China’s parking industry boasts enormous growth potential, with investment payback periods steadily shortening.

 

1. Current Status of the Parking Industry Abroad

In the early days of the automobile era in developed Western countries, the parking industry had already grown into a major sector, generating annual revenues of one trillion U.S. dollars. The United States, often referred to as “the nation on wheels,” boasts a parking industry worth nearly ten billion dollars and provides roughly 50,000 jobs each year.

In Japan and South Korea, two major automobile markets, car sales have declined despite the economic crisis, yet their domestic industries remain robust. As permanent parking spaces—typically ranging from a dozen to several dozen spots—are often developed by families, owning even a small parking lot can generate substantial income, enabling households to enjoy a stable, comfortable, and happy life.

2. Current Status of the Domestic Parking Industry

In Hong Kong, the price of a parking space often exceeds that of a car. For instance, in the Wai King Garden community, a single parking spot can sell for as much as 600,000 dollars. On the Chinese mainland, in newly developed luxury residential areas, parking‑space prices have been soaring, with some now approaching the cost of a family car.

For example, in Beijing’s Wangjing district, the highest price for a new parking space has already exceeded RMB 350,000, with most spaces fetching around RMB 200,000. According to our survey, in second-tier cities east of the Beijing–Guangzhou Railway, parking spaces typically range from RMB 160,000 to RMB 250,000, while in third-tier cities, even standard parking spots often surpass the RMB 100,000 mark.

Urban parking research in mainland China got off to a relatively late start, with studies initially focused on planning, management, the development of new technologies, and other foundational areas. Only in recent years has attention shifted toward the parking industry itself.

Domestic research on parking lots began in the 1980s, initially focusing on foundational studies of parking facilities, alongside categorized investigations into urban parking systems and layout theories. In 1988, China’s Ministry of Education, Ministry of Public Security, and Ministry of Construction jointly issued the “Provisional Regulations on the Construction and Management of Parking Lots” and the “Parking Planning and Design Rules (Trial),” both of which continue to serve as guiding frameworks for parking‑lot planning. In addition to subsidies and R&D support aimed at bolstering various industries, tax policies have also been employed to favor specific sectors or economic activities. Parking‑related enterprises have benefited from favorable tax treatments, such as exemptions and reductions, while measures like investment tax credits and accelerated depreciation allowances have encouraged capital‑equipment investment. In modern society, countries around the world are striving to build smart cities; however, addressing the challenge of parking scarcity is essential for achieving this goal.

The primary reasons for a country’s drive to industrialize parking are as follows: First, the sheer shortage of parking spaces fails to keep pace with the ever‑increasing demand. In the long run, various factors—such as constraints on the construction and development of parking facilities—prevent supply from keeping up with growing demand. Take Beijing as an example: the city currently has over 4 million registered motor vehicles, yet the number of available parking spaces is only about 2.47 million, resulting in a pronounced shortfall.

International experience indicates that, to broadly meet parking demand, the ratio of vehicles to parking spaces in a city should ideally be between 1.1 and 1.3. Secondly, existing parking resources are unevenly distributed: widespread illegal parking stands in stark contrast to the underutilization and waste of newly built parking structures. Moreover, government‑funded parking facilities often receive insufficient or no investment. When parking operations fail to achieve economies of scale and management remains difficult to standardize, addressing parking challenges becomes exceedingly challenging.

At present, the academic community lacks a unified definition of the parking industry. An “industry” refers to an organized collective with shared attributes, characterized by a certain degree of social recognition or by achieving qualitative transformation through quantitative change. As parking challenges become increasingly pressing, “marketization” and “industrialization” represent key measures for alleviating parking shortages and enhancing efficiency, forming the cornerstone of both the development of the parking industry and its market‑driven operations.

Accordingly, the “parking industry” encompasses all enterprise management activities that have historically evolved in a fragmented manner under the guidance of market mechanisms and structural norms—such as parking‑lot planning, construction, operation, and management—forming a dynamic, integrated process that constitutes a self‑reinforcing industrial system and an organic whole. The parking sector is not merely a haphazard aggregation of disparate activities; rather, it requires the establishment of efficient, stable, and well‑designed institutional frameworks.

