Parking as a Service: the business model evolving in smart cities

As cities grow, and the number of private vehicles with them, the management of parking spaces becomes one of the main urban challenges. Finding a free space, especially in historic city centres, is becoming increasingly difficult and involves a greater effort for both drivers and the public administration. In this context, the concept of parking as a service (PaaS) emerges as an alternative to the traditional model.

How parking is evolving

Traditional parking

Parking in cities around the world has traditionally been seen as a static infrastructure where drivers search for and take up available spaces on streets and in public or private garages. Today, this model has proven to be no longer efficient, leading cities to face a high demand for spaces and problems such as traffic congestion, environmental pollution and high levels of stress among the population.

Smart parking

The use of advanced technologies has left behind the form of parking we were acquainted with and replaced it with smart parking. These technological innovations allow for better management of available spaces and improve the drivers’ experience, who no longer drive blindly through the streets, but make informed decisions thanks to the real-time parking data provided by these systems.

Parking as a Service (PaaS)

While smart parking represents a major breakthrough in the management of limited parking spaces in many cities, we are gradually seeing the Parking as a Service (PaaS) model go a step further. This combines smart parking technologies with more connected solutions to offer a service that adapts in real time and more specifically to the needs of both users and cities to provide an even more complete solution.

Key technologies in parking as a service

Internet of Things (IoT)

IoT-equipped sensors connect in real time to monitor space availability and occupancy, and collect other relevant data such as parking duration and usage patterns. This information is crucial for providing users with customised services.

Artificial Intelligence (AI)

AI algorithms are able to analyse large volumes of data to identify patterns and trends, which is very useful for adjusting prices in real time and recommending the best parking spaces to users based on their location and needs. This optimises both the user experience and the efficiency of the system.

Big data analysis

By allowing us to collect and analyse information from a variety of sources, big data gives us a comprehensive view of how users use parking spaces in the city. These data are crucial for managers and businesses, as they allow them to make informed decisions for resource allocation, urban planning and new infrastructure development.

Benefits of parking as a service

Space optimisation and less traffic and pollution

Parking as a Service, like smart parking, optimises the management of available parking spaces in the city, reducing the need to build new infrastructure by making better use of the existing. This frees up urban areas for other more productive uses and tackles the main problems: the search for vacant spaces that contributes to congestion and environmental pollution. By providing real-time information on the availability of parking spaces, PaaS is able to reduce the time drivers spend circling the streets looking for parking.

Guiado de parking urbano

Urban parking guidance

Reduce the time spent searching for on-street parking in urban environments and the resulting congestion by guiding drivers to available parking spaces.
read more

Better user experience

Parking as a service makes it easy to find available parking spaces, book in advance and make payments via mobile apps. This significantly reduces the stress and frustration associated with the prolonged search for parking.

New business model generation

The PaaS model also opens up new business opportunities. Cities can centralise parking space management, enabling continuous optimisation of urban infrastructure and offering new streams of revenue and innovative services.

The future of parking as a service

Integration with mobility as a service

One of the most envisaged trends in smart cities is the integration of parking as a service with the concept of mobility as a service (MaaS). This latter model proposes an even more seamless connection between different modes of transport, centralising services and expanding mobility options for users.

Impact of self-driving vehicles

The possible arrival of autonomous vehicles, capable of parking or moving on their own, would completely change the management of parking spaces. To adapt to this new reality, the PaaS model will need to implement initiatives such as remote parking areas and automated charging stations.

Sustainability and social responsibility

In addition to promoting the responsible use of urban resources, PaaS could help prioritise parking spaces for electric vehicles, which would encourage the use of cleaner technologies, or facilitate the use of public transport networks, among other measures.

The Parking as a Service (PaaS) model is presented as a next step in smart urban management and the way citizens interact with their cities. This approach combines technologies such as the Internet of Things (IoT), artificial intelligence (AI) and big data analytics to optimise the use of parking spaces, improve the user experience and reduce congestion and pollution in cities. PaaS also opens up new opportunities in space management, addressing not only immediate problems but also adapting to new trends for more sustainable urban development.

¿Want to know more about Smart Cities?

Contact us and discover how we can help you.

Contact