Assignment 2 - Reader Response on Smart Parking Systems (Revised 4/12/2020)

In the article “IoT based Smart Parking for Smart Cities”, Joshi (2020) discusses the need for a smart parking system that will effectively reduce the time spent to find a parking space. Smart parking uses sensors to detect vacant parking spaces, which will then push the data to the cloud to provide ease of accessibility to users finding a lot. The data collected could also provide insight into the “correlations and movements of users”, which can be translated to potential business opportunities such as app developments and better traffic flow in the future. Joshi also mentions that the implementation of an Internet of Things (IoT) gateway will allow data to be “analyzed and managed from a remote-control center in real-time”, increasing efficiency and granting admins ample time to rectify faults promptly. The challenge, however, is for IoT solutions to transfer the necessary data to the cloud without discarding any current assets, utilizing minimal resources, and increasing the return of investments (ROI) of the parking systems. The article presents a well-balanced view in which smart parking can benefit from the introduction of IoT, but lacks elaboration on the utilization of a mobile application for payments and the high upfront costs of a smart parking system.

The first weakness is the lack of elaboration on the utilization of a mobile application for payments. This can be seen in well-developed countries, where users are actively engaged in their smartphones on buses, trains, etc. For example, San Francisco was one of the pioneers to implement smart parking pilot projects to manage the city’s bustling traffic conditions. The projects used a dynamic pricing model to regulate the number of cars in the vicinity, with “prices ranging from a minimum of 25 cents to a maximum of $7 per hour” (Xiong, 2018). The implementation of such systems yielded substantial results showing that users were less inclined to look for parking lots with high parking fees, thus effectively reducing the amount of traffic congestion around the city areas.

Secondly, a smart parking system is pieced together in different stages, requiring multiple costs to build and provide regular maintenance. A group of researchers from the Polytechnic University of Milan implemented a simulation model of a smart parking system in Milan’s metropolitan districts and it showed strong positive results when considering large samples. According to Mangiaracina et al. (2017), the project consisted of 80,000 sensors connected via an IoT gateway, 1,200 parking meters, and a mobile application to guide drivers to the nearest parking space. The results found that cars and trucks were able to save an average time of 30% and 40% respectively. Overall, the project would have made a return of its 11 million investment value in approximately two years, derived from its discounted payback period (DPP).

However, another recent study done by the University of Delaware found that it was not cost-effective to implement such systems in the whole city of Newark (Xiong, 2018). The study calculated the net present value (NPV) of actualizing such a plan to be -$65.5 million, indicating that the project would not turn positive in its entire project lifetime. The study concludes that it is not justifiable for cities to prioritize the transition to smart cities in the current situation. While there are significant social and economic benefits to having parking systems, the turnover and maintenance costs involve hefty budgets, which most cities are hesitant to commit.

In conclusion, the implementation of IoT systems in smart parking has shown to positively impact the lives of many users. The benefits of a parking system greatly outweigh the costs of implementing and maintaining it, which would draw more attention and investors to create a sustainable and profitable model for all stakeholders.

Reference

Joshi, R. (2020, February 14). IoT based smart parking systems for smart cities. HIOTRON. https://www.hiotron.com/smart-parking/

Mangiaracina, R. M., Perego, A. P., Tumino, A. T., Miragliotta, G. M., & Salvadori, G. S. (2017). Smart parking management in a smart city: Costs and benefits, 2017 IEEE International Conference on Service Operations and Logistics, and Informatics (SOLI), pp. 27-32, doi: 10.1109/SOLI.2017.8120964.

European Environmental Agency. (2019, April 18). CO2 emissions from cars: facts and figures (infographics). https://www.europarl.europa.eu/news/en/headlines/society/20190313STO31218/co2-emissions-from-cars-facts-and-figures-infographics

Surpris, G. S., Liu, D. L., & Vincenzi, D. A. (2014, October). How much can a smart parking system save you? Human Factor and Ergonomics Society. https://www.researchgate.net/publication/280213474_How_Much_Can_a_Smart_Parking_System_Save_You

Xiong, X. X. (2018). Cost-benefit analysis of smart cities technologies and applications. University of Delaware. 

https://udspace.udel.edu/bitstream/handle/19716/23818/Xiong_udel_0060M_13359.pdf?sequence=1&isAllowed=y

Revised on 4 December 2020.

Assignment 2 - Reader Response on Smart Parking Systems (Draft 1)

In the article “IoT based Smart Parking for Smart Cities” (2020), Joshi discusses the need for a smart parking system that will effectively reduce the time spent to find a parking space. Smart parking uses sensors to detect vacant parking spaces, which will then push the data to the cloud to provide ease of accessibility to users finding a lot. The data collected could also provide insight into the “correlations and movements of users”, which can be translated to potential business opportunities such as app developments and better traffic flow in the future. Joshi also mentions that the implementation of an Internet of Things (IoT) gateway will allow data to be “analyzed and managed from a remote control center in real-time”, increasing efficiency and granting admins ample time to rectify faults promptly. The challenge, however, is for IoT solutions to transfer the necessary data to the cloud without discarding any current assets, utilizing minimal resources, and increasing ROI of the parking systems. While the article presents a well-balanced view in which smart parking can benefit from the introduction of IoT, the challenges form a bias to search for the cost-effectiveness of the solution.

