The parking industry is changing fast. New technologies, regulations, and pricing models are shaping how parking facilities operate. If you manage parking facilities, staying ahead of these industry trends is key to optimizing revenue and improving the parking experience for drivers.
Here’s what to watch in 2025.
What is the Outlook for the Parking Industry?
Parking will always be needed – especially where space is limited. But just because something is always in demand doesn’t mean it isn’t competitive or evolving.
Like most industries, the parking industry is moving toward automation and sustainable transportation options. Parking management companies, in particular, are investing in real-time data, parking apps, and mobile payment systems to make parking more efficient and convenient.
Electric vehicles are also changing how parking facilities operate. A growing number of parking garages are installing charging stations to attract EV drivers.
At the same time, cities are reducing street parking and removing minimum parking requirements for new buildings, which makes off-street parking even more valuable.
Parking operators who adapt by improving space utilization will have a leg up in this changing market.
1. Cities Are Changing Parking Rules
Urban planners are rethinking how parking spaces are allocated. Some cities are removing minimum parking requirements for new developments, shifting focus toward sustainable transportation options.
Others are reducing street parking to make room for bike lanes and pedestrian-friendly zones. For example, San Diego recently banned parking within 20 feet of crosswalks to improve safety. Inevitably, these extended crosswalks are cutting into space typically dedicated to parking.
This shift presents both challenges and opportunities for parking management companies.
As parking spaces on city streets disappear, parking operators must adjust pricing and optimize space utilization to meet demand.
2. App Based Payment
Payment systems are evolving. More parking management companies are moving away from payment stations and adopting contactless payments. Parking apps allow drivers to pay with their mobile phones, offering a more convenient and efficient parking experience. Guests will receive notifications as time runs out and can pay for more time without having to return to their vehicles.
Remember: the easier it is for someone to pay, the more likely they will choose your lot.
3. Developers Are Reducing Parking Spots
Space is a commodity, and traditional parking garages take up valuable real estate. Therefore, a shortage of space will translate to a scarcity of parking options.
Facilities are facing increased demand as drivers look for reliable parking. Operators have managed this scarcity by using automated parking systems and mechanical stackers to optimize space utilization.
The kVario 8000 Series by KLAUS Multiparking uses a semi-automatic system that stacks vehicles vertically and horizontally, much like a puzzle. This reduces the footprint of parking lots and car parks while allowing for faster vehicle retrieval. Instead of spending five minutes searching for a parking spot, drivers can retrieve their car in just 60 seconds.
4. Dynamic Pricing Is the New Normal
Parking operators are adopting dynamic pricing models to adjust rates based on demand. Dynamic pricing helps optimize revenue by charging higher rates during peak hours and offering discounts during low-traffic times.
Parking technology, including real-time data and license plate recognition, allows parking systems to track occupancy levels and adjust pricing automatically.
For example, let’s say you own a parking garage near a sports arena and typically charge $30 per space on game nights when demand is high. On regular weekdays, when fewer drivers need parking, you can dynamically adjust costs to $10. If an event gets canceled at the last minute, the system automatically lowers rates to attract more customers.
5. Parking Enforcement Is Getting Stricter
The parking sector is cracking down on unpaid parking. In the UK, private parking management companies issued over 13 million parking charge notices in 2023-24. This rise in enforcement is due to improved access control technology–including automated license plate recognition–which reduces the administrative costs of enforcing parking regulations.
By investing in better parking systems, these parking operators can add more revenue through late fees.
6. EV Charging Stations Are Becoming Essential
Electric vehicles (EVs) are reshaping the future of parking. Parking facilities that invest in EV charging stations are positioning themselves for long-term success–as many urban planners are already requiring that new parking lots and car parks include EV infrastructure.
Beyond meeting regulations, charging stations offer a way to optimize revenue. Drivers of electric cars are willing to pay a premium for convenient charging services.
In response, many parking operators are partnering with third-party providers like ChargePoint and Tesla to install smart parking solutions that attract more customers.
If you’re interested in learning how you can add revenue from EV charging stations, make sure to check out our article here.
7. Rent Your Parking Spaces to Non-Residents
Parking operators and property owners are adapting to times of uncertainty by renting out underperforming parking spaces to non-renters.
Joseph Woodbury, CEO of Neighbor.com explains how non-residents can offset lost rental income during periods of lower occupancy.
If you’re the owner of a lot that’s not operating at capacity consistently, I highly recommend looking into Neighbor. Neighbor is a peer-to-peer self-storage platform that connects lot owners with qualified renters looking for places to store their vehicles, RVs, etc. It’s a great way to offset income loss, and it’s easy to get started. See how much you can list your space for here.
The post Parking Trends Garage Operators Should Watch Out For in 2025 appeared first on Neighbor Blog.