II. The number of vehicles continues to grow, and the demand for new parking spaces is increasing year by year.

(1) Parking Space Demand Forecasting

China’s vehicle ownership still has room for further growth: Since 2004, the country’s vehicle stock has risen steadily, with a compound annual growth rate (CAGR) of 17.3% from 2004 to 2017. In 2017, China’s total vehicle fleet reached 217 million, second only to the United States and ranking it second globally. However, China’s vehicle ownership per thousand people stood at just 154.3 vehicles, whereas Japan and Germany recorded 612.5 and 610 vehicles per thousand people, respectively—3.97 and 3.95 times China’s level. Meanwhile, in 2015, the U.S. already had 816.1 vehicles per thousand people, 5.29 times China’s figure. Compared with developed countries, China’s per capita vehicle ownership remains low. As the Chinese economy continues to grow and public expectations for quality of life rise, vehicle ownership is expected to keep expanding; conservatively, the average annual growth rate from 2018 to 2020 could reach 10%.

China’s Vehicle Stock Forecast and Growth Rate

Data Source: Compiled from publicly available sources.

Related Report: “China Intelligent Parking Lot Industry Market Competition Landscape and Future Development Trends Report (2019–2025)” published by Zhiyan Consulting.

Cities in China with a vehicle ownership exceeding 2 million in 2017

Data Source: Compiled from publicly available sources.

Annual Forecast of New Parking Space Demand in China (in ten thousand spaces)

Data Source: Compiled from publicly available sources.

Demand for new parking spaces is rising year by year: According to data released by the National Development and Reform Commission, the average ratio of passenger cars to parking spaces in China’s major cities is currently about 1:0.8, while in medium- and small-sized cities it stands at roughly 1:0.5. Compared with developed countries, where the ratio ranges from 1:1.1 to 1:1.3, China’s parking‑space-to‑car ratio remains significantly lower. Statistics from the NDRC indicate that by the end of 2014, the nationwide parking‑space shortfall had reached 50 million spaces. Moreover, as vehicle ownership continues to grow, the annual demand for additional parking spaces is also on the rise. Based on a conservative estimate of a 1:1.1 ratio between parking spaces and vehicles—typical of developed nations—the annual demand for new parking spaces in China is projected to reach 23.917 million, 26.309 million, and 28.940 million respectively from 2018 to 2020.

In 2017, the parking space shortfall is projected to have grown to 76.11 million spaces, exacerbating the supply–demand imbalance. Parking facilities can be categorized into conventional parking lots and mechanical parking systems. Mechanical multi‑storey parking garages, which use automated mechanisms to store and retrieve vehicles, are a type of parking equipment characterized by convenient access, cost‑effectiveness, ease of maintenance, minimal land footprint, and high space utilization. According to statistics from the China Industry Information Network, in 2014 China added 590,000 mechanical parking spaces and 11.06 million conventional spaces, for a total of 11.65 million. From 2009 to 2014, the penetration rate of mechanical parking spaces remained at around 5%. By 2017, the number of mechanical parking spaces had reached 818,000, with a compound annual growth rate (CAGR) of 21.2% from 2007 to 2017, while sales revenue totaled RMB 14.8 billion, growing at a CAGR of 19.9% over the same period. Due to missing data on parking space additions between 2015 and 2017, we conservatively assume that the penetration rate of mechanical parking spaces remained steady at 5% over the past three years. Under this assumption, the estimated annual additions of mechanical parking spaces for 2015–2017 would be 12.348 million, 14.573 million, and 16.221 million, corresponding to annual shortfalls of 7.238 million, 9.759 million, and 9.112 million spaces, respectively. Consequently, by the end of 2017, the national parking shortage had expanded from 50 million spaces in 2014 to 76.109 million, an increase of 52.8%, further intensifying the mismatch between parking supply and demand.

Number of mechanical parking spaces in China (in ten thousands) and growth rate

Data Source: Compiled from publicly available sources.

China’s sales revenue (in billion yuan) and growth rate of mechanical parking equipment

Data Source: Compiled from publicly available sources.

Estimation of the Shortfall in Parking Spaces in China, 2015–2017

Data Source: Compiled from publicly available sources.

The domestic market size for mechanical parking equipment from 2018 to 2020 is estimated based on the following key assumptions:

Core Assumption One: To meet China’s parking demand, the parking provision ratio must reach 1:1.1.

Core Assumption No. 2: The domestic vehicle parc will maintain an average annual growth rate of 10% over the next three years.

Core Assumption Three: The average construction cost of a single mechanical parking space is RMB 18,000.

Meanwhile, conducting a sensitivity analysis assuming the penetration rate of mechanical parking equipment in China rises incrementally by 1 percentage point—from 5% to 10%—yields the following market size estimates for mechanical parking equipment in China from 2018 to 2020: Even under the most conservative assumption of a 5% penetration rate, the potential annual market size for mechanical parking equipment in China would reach RMB 21.53 billion, RMB 23.68 billion, and RMB 26.05 billion, respectively, during the 2018–2020 period.

Data Source: Compiled from publicly available sources.

In addition to the broad potential market for parking equipment, parking‑lot operations—representing the aftermarket segment of the parking industry and situated at the downstream end of the value chain—also boast substantial market potential. According to data from the 2016 White Paper on the Development of the Parking Industry, total parking‑related spending nationwide reached RMB 400 billion in 2016, with a vehicle stock of 194 million. This translates to an average annual parking expenditure of approximately RMB 2,000 per vehicle. Based on the 2017 national vehicle stock of 217 million, the overall parking‑operations market is projected to grow to RMB 434 billion.

(II) Analysis of Supply and Demand in the Parking Industry

In China, the parking industry remains primarily driven by residential‑related developments, with public‑sector projects playing a secondary role. In 2017, among the newly added mechanical parking spaces nationwide, 489,100 were allocated to residential complexes (60.3%), 186,400 were for public use (23%), and 135,700 were designated for internal corporate use (16.7%).

Annual additions of mechanical parking spaces across different sectors

Data Source: Compiled from publicly available sources.

Mechanical berth application structure

Data Source: Compiled from publicly available sources.

China’s parking industry boasts substantial untapped potential, yet an imbalance between supply and demand remains its most pressing challenge. At the root of this issue lies the lengthy construction, investment, and operational cycles of parking facilities, which fail to meet the profitability expectations of private capital. Consequently, private investors show limited enthusiasm for development, slowing the industrialization of the sector—particularly in public parking and residential areas within older urban neighborhoods. Based on the type of vehicle traffic served, parking spaces can be categorized into basic spaces and mobility‑related spaces. Basic spaces are designed to accommodate long‑term parking when vehicles are not in use, while mobility‑related spaces cater to temporary parking needs during trips and are characterized by higher turnover. These spaces are primarily deployed in commercial and public‑service settings. On‑site parking spaces, as well as off‑street and on‑street parking along roadways, are provided. Hospitals, hotels, and commercial shopping centers—characterized by high pedestrian traffic, robust parking demand, and limited floor space available for ancillary parking facilities—exhibit particularly pronounced challenges: difficulty in expanding capacity and significant disparities between peak and off‑peak parking demand. Mechanical parking systems can make efficient use of both above‑ground and underground space, thereby enhancing land‑use efficiency. In 2015, seven government departments jointly issued the “Guiding Opinions on Strengthening Urban Parking Infrastructure Development,” identifying residential areas, major integrated transportation hubs, peripheral stations of urban rail transit, hospitals, schools, tourist attractions, and other special zones as priority locations for development, while encouraging the construction of compact, multi‑level mechanical parking structures and other intensive parking facilities.

(III) Analysis of the Parking Industry and Investment Returns

Since the second half of 2015, a series of policies supporting the parking industry have been introduced, with the sector for the first time featured in the Government Work Report (2016) and the 13th Five-Year Plan, marking the official launch of parking‑industry development. At the national level, the policy framework has been substantially refined across multiple dimensions, including planning, construction, management, land use, investment and financing, fee structures, and information technology. Meanwhile, local governments have also rolled out comprehensive implementation plans and detailed regulations to address the challenges hindering the industrialization of the parking sector.

Furthermore, in 2018, the CPC Central Committee and the State Council issued the “Several Opinions on Improving the Mechanisms and Systems for Promoting Consumption and Further Unleashing Residents’ Consumption Potential,” which emphasized the need to develop more mature consumer‑segment markets and foster new growth drivers. With regard to housing and transportation consumption, the document specifically called for strengthening the development of urban parking facilities and charging infrastructure for new‑energy vehicles. These policy measures underscore the pivotal role of the parking industry in upgrading and boosting consumption, making investment in new parking‑facility construction one of the key levers for stimulating domestic demand and advancing new‑infrastructure initiatives.

Beyond the national level, local governments have also actively introduced policies and implementation guidelines covering preferential measures, parking management, planning and development, approval procedures, fee administration, information technology, ancillary facility standards, financial support, and mechanized parking, all in an effort to promote the industrialization of parking across regions and address the challenge of insufficient parking capacity. The provinces that have issued the most such policies include Shandong, Jiangsu, Hubei, Fujian, Guangdong, and Guangxi.

Distribution of Types of Special Policies on the Parking Industry Issued by Local Governments

Data Source: Compiled from publicly available sources.

With a diversified revenue model, government equity participation, and improved utilization rates, the investment payback period is expected to shorten significantly.

1) Diversification of the profit model enhances investment return forecasts.

Taking a urban parking‑lot project in Fuzhou as an example, the project plans to build 28 public parking facilities covering a total land area of 116,100 square meters and a total floor area of 334,100 square meters. It will provide 7,526 new motorized vehicle parking spaces for public use. In addition, the project will install 1,500 electric‑vehicle charging stations, 56 large advertising billboards (each 10 square meters), and 1,456 medium‑sized advertising panels (each 1.2 square meters). Supporting service buildings with a total floor area of 34,000 square meters will be constructed, primarily for commercial leasing purposes such as retail and vehicle maintenance. The proposed total investment amounts to RMB 1.4 billion.

Assumption 1: Charging stations, advertising spaces, and ancillary service facilities account for 15% of the total investment, translating to approximately RMB 210 million in additional supporting project expenditures, while the investment allocated to the parking lot construction project stands at RMB 1.19 billion.

Assumption 2: The cost of the parking space rental business accounts for 85% of the total costs.

Under a single‑business‑model scenario—where parking fees constitute the sole source of revenue—the payback period for the parking facility, based on net rental income, is approximately 6.63 years.

Parking Lot Investment Return Estimation under a Single Revenue Model

Data Source: Compiled from publicly available sources.

Moreover, under a model that can accommodate diverse revenue streams—such as commercial leasing, EV charging stations, and advertising—the payback period for parking‑lot projects can be shortened to 4.65 years. This demonstrates that, by lifting government price controls and adopting more market‑oriented management practices, project returns will improve, thereby boosting private‑sector participation in parking‑lot development.

Investment Return Estimation for Diversified Revenue Models in Parking Facilities

Data Source: Compiled from publicly available sources.

2) The government enhances investment returns by contributing public‑owned assets as equity stakes:

Under the PPP model, the government contributes public land‑use rights as equity, eliminating the need for parking operators to bear high land‑acquisition costs and thereby significantly enhancing their investment returns. By contrast, under the conventional model, parking operators are required to pay land lease fees; a sensitivity analysis of their investment returns is conducted based on variations in annual land rental rates. Key assumptions underlying this analysis include:

Assumption 1: With a garage capacity of 300 parking spaces and a construction cost of RMB 18,000 per space, the project’s initial investment amounts to RMB 5.4 million.

Assumption 2: The garage requires 10 management personnel, with an average annual cost of RMB 40,000 per manager.

Assumption 3: The annual operating and maintenance cost per berth is RMB 2,000.

Assumption 4: The parking space utilization rate is 50%.

As site rental costs rise, the investment payback period is progressively extended. When annual site rents exceed RMB 1.5 million, parking operators require 10.1 years to recoup their initial investment; factoring in discounting, this timeframe becomes even longer. The PPP model has opened up new avenues for public–private cooperation and plays a crucial role in enhancing the rate of return on parking projects.

Sensitivity Analysis of the Impact of Parking Lot Site Rental on the Investment Payback Period

Data Source: Compiled from publicly available sources.

 

3) Increased parking space utilization enhances investment returns.

