Self-Storage Industry Predictions for 2024 that Might Shock You

It’s not hyperbole to say that the self-storage sector is both one of the most resilient and underrated market sectors. Don’t believe us? You only have to do a quick Google search to discover article after article proclaiming from the rooftops that the self-storage sector is bucking the economic trend. Thriving despite the sustained economic headwinds. One of the best sectors to invest in.

But why is this?

Well, there are any number of reasons. For one, for many of us, the contraction in available space has forced us to seek storage solutions outside of our homes and offices. Let’s not also forget that self-storage is affordable, and therefore good value for money.

The bottom line is that self-storage is a service that many of us desire and gravitate to. This has seen the market soar, despite the pandemic and an uncertain economic outlook.

So, as we’re about to embark on a whole new year, 2024, let’s take a quick look at the state of the self-storage sector and examine the factors driving its economic growth.

The State of Self-storage: What’s Fuelling Its Growth

Agreed statistics might be difficult to come by online, but all resources estimate that the global self-storage sector is forecasted to rise by between 7-8%, peaking at a global value of around $83-84 billion by 2027. North America is expected to be the biggest contributor to this rise.

The key drivers include a heightened focus on reducing spending on infrastructure and the increasing need for business insights. The Asia-Pacific region is expected to register the fastest growth rate. This is because of the region’s growing volume of eCommerce businesses.

Whereas it can be difficult to predict exactly what the economic outlook and urbanisation rates will be across the world, it’s a safe bet to assume that those living in more populous cities with limited space will continue to rely on self-storage to store their belongings, rather that pay for more expensive housing and business premises.

Again, self-storage has been further bolstered by the increased adoption of remote and hybrid working policies, something that has only been exacerbated by COVID-19 and the subsequent economic and commercial fallout. This has led to an increased demand for self-storage to reduce overheads.

Five Key Trends Likely to Influence Self-storage in 2024

According to the 2023 Cushman and Wakefield report, the UK self-storage sector exceeded £1 billion annual turnover for the first time in 2023. And there’s no indication that 2024 won’t witness a continued upward trajectory for the sector.

But, beyond the continued prosperity of the sector, what trends are we likely to experience in 2024? Well, we don’t have a crystal ball, but based on out learned experience we think the following five key trends will influence the self-storage sector this year.

Trend #1 An increased demand for self-storage facilities

The first trend should be no surprise to anyone with their fingers on the pulse of what’s happening in the self-storage sector, and that is an increased demand for self-storage.

As we’ve already mentioned, there are several reasons why self-storage has blossomed to become such an essential sector, but the bottom line is that self-storage meets an essential need brought upon by a cultural and economic shift.

Property is more expensive. Both residential and commercial. Mortgage rates are higher than many are comfortable with. Rental prices are also high. This limits people’s special options. Oftentimes storage space is sacrificed for affordability. The online landscape has removed the need for or want of physical products; hence less space is needed. People want a home and workspace free of clutter. But they need somewhere to store belongings they’ve accumulated over years, decades, even a lifetime.

It doesn’t look like this trend will change in the coming years. In fact, it wouldn’t be unrealistic to assume that in 2024 more people will want or need self-storage worldwide than ever before!

Trend #2 A rise in storage websites and an evolution in digital services offered

The self-storage sector may not have been on the forefront of the digital world, the sector leading the adoption of AI, machine learning, and various other technologies. But it’s hardly been dragged into the digital revolution kicking and screaming.

That being said, expect 2024 to see a continued proliferation of a widening digital ecosphere within the sector. Having a responsive website, active social media, and strong UX will only benefit self-storage businesses in 2024, and the future.

As we’ve previously outlined, changing population dynamics and evolving customer preferences have highlighted just how indispensable the self-storage sector has become. A strong online presence instils authority, trust whilst bolstering brand recognition, engaging existing customers whilst enticing new ones.

Now, of course, most self-storage providers have their own websites. But the rise in AI and automation is likely to evolve how customers interact with businesses. Are we on the cusp of chatbots fulfilling customer facing roles 24/7? No. But, we are quickly approaching peak online automation, and this includes something as simple as booking your own self-storage space online without speaking to a customer service representative? Maybe.

2024 could be the year when businesses in the self-storage sector start to fully embrace digital automation across all business areas.

Trend # 3 Increased adoption of sustainability

Yes, we’ve mentioned sustainability quite often on our blog, but for good reason. It’s one trend that will continue to evolve as the UK, and the whole of Europe for that matter, move towards carbon net zero by 2050. In 2024, expect the self-storage sector to continue to embrace sustainable practices and move towards green storage.

Adopting LED lighting and smart climate-controlled systems are just two of the ways that self-storage facilities have evolved over the last few years to meet sustainability demands. However, as 2024 unfolds, it’s not too much of a stretch to think that more facilities will start using solar power. Then there’s the increased emphasis on recycling and going paperless. Both trends will only persist in 2024.

Expect an increased number of self-storage units to be built or remodelled by an existing green building certified contractor, like BREEAM (UK) who have the knowledge and experience to build or remodel self-storage premises so that they’re energy efficient without compromising on functionality.

Trend #4 An increased focus on customising customer experiences

Every business sector has experienced a seismic shift towards prioritising customer experiences over the last few years and the self-storage sector is no different. Today’s customers are different from customers in the last few decades. They want a seamless experience. One that promotes swift efficiency, whilst simultaneously meeting their needs precisely.

This isn’t expected to change in 2024. In fact, quite the opposite.

From user-friendly apps and websites to tailored storage services and flexible contracts, today’s customers expect a service that meets their demands. Customers want a convenient, hassle-free service, one that’s scalable and responsive. They also want to feel supported throughout the duration of their contract and valued.

Self-storage businesses that offer engaging, reactive customer services will develop strong relationships, better customer satisfaction, and loyalty.

Trend #5 The integration of AI

Now, honestly this trend may not shock you – AI is everywhere at the moment and the self-storage sector is no different.

2024 will see the further integration of AI into self-storage operations. This means a greater opportunity for operational efficiency, bolstered security measures, and a general elevation of customer experiences.

Moreover, AI will bring invaluable advantages to self-storage providers. From insights into customer preferences and requirements to predictive analyses that help operators to predict market trends and tailor strategies to their goals, AI’s influence over the self-storage sector looks destined to grow in 2024.

Will these predictions for 2024 happen?

We don’t have a crystal ball or know a whole lot about divination. However, it’s safe to assume that the self-storage sector will continue its upward trajectory in 2024.

Whether that means that AI and automation will gain a strong foothold in the sector or businesses will start making more decisions focusing on sustainability it’s difficult to say.

However, what’s clear is that the self-storage sector is bucking the economic trend. It’s blossoming. Why? It’s a service that reflects out modern demands and priorities. And we don’t expect this to change drastically as 2024 unfolds.

Resources:

https://www.linkedin.com/pulse/self-storage-market-size-2024-share-trends-opportunities-j5ggf/

https://www.cushmanwakefield.com/en/united-kingdom/news/2023/05/uk-self-storage-industry-to-exceed-1-billion-annual-turnover-in-2023

Self-Storage Industry Predictions for 2024 that Might Shock You