Asia Pacific Self-Storage Market Set to Hit Valuation of USD 15.40 Billion By 2032, at 12.61% CAGR: Astute Analytica

Asia Pacific’s self-storage market is booming thanks to smaller urban apartments, surging e-commerce, and a growing preference for flexible storage solutions driven by millennials and remote workers.

New Delhi, April 29, 2024 (GLOBE NEWSWIRE) — According to Astute Analytica, the Asia Pacific self-storage market was valued at US$ 5.29 billion in 2023 and is projected surpass US$ 15.40 billion by 2032, at a CAGR of 12.61% from 2024 to 2032.

The self-storage market in Asia Pacific is experiencing explosive growth fueled by a combination of social and economic factors. This trend is particularly strong in urban areas grappling with rising consumerism and increasing population density. Urbanization is a key driver. Megacities like Singapore, Hong Kong, and Tokyo boast some of the smallest dwellings in the region, forcing residents to seek off-site storage solutions. The region’s economic resilience and growing awareness of self-storage are further propelling the market. Consumers and businesses alike are recognizing self-storage as a valuable and distinct segment within commercial real estate.

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The booming e-commerce sector is creating a ripple effect. Businesses require additional storage space to manage inventory and fulfill orders. Changing lifestyles, characterized by minimalism and remote work, are also contributing to the demand for temporary storage solutions. This burgeoning demand is reflected in market size projections. The Asia-Pacific self-storage market is expected to grow from 30.10 million square feet in 2024 to 43.95 million square feet by 2029.  In line with this, investors are taking notice of this lucrative market. Transactions have skyrocketed, reaching US$800 million annually, compared to just US$200 million pre-pandemic. Occupancy levels and rental rates are also on the rise, with operators expecting continued positive growth in the coming years. While regulations, initial investment costs, and marketing efforts present challenges, the adoption of advanced technologies and digital solutions is expected to streamline operations and enhance the customer experience.

The future of self-storage in Asia Pacific is bright. Japan, a regional leader, has seen its market size double in a decade. Countries like India are witnessing new entrants like Storekar.com catering to the growing demand. E-commerce growth, projected at 11% over the next five years, will further fuel the need for storage space. The market is expected to triple in value by 2032, with China, Australia, and Japan leading the charge.

Key Findings in Asia Pacific Self Storage Market

Market Forecast (2032) US$ 15.40 billion
CAGR (2024-2032) 12.61%
By End Users Personal Use (72.4%)
Top Trends
  • Urbanization and shrinking living spaces: Densely populated cities with smaller apartments are driving demand for off-site storage.
  • E-commerce boom and consumer spending: Rising online purchases and disposable income necessitate storage solutions for an increasingly consumerist society.
  • Shifting demographics and work styles: Millennials, Gen Z, and remote workers require flexible storage options for their evolving needs.
Top Drivers
  • Cultural acceptance of renting storage: A growing openness to renting storage solutions as an alternative to larger living spaces.
  • Investment in infrastructure and technology: Improved accessibility and convenience through infrastructure development and mobile app integration.
  • Maturing market with professional operators: Increased competition, consolidation, and professionalization of the self-storage industry.
Top Challenges
  • Regulation and zoning restrictions: Government regulations and zoning limitations can hinder the development of new self-storage market facilities.
  • Competition and market saturation: Rapid growth attracts new players, potentially leading to oversaturation in some markets.
  • Maintaining customer satisfaction and service: Ensuring high occupancy rates and customer satisfaction in a competitive landscape.

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Shifting Sands: Consumer Preferences Are Reshaping Asia Pacific’s Self-Storage Market

Consumers in Asia Pacific are driving the self-storage boom with their evolving lifestyles and preferences. The trend towards minimalist living, with smaller apartments and less clutter, is creating a need for off-site storage solutions. This is particularly evident in Singapore, where the average dwelling size has shrunk by 31.6% in a decade, and over 75% of residences lack dedicated storage areas. Furthermore, the rise of remote work is contributing to the demand for temporary storage. Over 40% of self-storage usage is driven by temporary relocation, suggesting people need flexible storage options during life transitions. Additionally, consumers are seeking specialized storage solutions like climate-controlled units, catering to specific needs for valuable items.

Technology is also transforming how consumers interact with self-storage market. Mobile app usage for self-storage services has surged by a remarkable 300% in just three years. This highlights a growing preference for convenient and digital self-storage management. Nearly 70% of new facilities boast climate-controlled technology, ensuring optimal storage conditions. Moreover, features like electronic access control and 24/7 facility access with nearly 90% market saturation, are becoming the norm, reflecting a desire for secure and flexible storage options. This surge in demand is pushing occupancy rates in some markets past 90%, leading to price increases. This trend is expected to continue, with forecasts suggesting a potential annual demand growth of up to 15% in these areas over the next decade.