Based on the aforementioned assumptions, we assessed the impact of changes in parking‑space utilization rates on the investment returns of a parking project. We found that when the utilization rate increases from 30% to 50%, the payback period shortens from 5.6 years to 2.4 years; and as the utilization rate further rises to 80%, the payback period is reduced to 1.3 years.

Sensitivity Analysis of the Impact of Parking Space Utilization Rate on the Investment Payback Period

Data Source: Compiled from publicly available sources.

(IV) Analysis of Special Bonds for Parking Lots and Related Investment and Construction Projects

As of the end of 2018, China had issued a cumulative total of RMB 291.76 billion in special-purpose bonds for parking facilities, with 267 tranches outstanding. According to the offering prospectuses, the construction cycle for new parking facilities is approximately three years; following completion of infrastructure works, parking equipment is installed on site, marking the final phase of the project. For parking‑equipment suppliers, corresponding equipment orders are expected to begin rolling out starting in 2018. Moreover, as these parking projects are completed and put into operation, the parking‑operation market is likewise poised to unlock substantial growth potential.

Total issuance of special-purpose bonds for parking facilities, 2015–2018 (in billion yuan)

Data Source: Compiled from publicly available sources.

Number of special-purpose bonds issued for parking facilities, 2015–2018

Data Source: Compiled from publicly available sources.

In addition, by the end of 2017, the total investment in national parking PPP projects had reached RMB 98.8 billion. The largest‑scale projects were concentrated in the Beijing–Tianjin–Hebei region, Shandong, Jiangsu, Shaanxi, Henan, Hunan, Guizhou, and other areas in North China, East China, and Southwest China. The total number of PPP projects stood at 174, with projects in the identification phase accounting for 61% of the total, those in the preparation phase for 13%, those in the procurement phase for 16%, and those in the implementation phase for 10%. It is foreseeable that, as existing parking PPP projects advance and are successfully implemented, both the market for parking equipment and the operational market in China are expected to expand gradually over the next three years.

Distribution of Progress Across National Parking PPP Projects

Data Source: Compiled from publicly available sources.

III. Analysis of the Market Structure of the Parking Industry

At present, the parking industry’s operational management involves two main types of enterprises: one is represented by issuers—parking equipment manufacturers that possess both technological expertise and financial strength; the other comprises firms that do not engage in the manufacture of parking equipment but instead provide only parking‑industry operation services.

In practice, the former is better positioned to gain a competitive edge. On the one hand, after years of operation, these companies have established strong brand recognition and accumulated extensive technical expertise as well as experience in maintenance and servicing. On the other hand, parking‑equipment manufacturers maintain long‑term relationships with parking‑lot owners and industry regulators; leveraging their established customer base and distribution channels, they can more easily enter the parking‑operation sector at a lower cost of customer acquisition.

Accordingly, it is only natural for mechanical parking‑equipment manufacturers with strong brand recognition and financial resources to enter the parking‑industry operations sector. Meanwhile, in the future, parking facilities can serve as a platform to expand into value‑added business areas such as parking‑related big data, fueling, insurance, and more.

The key players in the discontinued‑industry segment include parking‑equipment manufacturers as well as companies that do not produce such equipment but instead provide operational services for the decommissioned sector. Among parking‑equipment suppliers, some firms have transitioned from elevator, steel‑structure, or material‑handling‑vehicle manufacturers—for example, Shouchang International and Dongfang Elevator—while others, such as Xizi Parking, Shenzhen Weichuang, Tianchen Intelligent, and Dayang Parking, have long specialized in the design and supply of parking equipment.

1. There are numerous market players, and the industry is characterized by small scale, fragmentation, and disorder.

The mechanical parking industry is subject to policy‑driven market access barriers. Manufacturers of parking equipment must obtain a “Special Equipment Manufacturing License” (for lifting machinery) issued by the State Administration for Market Regulation. Before any type of mechanical parking equipment is placed on the market, manufacturers are required to submit an application for qualification. The Special Equipment Quality Supervision Department under the State Administration for Market Regulation implements a licensing system covering the production, installation, and maintenance of mechanical parking equipment. Only enterprises that have obtained the requisite qualifications are permitted to operate in this sector. By 2017, the number of companies holding manufacturing qualifications for mechanical parking equipment had reached 577, representing a 295.2% increase compared with 2011. Mechanical parking systems can be categorized into nine types: lift‑and‑shift, simple lift, flat‑travel, lane‑stacking, vertical lift, vertical carousel, horizontal carousel, multi‑level carousel, and car elevators. However, fewer than 35 companies currently possess manufacturing qualifications for all nine categories.

