SELF-STORAGE MARKET ANALYSIS

The global self-storage market size was valued at USD 50,421 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 5.24% from 2022 to 2030. During the past few years, the self-storage market has seen incredible growth. The industry has expanded by investing in more space and attracting institutional money. The growth of the self-storage market has been driven by increased urbanization. As people move to smaller homes and apartments, they need storage space to protect their belongings. The increase in business activity is also fueling the market toward growth.

Global Self-Storage Market: Regional Insights

The global self-storage market is regionally segmented into North America, Asia Pacific, Latin America, Europe, Middle East, and Africa.

North America among regions is anticipated to witness substantial growth in the global self-storage market over the forecast period. This growth is due to growing demand for industrial automation and storage solutions. Moreover, increasing focus on reduction of infrastructure expenditure, real-time data availability, and rise in need for business insights are also the factors boosting the market growth in North America region.

Moreover, Asia Pacific is also anticipated to witness significant growth in the global self-storage market over the forecast period. This growth can be attributed to rise in public awareness, growing small businesses and urbanization in the region, leading to rise in demand for self-storages. The demand for self-storages is mainly driven by factor such as dislocation, density, divorce, death and lucrative business activities. Thus, the region is likely to witness strong growth in the global self-storage market over the forecast period.

Figure 1: Global Self-Storage Market Share (%), By Region, 2021

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Global Self-Storage Market Drivers:

Rise in urbanization across the globe is expected to propel growth of the global self-storage market over the forecast period. Rise in urbanization is significantly impacted the market growth in lucrative way. Due to the rise in urban population living spaces are becoming smaller and highly expensive in cities. This is further increasing number of renters moving around more frequently. For instance, according to Coherent Market Insights, London is a significant example of this trend with 83.65% urban population in 2019. The rate of urban population in this region is expected to increase over 10 million by 2030. Thus, this factor will boost the demand for self-storages, which in turn is likely to support the market growth.

Moreover, changes in business practices is also projected to augment growth of the global self-storage market during the forecast period. The use of self-storages has increased by personal user; however, along with that, the use of these storages is also increasing in businesses. Businesses are becoming highly concerned and aware regarding their cost of storage. As self-storage model provide wide range of diversity in options for both space size and cost of storage, businesses are showing interest in self-storage. This is further projected to fuel growth of the market during the forecast period.

Global Self-Storage Market Opportunities:

Various factors such as job grants, growing population, increasing adoption of growth strategies by market players are creating growth opportunities in the global self-storage market. The demand for self-storages is robust in emerging markets due to growing migration and population in low-cost cities. For instance, as per the United Nations, Latin America and North America are expected witness 83% and 84% urbanization respectively by 2030. Thus, the market is likely to witness several growth opportunities in the near future.

Increasing adoption of novel technologies is expected to generate various growth opportunities in the global self-storage market during the forecast period. For instance, in July 2020, OpenTechn Alliance, formed a partnership with Self Storage Services Inc. to offer Insomniac self-service kiosks. The kiosks supports online auctions, contactless payments and other tasks. Companies in self-storage market are likely to use such technologies in the near future. Thus, this is creating multiple growth opportunities in the global self-storage market during the forecast period.

Global Self-Storage Market Trends:

The adoption of smart devices and cloud technology is a growing trend in the global self-storage market. Predictive analytics is increasingly being used in self-storage industry. Predictive analytics is also known as big data, which is the practice and theory that makes predictions of future behavior of a group from large amount of data gathered in the past. Moreover, the use of revenue-generating technologies, open integration, and management technology is likely to increase due to growing adoption of smart devices and cloud technology. This trend is expected to grow in the market during the forecast period.

Major players in the market are focusing on adoption various growth strategies such as expansion and acquisition, which is projected to support growth of the global self-storage market during the forecast period. For instance, in December 2020, Safe Storage expanded its presence to India with 10,000 square ft self-storage space to cater the increasing demand. The company planned to establish its presence in 9 cities across the country by the end of 2021.

Global Self-Storage Market Restraints:

Factors such as government regulations on storage are expected to restrain growth of the global self-storage market during the forecast period. Various regulations regarding storages implemented by governments around the world are limiting the market growth. These government regulations govern the late-fee amount, which is charged in the self-storage tenant/owner relationship. Such regulation create more complexities in compliance. Thus, this factor is expected obstruct the market growth in the forecast future.

The risk of storage space being used for activities related to terrorism is also likely to impede growth of the global self-storage market during the forecast period. The storage spaces and lockers cannot be accessed by anyone else other than the owner/renter, due to which it creates a risk of people storing suspicious objects in such storage unites. And thus, this factor can limit adoption of self-storage, which is expected to hinder growth of the market in the near future.

Figure 2: Global Self-Storage Market Share (%), By User Type, 2021

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Global Self-Storage Market Segmentation:

The global self-storage market report is segmented into User Type and Region

Based on User Type, the market is segmented into Personal and Business. Out of which, Personal is expected to dominate the global market over the forecast period and this is attributed to the growing demand for additional storage space resulting from expansion of families accumulating more belongings. These factors encourage the establishments for self-storage.

Business segment is also expected to witness significant growth in the near future and this is owing to the increasing need for storage facilities for keeping surplus stock in an inventory in retail businesses among others. Several businesses need self-storage facility for refurbishing or moving offices or simply to store lesser-used items. Thus, demand for self-storage is business segment continues to increase.

Global Self-Storage Market: Key Developments

In august 2021, U-Haul acquired 6.23 acres of land in west of South Canal Street and US Hwy. 62/285. With this, the company plans to build a three-story building with more than 100,000 sq ft area, which will house ADA-accessible 700-plus indoor self-storage rooms having high-tech security and climate-control features.

In October 2020, CubeSmart, for US$ 540 million, acquired eight self-storage properties from Storage Deluxe in New York City. With this acquisition, CubeSmart expanded its global presence in attractive submarkets to get lucrative demographic trends as well as robust growth outlook.

Global Self-Storage Market: Key Companies Insights

The global self-storage market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global self-storage market are Global Self Storage Inc., U-Haul International Inc. (Amerco), Urban Self Storage Inc., Life Storage Inc., Amsdell Cos./Compass Self Storage, CubeSmart LP, All Storage, National Storage Affiliates Trust, National Storage REIT, Safestore Holdings PLC, (Great Value Storage) World Class Capital Group LLC, Simply Self Storage Management LLC, SmartStop Asset Management LLC, StorageMart, Metro Storage LLC, Prime Storage Group, and W. P. Carey Inc.

*Definition:

Self-storage refers to an industry renting storage spaces also called as storage units to tenants, most commonly on a short-term basis, which is often month-to-month. Using a self-storage facility can help consumer organize their items, declutter their home, and provide peace of mind.