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How smart parking is tackling China’s parking crisis

In 2018 that the number of cars on China’s roads exceeds 385 million, revealed a study published by Tsinghua University. With only an estimated 800,000 parking lots and 30 million of-street parking spaces, China is facing a parking crisis. There is also a strong uneven distribution of those parking spaces. On average first and second tier cities have 0.8 parking spaces available per car, with the availability in small and medium-sized city dropping as low as 0.5 parking spaces per car.

Furthermore, simply finding a parking space where it is needed is nearly impossible. Parking in those spaces can also be difficult for novice drivers, with many being extremely small. Once a parking space is found, drivers are faced with fees that are not transparent and very high.

Inefficient parking also significantly impacts traffic flow. Statistics show that 30% of traffic congestion problems are caused by parking difficulties, and 48% of vehicles need to wait in line when entering and leaving the parking lot.

With the number of cars on China’s roads steadily increasing, parking is becoming a top priority.

Smart parking is becoming the “new favourite” industry

The commercial value of the parking industry is enormous. China has an estimated parking gap of 60 million. The China Industrial Research Institute predicts that the smart parking industry will reach a market size of RMB 10 trillion in the future. In addition, there are data showing that the market size of smart parking in the first half of 2018 has exceeded 10 billion globally. Currently the smart parking industry has a scale of USD 26 billion, growing at a rate of 18%.

Smart parking can use parking data in various regions, and allocate parking spaces based on availability, thus improving parking space utilisation.  The system allows users to reserve and find parking spaces with the ease of their mobile phones. Furthermore smart parking creates a more transparent and fair pricing system. Payments can be made online based on a clear pricing structure. The system is self-managing, therefore further reducing parking costs.

Smart parking – still not that smart

Work on smart parking systems started in early 2014. Although the market reached a global scale of 10 billion, the system has not been applied on a large scale. In China coverage currently reaches only around 7%.

The reason that smart parking is not developing as fast as initially hoped for is because smart parking is not yet smart enough. The industry is currently highly fragmented with 38 different enterprises developing systems independent from each other. Currently no public data sharing platform exists. Furthermore, developing the necessary infrastructure is incurring high costs. Smart parking requires the use of wireless communication technology, mobile technology, GPS positioning technology, etc. In addition, engineering integration costs are high.

China Report Network data shows that 800,000 parking lots nationwide can be considered for smart parking in the next 5 years. The cost of converting a single parking lot is about RMB 100,000, making the overall expected costs at RMB 160 billion.

According to data released by Zhiyan Consulting Network, the number of car ownership in China is expected to reach 280 million by 2020 and 360 million by 2025. In 2017, the demand for parking spaces reached 270 million. In 2018, the demand for parking spaces will be nearly 300 million, with an annual growth rate of 11%. By 2025, parking demand will reach 600 million. Currently only 250 million parking spaces exist. Although smart parking can significantly increase utilisation rate of existing parking spaces, it will not be able to resolve the fundamental issue – insufficient parking spaces for increasing numbers of cars.

5 Things to look out for at the 2018 Tencent Global Partner Conference

On 1 November the 2018 Tencent Global Partner Conference will open in Nanjing Jiangsu Grand Theatre. This will be Tencent’s first industry conference after having gone through restructuring earlier this year. This will also mark the first event ahead of Tencent’s 20th anniversary this year. There are 5 things we are particularly looking forward to at the conference.

1. The release of Tencent’s 20th anniversary film “River”

Tencent’s 20th anniversary film is called “River” and will footage from the foundation of the company, developments over the past 20 years as well as the company’s vision. According to a company spokesperson the film has been named “River” to show the continuous forward movement of the Tencent. The film is said to be centred on Tencent’s mission to jointly build a “Digital China”. The film has sparked wide excitement amongst industry experts as it is expected to set the tone for the company’s future development.

2. Internet driven development

On 30 September Tencent announced the third group restructuring which many industry experts saw as Tencent’s attempt to focus on internet driven development.

The 2018 Tencent Global Partner Conference will see the attendance of China’s leading smart technology and artificial intelligence companies. Industry experts will be paying close attention during the conference at Tencent’s strategy for internet driven development and future goals.

3. Science and Culture Show

Over 125 companies will be presenting their project around one of the three themes at the conference: Innovation Block, Cultural Garden and Science and Technology Forest.

The Science and Technology forest will see projects like “sister” robots, and vehicles equipped with Tencent’s automatic driving system. Projects in the Culture Garden will include a DreamWorks art show. The Innovation Block features the latest innovations of the smart industries from everyday routines to an augmented reality mobile phone tour of Yunnan.

4. The Future of Speech

This session of the conference is especially focused about how speech and language will be used in the future across industries. It will look at how speech will affect the creative industries as well as how new technologies will use speech as a direct communication tool. The session aims to connect researchers, entrepreneurs and artists to explore the use of speech and its future application.

5. New Wenchuang Open Day

The conference will host the two-day open day at the 6th National Theatre of the Jiangsu Grand Threatre. China’s leading cultural and creative industry representatives have confirmed their attendance and the opening will simultaneous screen popular film and television programs. The open day will also host a creative exchange where guests can share short videos, vlogs, movies, TV series and etc.

Are you planning to attend the 2018 Tencent Conference? These are the 5 things we are most looking forward to. What are you looking forward to? Let us know in the comments.