Number of enterprises holding production qualifications for mechanical parking equipment

Data Source: Compiled from publicly available sources.

Number of enterprises holding qualifications (by qualification type)

Data Source: Compiled from publicly available sources.

In 2017, the top thirty companies in the industry recorded domestic sales of RMB 11.042 billion, accounting for 74.7% of the total reported sales among all participating firms. They installed 591,000 parking spaces, representing 72.9% of all newly added spaces nationwide. Despite being the largest player by revenue, Hangzhou Xizi Intelligent held only a 5.3% market share (with estimated 2017 revenues of approximately RMB 780 million), while Wuyang Parking, following its acquisitions of Shenzhen Weichuang and Tianchen Intelligent, achieved a market share of around 4.7%, ranking second in the sector. Looking at the 2018 tender landscape for mechanical parking equipment, Hangzhou Xizi, Shenzhen Yifeng, Tangshan Tongbao, Shenzhen Weichuang, Jiangsu Jin’ao, Hangzhou Dazhong Bo’ao, and Shandong Tianchen emerged as the industry’s leading companies. Among them, Hangzhou Xizi, Shenzhen Weichuang, and Shandong Tianchen secured 57, 22, and 15 contracts, respectively. In terms of contract value, Shenzhen Weichuang won projects totaling RMB 135 million, or 28% of the top ten, while Hangzhou Xizi captured RMB 31.97 million, accounting for 6.6%. By contrast, in the 2017 top‑ten rankings by contract value, Shenzhen Weichuang held just 10.4%, whereas Hangzhou Xizi reached 21%. It is anticipated that, in 2018, Wuyang Parking will surpass Hangzhou Xizi in market share, claiming the industry’s leading position in mechanical parking equipment.

2017 Awarded Contract Values for Mechanical Parking Equipment

Data Source: Compiled from publicly available sources.

2018 Awarded Contract Values for Mechanical Parking Equipment

Data Source: Compiled from publicly available sources.

2. Smart, concealed parking is the future of the industry, and low-end capacity will gradually be phased out.

Intelligent multi‑storey parking garages represent a crucial breakthrough for China in addressing the severe shortage and low utilization of parking resources: in 2016, the national parking deficit stood at 50%, with an average vacancy rate of 51.3%, while in Shanghai and Chongqing, existing parking spaces were utilized at only 40% and 48%, respectively. Multi‑storey parking structures occupy a significantly smaller footprint—roughly 1/2 to 1/25 that of conventional surface lots—and boost space utilization by more than 75% compared with self‑driving parking facilities. They can be flexibly configured to suit site-specific conditions and parking demand, making full use of both above‑ and below‑ground space and enhancing land‑use efficiency. Featuring high levels of automation, user‑friendly operation, and easy management and maintenance, these systems, when integrated with smart solutions, can substantially improve parking resource efficiency and unlock underutilized assets, thereby greatly alleviating the supply‑demand imbalance confronting China’s parking industry.

Policy guidance: intelligentization will become the mainstream development trend. The “Guiding Opinions on Strengthening Urban Parking Infrastructure Construction,” jointly issued by seven ministries and commissions, specifically calls for advancing the intelligent and information‑based management of parking, establishing a foundational parking database that is updated in real time and made openly accessible for sharing; promoting the development and application of cutting‑edge technologies such as metered parking systems, smart parking guidance systems, and automatic license‑plate recognition systems; and enhancing the interconnectivity and information sharing among disparate parking management information systems to facilitate… Parking is integrating with the internet, supporting the development and promotion of mobile‑based parking apps. Users are encouraged to check available spaces and reserve spots in advance, enabling features such as automated billing and payment, thereby improving the efficiency of parking resource utilization and reducing traffic demand generated by the search for parking. According to the 2016 tendering market landscape in the parking sector, intelligent application scenarios—such as on‑street parking, smart platforms, and parking guidance—accounted for 9.2%, while parking management systems represented 25.7%. China’s parking industry has thus embarked on a path toward greater intelligence.

