Self-Storage Market is Estimated To Witness High Growth Owing To Increased Number of Single Person Households

The self-storage market is estimated to be valued at US$ 55,843.56 Mn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Self-storage facilities provide spaces such as rooms, lockers, containers and/or outdoor space for temporary storage of personal possessions or commercial goods. Self-storage units are popular for short-term and temporary storage needs of small size items. Self-storage facilities offer various unit sizes for convenient, easy to access and safe storage of possessions.

Market key trends:
The self-storage market is witnessing high growth owing to increased number of single person households across the world. According to recent census reports, single person households account for around 28% of total households in USA, 38% in Canada and 34% in Australia. Single living leads to accumulation of excess furniture, belongings and other miscellaneous items which drives demand for temporary and low-cost storage units provided by self-storage facilities. The self-storage providers offer convenient unit sizes and accessibility to suit temporary storage needs of single occupants.

Porter’s Analysis

Threat of new entrants: The self-storage market requires high initial investments to establish storage facilities making the threat of new entrants moderate. However, the market is growing steadily which may encourage new companies to enter.

Bargaining power of buyers: The bargaining power of buyers is moderate to low as self-storage services do not differ significantly among operators. Moreover, storage needs are generally non-discretionary requiring storage space.

Bargaining power of suppliers: The dependence on land and construction materials results in moderate bargaining power for suppliers. Suppliers can influence pricing and contractual terms due to their specialized expertise and access.

Threat of new substitutes: Self-storage faces low threat of substitution as it meets unique long-term storage demands. Digital solutions provide partial substitutes but cannot replace physical storage infrastructure.

Competitive rivalry: The self-storage industry witnesses intense competition due to fragmentation and low brand differentiation. Operators compete on price, amenities, quality of service and strategic expansion.

SWOT Analysis

Strength: established brands, widespread presence, robust infrastructure and integration of digital technologies enhances experience.
Weakness: high fixed costs, vulnerability to economic cycles and seasonal occupancy fluctuations.

Opportunity: growing demand from homeowners, renters and businesses. Convenience and flexibility attract more customers. Demographic and residential trends spur opportunities.

Threats: natural calamities can damage assets. Stringent regulations around land acquisition and construction delay capacity expansion. Economic downturns impact occupancy rates.

Key Takeaways

The Global Self-Storage Market is expected to witness high growth, exhibiting CAGR of 5.2% over the forecast period, due to increasing urbanization and demand for flexible storage solutions. The market size for self-storage in 2023 is estimated at US$ 55,843.56 Mn.

Regional analysis: North America dominates the market with over 35% share primarily led by the US due to high urban populations. Asia Pacific is the fastest growing region projected to expand at around 7% CAGR owing to rapid economic development in major countries like China and India.

Key players operating in the 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.

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