According to a new report from IHS, the market for parking barriers is expected to grow faster than for any other barrier type in the global market for vehicle barrier systems.
Global revenue for parking barriers is forecast to grow from $110.8 million in 2012 to $158.2 million in 2017, equivalent to a five-year compound annual growth rate (CAGR) of 7.4 percent. In comparison, revenue CAGR during the same period will equate to 2.2 percent for highways and toll barriers, 2 percent for traffic-management barriers, and 2.5 percent for perimeter-type barriers.
Overall, revenue for the global market for vehicle barriers is projected to reach $470.5 million by 2017, up from $387.7 million from 2012, according to “The 2013 World Market for Vehicle Entrance Control Equipment" report. This year alone, parking purposes will account for more than 29 percent of global vehicle barrier revenue.
IHS says that automation and the increased use of off-street parking systems are the two primary trends driving the global market for vehicle barriers. In emerging regions, the movement toward automation is a key growth factor for parking barriers. Historically, low wages in markets such as China, Southeast Asia and India have limited opportunities for automated vehicle barriers.
“As average income continues to increase in these regions, automated systems are progressively replacing manual attendant solutions” Adi Pavlovic, analyst for vehicle entrance control equipment at IHS said in a statement. “This is because automated solutions are much more efficient and decrease fraud in comparison.”
In addition to the strong growth opportunities in emerging regions, investments continue to increase for off-street parking systems in many developed countries, such as the U.S.
“Off-street parking systems have benefited the most from the expansion in U.S. commercial construction, considering the country’s large automobile and parking culture,” Pavlovic added. IHS estimates new construction of parking garages surged by 38 percent within the United States in 2012, with similar growth projected to repeat in 2014.
Overall, several positive indicators are driving the growth of parking barriers in both mature and emerging regions. However, one of the largest barriers to entry in the emerging regions will be competition posed by local low-cost suppliers.
As a result, manufacturers looking to enter these markets will need to focus on educating their customers to help them understand the importance of quality in ensuring product longevity. In particular, any downtime incurred due to malfunctions in the performance of automated off-street parking can be costly.
For more information about the report, visit www.ihs.com.