To realize the mission of building smart cities, urban areas must start by solving the problem of parking. Sustainable growth in cities needs smart parking solutions that make it easier for commuters to easily find a place to park and help in reducing pollution. Smart parking systems use sensors and ticketing systems to gather occupancy data across multiple facilities and using it to direct drivers to vacant parking spaces and to reduce congestion on the streets.

While increased revenue for operators and city administrations is a clear advantage, smart parking technology can also generate new streams of revenue. For instance, parking companies can charge in a tiered manner, depending on the location of the parking space. Let’s look at how smart parking can generate new revenue streams for the different stakeholders in the ecosystem.



Key features of the parking app

Locate Parking

Cities frequently have under-utilized parking lots that drivers remain unaware of. With a smart parking app, drivers can get this information by paying for it, thus generating a revenue stream for parking lot operators. Smart parking technology merges multiple data sources into a cohesive set of data for real-time parking guidance. Data providers can charge users for this information, thus smoothening the parking process and saving time for commuters. Users can be charged on a subscription or pay-per-use basis.

Mobile payment

Operators can charge a commission on mobile payments, thus adding a revenue stream. They can also incorporate reward programs to encourage repeat users. Depending on the demand for the parking lot at a time, the reservation fee can be adjusted accordingly, making it an additional source of income.

Data analytics

Smart parking software offers data analytics to aid policy and pricing. Its IoT-informed functionality eliminates revenue leakages by accurately accounting for usage. These data analytics can be used by city administrations and operators to enhance efficiency and get a city-wide view of parking utilization.

Parking operators

Parking lot operators have traditionally relied on manual methods of management and collection, often facing leakages and inefficiencies as a result. Smart parking software can resolve this through an efficient management of the facility. Operators can also leverage customer and occupancy data to employ dynamic pricing, directly increasing revenue. The data thus collected can be used for effective report management with the reliable key figures that owners can use to grow their business.

IoT and mobility players

IoT and mobility companies can evidently generate a new revenue stream by serving the smart parking industry. Smart parking relies on the use of sensors, RFID, cameras, license plate readers, assisted driving, mobile payments etc. to make parking a smooth experience. Mobile IoT is crucial for wide area coverage to transmit information from sensors to a centralized database. This presents an opportunity not just for new parking lots but also for retro-fitting cameras and sensors in older ones.