a scarce product. The development of the world’s largest car market causes a new industry of parking space management to rise. The new industry is said to be worth 50 billion yuan (€6.4 billion).

In China’s cities, there is a growing shortage of parking spaces. According to a South China Morning Post report, China’s rise as an economic powerhouse is giving its population a passport to financial success while spawning a host of businesses seeking to profit from the shortage of parking spaces.

According to the report, there are some 250 million vehicles on the road in China, but the number of parking spaces has not kept up. On average, there are less than 0.8 parking bays for every one car in China, with the shortage more acute in first- and second-tier cities. In developed Western countries, the ratio is about 1.3 bays for a car.

The car space market in China is maturing. Sunsea Parking, one of the largest market players in Shanghai, is introducing a smart car-parking management system, leading to higher utilisation rate and margins. Artificial intelligence-based smart parking systems use cameras and sensors to gather real-time data on parking occupancy.

It generates and analyses data including vehicular traffic, vehicle type, peak-hour timings and frequency to predict future trends. Combined with digital payment methods at points of entry and exit, the system helps save time for drivers and costs for operators.

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