Market-research firm IBISWorld Inc. has released a report examining the U.S. self-storage market. The “Storage & Warehouse Leasing in the U.S.” publication contains industry statistics, market data, trends, and information on the sector’s largest operators. Company analysts believe the U.S. market is poised to grow through 2020 but warn profit-margin growth will likely slow “as heightened internal competition and lower rental rates take their toll on earnings,” according to the prospectus posted on the IBISWorld website.
By the end of this year, the U.S. storage market is expected to top $28 billion in revenue, achieving a 3 percent annual growth rate since 2010. IBISWorld analysts forecast industry revenue to grow 15.6 percent over the next five years, hitting $30.5 billion in 2018 and $32.6 billion by the close of 2020, according to a report by “The SpareFoot Storage Beat” blog. “With solid demand from households and businesses projected to boost industry revenue, the industry faces a bright future,” analysts said in the prospectus. “Steady population growth, increases in the residential rental market, rising per capita disposable income and the number of relocations will all continue to support growing industry demand over the next five years.”
Self-storage development is also expected to increase during the next five years, with the number of facilities growing from an estimated 52,952 this year to 60,152 in 2020, a 13.6 percent bump, according to the SpareFoot article. Analysts also expect industry consolidation to continue, with independent self-storage operators selling to larger operations. “This trend will remain a key strategy for many industry participants that wish to expand their geographic range, reap the benefits of horizontal integration and remain competitive in the next five years,” IBISWorld said.
The market-research report is available for a fee through the IBISWorld website.
IBISWorld specializes in industry and procurement research. The company employs teams of analysts in Australia, Canada, the United Kingdom and the United States. Its research reports provide information and analysis on market conditions and forecasts, and industry supply chains.
- IBISWorld: Storage & Warehouse Leasing in the U.S.
- The SpareFoot Storage Beat: Forecast: Self-Storage Revenue to Pass $30B in 2018