Demand and Growth Projections in the Self-Storage Industry for 2024
Does your property feel like a financial burden? Want to know how to turn it into a profitable business venture with self-storage?
In today’s world, where space is becoming an accessory, the self storage industry has carved out an important niche for itself. Whether it’s for families, businesses, or individuals, the need for self storage is increasing. And guess what? The demand for self storage is never going to stop anytime soon.
The global self-storage market is massive – valued at an impressive $58.26 billion in 2023. And experts predict this growth story is far from over. By 2028, the industry is expected to reach $72.15 billion, with a Compound Annual Growth Rate (CAGR) of 4.37%.
Think of self-storage as your go-to for all your storage needs. For businesses, it offers an affordable way to expand inventory without relocation. It also offers a solution for individuals running out of space. The rise of e-commerce, remote work, and even lifestyle changes like downsizing have added fuel to the fire.
Let's dive into what drives this demand and see why more and more people are turning to self-storage solutions.
Several trends are working together to provide the ideal environment for self-storage facilities. Here are a few of the most significant ones:
As living space shrinks due to rising housing costs, particularly in urban areas, the demand for self storage increases. People are looking for affordable ways to keep their possessions safe and secure without having to stuff new items in a congested area. Self-storage facilities offer a convenient and secure solution for belongings, seasonal items, and even cars and motorcycles.
In today’s world, everyone is becoming more and more mobile. Young professionals hop from city to city in search of jobs or colleges and old folks downsize to seek convenience. There is a need for temporary or long-term storage solutions for these individuals, as it offers a flexible, secure, and cost-effective solution.
Technology is responsible for the revolution of the self storage industry. Today, storage facilities come equipped with the latest software, artificial intelligence (AI), and the Internet of Things (IoT). These technologies make self storage more accessible, secure, and user-friendly. It allows customers to manage their storage units remotely, receive alerts for unauthorized access, and even control the climate within their units.
Wigwam leverages cutting-edge technology efficiently to secure and operate its site. Our remotely managed storage facilities set new benchmarks for the industry through lower operating costs, centralised tasks, and superior customer support.
Remote work is changing the game for self-storage. People who work from home require a dedicated and organised workspace. Self storage solutions can help them declutter. Businesses are also turning to self-storage to manage inventory, store documents, or house equipment.
Let's peek into what the future holds for self-storage.
2024 is shaping up to be a good year for self storage. Analysts predict strong and steady growth for the industry.
The demand for self-storage isn't just coming from one source. Individuals turn to self storage due to downsizing, decluttering, or storing seasonal items. On the other hand, businesses find self storage to be a cost-effective solution for their inventory overflow, equipment storage, or file management needs.
Occupancy rates and rental prices may increase in the coming years due to increasing demand and a limited supply of new facilities. This, in turn, can translate to strong revenue growth for self-storage investors and property owners.
The storage industry is integrating more and more tech as it can as the demand for self storage continues to rise.
The digital era has ushered in a wave of convenience, and self-storage is taking full advantage. More facilities are improving their online presence with websites that are easy to navigate and offer immediate value to customers. This means offering clear information, online reservations, and virtual tours. As a result, the facilities can reach a wider audience.
Specialised software makes it easier for self storage facilities to streamline operations. These create efficient processes for every task from budgeting and billing to unit availability and daily management. As customers get better service, it helps the facility become more efficient and profitable.
As technology can be a boon, it may also sometimes act as a bane. Data breaches are commonplace in the tech world. Self-storage facilities are investing in robust security measures to protect customer information. It not only protects valuables but also builds trust in the facility.
Wigwam offers cloud-based locks that can be operated using Bluetooth for advanced security. Customers can utilise our latest technology to track movements and prevent unauthorised entry through keyless entry systems, resulting in over-the-top security measures.
People are busy, and they appreciate convenience. Online leasing options and digital access to tenants are a big advantage. It makes it easier for customers to find and use storage solutions at their convenience. It also translates to overall market growth.
Sustainability is no longer just a trend, it’s a necessity in business nowadays. The self-storage industry is catching on as more facilities adopt green practices. From solar panels to energy-efficient lighting, these efforts not only reduce the carbon footprint but also appeal to users who care about the environment.
Customer is always at the core of any business growth. The industry is pushing for solutions that make it easier for the user to navigate the self storage landscape. Whether using mobile apps for 24/7 access or offering services like moving carts and packing supplies, user convenience is always in the mind.
The self-storage industry has seen consistent growth for years, and 2024 looks no different. Demand for self storage continues to rise, fueled by several factors like urbanization, smaller living spaces, and the ever-growing e-commerce market.
Occupancy rates, according to the UK Self Storage Annual Report, have remained stable, at around the 80% mark in many regions. This stability indicates a healthy balance between supply and demand. It means there's enough customer demand to keep the units filled. Self storage investors and owners can plan for the long term with confidence using this knowledge.
Compared to other commercial properties, self-storage facilities are affordable to build and maintain. They tend to need less staff and generally have lower tenant turnover. This results in steadier cash flow for the investors.
People and their lifestyles are a big part of the transition to self storage. Demographic changes have a major impact on the self storage industry. As the UK’s population evolves, so do the needs and lifestyles of the people.
Millennials are the largest generation in the workforce right now. Many will soon enter their prime years for renting homes or apartments. Millennials are turning to self-storage solutions to complement their lifestyle. They value flexibility, less possessions, and rental accommodation. This is where self storage comes as a viable option for them to store their belongings and free up more space.
Beyond millennials, demographics as a whole are a powerful force shaping the self-storage industry.
The self-storage industry is poised for continued growth in 2024 and beyond. With the demand for self storage expected to stay strong, from individuals to businesses, the sector has turned into a compelling opportunity for investors and property owners in the UK.
If you understand the industry trends, embrace technology, and prioritize user needs above else, then you will be able to make informed decisions to properly capitalize on this lucrative industry.
You can consider Wigwam Storage Management as your one-stop shop for success in the self storage industry. With years of experience and multiple client portfolios, we design, build, and operate remotely managed facilities. Our specialisation lies in helping property owners and investors unlock the potential of self-storage with joint ventures and partnerships.
Our professional management services will guide you throughout the process. Ready to learn more? Contact Wigwam Storage Management today for a free consultation!
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