Parking Lots and Garages in the US Industry Market Research Report Available from IBISWorld

The Parking Lots and Garages industry was not immune to the recession. As disposable income declined in the five years to 2012, many people cut back on spending on sporting events, concerts, and air travel. As a result, parking facilities at or near airports, stadiums and hotels experienced declining revenue. Demand for parking will grow over the next five years, as parking facility owners outsource the management of their parking and related operations to industry firms. The industry will likely continue experiencing significant consolidation. Notably, two of the industry's largest rivals, Standard Parking and Central Parking, announced plans to merge in March 2012, creating a new leader to operate 4,400 facilities.
 
The Parking Lots and Garages industry was not immune to the recession. As disposable income declined in the five years to 2012, many people cut back on spending on sporting events, concerts, and air travel. As a result, parking facilities at or near airports, stadiums and hotels experienced declining revenue. At the same time, escalating fuel costs forced many drivers to look for alternate means of transportation, such as mass transit. Nevertheless, according to IBISWorld industry analyst Andrea Alegria, demand for parking facilities in densely populated areas where many people commute to work remained fairly strong. Similarly, parking services at hospitals, colleges, universities and other municipal facilities were largely unscathed by the economic downturn. Further, average parking rates have gone up considerably during the five-year period. As a result, industry revenue has declined only slightly, at an average rate of 0.3% annually to $9.1 billion in 2012.

Industry revenue declined each year from 2008 to 2010, with the steepest decline of 2.1% occurring in 2008. The industry returned to growth in 2011, with 1.1% growth over the year. In 2012, IBISWorld expects revenue will grow 1.5%. The industry, which is in its mature stage of its life cycle, is expected to continue growing at a slow pace. This growth will be driven by the trend for parking facility owners (e.g. municipal authorities, hospitals, universities, and residential building owners) to outsource the management of their parking and related operations to industry firms. Alegria says, due to population growth and improved construction activity, new residential and commercial developments will also create a need for additional parking facilities. IBISWorld projects industry revenue will grow at modest rate in the five years to 2017.

The Parking Lots and Garages industry will likely continue experiencing significant consolidation as larger national operators look for opportunities to expand their business and improve profit. Notably, two of the industry's largest rivals, Standard Parking and Central Parking, announced plans to merge in March 2012, creating a new industry leader to operate 4,400 facilities. The industry will also continue to be challenged by government efforts to discourage driving and will also need to adapt to changing technologies. For example, parking operators will need to respond to increased electric vehicle sales, by retrofitting existing parking structures with charging stations.

This industry provides parking and valet service for about 250.0 million motor vehicles on an hourly, daily or monthly basis. The industry primarily operates via management contracts, lease agreements or property ownership.

IBISWorld industry Report Key Topics

• Industry Performance
• Executive Summary
• Key External Drivers
• Current Performance
• Industry Outlook
• Industry Life Cycle
• Products & Markets
• Supply Chain
• Products & Services
• Major Markets
• Globalization & Trade
• Business Locations
• Competitive Landscape
• Market Share Concentration
• Key Success Factors
• Cost Structure Benchmarks
• Barriers to Entry
• Major Companies
• Operating Conditions
• Capital Intensity
• Key Statistics
• Industry Data
• Annual Change
• Key Ratios

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