Market-research firm IBISWorld Inc. has updated its report on self-storage services in Australia. The report contains industry statistics, market data, trends, and five-year growth and profit forecasts. Company analysts believe the Australian market is poised to grow through 2019 but expect operators to “increasingly rely on specialized storage options to maintain growth.”
By the end of this year, the Australian market is expected to have achieved a 1.8 percent annual growth rate since 2009, driven largely by residential customers and students. Profit has also increased due to many operators reducing their costs, company officials said in a press release. Industry revenue is expected to increase 2.3 percent this year to $741.1 million due to low interest rates and high consumer confidence.
Looking ahead, analysts believe “the industry is undergoing a phase of divesting non-core physical assets, and is selling previously acquired property and land to investment funds in order to focus more on the management of storage facilities,” IBISWorld officials said in the release. There has also been a shift by operators toward offering a greater range of storage options, including wine, firearms and high-security features.
“These higher-value service options are likely a result of cost reductions made by industry operators, allowing them to focus more of their assets towards the provision of value-added services to attract and maintain a wider consumer base,” said Ryan Lin, an IBISWorld analyst.
Australia’s largest self-storage operators are expected to continue pursuing acquisitions “in an effort to build greater economies of scale. As a result, cost cuts by larger industry players will persist,” company officials said. IBISWorld analysts also believe market competition will become increasingly driven by price, particularly for traditional storage options.
The market-research report is available for a fee through the IBISWorld Australia website.
IBISWorld specializes in industry and procurement research. The company employs teams of analysts in Australia, the United Kingdom and the United States. Its research reports provide information and analysis on market conditions and forecasts, and industry supply chains.