Parking Lots & Garages Industry Profile

Companies in this industry provide parking space for motor vehicles. Major companies include ABM, Ace Parking, Diamond Parking, Lanier Parking, SP Plus, and TPS Parking (all based in the US), along with Impark (Canada), Indigo (France), Park24 (Japan), and Wilson Parking (Australia).

Worldwide, parking facility use is impacted by factors such as office occupancy, employment, car ownership, travel, and discretionary spending. Concern over lack of sufficient parking rises with the use of motor vehicles in developing economies.

The US parking lots and garages industry includes about 12,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $9.5 billion.

COMPETITIVE LANDSCAPE

Demand is driven by the occupancy rates of commercial real estate: large buildings require parking spaces for commuters, customers, and related area industry. The profitability of individual companies depends on operational efficiency and customer service. Large companies have advantages in relationships with large property managers and owners, and economies of scale in operating efficiency. Small companies can compete effectively by catering to customer needs and operating a desirable location.

The industry is concentrated: the top 50 US companies generate about 65% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Revenue mainly comes from off-street parking services, hourly or daily, which accounts for about 50% of the industry revenue. Other services include valet parking services (about 20%), off-street parking services; weekly and monthly in buildings (about 15%); and weekly and monthly in lots (about 15%). ...