Navigant Research Blog

Smart Parking Market: Higher Quantity of Projects, but Smaller Project Sizes

— March 15, 2017

The smart parking industry continues to grow as an increasing number of cities struggle with traffic congestion and inadequate parking availability. However, there has been a notable shift in the market over the past few years. The early stages of smart parking projects were marked by several citywide, high profile deployments—such as those in Moscow (over 11,000 sensors deployed), San Francisco (over 11,000 sensors deployed), and Los Angeles (over 8,000 sensors deployed). Although these projects have demonstrated success in reducing congestion and parking search times, obtaining the necessary funding for similarly sized projects has proved challenging in some jurisdictions without government subsidies. The result has been a move toward a higher quantity of projects being developed (particularly in smaller cities), while the average project size has decreased.

A Prime Example

Cardiff, the capital and largest city in Wales (about 350,000 inhabitants), is one of the latest examples of a smaller city deploying a modest-sized smart parking project. Working with Australia-based Smart Parking Ltd., Cardiff is deploying around 3,000 sensors (in on-street and off-street locations) for its smart parking solution, which is building off a successful pilot program in 2015 that covered 275 parking bays across the city. The solution includes variable message signage directing drivers to open parking spots throughout Cardiff and a smartphone app that provides real-time parking availability and guidance. Additionally, Smart Parking’s software program, SmartRep, collects data from the sensors to analyze how parking spaces are being used. This provides the Cardiff City Council with tools to develop improved day-to-day parking management and future parking policy and planning.

New Developments Spurring Growth

While a higher number of smaller projects has characterized the smart parking market over the last few years, new product and technology developments offer the potential to accelerate adoption in the industry. The trend toward more hybrid and integrated business models is increasing, with a focus on reducing expensive hardware and instead utilizing more software and data applications. Increasingly, smart parking systems are also expected to be integrated with broader smart city deployments such as smart street lighting and automated vehicle infrastructure. Additionally, improving sensor technology is resulting in sensors with extended battery life and increased accuracy. These trends point toward a growing market in the coming years, with the potential for an eventual resurgence in larger smart parking projects. Time will tell if the resurgence in larger citywide deployments will develop incrementally (through separate projects in multiple city neighborhoods) or through a return to large single deployments. Currently, Navigant Research assesses the former scenario (incremental approach) to be more likely in the near term as cities target specific areas with particularly bad congestion.

For more information on the smart parking industry, check out Navigant Research’s report, Smart Parking Systems.

 

Envision Charlotte: Putting Data at the Heart of Smart City Programs

— March 10, 2017

Established in 2011 as a non-profit, public-private partnership to improve energy efficiency and sustainability in the City of Charlotte in North Carolina, Envision Charlotte has a particular place in the growing list of smart city projects in the United States. The founding project was a collaboration between Duke Energy, Charlotte Center City Partners, and a number of supplier partners, including Cisco, Itron, and Verizon, to make 61 large commercial buildings in downtown Charlotte more energy efficient. Today, the program has expanded to tackle a range of projects and sustainability goals, including energy efficiency, water conservation, and air quality. Moreover, the project is having a direct influence on other US cities through the development of the Envision America program.

I recently had a chance to catch up with Amy Aussieker, the executive director for Envision Charlotte, to discuss progress. Aussieker outlined the four key pillars the program currently focuses on:

  • Energy: The program continues to build on the success of its initial project with the city’s commercial buildings. The aim of that project was to reduce building energy consumption by 20%, and it has so far delivered around $20 million in energy savings. A grant from the US Department of Energy is now enabling the project to be rolled out to an additional 200 buildings. The project also seeded a commercial program from Duke Energy to address the potential for energy savings in offices across its service territories.
  • Water: Improving water efficiency and quality is the next priority for the program. Itron, for example, has deployed smart water meters in 22 downtown buildings that are part of the original energy savings program. The goal is to collect data on water consumption for a year to help shape water management programs and to develop benchmarks for building managers. Envision Charlotte is also working with Charlotte Water, the local water company, as it looks to meet growing pressures on the regional water system.
  • Air quality: A growing area of focus for Envision Charlotte is air pollution. Car and truck usage are the biggest contributors to air quality problems in the city, and projects are being established to encourage people to reduce vehicle miles and use local transit systems. However, there is little data available on local air quality conditions, so it is difficult to monitor the impact of specific interventions. The team is examining how it can create benchmarks to show the effectiveness of different programs.
  • Waste reduction: The fourth pillar of the program is waste reduction. Envision Charlotte is trying to help reduce the 5 million pounds of solid waste sent to landfills by the City of Charlotte and Mecklenburg County residents and businesses every day. This is another area where the team is looking to collect more data, particularly around recycling rates and how to improve them.

Looking Ahead, Data Is Key

Envision Charlotte is building on its initial successes, looking to scale up proven solutions and identifying new issues to address. The program also continues to extend its links in the community and has developed close ties with the University of North Carolina, which is hoping to develop a smart city center of excellence.

