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Manufacturing

US Self-Storage Market is expected to reach US$ 67.02 million by 2030

Published: Thursday, 22 Feb 2024 by The Insight Partners Share on :
 
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Booming Small Businesses and E-commerce Industry Drives US Self-Storage Market Growth

According to our latest market study on " US Self-Storage Market Forecast to 2030 – Country Analysis – by Storage Unit Size and Application," the market is expected to grow from US$ 44.20 million in 2022 to US$ 67.02 million by 2030; it is anticipated to grow at a CAGR of 5.3% from 2022 to 2030.

The evolving needs of businesses, ranging from small enterprises to e-commerce giants, seeking flexible and efficient storage options for excess inventory, documents, and equipment are promoting the utilization of self-storage solutions in the US. The explosive growth of e-commerce has revolutionized the retail landscape, prompting businesses to adapt to changing warehousing and storage requirements. E-commerce companies, characterized by fluctuating inventory levels and seasonal demands, increasingly turn to self-storage facilities to efficiently manage excess stock. The ability to scale storage space according to demand provides a cost-effective solution, ensuring that businesses can meet customer expectations without the burden of maintaining large and fixed warehouse spaces. The rise of small businesses, including startups and entrepreneurs, has been a notable contributor to the increased demand for self-storage. Many small businesses operate with limited physical space, making traditional warehousing solutions impractical. Self-storage facilities offer a flexible alternative to businesses without the constraints of long-term leases or high overhead costs. Thus, the increasing reliance on self-storage by businesses, driven by the growth of e-commerce and the dynamics of small businesses, plays a pivotal role in propelling the US self-storage market growth.

US Self-Storage Market Share — by Country, 2022

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Source: The Insight Partners Analysis

Based on application, the market is further segmented into household and personal storage, business storage, and vehicle and car storage. Of these subsegments, the business storage segment held the largest US self-storage market size in 2022 owing to the rapid growth of the e-commerce industry and the growing need for storage from small- and medium-sized businesses. Small and medium-sized businesses are investing in small- and medium-size storage units instead of renting warehouses to save on the additional operational cost of running a business. Small-size businesses are striving to reduce the overall renting cost of the warehouse, which has led them toward self-storage units—a low-cost solution to store raw materials and finished goods for small- and medium-sized businesses. Also, major players in the market are acquiring additional space and investing a considerable amount to meet the growing demand for self-storage across the US. For instance, in February 2023, Spartan Investment Group, a Colorado-based real estate investment company specializing in the self-storage industry, launched an investment plan called Spartan Storage Funds. Spartan Group's funds are focused on building, maintaining, and acquiring new self-storage facilities across the US.

Household and personal storage is growing at a rapid pace owing to increasing demand for storage from US consumers. Other major factors augmenting the US self-storage market size for the household and personal storage segment are rapid urbanization, increasing disposable income, and a surge in consumer spending on additional goods. The disposable personal income of people in the US averaged US$ 20,529.84 in November of 2023, according to the US Bureau of Economic Analysis. Also, the urban population in the US reached around 83.08% in 2022, according to the World Bank Organization. In the US, 1 in 11 individual uses self-storage facilities to store their goods such as books, electronics, and other household goods. Americans spend an average of US$ 91.14 on a monthly basis for the use of self-storage. The average self-storage rental price for standard self-storage units across the US ranges from US$ 60 to US$ 180 per month. The Storage Cafe Survey of 18,000 Americans revealed that one in five, i.e., around 21.0% of Americans, currently use self-storage for personal and household purposes.

Self-storage is ideal for businesses of all sizes for storing inventories. Small businesses have limited space and utilize self-storage on a rental basis to store raw materials and finished goods. Retailers adopt self-storage systems to store inventories, finished goods, and raw materials. Business storage includes many types of commercial manufacturers and professional businesses. They utilize a wide range of self-storage space to have a safe place to store documents, inventories, trucks, and vehicles. According to the US Census Bureau Department of Commerce, the US retail e-commerce sales were valued at around US$ 284.1 billion for the third quarter of 2023, increasing by 2.3% compared to the second quarter of 2023.

Besides growth prospects and their foreseeable impact, the US self-storage market report emphasizes future trends. The introduction of user-friendly online platforms for reservations and payments offers a significant boost to customer convenience. In an era where digital interactions are increasingly preferred, providing a seamless and efficient online experience becomes a key differentiator. Customers can easily manage their storage needs, make reservations, and handle payments remotely, reducing the administrative burden for both clients and facility staff. These technology enhancement trends not only improve operational efficiency but also expand the potential customer base, reaching tech-savvy consumers who prioritize digital accessibility.

The US self-storage market is segmented on the basis of storage unit size and application. By storage unit size, the market is further categorized into small storage unit, medium storage unit, and large storage unit. Among these subsegments, the medium storage unit (10'x10' 10'x15')  segment is anticipated to hold a significant US self-storage market share by 2030. In terms of application, the market is segmented into household and personal storage, business storage, and vehicle and car storage.

The US self-storage market analysis is carried out by identifying and evaluating key players in the market across the country. CubeSmart; Prime Storage; Public Storage; StorageMart; USA Storage Centers; Self-Storage USA; Storage Asset Management; Metro Storage LLC; Self-Storage Plus; and Clutter, Inc. are among the key players profiled in the US self-storage market report. Inorganic and organic strategies such as mergers and acquisitions are highly adopted the key companies in the market. The market initiative is a strategy adopted by companies to expand their footprint across the world and to meet the growing customer demand. The market players mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings.

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