2016 Parking Industry Tender Market Type Distribution

Data Source: Compiled from publicly available sources.

Multi‑storey parking garages are poised to replace conventional parking systems in the high‑end market segment. These facilities feature a complex internal structure, entirely composed of mechanical parking equipment—including traction drives, guide wheels, vehicle‑carrying platforms, lateral‑movement mechanisms, control cabinets, call‑operation panels, lifting‑and‑rotating units, and transporters—while integrating advanced technologies such as system design, power transmission, automation and electrical control, and safety protection. As a result, they impose stringent requirements on product design, manufacturing processes, integration capabilities, and safety performance. With planar‑moving systems, Storage-type mechanical parking systems—such as aisle‑stacking, multi‑level circulating, and horizontal‑circulating models—and tower‑type systems—like vertical‑lift and vertical‑circulating types—are more advanced and better suited to applications in bustling city centers and large, high‑density parking facilities. In the future, they are expected to gradually replace economy‑class systems—such as simple lift‑type and lift‑and‑lateral‑move types—in premium market segments.

Under the trend toward intelligentization, low-end production capacity, lacking advanced technological capabilities, will struggle to meet market demands, leading to a gradual contraction in its scope of application. Meanwhile, equipment manufacturers with robust R&D expertise and strong financial resources are better positioned to overcome technological bottlenecks, seamlessly integrate into smart‑manufacturing ecosystems, and leverage their equipment advantages to expand into new operational domains—securing market share early and establishing a competitive edge. Looking ahead, market share is likely to concentrate further among leading companies.

IV. Development Trends in the Parking Industry; The Smart Parking Sector’s Evolution Toward Integration

 

At present, China has over 385 million licensed drivers, with electric vehicles growing at an annual rate of 30%. Nationwide, there are 800,000 parking facilities, 30 million off-street parking spaces, and 3 million on-street parking spaces. Looking ahead, China still faces a shortfall of 50 million parking spaces.

Smart parking falls under the category of static traffic management and, based on parking location, can be further divided into on-street parking and off-street parking. Leveraging technologies such as the Internet, telecommunications, GIS-based positioning, cloud computing, and the Internet of Things, smart parking systems collect parking‑space data through a variety of terminal devices, thereby maximizing space utilization and optimizing the parking experience. These systems enable functions such as parking‑space information retrieval, space reservation, online billing, and automated payment.

From a developmental perspective, China’s smart parking industry is transitioning from Phase 2.0—focused on extended parking‑related applications—to Phase 3.0, which centers on intelligent platforms. The key distinction lies in whether it can break down the “data silos” among major parking facilities and seamlessly integrate with ecosystems beyond parking systems, such as autonomous driving, vehicle‑to‑everything (V2X) networks, and 5G technologies.

The smart parking industry is trending toward consolidation.

1. With the entry of industry giants, exploring potential business collaborations.

In February this year, Ant Financial invested RMB 200 million in Jie Tingche. In August, Xiamen Kotuo Co., Ltd. announced that it had secured a strategic investment from Tencent’s industrial fund. The leading parking‑app providers on the market have all integrated Alipay and WeChat Pay, and offer either WeChat mini‑programs or official accounts. Baidu has entered the smart‑parking sector through strategic partnerships. Back in 2014, Parking Baishitong—focused on sharing and reserving parking spaces—established a strategic collaboration with Baidu. This May, Baidu struck a strategic partnership with ETCP, enabling drivers to use Baidu Maps’ “Parking Payment” feature or the ETCP app to access real-time parking‑space information, navigate to parking lots, and enjoy contactless electronic payment for entry and exit—all part of its suite of smart‑parking services.

