Just How Big Is the Self-Storage Industry?

From its humble beginnings a few decades ago, self-storage has blossomed into an indispensable component of the global economy, marking its presence as a multi-billion dollar industry.

Global Expansion & Valuation

The self-storage landscape has experienced a steep upward trajectory.

Currently, it is valued at $58.26 billion, with a forecast suggesting an ascent to $72.15 billion by the end of 2029. With an estimated 60,000 to 70,000 facilities across the globe, the sector shows no signs of stagnation, targeting an approximate 4.7% CAGR heading towards 2032.

The US Market: Pioneering and Prospering

The origin of self-storage can be traced back to the United States in the 1960s, and it has only expanded exponentially since. The current valuation stands at $44.37 billion, with prospects of reaching nearly $50 billion by 2029.

UK: A Leader in European Self-Storage

Starting in the 1980s, the UK has now emerged as a frontrunner, accounting for almost 40% of Europe’s self-storage facilities. The industry is on the verge of crossing the £1 billion turnover mark.

South Africa: The Rising Star

South Africa’s self-storage sector has witnessed notable progress and heightened public awareness over the past decade. Despite the growth and having around 70,000 self-storage units as of 2020, the industry remains relatively untapped compared to more established markets.

Europe’s Thriving Market

Europe represents a mix of mature and budding opportunities within the self-storage industry. Here, the number of facilities has seen a remarkable 70% increase over five years, with investment volumes soaring. The total gross area covered by operational stores has reached 13.9 million square meters.

With a steadily increasing population and pronounced urban development leading to cramped living spaces, Europe’s market is expected to flourish with many new facilities in the pipeline.

Eastern Europe is Playing Catch Up

Eastern Europe has traditionally lagged behind Central Europe in the development of the self-storage industry, primarily due to varied economic growth rates, market maturity, and consumer behavior.

However, this is rapidly changing as the region experiences economic growth, increases in disposable income and greater integration with Western markets.

The business environment is also becoming more conducive to such investments, with improvements in legislation, increased foreign investment, and a general trend towards service-oriented businesses. Additionally, as Eastern European countries continue to integrate with the broader European market, trends that have taken hold in Western and Central Europe, like self-storage, are beginning to emerge.

In summary, Central Europe possesses a mature self-storage market, Eastern Europe represents an emerging market with growth potential. The gap between the two regions presents opportunities for investors and operators willing to navigate the challenges and tap into the developing demand for self-storage in Eastern Europe.

Also want to capitalise on the resilience and growth potential of the self-storage industry?

With SA’s volatile economic landscape, the strategic investment opportunities within this sector in Europe become even more compelling. Join the ranks of forward-thinking investors who are adding value to their portfolios because of economic uncertainties.

Contact us today to explore how self-storage investments can strengthen your financial future.

In-Depth Insights and Future Directions

For those looking to understand the nuances and future directions of this booming industry, including detailed statistics and analyses, refer to the following links:

Team Stradix

Team Stradix

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