The global Self-Storage Market is estimated to account for US$ 50,421 Mn in terms of value by the end of 2021. A self-storage facility typically covers 2.5 to 5 acres. The average size is 46,000 net rentable square feet. The building may be one-story or multi-story. The building's design is usually intended to complement the surrounding properties. A typical break-even occupancy is 65 percent. This allows the facility to cover all operating expenses while minimizing investor risk. A smaller break-even occupancies gives the investor flexibility to deal with fluctuations in the market. Most self-storage facilities offer month-to-month contracts. Moreover, many of these facilities have longer-term contracts, which may include discounts or special terms.
Global Self-Storage Market: Drivers
Changing Covid-19 consumer behavior is expected to augment growth of the global self-storage market during the forecast period. Due to the Covid-19 pandemic, multiple business owners are opting for self-storage. As, the work from home module was adopted by several businesses during 2020, the demand for self-storage increased in order to reduce spaces and rents. The number of companies permanently shifting to remote work module is increasing due to which, the need for office rentals is declined. Thus, self-storage spaces are high in demand, which is propelling growth of the global self-storage market.
Global Self-Storage Market: Opportunities
Covid-19 epidemic is expected to create several growth opportunities in the global self-storage market during the forecast period. Covid-19 pandemic initially impacted the market growth. As per the Global Storage Inc., due to the lockdown regulations, there was an increase in growth of the industry due to factors such as remote classrooms, home office expansion, contracting businesses, and relocation of remote workers. This create a strong need for self-storage during the pandemic, creating various growth opportunities in the market.
Global Self-Storage Market: Restraints
High cost of renting self-storage space units is expected to limit growth of the global self-storage market during the forecast period. Renting storage space can be a bit expensive in some cases. Moreover, increase in urbanization could cause lack of space and it can also hinder new infrastructure development. Along with this, it can also promote a hoarding culture generating lot of waste. Thus, these factors are likely to hamper growth of the global self-storage market during the forecast period.
Global Self-Storage Market - Impact of Coronavirus (Covid-19) Pandemic:
The outbreak of coronavirus in China spread across more than 100 countries around the globe. Several industries were adversely impacted by the epidemic of Covid-19. The global self-storage market was moderately impacted by the pandemic. Initially, the market witnessed increased demand for self-storage units from various businesses due to the work from home module. However, due to limited production, there was a decline in business inputs, which adversely impacted the market growth. Thus, the market witnessed a moderate impact of Covid-19 pandemic.
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Key Takeaways:
The global self-storage market was valued at US$ 50,421 Mn in 2021 and is forecast to reach a value of US$ 82,852 Mn by 2030 at a CAGR of 5.24% between 2022 and 2030.
Personal segment held dominant position in the global self-storage market in 2020, accounting for 69% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Self-Storage Market Trends:
Personal storage segment is gaining traction in the global self-storage market. This trend is expected to boost the market growth over the forecast period. The primary factors that drive the performance of self-storage properties are demand for rise in space for additional storages. The possessions of materials is increasing everywhere around the world, with rise in number of families. This further is creating demand for personal storages, which in turn is driving growth of the global self-storage market during the forecast period.
Growing adoption of inorganic growth opportunities by market players such as collaboration and joint ventures is also a growing trend in the market, which is expected to fuel the market growth during the forecast period. For instance, in October 2022, SmartShop Self Storage REIT Inc., a fully integrated and self-managed self-storage company, collaborated with the Breast Cancer Research Foundation. SmartStop worked with the charity during Breast Cancer Awareness for the fifth year assisting with required breast cancer research.
Global Self-Storage Market: Competitive Landscape
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.
Global Self-Storage Market: Recent Developments
In January 2021, Safestore Holdings PLC, and the Carlyle Group, the global private-equity firm formed a joint venture and acquired Opslag XL, a three-property self-storage portfolio in the Netherlands. This acquisition comprised of 75, 000 sq. ft. across two freehold locations in the Hague an Hilversum regions in Amsterdam.
In March 2021, Life Storage Inc. announced its plans to build a three-story, climate-controlled, 216-unit building on the property owned by the company of Transit Road, for expansion of its business in West Seneca.