The entry of BAT brings not only capital for parking‑lot renovation and upgrades, but also internet‑based operational expertise—and the capability to generate “synergies” with smart‑parking solutions through their own business lines. Take ETCP, a heavy‑asset player, as an example: targeting the B‑to‑B market, it offers parking operators a comprehensive software‑and‑hardware suite free of charge, along with lifetime maintenance and free, perpetual upgrades, under a “three‑free” policy, thereby capturing market share in first- and second‑tier cities. To date, ETCP has deployed its system across more than 6,300 parking facilities nationwide. In 2018, parking‑industry players are increasingly focused on tightly integrating their proprietary parking‑lot resources and data with Baidu Maps’ city‑level infrastructure capabilities—sharing data, opening up resources, and building out intelligent transportation and smart‑city ecosystems.

2. Enhance B2B service capabilities

Smart parking is a B2B business. With the exception of parking companies that offer parking‑space sharing to individual drivers, this sentiment was echoed in interviews with numerous players across the industry. On the surface, every parking space serves end‑users; in reality, parking operators primarily engage with B‑to‑B clients—such as property managers and commercial‑complex operators—since decisions about which equipment to deploy and which data to share are largely dictated by these B‑to‑B partners. As Li Min, CEO of Jie Parking, once stated in a public address: “Smart parking must be a seamless integration of B‑to‑B and B‑to‑C. While the end‑user experience is undeniably critical, addressing the pain points of B‑to‑B customers must come first.”

According to reports, even while pursuing a “heavy‑asset model” and offering B2B customers a “three‑free policy”—free equipment, free installation, and free maintenance—ETCP has tempered its previously lavish spending approach and is now focusing more on identifying high‑quality parking facilities and serving premium clients.

3. The automotive after-sales service sector is still in its infancy.

Automotive after-sales services encompass vehicle washing, detailing, repairs, routine maintenance, and body‑and‑paint work. According to statistics, China’s total number of registered motor vehicles reached 310.1 million in 2017. During an interview with Kotuo Co., Ltd., General Manager Sun Longxi revealed that the company’s parking brand, “Sù Tíng Chē,” processes 400,000 to 500,000 transactions daily, ranking first in transaction volume on WeChat’s backend parking platform. For smart‑parking companies commanding substantial driver traffic, the automotive after-sales market is undoubtedly a lucrative opportunity. However, platforms such as Xiaoju Car Services, Huasheng Haoche, Guazi Used Cars, and Didi have yet to devise effective ways to integrate their services with parking‑lot operations. The convergence of automotive after-sales services and smart parking remains in its early stages; one notable attempt comes from companies like eDaiBo, which offer valet‑parking services. By leveraging human operators to handle parking on behalf of customers, these services allow users to arrange for vehicle maintenance during periods when their cars are not in use. Nevertheless, challenges persist—issues of trust, variability in short‑term parking durations, and the need for coordinated collaboration among service outlets—all require careful resolution.

4. Explore the adoption of new technologies such as autonomous driving, vehicle–infrastructure cooperation, and 5G.

During the National Day holiday, China Telecom, in collaboration with several telecommunications equipment vendors, successfully completed pilot deployments of 5G SA (standalone) networks in Shanghai, Shenzhen, Xiong’an, and other locations, laying a solid foundation for the future commercial rollout of 5G. The advent of the 5G era heralds enhanced communication capabilities and presents significant opportunities for technologies such as autonomous driving and vehicle‑road coordination. As a key node and integral part of the transportation system, parking facilities will likewise be swept up in a wave of upgrades and modernization.

5. The smart parking industry is accelerating its consolidation.

At present, the number of smart‑parking companies remains substantial, and in third‑tier and lower‑tier cities, many smaller hardware manufacturers still have room to operate. However, as noted earlier, the smart‑parking sector places a strong emphasis on B‑to‑B customers, parking‑lot throughput efficiency, and incident‑response capabilities, which inevitably demands sophisticated service‑delivery expertise. Consequently, large enterprises with robust resources, strong operational capabilities, and solid commercial acumen will enjoy a distinct advantage. In first‑tier cities, the sheer volume and frequency of service‑response requests make them hotly contested battlegrounds for smart‑parking firms. From the consumer perspective, juggling numerous apps or linking up with a dozen parking mini‑programs can be quite cumbersome. As Sun Longxi, General Manager of Kotuo Co., Ltd., observed: “Over the next two to three years, the smart‑parking industry is likely to see a wave of mergers and acquisitions,” accelerating industry consolidation.