Governments around the world are aiming to make their cities smart. In other words, they want to leverage the Internet of Things (IoT) applications to monitor and manage their cities more efficiently. But what is the solution to deploy millions of sensors, cameras and control technologies across sprawling metropolises? The answer is street lighting, the largest network of powered devices across the world.

In the latest report from Counterpoint Research’s IoT service, they show how smart street lighting can form the IoT backbone for smart cities. They showcase the business opportunities for both vendors and cities by going through case studies, existing technologies and assessing the challenges.

Counterpoint Research estimates that less than 18% of the world’s 350 million street lights are LED, with fewer than 2% connected, offering vendors tremendous growth opportunities. Discussing the findings, Neil Shah, Research Director at Counterpoint Research says, “We expect 15% of global street lights to be connected by 2023. This would mean at least 50 million more street lights will be connected creating a large opportunity for companies like Huawei, Telena, Signify and others. A connected street lighting network, complete with sensors and control technologies, can form the backbone for a city-wide network capable of acquiring data, delivering information from millions of devices (from rubbish bins to autonomous vehicles), and monitoring everything from crime to traffic and even the weather.”

Not only can smart street lighting help in monitoring key aspects of a city, it can also generate additional revenues for the city administration. For example, cities can rent out lamp post-mounted digital signage spaces for advertising. It is a model that has proven successful by LinkNYC which is expected to generate over US$1 billion in advertising revenues in its first 10 years of operation.

Gareth Owen, Associate Director at Counterpoint Research adds, “Business cases for smart street lighting networks are still being developed. However, they offer a large potential for cities to generate additional revenue streams. Smart lighting poles could be leased out as Wi-Fi hotspots, 4G/5G base stations, digital signages, and many other such uses. The professional lighting industry is already embracing IoT and will play a significant role in transforming the street lighting network into a major backbone for IoT.”

Another benefit of a smart street lighting network with LEDs lies in energy and operational cost savings. By deploying smart street light projects, Los Angeles and Oslo have seen energy savings of 63% and 62%, respectively. Similarly, smart street lights have helped Saudi Arabia save 50% of its power costs. While operational cost savings depend on the costs the operator currently incurs to maintain its lights, smart street lighting with LEDs offer benefits such as longer lifetime, remote monitoring and management allowing for switching off, or dimming the lights when required, predictive maintenance, and automatic outage detection. These benefits have already started to change the outlook of cities for selecting vendors.

Gareth Owen goes on to explain, “We expect 45% of the global street lighting network will have LEDs by 2023. As smart lighting networks are deployed, cities are moving away from traditional tendering methods in favor of a Total Cost of Ownership (TCO) system which changes the business model from a high CAPEX outlay along with OPEX to a pure OPEX solution. Several smart lighting companies are already offering Lighting-as-a-Service (LaaS) business models in which customers pay per lux, i.e. on a usage basis, rather than simply paying for devices and a standard managed service.”

However, as with any new technology there are hurdles. “While the use of smart lighting infrastructure as a technological foundation for a smart city is a very promising prospect, a few challenges must first be overcome. Business models need to be adapted further to include the value of all supported services and not just lighting. Further, issues on connectivity, operational barriers, security issues, ownership challenges and lastly, infrastructure challenges need to be resolved,” Owen adds.

Companies mentioned in this report include Huawei, Cisco, Telena, Signify, Itron, Cleverciti, Echelon Corp., Rongwen, Current (powered by GE), Flashnet, Sensus, gridComm, DimOnOff, Trilliant, Acuity, Ubicquia, Tvilight, Enlighted, AT&T, Verizon, Sansi Technology, ZTE, Philips and Ruchi Telecom.

The report is available for subscribing clients and for purchase on Counterpoint’s research portal. Please feel free to reach out to press@counterpointresearch.com for further questions regarding their in-depth latest research, insights or press enquiries.

About Counterpoint Technology Market Research

Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in high-tech industries.

City of Dubai

As cities look to plan for rapid population expansion, and to make the most out of their infrastructure, one of the first places they might focus on is parking. An increasing number of cities have started to eliminate minimum parking requirements for developers, aiming to increase walkability and decrease car dependency.

This trend brings to light the problems with existing infrastructure. The need is to establish a highly functional and efficient parking management solution that ensures resident satisfaction and utilizes the existing parking lots and on-street parking throughout the city.

The metropolitan parking picture

Parking can be a daily struggle for some, as in attempting to find a nearby yet affordable space to park for work in an office building. It’s also a problem during particular occasions, as hundreds gather around a few blocks or streets for a farmers market or holiday festival.