One thing common to all of the program’s initiatives is the importance given to data collection and analysis. Data is seen as key to understanding the root causes of the issues being addressed and to developing solutions that are effective and viable. Using sensors and smart devices to gather that data is not a technical demonstration exercise, but rather, a necessary step to developing effective programs for change. This helps ensure that investments are made in the right projects while also helping to build momentum and ensure successful programs feed enthusiasm for the next project.

The recent announcement of the 2017 Envision America award winners provides further evidence of the Charlotte team’s impact. The program leverages the success of Envision Charlotte to accelerate deployment of innovative technologies in other cities. The aim is for cities to learn from the experience of Charlotte, but also to find their own model fitting local circumstances and priorities. Charlotte is becoming an important node in the growing network of smart cities worldwide that are sharing ideas and developing robust and effective approaches to common city problems.

 

US Smart Cities Market Continues Momentum through Readiness Challenge Grants

— February 22, 2017

SmartCityThis month, the Smart Cities Council announced the five winning US cities of the Smart Cities Council Readiness Challenge Grant program. These cities—Austin, Texas; Indianapolis, Indiana; Miami, Florida; Orlando, Florida; and Philadelphia, Pennsylvania—will receive a package of benefits from the Smart Cities Council, the world’s largest smart cities network. These benefits include city-specific readiness workshops, as well as an array of products and services from Council member companies. The workshops are expected to help the chosen cities develop a strategic approach toward utilizing smart technologies in a way that increases infrastructure innovation and investment. Some examples of the smart city products and services that Council member companies will be providing to the winning cities include:

  • Ameresco: Consulting services to optimize smart street lighting
  • AT&T: 25 AT&T Internet of Things (IoT) Starter Kits
  • Sensus: Free citywide hosted communications network for 1 year
  • Telit: Free access to the Telit IoT platform
  • Transdev: Up to 3 days of technical assistance in developing more efficient urban mobility options

Each city is focused on its own unique challenges as part of the Readiness Challenge Grants:

  • Austin is focusing on affordable housing, mobility, and economic development
  • Indianapolis has placed an emphasis on smart utilities and transportation
  • Miami is targeting urban resilience and climate adaptation
  • Orlando is centering on a comprehensive smart city plan with multiple department integration and regional stakeholders (with a particular focus on smart transportation and security)
  • Philadelphia is building a regional smart cities ecosystem through a coalition of city, community, business, and educational institutions

Evolving Initiatives

The Smart Cities Council Readiness Challenge Grant program is expected to help the selected cities reach their goals for improved public services and build on the momentum generated by several important initiatives in the United States over the last few years. The White House Smart Cities Initiative was originally launched in September 2015 and included an initial investment of over $160 million for federal research and technology collaboration efforts to help municipalities address key challenges such as reducing traffic congestion, fighting crime, fostering economic growth, managing the effects of climate change, and improving the delivery of city services. In mid-2016, Columbus, Ohio was officially announced as the winner of the US Department of Transportation’s (DOT) Smart City Challenge. The city is set to receive a total of $140 million, with combined contributions from the DOT ($40 million), Seattle-based company Vulcan ($10 million), and a group of local businesses called the Columbus Partnership ($90 million).

These initiatives demonstrate how the smart city concept is being embraced and implemented in the United States. With over 130 cities applying for the Readiness Challenge Grants, US cities are increasingly looking to achieve greater efficiency in the delivery of important public services such as transportation, water delivery, and public safety. Initiatives such as these from the Smart Cities Council, in addition to several national programs, are helping US cities develop long-term digital infrastructure strategies and implement high-impact smart city projects.

 

Better Late Than Never for Smart Cities in Australia

— December 29, 2016

SmartCityAs noted by my colleague Eric Woods in a previous blog, despite being one of the most urbanized countries in the world (with around 90% of the population living in urban areas), Australian cities have played a relatively small and subdued role in the development of smart city concepts and project demonstrations. While Sydney and Melbourne have been promoting building energy reporting and energy efficiency and a number of cities have sustainability goals (e.g., the Sydney 2030 program), there has been little in the way of significant focus and innovation around the key issues of urban development and sustainability.

Federal Government Taking a Larger Role

However, the focus on smart cities in Australia is now beginning to intensify, as the federal government is taking the challenge of updating city infrastructure more seriously. 2017 appears poised to be a significant year for smart city development. The Australian government’s recently announced AUS $50 million ($35.8 million) Smart Cities and Suburbs Program will provide funding to support projects that use innovative technology-based approaches to improve livability and sustainability of cities, building on and supporting the country’s national Smart Cities Plan, which was launched in April 2016. Draft guidelines for the 4-year Smart Cities and Suburbs Program were recently released, and the first round of grant funding is expected to be opened in the first half of 2017.

The draft guidelines include four program priority areas and their key goals:

  • Smart Infrastructure to improve safety, efficiency, reliability, and the delivery of essential services
  • Smart Precincts to make community precincts more livable, productive, sustainable, and safe
  • Smart Services to deliver citizen-centric local government services and improve community engagement
  • Smart Planning to build adaptable and resilient cities through improved land use and strategic planning

These priority areas are indicative of where many global smart city projects and challenges are present today. If successful outcomes and innovative solutions can be achieved from the new plethora of smart city projects to come in Australia, the country could transform from its current follower position into a leadership role as part of the global pursuit of smart cities.

 

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