Firstly, it is estimated that Europe’s carbon emission from cars constitutes 60.7% of the total 72% from road transportations (European Environmental Agency, 2019). With the growing attention on carbon emissions, the implementation of IoT comes into play as a determinant of how the system would optimize routes to save costs and emissions. A sample research from Earhart university shows that drivers would be able to save 11 seconds or reduce 48.28 meters from their daily routines while searching for a parking lot, saving a total of 64.3kg yearly in CO2 emissions produced (Human Factors and Ergonomics Society, 2014). Although the numbers from the research were not substantial, it illustrates how IoT can make a clear positive difference in emissions by using sensors and algorithms to better inform drivers on the parking availability.

Secondly, a smart parking research project implemented in Milan yielded strong positive results when considering a larger sample size in the metropolitan districts. According to the article, “Smart Parking management in a Smart City: Costs and Benefits” (2017), the project consisted of 80,000 sensors powered via an IoT gateway, 1,200 parking meters, and a mobile application to connect drivers to the nearest parking space. The results found that cars and trucks were able to save an average time of 30% and 40% respectively. The project would have made a return of its 11 million investment value in approximately two years, derived from its Discounted Payback Period.

However, a recent study done by the University of Delaware found that it was not cost-effective to implement such systems in the city of Newark (Xiong, 2018). The study calculated the net present value of actualizing such a plan to be $-65.5m, which indicates that the project would not turn positive in the entire project lifetime. The study concludes the current situation does not justify for cities to place the smart city concept at the forefront of their plans. While there are significant social and economic benefits to the systems, the turnover and maintenance costs involve big budgets which most cities are hesitant to commit.

In conclusion, the implementation of IoT systems in smart parking has shown to greatly improve the time needed to search for a parking lot. However, the costs of such systems would in some cases far outweigh the benefits, resulting in a net loss for the project’s lifetime. As technology advances, it would be more accessible and affordable for businesses and cities to embrace the advantages of IoT bring connectivity to all users.











References:

Joshi, R. (2020, February 14). IoT based Smart Parking Systems for Smart Cities. HIOTRON. https://www.hiotron.com/smart-parking/

European Environmental Agency. (2019, April 18). CO2 emissions from cars: facts and figures (infographics) | News | European Parliament. CO2 Emissions from Cars: Facts and Figures. https://www.europarl.europa.eu/news/en/headlines/society/20190313STO31218/co2-emissions-from-cars-facts-and-figures-infographics

Surpris, G. S., Liu, D. L., & Vincenzi, D. A. (2014, October). How Much Can a Smart Parking System Save You? Human Factor and Ergonomics Society. https://www.researchgate.net/publication/280213474_How_Much_Can_a_Smart_Parking_System_Save_You

Mangiaracina, R. M., Perego, A. P., Tumino, A. T., Miragliotta, G. M., & Salvadori, G. S. (2017, September). Smart Parking management in a Smart City: costs and benefits. IEEE. https://ieeexplore.ieee.org/document/8120964

Xiong, X. X. (2018). COST-BENEFIT ANALYSIS OF SMART CITIES TECHNOLOGIES AND APPLICATIONS. University of Delaware. https://udspace.udel.edu/bitstream/handle/19716/23818/Xiong_udel_0060M_13359.pdf?sequence=1&isAllowed=y

Assignment 2 - Summary on Smart Parking Systems (Draft 2)

In the article “IoT based Smart Parking for Smart Cities” (2020), Joshi discusses the need for a smart parking system that will effectively reduce the time spent to find a parking space. Smart parking uses sensors to detect vacant parking spaces, which will then push the data to the cloud to provide ease of accessibility to users finding a lot. The data collected could also provide insight into the “correlations and movements of users”, which can be translated to potential business opportunities such as app developments and better traffic flow in the future. Joshi also mentions that the implementation of an Internet of Things (IoT) gateway will allow data to be “analysed and managed from a remote control center in real-time”, increasing efficiency and granting admins ample time to rectify faults promptly. The challenge, however, is for IoT solutions to transfer the necessary data to the cloud without discarding any current assets, utilising minimal resources and increasing ROI of the parking systems.

While the article presents a well-balanced view in which smart parking is able to benefit from the introduction of IoT, the challenges form a bias to search for the cost-effectiveness of the solution.

References: 

Joshi, R. (2020, February 14). IoT based Smart Parking Systems for Smart Cities. HIOTRON. https://www.hiotron.com/smart-parking/