But, perhaps surprisingly, the fact of the matter is that there are plenty of parking lots available in cities. For example, one study shows that there are 2.2 million total parking spaces in Philadelphia and 1.85 million in New York City.

The problem lies in the way that these spaces are typically managed, which is proven to be inefficient. Drivers are often left frustrated and spend too much time searching for a spot, due to lack of immediate awareness of where spaces are open. Reliable, real-time data that allows drivers to choose between on-street parking, surface lots or garages is not available.

By bouncing between lots and garages that are full, drivers become restless and may choose to park illegally or leave altogether, creating a loss for the city in more ways than one.

The importance of guidance

Implementing an integrated, intelligent parking management solution allows cities to make the best use of their most valuable asset.

The most important aspect of achieving a streamlined parking experience is real-time guidance to all parking options and reliable, live information and updates. If a driver travels downtown and is looking to park somewhere central for a day of shopping, he or she must be made aware of which public on-street parking, surface lots, or garages are full before taking the time to search them for an open space. Sensors installed on light posts can provide an immediate overview of the occupancy of parking in the city, allowing drivers to make well informed decisions when navigating the lot and surrounding street parking spaces.

This type of live monitoring is especially beneficial for cities when they’re host to a particular event. A garage, lot or street can be controlled based on specific parameters, such as the price and duration, while also creating certain restrictions as necessary.

Serving residents for the greater good

The technology solutions that exist for managing municipal parking must coincide with the desire for city officials to improve the process. Cities increasingly care about their parking situation for a number of reasons:

Revenue

Deploying a cost-effective parking management and guidance solution ultimately generates more revenue for a city, as existing parking spaces are properly monetized. Drivers are more motivated to pay for a spot when they know they’ll be able to find it quickly, without having to circle around in vain. The awareness by drivers that all spaces are monitored by a modern system further increases the understanding that it is fair to pay for the valuable public space and service.

An example of this type of monetized parking policy at play can be seen when we take a look back at the history of Old Pasadena, the original commercial center of Pasadena, a city in California. The city installed parking meters in 1993 to improve its on-street parking situation, with a promise to use the meter revenue on public investments in Old Pasadena. Improvements to sidewalks, alleys and streets were made, while more customers were drawn to the area due to the regulated curb parking.

Service

Utilizing the Parking as a Service model is paramount for businesses and retailers, but its principle applies to cities as well. Officials should aim to provide residents and visitors with a stress-free, enjoyable experience, not one that is compounded by obstacles when trying to enter and exit the city.

Parking as a Service is driven by the deployment of innovative technology, which is typically seen in smart parking services. The Smart City of Dubai, for example, leverages sensors on lampposts to detect 1,100+ spaces in the World Trade Centre District and Sheik Zayed Road.

Public perception

The general perception of a city is impacted by its traffic and parking conditions. More people are likely to choose to spend their time and money in an urban environment where they know their parking concerns are understood and addressed.

A building in the Galeria Kaufhof Shopping Center in Cologne, Germany, for example, reduces parking search traffic in the entire city’s center and sustainably improves quality of life by utilizing a long-range parking sensor at the facade of the building.

As cities continue to thrive and population increases bring newer parking restrictions, it’s inevitable that managing parking in these locations will only become more critical. By applying the time and effort to invest in a solution that takes advantage of the space that already exists and simplifies the overall experience, urban areas can achieve one of their most important goals: happy citizens.

One of the biggest influencers when it comes to the way residents and visitors view a city and its infrastructure is the ease of travel and parking. Whether drivers are headed to work downtown on a Monday morning, touring the nightlife on a Friday evening or attending a weekend sports game, the desire to quickly and efficiently locate an open parking space is typically top of mind.

But this isn’t always easy, as various challenges make parking in a city complicated. Municipalities face the balance of wanting to keep residents happy while also providing a welcoming atmosphere to out-of-towners when an influx of traffic occurs. And as cities in the United States continue to grow — population estimates from the U.S. Census Bureau show that San Antonio, Texas, adds more than 60 people a day on average — the parking process will only become more complex.

With the elimination of parking minimums popping up around the country, the key for cities in the United States becomes prioritizing smart parking management for the lots and garages that currently exist. There is an overabundance of spaces in numerous cities, such as New York and Philadelphia, but with improper and inefficient management, these critical assets quickly lose their value.

A crucial component that’s typically missing in today’s city parking environments is guidance. In a study conducted by the International Parking Institute in 2018, 43 percent of respondents said the demand for guidance systems to help drivers find parking was one of the top emerging trends in parking for the year.

