Product Code: 67085
The Europe Self-Storage market was valued at USD 3.11 billion in 2019 and is expected to reach USD 3.97 billion by 2025, at a CAGR of 4% over the forecast period 2020 - 2025. The European self-storage market is still in its nascent stage, despite the rapid adoption of the self-storage market across the world. This is majorly due to the slow growth in the European region. The GDP growth in the region was high in the first quarter of 2019, at 0.4% as compared to 2018, but remains at a slow pace weighed down by threats of protectionism, tariffs, Brexit, and a global economic slowdown.
- However, the self-storage market has grown significantly in the past years, due to various growth factors. According to a survey by the Federation of European Self-Storage Association in 2019, there are approximately 4,290 facilities across Europe, providing over 9.9 million square meters of self-storage space.
- Also, the six biggest markets in Europe, where self-storage has been established for almost two decades, hold 85% of the market share of available floor space. Further, the UK is a significant contributor to the self-storage market, with 46% of all European space situated in either England, Scotland, Wales, or Northern Ireland.
- Also, the five Nordic countries, Denmark, Finland, Iceland, Norway, and Sweden, are amongst the top seven along with the UK which is the most mature market, and the Netherlands which was also early to adopt self-storage.
- Various societal changes such as the increase in mobility of the workforce, immigration, and increase in adoption of micro-apartments are certain factors stimulating the market growth in Europe.
- Also, the growth of online retail and the gradual shift from the brick and mortar stores to the online stores has proliferated the need for extra flexible storage space for everything from goods delivery to creating physical workspaces to run their business within self-storage.
- Furthermore, with the advent of technology, the self-storage industry is also expected to be positively affected. For instance, self-storage software provides features, such as facility maps, specialized payment options, online access for customers, and gate access integration as well. The cloud-based self-storage software, which has a centralized database hosted online, is gaining popularity among the enterprises because of its numerous advantages.
Scope of the Report
The self-storage industry is a sub-sector of the commercial real estate market. Self-storage includes renting a storage space, also known as storage units to tenants, usually on a short-term basis. Self-storage tenants include businesses and individuals. The market study is focused on the trends affecting the market in the Europe region. The growth in this industry is expected to be positive, during the forecast period, due to the trends of increased urbanization and improved economic outlook, across Europe, which has led to new business growth.
Key Market Trends
Business Storage Expected to Gain Market Popularity
- Although self-storage was originally intended for personal storage, businesses have slowly realized the importance of self-storage facilitates. Currently, businesses account for close to 30% of all self-storage tenants, according to the Self Storage Association.
- For small businesses, renting a self-storage unit would be a cost-effective, short-term or long-term solution, to address space management issues. Also, with the rise of the startup culture in the Europe region, the need for extra physical working space is also increasing. Hence, the need for self-storage space for business purposes is expected to increase in the region.
- For instance, Safestore, a key vendor in the UK self-storage market, revealed that some stores have reported that up to 60% of their self-storage units are being used by small- and medium-sized businesses. Businesses operating in the e-commerce marketplace, construction companies, etc., have predominantly been using self-storage spaces.
Germany Expected to Grow Significantly
- Since the European self-storage market is still developing, Germany is still in its nascent stage as compared to other countries in the region. However, according to the survey by FEDESSA, Germany has seen some of the most significant growth in supply over the last three years, increasing by around 50% of space. According to the Self Storage Association (UK), the self-storage space in Germany accounted for 6049000 sq.ft areas in 2018.
- Germany poses various growth opportunities, as large urban areas with high population densities provide lucrative opportunities for the self-storage market to grow due to lack of space. Also, increasing urbanization and the decrease in living space are the main driving forces behind the growth of the German self-storage market. The growing urbanization subsequently increases the demand for space, which is also leading to a rise in property prices per square meter. Hence, these factors are leading to market growth.
- Further, initiatives by the companies in the country and the government are also expected to boost market growth. For instance, in April 2019, Metric Capital Partners LLP, the European private capital group, has established the MCP Self-Storage Platform, created to provide growth capital to independent self-storage operators to acquire and build self-storage assets across the European market. Metric Capital Partners entered into joint venture agreements with two operators in the UK and Germany to materially grow these two portfolios.
The self-storage industry in Europe is fragmented with most facilities owned and operated by smaller independent operators. These operators are consistently developing new storage facilities across Europe. Also, the companies are making direct investments in self-storage real estate assets through joint ventures or partnerships.
- August 2019 - Safestore and global investment firm The Carlyle Group formed a joint venture to acquire M3 Self Storage (M3). M3 currently has six stores in prime locations in Amsterdam and Haarlem totaling c. 25,700 sqm (c. 277,000 sq ft) of lettable space.
- January 2019 - The Self Storage Group ASA acquired Eurobox Minilager in Norway in for 320 million NOK. Eurobox Minilager operated four prime facilities in Norway of which three were freehold properties. The acquisition of Eurobox brings the total facilities owned by The Self Storage Group ASA to 106 facilities across Scandinavia.
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Table of Contents
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Increase in Awareness Amongst the People in the Region
- 4.2.2 Increased Urbanization, Coupled with Smaller Living Spaces
- 4.2.3 Improved Economic Outlook in Many Regions Leading to Business Growth
- 4.3 Market Restraints
- 4.3.1 Government Regulations with Respect to Commercial Real Estate
- 4.4 Industry Value Chain Analysis
- 4.5 Industry Attractiveness - Porter's Five Force Analysis
- 4.5.1 Bargaining Power of Suppliers
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Threat of New Entrants
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By User Type
- 5.1.1 Personal
- 5.1.2 Business
- 5.2 Countries
- 5.2.1 Europe
- 18.104.22.168 Germany
- 22.214.171.124 United Kingdom
- 126.96.36.199 Italy
- 188.8.131.52 France
- 184.108.40.206 The Netherlands
- 220.127.116.11 Spain
- 18.104.22.168 Switzerland
- 22.214.171.124 Norway
- 126.96.36.199 Sweden
- 188.8.131.52 Denmark
- 184.108.40.206 Belgium
- 220.127.116.11 Rest of Europe
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Shurgard Self Storage SA
- 6.1.2 Self Storage Group ASA
- 6.1.3 SureStore Ltd.
- 6.1.4 Safestore ltd.
- 6.1.5 Big Yellow Self Storage Company
- 6.1.6 Access Self Storage
- 6.1.7 Lok'nStore Limited
- 6.1.8 Storage King Group
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS