The limited number of new car parks, especially in CBD areas, is hampering the industry's ability to alter its product mix.
Melbourne, Australia (PRWEB) March 07, 2014
The Parking Services industry in Australia has continued to perform steadily, and is expected to post compound annual growth of 4.1% over the five years through 2013-14. Growth in revenue has been supported by strong demand in all market segments. The biggest factor has been the growth in air travel, as airport parking accounts for close to a third of industry revenue and is a large contributor to industry profitability. The concurrent growth in disposable incomes and budget airlines has allowed Australians to travel interstate and overseas in record numbers. On the ground, higher national employment has meant more demand for parking from the almost 70% of Australians who travel to work mainly by car. According to IBISWorld industry analyst Caroline Finch, “growth in employment levels has also boosted income levels, leading to a rise in new car registrations and increased demand for off-peak parking as Australians go out more often after hours.” This has boosted revenue from the daily, early bird and daily casual segments.
Industry revenue is projected to rise by 4.3% to $1.4 billion in 2013-14. Demand for parking services is expected to be aided by continued growth in motor vehicle registration. Revenue prospects for the industry may be hindered by weak growth in employment levels, which may reduce the total number of commuters requiring car parking spaces in CBD areas. “Continued competition from public transport, along with weak growth in demand from commercial and industrial building construction, may also affect revenue throughout the year,” says Finch. The industry exhibits a medium level of concentration, with operators Wilson Parking Australia 1992 Pty Ltd and Secure Parking Pty Ltd dominating in terms of market share.
Industry revenue is forecast to post steady compound annual growth over the next five years. Demand for the Parking Services industry is expected to slow during this period, with declines in disposable incomes and increased unemployment. At the same time, a limited number of new car parks, especially in CBD areas around the country, is hampering the industry's ability to alter its product and service mix. This situation has come about due to council policies against congestion in important locations such as the City of Melbourne and the City of Sydney, as well as increased competition from developers for scarce CBD land in major cities.
For more information, visit IBISWorld’s Parking Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Operators in this industry provide parking space for motor vehicles, generally on an hour, daily or monthly basis. This includes parking garages, parking stations and valet parking. Car parks operated by councils are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
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