The Thai parking industry is at a critical stage of transformation from traditional models to intelligent and automated models, and its development presents the following five characteristics:
Industry characteristics
1. The contradiction between supply and demand is prominent, and urban parking resources are tight
- The number of cars in core cities such as Bangkok has exceeded millions, but the supply of parking spaces is seriously insufficient, resulting in widespread illegal parking on the roadside and low traffic efficiency.
- The road area in Bangkok accounts for only 8% of the total urban area, far lower than Tokyo (23%) and New York (32%). The scarcity of land resources has pushed up the demand for parking buildings and automatic parking systems.
2. Smart parking started quickly and technology penetration accelerated
- Smart parking systems have been implemented in high-end shopping malls, office buildings and residential projects, using technologies such as IoT, AI, license plate recognition, and APP payment.
- Semi-automatic parking systems will occupy the largest market share in 2022 because of their low cost and easy maintenance, suitable for small and medium-sized projects.
3. Policy and capital drive
- The government launched the "Thailand 4.0" strategy to encourage the construction of smart cities and attract social capital into the field of parking infrastructure through fiscal subsidies, tax incentives, and PPP models.
4. The initial formation of the industrial chain
The market is mainly composed of three types of entities:
- Equipment suppliers (such as license plate recognition, gates, cameras);
- Solution providers (system integration, data analysis);
- Operation service providers (daily management of parking lots).
5. Strong recovery after the epidemic, driven by commercial demand
The epidemic has caused construction to stagnate, but the market will recover from 2023, benefiting from the recovery of tourism, hotel expansion (such as Radisson's plan to add 100 hotels) and office building construction (such as One Bangkok, Dusit Central Park).