The self-storage market is expected to register a CAGR of 7.57% over the forecast period from 2020 to 2025. The self-storage industry has evolved considerably since its inception in the late 1960s. The main growth factors for this industry can be attributed to the increased awareness about these facilities and increased urbanization. The principal competitive factors for this industry are the pricing and location of the facility. Seasonal demands drive the occupancy rates.
- The essential benefit of using self-storage software is the incredible convenience it provides. This holds especially if one is using a cloud-based self-storage system. This facilitates the business to access the data from anywhere when one has Internet capability. Some software systems give a visual picture of available and occupied storage units through the custom storage facility map.
- The increasing trend in the e-commerce sector, opening physical stores for pick-up and delivery, also supports the growth of the self-storage market. Along with the rising growth of the e-commerce sector across the world, niche service demands, like climate-controlled environment and functional spaces for sports equipment, across many regions, also provide many growth opportunities to the self-storage market. Global spending on goods and services is expected to grow at a steady rate, of around 4%, over the next few years, which could, in turn, drive the demand for self-storage solutions.
- According to the survey conducted by the Federation of European Self Storage Associations, around 88% of the operators in Europe had their price listed online, 60% of the operators provided the facility to reserve storage units online, and 96% of the operators provided electronics access. The storage facilities have gone digital with operators requiring software to manage their front-end and backend functionalities for their business. The operators are managing features, such as customer management, deposit tracking, gate/access control, interactive property map, late fee calculation, lead management, move-in/move-out wizard, etc., through this software.
- The Self Storage Association (SSA UK) also reported that there are over 1,582 self-storage facilities in the United Kingdom, out of which 381 facilities provide container storage, and 765 offer business storage predominately. The country also offers massive opportunities for the domestic market vendors to expand, as the United Kingdom has only 0.68 sq ft of storage space per head of population. Whereas, the number is much higher in Australia (1.8 sq ft) and the United States (9.4 sq ft).
- Further, the novel COVID-19 pandemic has put the world on a standstill, affecting primary operations, leading to an industrial catastrophe. Storable, a supplier of various products and services to the self-storage industry, has completed several integrations between its affiliate brands to provide help for self-storage operators to offer a better customer experience during the COVID-19 pandemic. Storable clients using SiteLink or storEDGE self-storage management software can send their self-storage renters a link via e-mail or text, which will help them complete the move-in process from any device, according to a press release.
Key Market Trends
Cloud-based Self-storage is Expected to Witness Significant Growth
- The most crucial benefit of using self-storage software is the incredible convenience it provides. This holds especially if one is using a cloud-based self-storage system. This facilitates the business to access the data from anywhere when one has Internet capability. Some software systems also give a visual picture of available and occupied storage units through the custom storage facility map.
- Nowadays, most modern software providers provide some cloud software at this point, as it has the most significant potential benefits for the end-user. For instance, most reputable providers choose to host their data on proven and reliable data networks. This allows for customer data to be stored at a location near the customer, which provides for a fast and secure software connection. This also allows for the data to be duplicated on numerous servers, so data is safe in the event of corruption or natural disasters. Since the software is hosted.
- While the cost of cloud-based and conventional self-storage software can vary widely, it’s often easy to find it for a cheaper rate than traditional software. The upfront costs are lower because the entire process is more straightforward. Cloud-based self-storage software doesn’t need to be mailed to the facility on a disk and installed on the computer. Many programs can be operated right in the Web browser. Operational costs are often lower as well due to the ease of access both from the customer and provider. The maintenance and support are significantly simplified, which usually translates to lower prices for the end-user.
- In May 2020, E-SoftSys, Total Solutions Provider for the self-storage industry and developer of Self Storage Manager, announced the successful implementation of their Online Rental platform across 48 stores of ezStorage Corporation. The company is one of the first management software companies in the self-storage industry to introduce an entirely cloud-based Online Rental platform and, in the past, have assisted several storage operators in quickly adapting to contact-less and paperless rentals which is the need of the hour due to the outbreak of COVID-19.
North America is Expected to Hold the Major Share
- The North America region was expected to have the most significant market share of the self-storage software market, in 2018, with the United States occupying the majority of the market. The dominance in the region is due to the increasing adoption of advanced technologies. Moreover, the region has a robust foothold of self-storage software providers, which is anticipated to drive the market in the region. Some of the players in the market of the segment are U-Haul International Inc., The Storage Group, and Domico Software, among others.
- In June 2019, self-storage technology providers based out of the United States, SpareFoot, SiteLink, and storEDGE, announced their unification under the brand name Storable. Storable provides a complete suite of solutions designed to empower self-storage operators to enhance efficiency and optimize occupancy. The announcement came after a period of growth for the self-storage industry. The number of households renting self-storage units has climbed to an all-time high, with more than 11.8 million homes leasing additional space.
- The self-storage concept was first introduced in the North American region in 2000. It is anticipated that, in the United States alone, more than 2.63 billion square feet of rental space is available across 54,000 storage facilities. Moreover, the self-storage industry has been one of the fastest-growing sectors in the United States' real estate industry over the past few decades. Furthermore, various factors, such as the increasing number of storage facilities and the adoption of lighter versions of self-storage software, with limited features and lower prices, are anticipated to contribute to this market's growth.
- The unused storage space is growing, and rates are declining in the United States. This is a sign that the self-storage industry is going to face a tough time withstanding an economic downfall if it continues through the summer season when people do a lot of moving and, as a result, storing. In areas like Houston, Texas, where self-storage is a historically thriving business, prices are expected to go down an average of 45%. In Minnesota, prices have already dropped by more than 50% for some storage spaces in April 2020. Instances like these could hamper the self-storage software market in the region.
The self-storage software industry is quite fragmented, and the competition is fierce, with many companies providing software solutions in the market. The companies are expanding rapidly. As a result, the overall market growth is also rampant globally. Technological advancements in the market are also bringing sustainable competitive advantage to the companies, and the market is also witnessing multiple partnerships and mergers.
- May 2020 - RADical Systems (UK) Ltd went through the needs of self-storage facility owners and wish-lists and found out that the electronic signature feature was one of the top priorities. The company has produced an integration with the electronic signature software provider Signable. This application program interface allows the Space Manager to send directly to Signable, ensuring contracts are signed electronically.
- October 2019 - Domico Software released its integration with ClickandStor, one of the first online rental tools. Through its combination with DomicoCloud, ClickandStor will now have access to a broader network. In turn, DomicoCloud has gained a straightforward path to integrate ClickandStor, the premier online rental tool, into websites. This will give facility owners the ability to take payments online and constant monitoring of rentals.
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