The United States self-storage market is expected to register a CAGR of 2.06% over the forecast period 2021 – 2026.
– The United States has major companies established in the region which gives a significant boost to the market development over the forecast period. This is evident from the presence of players such as Public Storage, Extraspace Storage Inc., U-haul amongst others.
– The increasing competition in the region between the players and a surge of new storage construction across the country has resulted in a decrease in rental costs which is expected to fuel the adoption of the self-storage facilities over the forecast period.
– According to SpareFoot the average monthly cost to rent a self-storage unit is USD 88.85 which is a 2.5% decrease from the average price in 2017, the estimation includes all reservations for all storage sizes and types made on SpareFoot’s network.
– Also, the United States had a 90% share of self-storage inventory as compared to the rest of the world that held only 10% making the United States by far the largest self-storage market worldwide according to Investor Management Services. This in itself is indicative of the fact that there exists a lucrative opportunity for the providers to invest in the market fueling its growth.
– The personal storage segment of the self-storage market is expected to register the highest share, considering the critical demand driver of the market, and urbanization.
Key Market Trends
Business Segment is Expected to Register a Significant Growth
– Although self-storage was originally intended for personal storage, businesses have slowly realized the importance of self-storage facilities. As renting a self-storage unit would be a cost-effective, short-term or long-term solution, to address space management issues.
– For instance, Kuhl Clothing, an outdoor company with a lifestyle vibe and one-of-a-kind fabrics and specialized fit sold their clothing to local boutiques only a few times a year, identified that storage units are more feasible as compared to traditional warehouses as it did not have to pay for empty warehouse space year-round that they only used occasionally.
– The faster-growing e-commerce market in the region has resulted in the increased usage of self-storage spaces by vendors as it has allowed them to mitigate the problems of inventory management smoothening the supply chain operations.
– With vendors in the market offering insurance services, as well as advanced surveillance, like video, to safeguard the products stored, more businesses are looking forward to investing in self-storage units, to keep their inventory running. Vendors in the market are planning their construction spaces within the radius of small businesses, and in line with their requirements, like climate-controlled units of different sizes, etc.
Increased Urbanization Coupled With Smaller Living Spaces is Expected to Drive the Market
– Due to the rising urban population, between 1970-2018, the growth in consumer spending on goods and services is facilitating the need for storage spaces. This is evident from the fact that according to the world bank, the United States had 82.25% of the population living in urban areas of the city as compared to 80.77% in 2010.
– This has presented the self-storage vendors in the region with a lucrative opportunity to build such spaces that allows the user to store his belongings safely and securely at a cheap price.
– For instance, in May 2019, Public Storage PSA opened a new storage facility in Colorado Springs in a move that would allow the company to expand in the region that is witnessing growing neighborhoods.
The competitive rivalry in the United States self-storage market is high owing to the presence of some key players in the region such as public storage, U-haul International Inc. amongst others. Their ability to continually innovate their offerings has allowed them to gain a competitive advantage over other players. Through research and development, strategic partnerships, and mergers & acquisitions these players have been instrumental in gaining a stronger footprint in the market.
– May 2019 – Metro Storage LLC announced the opening of its newest store in Austell, Georgia. the company converted the former Target retail store building, into a single-story, state of the art storage facility with 71,335 RSF of climate-controlled storage.
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