by Self-storage refers to the storage of property in a separate (usually leased) space. It consists of public storage facilities or shared space with individual lockable units of varying sizes for personal or business use. Self-storage facilities offer an affordable option for storing belongings for homeowners, apartment dwellers, students, organization and businesses. The growing urban population has increased demand for compact living spaces in cities, thus fueling demand for self-storage units to declutter homes. Self-storage spaces also provide flexibility to households and organizations to store inventory, archives and seasonal belongings offsite.
The global self-storage Market is estimated to be valued at US$ 55843.56 in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand in urban areas is one of the key drivers fueling growth of the self-storage market. As highlighted in the heading, rapid urbanization has increased demand for compact living spaces in cities. Self-storage offers a convenient solution for urban dwellers with limited storage capacity in small apartments and housing units. Furthermore, frequent relocation of urban households necessitates offsite storage of belongings, thus propelling the demand for self-storage facilities. However, the market also faces challenges such as high operating costs associated with land and facility maintenance. Self-storage facilities require substantial capital investment and incur ongoing expenditures for utilities, insurance and property taxes. Real estate prices also impact operating costs, thereby restraining market expansion.
Segment Analysis
The self-storage market is dominated by individual/private storage sub segment. Around 65-70% of total market share is captured by this sub segment. Individual/private storage caters to domestic and commercial needs of short term and long term storage by individuals and enterprises. It provides facility for storage of wide range of items from household goods to business equipment. The dominance of individual/private storage is due to increased mobility of population and goods, downsazizing trend and preference of flexible space as per need.
PEST Analysis
Political: No major regulations govern self-storage industry. However, storage of hazardous goods is regulated.
Economic: Rising disposable incomes, dual income households and increasing mobility is driving demand for flexible self-storage space. High urbanization rate also contributes to market growth.
Social: Changing lifestyles with increased mobility, nuclear family structure and desire for flexible space aid industry growth.
Technological: Technology integrations like smart locks, mobile apps for payments and booking help improve customer experience and operational efficiency.
Key Takeaways
Global Self-Storage Market Demand is expected to witness high growth on account of rising number of nuclear families and increasing mobility of population globally. The global self-storage Market is estimated to be valued at US$ 55843.56 in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.
Regionally, Asia Pacific is projected to be the fastest growing market due to rising middle class population, urbanization and changing lifestyles in the region. Preference of flexible storage space due to nuclear family structure and migration of young population from rural to urban areas also contributes to market expansion.
Key players
Key players operating in the self-storage market are BASF SE, Dow Chemical Company, Borgers A.G., Faurecia S.A., Adient Plc, Lear Corporation. These companies focus on achieving operational excellence and providing best in class service and infrastructure to customers. BASF SE is one of the leading players due to its strong network of facilities across major markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
