June 19, 2024
Self-Storage Market

Growing Demand for Flexible Lifestyle Options Drives Growth in the Self-Storage Market Trend

The self-storage market enables flexible storage solutions for residential and commercial applications. Self-storage facilities provide an affordable option to store excess household and office items long or short term. Ranging from climate-controlled mini-warehouses to storage units with varied sizes, self-storage addresses the need for flexible storage space.

The Global Self-Storage Market is estimated to be valued at US$ 64,331.79 Billion in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2024 to 2031.

Self-storage provides an efficient solution for temporary storage needs for multiple purposes like residential or office relocation, downsizing, housing essentials during renovation, archiving less frequently used records and inventory. The facilities are a cost-effective alternative to paying high rent for additional living or office space. Evolving work styles and portable careers have increased demand for flexible housing and workplace options. Self-Storage Market Trend addresses the need for temporary or long-term storage in small affordable units. Advancements in security, digitization of records and self-service access have enhanced usability and customer experience in self-storage.

Key Takeaways

Key players operating in the Self-Storage Market are Operators (Duke Energy Corporation, EON SE, Enel SPA, and Electricite de France SA, and Iberdrola SA) Technology Providers (General Electric Company, Siemens AG, Andritz AG, Mitsubishi Heavy Industries, Ltd, Voith GmbH & Co. KGaA, and Ansaldo Energia SpA).

Growing demand for flexible lifestyle and housing options especially in urban areas is a key factor driving the self-storage market. Downsizing households and multiple residential relocations have increased usage of self-storage facilities for temporary storage needs. Furthermore, the gig economy and remote working trends are propelling demand for flexible workspaces and storage solutions.

The self-storage market has seen notable global expansion over the past decade supported by growing consumerism, increasing disposable incomes, and evolving customer storage needs. North America dominated the self-storage industry historically but emerging markets in Asia Pacific and Europe are seeing substantially increased valuations and investments into self-storage real estate. The global market is projected to further growth with rising urbanization worldwide.

Market Key Trends

Affordable pricing and flexible rental terms have made self-storage an increasingly popular solution among residential and commercial customers globally. On-demand accessibility through mobile and digital interfaces have augmented the self-storage experience. Popular operators offer digital access control for units along with remote monitoring and payment options enhancing usability. Furthermore, self-storage facilities now provide additional value-added services like cardboard boxes, locks, and insurance for stored items. These features strengthen customer retention in the evolving self-storage marketplace.

Porter’s Analysis

Threat of new entrants: Low cost of entry and accessibility of land, however strong branding and economics of scale favor incumbents.

Bargaining power of buyers: Buyers have moderate bargaining power given storage needs are consistent. However, limited switching costs between storage facilities.

Bargaining power of suppliers: Suppliers have low bargaining power given storage assets, technology and construction are relatively standard.

Threat of new substitutes: Low threat as self-storage addresses unique long-term storage needs not met by alternatives like moving trucks.

Competitive rivalry: High as facilities compete on location, amenities, prices and marketing for local customers.

Geographical regions

North America holds the largest share of the self-storage market currently as the US accounts for over 50% of the global self-storage space. Factors like smaller living spaces and high resident mobility have fuelled self-storage demand growth.

The Asia Pacific region is poised to be the fastest growing regional market between 2024 to 2031 with countries like China, Japan and India emerging as new hotspots. Rapid urbanization, rising income levels and changing lifestyles are driving self-storage space take-up in major Asia Pacific cities.

*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it