By implementing an integrated, intelligent parking management solution, cities can guide drivers to the closest available parking space, rather than requiring them to circle around endlessly after being turned away at the nearest option. Real-time updates with reliable and live information captured from sensors on light posts facilitate intelligent parking decisions that are based on data, not luck.

This kind of parking management solution would be especially beneficial for a city when dealing with a major sporting event, such as the recent Super Bowl held in Atlanta. Ahead of the game, officials prepared for the remarkable amount of traffic expected, which included a possible 150,000 out-of-town guests and more than one million attendees during the 10-day span of events. Hartsfield-Jackson International Airport also saw a record-breaking number of passengers the day after the game.

A smart parking management solution would not only improve the flow of traffic for drivers who attended the game, but it would also provide operators with enhanced monitoring and insight into the various parking operations around the city. This would then enable officials to ensure the proper protocols are being followed and adjust aspects where necessary.

In order for cities to convey that they care about their residents and visitors, they must take into consideration today’s parking challenges and optimize the experience for all involved, which begins by leveraging a smart parking management solution. Learn more about how your city can benefit from Cleverciti’s technology.

Smart parking and IoT

The Internet of Things (IoT) has begun to permeate nearly every aspect of our daily lives; from entertainment to security to self-driving cars, it’s hard to find one industry that hasn’t taken advantage of the IoT’s ability to seamlessly connect smart devices and facilitate communication.

The IoT provides a host of benefits to a number of markets, with urban areas at the top of the list of those seeing a significant impact. The Smart City is empowered by the IoT, relying on connected devices to improve infrastructure and quality of life. In fact, according to recent research from IoT Analytics on 1,600 real IoT use cases, the largest amount of projects were part of Smart City initiatives.

Of the many fashions in which municipalities can benefit from the IoT, its role in traffic management is one of the most valuable. Cities frequently face a variety of challenges when it comes to traffic and parking, such as exceeded emissions limits, long search times for a parking space, valuable parking space not being monetized and more.

Solutions that utilize the IoT can effectively mitigate these issues. Real-time detection of available on-street parking spaces decreases traffic and pollution and reduces the required time and distance to park, improving mobility. Additionally, these solutions incentivize drivers to pay for parking, allowing cities to capture revenue from one of their most important assets and make the most out of their parking spaces.

The IoT also enables cities to automate processes that may be time consuming or costly. These solutions can continuously monitor traffic patterns or parking restrictions, such as delivery zones or handicap spaces, and implement the proper control, such as verification or a violation.

The overall enhanced traffic management achieved through IoT devices contributes to a comprehensive Smart City initiative that can vastly augment decision-making and operations. And the IoT’s effect doesn’t stop there: cities are seeing improvements to healthcare, commerce, government services and more. Smart grids can more efficiently transmit electricity, while wireless irrigation networks can promote water conservation.

The opportunities the IoT provides to cities are truly revolutionary and stand to revamp and boost an endless number of systems. And the examples above are just the beginning; as more data is collected and further use cases are identified, the possibilities will only expand.

LAKE FOREST, Ill. – May 14, 2018 – Leading parking technology provider Cleverciti today launched Circ360™, the industry’s first 360-degree overhead display that provides real-time digital traffic flow information and advertising space for open-air parking lots.

“The Circ360™ LED displays are ideal for venues like shopping malls looking to enhance the overall customer experience,” said Thomas Hohenacker, founder and CEO, Cleverciti. “The Circ360™ turns the daily headache of parking into a simple service that retail property owners can offer their tenants and guests.”

The accurate and reliable Circ360™ is an omnidirectional floating LED sign that displays live parking information and messaging from retailers in 360 degrees. It can be mounted on existing lampposts of any size within 15 minutes. The displays are ideal for a range of dynamic on-street and open-air digital signage applications, including local parking availability, advertising, smart city data, security notifications and more.

“Shoppers spend 10 to 12 minutes on average searching for a parking space when they visit a mall,” added Hohenacker. “This results in significant lost revenue for retailers because customers may spend less time shopping or potentially leave out of frustration.”

Now in daily operation in more than 19 countries worldwide, Cleverciti’s high-precision overhead parking sensors and innovative Cockpit management software empower cities and property owners to manage parking in a more intelligent and efficient way. Cleverciti helps reduce traffic congestion and emissions, while dramatically improving the parking experience for consumers. It also helps grow revenues for cities, airports, malls and numerous other businesses.