The self-storage market allows individuals and businesses to store their possessions in storage units for short or long durations. These storage facilities provide variously sized locked storage spaces or units at an affordable price on a short-term or long-term basis. Self-storage services provide convenient and cost-effective storage solutions to both residential and commercial customers for possessions ranging from documents, furniture, electronic equipment to vehicles. With rapid urbanization worldwide, more people are shifting from larger family homes to smaller apartments with limited storage space, thereby fueling demand for self-storage facilities.
The global self-storage market is estimated to be valued at US$ 55843 million in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Urbanization: Rapid urbanization is one of the primary drivers of growth in the self-storage market. As highlighted in the market heading, fast-paced urbanization is leading to a shift from larger family homes to compact living spaces such as apartments with limited storage. According to the United Nations, around 68% of the world population is projected to live in urban areas by 2050. This increase in urban dwellers who face space constraints at home is fueling demand for affordable and flexible self-storage options to park their extra possessions.
Another key factor propelling the self-storage industry is changing demographics and lifestyles. Factors such as delay in marriage, rising divorce rates, declining household sizes are prompting more people globally to rent smaller living units than own a larger home, driving need for quality self-storage facilities. The market is expected to further gain from rising disposable incomes and changing consumer preference for non-ownership models for underutilized possessions.
Segment Analysis
The self-storage market size can be segmented by type as climate controlled and non-climate controlled. The climate controlled segment dominates the market with over 55% share as it provides protection against fluctuating temperatures and humidity levels. This ensures safety of belongings from damage.
PEST Analysis
Political: The market is positively impacted by tax incentives provided by various governments to self-storage facilities to boost real estate development.
Economic: Higher urbanization and workforce mobility favors small living spaces, driving demand for storage of extra stuff. Also, economic uncertainties increase need for flexible living and storage arrangements.
Social: Changing demographics like smaller household sizes, dual income families increase need for external storage space. Also, the reduce stigma around renting storage units boosts the industry.
Technological: Smart apps facilitate easy booking and payments forstorageunitsfromanywhere.Sensors monitortemperatureandhumiditylevelsremotely for enhanced security of possessions.
Key Takeaways
The global self-storage market is expected to witness high growth over the forecast period supported by rapid urbanization, changing demographics and flexible living arrangements. The global self-storage market is estimated to be valued at US$ 55843 million in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030.
Regional analysis
North America dominates the current market owing to high urban population, workforce mobility and small living spaces in the US and Canada. The Asia Pacific region is anticipated to grow at the fastest pace due to increasing number of dual income households, rapid infrastructural growth and urbanization in countries like India and China.
Key players
Key players operating in the self-storage market are Public Storage, Extra Space Storage, CubeSmart Self-Storage, Life Storage Inc, StorageMart, Prime Storage Group, Metro Self Storage, Urban Self Storage and Safestore Holdings Plc.
