February 23, 2024
Self-Storage Market

Self-Storage Market Propelled by High Population Mobility is driven by high population mobility

The self-storage market involves the rental of storage space usually in small modular units to store household and commercial goods. Self-storage facilities provide an affordable option for both residential and commercial customers to store possessions without the hassle and commitment of a traditional storage unit. With high population mobility trends in major economies, the demand for temporary storage has increased significantly. People shifting jobs, relocating homes, or downsizing due to changing family situations frequently require self-storage for short term needs.

The global Self-Storage Market is estimated to be valued at US$ 55,843 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 key trends:

One of the key trends driving growth in the self-storage market size is an increase in supply due to rising construction of modern climate-controlled storage facilities. Real estate developers are recognising profitable opportunities in self-storage and are developing urban infill locations with better access and amenities to attract customers. Major self-storage operators are adopting technology solutions like mobile apps, digital payments, GPS vehicle tracking to enhance customer experience. Features like remote video monitoring, smart locks, digital records are gaining popularity. These innovations are allowing self-storage to be more secure, convenient and cost-effective, thus appealing to a broader customer base.

Porter’s Analysis
Threat of new entrants: The self-storage market has moderate threat of new entrants given the moderate capital requirements. However, the market is extremely fragmented with many small local players making it difficult for new companies.
Bargaining power of buyers: The bargaining power of buyers is moderate given the availability of alternative storage options. However, customers seeking cost-effective short-term storage have limited options.
Bargaining power of suppliers: The threat from suppliers is low as self-storage facilities require common construction materials and supplies which are easily available.
Threat of new substitutes: The threat of substitutes is moderate as alternatives like rented spaces, public storage create competition. However, their availability is limited in certain locations.
Competitive rivalry: The competitive rivalry is high given the presence of numerous local players in most markets. Pricing pressures exist due to high competition.

Key Takeaways
The global self-storage market is expected to witness high growth. Growing urbanization and global migration is driving the need for affordable storage space. The global Self-Storage Market is estimated to be valued at US$ 55,843 million in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030.
Regional analysis: The market in North America dominates currently due to early adoption. However, Asia Pacific is expected to be the fastest growing market led by countries like China, India and Japan. Availability of large affordable spaces and changing lifestyles is fuelling demand.

Key players: Key players operating in the self-storage market are Public Storage, Extra Space Storage, CubeSmart Self-Storage, Life Storage and StorageMart. Public Storage remains the largest player with significant presence across US markets. However, regional players have strong positions in local markets. Consolidation through mergers and acquisitions is observed as companies try expanding footprint.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it