With an average living space of just 730 square feet and the smallest dwellings in Asia, Singapore has a high demand for self-storage. Similarly, Hong Kong’s public housing situation, where the average living space per person was a mere 13.5 sq m in 2021, underscores the need for off-site storage. Interestingly, B2C (business-to-consumer) customers account for over 70% of the market in urban centers like Singapore, Taiwan, Hong Kong, and Japan. This suggests that urban residents, faced with limited space, are more likely to utilize self-storage solutions compared to their rural counterparts, who tend to have more storage options within their homes.

B2C Driving Self-Storage Market Boom: Rapid Urbanization Compelling Consumers to Opt for Look for Better Solutions

The B2C (business-to-consumer) market is driving the self-storage boom in Asia Pacific, fueled by urbanization and changing consumer behavior. Cities are swelling – by 2030, an estimated 64.1% of the region will be urbanized. This translates to cramped living spaces, evident in megacities like Hong Kong where the average living space is just 15 square meters. Consumer spending is also on the rise, projected to reach $32 trillion by 2030, leading to more possessions that require storage. The e-commerce boom, expected to hit $2 trillion by 2025, further fuels this need.

Demographics play a role too. With 60% of the world’s millennials residing in Asia, this urban-dwelling generation often rents smaller apartments, creating demand for flexible storage solutions. Similarly, large expatriate populations in cities like Singapore and the pre-pandemic influx of tourists across the region contribute to the need for short-term storage. Beyond everyday essentials, there’s a growing trend for hobbies requiring significant storage space. As people downsize, 20% of urban residents in Asia Pacific consider self-storage for hobbies and belongings. The rise of remote work, with 30% of professionals needing to reorganize their living spaces, creates a need for work-from-home storage solutions.

The self-storage market is adapting to these diverse needs. The demand for climate-controlled storage has increased by 25%, and the booming collectibles market, with China’s market exceeding $500 million, is another factor. Life events like marriage or relocation are another significant driver, with 35% of users citing them as a reason for storage. The affordability of self-storage compared to larger living spaces, coupled with security concerns, makes it an attractive option. This is particularly true in disaster-prone areas like Japan, where 15% of users rely on storage to safeguard belongings.

Investor confidence is high, with investment in self-storage facilities increasing by 10% year-on-year. This is fueled by growing technology adoption, with over 70% of facilities offering mobile app access. Flexible lease terms, with 80% offering month-to-month options, cater to consumer preferences. With online searches for self-storage surging by 120% in the past two years and a focus on customer service, the future of self-storage in Asia Pacific appears bright.

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China’s Self-Storage Market Boom: Urbanization, E-commerce, and a Culture of Convenience Drive Growth

China’s self-storage market is experiencing a golden age, fueled by urbanization and changing consumer behavior. Cities are booming, with the urban population rate expected to hit 65% by 2025. This translates to smaller living spaces and a growing need for off-site storage solutions. Skyrocketing real estate prices in major cities, like Beijing with its dense population of over 1,300 people per square kilometer, make renting storage a more cost-effective option compared to upsizing. E-commerce is another major driver. With sales projected to reach $3 trillion by 2024, consumers need space for online purchases. Rising disposable income, averaging an 8.2% annual growth rate, empowers them to spend more on convenience services like self-storage. This trend aligns with a cultural shift towards prioritizing convenience, making self-storage an attractive option for busy urban dwellers.

Younger demographics in the self-storage market are also playing a role. Millennial and Gen Z consumers, more likely to live in smaller apartments, are driving demand for off-site storage. The growing number of small and medium-sized enterprises (SMEs) in China is another factor. These businesses need storage for inventory and operations, further fueling the market. Housing trends support the growth too. The average size of new homes sold in China is shrinking, creating a need for external storage. A cultural shift towards renting rather than owning extends to using self-storage facilities, which is further bolstered by increased government investment in infrastructure. This makes self-storage facilities more accessible and convenient.

Technology is another growth engine. With over 989 million internet users, online platforms for self-storage services are flourishing. The number of self-storage operators is keeping pace, growing at an annual rate of 20%. This surge, coupled with high occupancy rates exceeding 90% in major cities, indicates strong demand. Rental rates are keeping up with an average annual increase of 5-10% in major cities. Self-storage companies are further enhancing their appeal by offering diversified services like valet storage. Marketing efforts are raising awareness, with online searches surging by 30% year-on-year. International investment is another positive indicator in the China self-storage market. Foreign players are entering the market, fueling further growth.

Asia Pacific Self-Storage Market Key Players

  • Mandarin Self Storage
  • Storefriendly
  • CubeSmart LP
  • Quraz Ltd.
  • OSS Okinawa Self Storage
  • Locker & Lock Pte Ltd
  • UD Self Storage
  • Extra Space Asia Corporate
  • Storage King Pty Ltd
  • Other Prominent Players

Key Segmentation:

By End User

  • Personal
  • Business

By Country

  • Japan
  • China
  • Hong Kong
  • Taiwan
  • Australia
  • New Zealand
  • Singapore
  • Malaysia
  • Thailand
  • Rest of Asia Pacific

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About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

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CONTACT: Vipin Singh Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) Email: sales@astuteanalytica.com Website:  https://www.astuteanalytica.com/

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