Self Storage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The global self-storage market (hereafter referred to as the market studied) was valued at USD 48. 02 billion in 2020 and is expected to reach a value of USD 64. 71 billion by 2026, registering a CAGR of 5.
New York, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Self Storage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06177346/?utm_source=GNW
45% over the forecast period, 2021-2026. The growth in this industry is expected to be positive during the forecast period, owing to the trends of increased urbanization and improved economic outlook across the regions. These factors have led to the growth of new businesses.
COVID-19, in addition, has led multiple business owners to opt for self-storage. Having to work from home for most parts of 2020 drove up the demand for self-storage to cut out on rents on spaces. More and more companies have decided to shift toward a remote work model permanently, and hence the need for office rentals is decreasing. Especially in metropolitan Asian cities, where office space can be costly to rent, self-storage is mainly preferred.
Key Highlights
The increasing rate of urbanization is one of the significant factors positively driving the market growth. The increasing urban population means smaller and increasingly expensive living spaces in cities with more renters who move around more frequently. London is a prime example of this trend, with its population hitting a new all-time high of 8.6 million in 2015. The population is projected to be more than 10 million by 2030.
The improved economic outlook in the countries of the United States, Europe, and Asia is positively augmenting the market growth. The economic growth in the United States is constantly being driven forward by the ongoing innovation, R&D, and capital investment.
The government regulations hinder the market’s growth. The storage operators have continued to receive nonspecific warnings from the Department of Homeland Security that their facilities can be used to store materials that could be unleashed in the terrorist attack.
Key Market Trends
Personal Storage Segment to Occupy the Maximum Market Share
The performance of self-storage properties is primarily driven by growing space demand for additional storage as families increase with more material possessions. Moreover, the need for storage units is predicted to increase as baby boomers begin to downsize.
The increasing urban population causes smaller and increasingly expensive living spaces in cities with more renters who move around more frequently. London is an example of this trend, with its population hitting a new all-time high of 9.3 million in 2020. The population is projected to be over 10 million by 2030.
Moreover, another factor that has played a role in the sudden rise in demand of the self-storage sector is the COVID pandemic. Unemployment levels in the United States and across the world have been rising during the COVID-19 crisis. As a result, residential landlords face impact from jobless tenants who are unable to pay rent. As these tenants move back home with their families or explore other house-sharing options, downsizing residential space creates opportunities for the self-storage sector to store items that will no longer fit into smaller homes.
London’s easyStorage reported that inquiries surged by 25 % month-on-month since lockdown restrictions were reduced in 2020, as some have needed to clear a room to make space for a home office setup, while many others decluttered their living spaces. The company reported that marriage/couple separations and deaths may have also played a part in the rise in demand along with several house moves.
As the millennial population occupies a larger percentage of those using self-storage, they expect to interact with operators using technology, specifically smartphones and apps, or responsive mobile websites. Virtual tours, online booking and payment, self-service kiosks, and automated access are some of the emerging trends in response to the technological development in the sector and the COVID-19 social distancing rules. With the decreasing competitive advantage of physical location, these online channels provide new opportunities for emerging storage innovators to build upon and disrupt the industry.
Asia Pacific to Witness the Highest Growth
The Asia Pacific region has more scope for self-storage. Australian and New Zealand organizations have already visualized extensive storage environments, compared to China, India, and other Southeast Asian countries (SEA) like Singapore, Hong Kong, Taiwan, Japan, and Malaysia. Urbanization, public awareness, and the growth of small businesses are driving the demand for self-storage in Asia-Pacific. The market is primarily driven by the four "Ds"-death, divorce, density, dislocation, and positive business activity like office expansion and contraction.
There is also swelling investor interest in the real estate asset class because of market growth, increasing public awareness, and the lack of specialist self-storage REITs in the region. The self-storage market in the APAC region includes both indoor and outdoor facilities.
Beyond the borders of Australia, the industry is most established in densely populated regional hubs such as Hong Kong, Singapore, and Tokyo. As Asian markets mature and the notion of storing personal belongings outside the home catches on, the market is expected to evolve and grow gradually.
Individuals tend to rent self-storage spaces when their living spaces become cluttered by belongings that feature their utilities or nostalgia elements. Southeast Asia is a densely populated region with several cities that have exhausted their living spaces. This is forcing a trend of the population moving to smaller houses to accommodate for more housing. But this is also raising an issue of item storage. This is driving the residential self-storage market in the region.
Cities like Singapore, Beijing, Mumbai, and Hong Kong are so highly populated that the populace is opting to store their belongings in remote locations. The size of an average home is around 80m² in Hong Kong, Singapore, and Japan compared to 90m² in the UK, 130m² in Shanghai, and 250m² in the United States and Australia.
Competitive Landscape
The market comprises several global players vying for attention in a fragmented market space. In order to differentiate amongst offerings, the players have been focused on competitive pricing, promotional activities, advertisements, added features such as parking facility, 24x7 access, climate control, to name a few. The presence of these players and their constant innovative activities are intensifying the market scenario. As the market poses moderate barriers to entry for new players, several new entrants backed by VCs have been able to gain traction in the market. This could further intensify the market competition.
March 2021 - Life Storage planned to build a three-story, 216-unit, climate-controlled building on the property which the company owned on Transit Road to expand its business in West Seneca.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06177346/?utm_source=GNW
About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
__________________________
CONTACT: Clare: clare@reportlinker.com US: (339)-368-6001 Intl: +1 339-368-6001
