When looking at the upcoming trends in the self-storage industry, it is important to consider how we got to where we are today. Let us look through the past. Thankfully, we are a few years past the pandemic and all the changes that it brought to our world. This included supply chain challenges and labor shortages. It also included materials and delivery price increases, and market fluctuations. Through it all, the storage industry remained strong. People continued to use storage. And storage facilities were able to expand with relocatable storage units.
In 2023, everything from gas to groceries was expensive. This past year has been all about inflation. With higher interest rates, the housing market has slowed down in a lot of areas. We saw a lot of tightened budgets and people moving into smaller homes and offices. Self-storage operators kept good occupancy and rental rates. And once again, our industry proved resilient through tough times. People are spending money and need space to store all their items. Or, they are saving money and need to downsize their residences and workplaces. Storage is key in both instances. And convenience is always king.
This year, storage businesses had to stay on top of technology, industry trends, and innovative products. At Boxwell, for example, we had a lot going on in 2023. We redesigned our website to enhance user experience and accessibility. Boxwell attended several trade shows. These include the 2023 NPSA Trade Show & Conference, SSA Fall Conference, and FEDESSA Conference & Trade Show 2023. And in 2023, Boxwell introduced a new product line. Our new 10 x 20 self-storage units caters to the growing need for larger storage solutions and the market demand.
The Future of Storage
Industry Growth:
- The storage industry is expected to grow at a CAGR of 7.54% between 2022 and 2027. As a result, the self-storage market size is expected to reach USD $ 83.6 billion in 2027 compared to USD $ 58.3 billion in 2023.
- The self-storage market is projected to hit $83.6 billion, led by North America’s significant contribution and the Asia Pacific region’s fastest growth rate.
- Self-storage businesses are experiencing a surge in website creation. The industry is shifting to digital platforms with a strong online presence.
Technology:
Of course, it would not be a year in review without talking about technology. AI has taken all industries by storm. In the storage industry, AI can help with remote management and maintenance. Plus, automated security systems, customer service, marketing, demographic research, and competitive pricing. Like any tool, AI can leverage your work. We are all learning how to make it work for us!
Bigger Units:
The demand for larger storage units is on the rise, with a notable increase in the storage of vehicles. Storage units can keep vehicles safe, protected, and off people’s driveways. Larger units are not only utilized for vehicle storage but also serve business purposes, accommodating materials, equipment, and office supplies.
Boxwell’s 10 x 20 self-storage units are the most heavy-duty (and versatile) unit on the market. They come with forklift pockets for easy moving and stacking. Plus, they can be used for car storage with no upgrades needed. And they are customizable to any color and configuration, such as 2-door, 4-door, or end-door.
Millennial Population:
The largest demographic group in the US, millennials, were born between 1981 and 1996. And they are driving the demand for self-storage. Their preference for small living spaces in urban areas aligns with the need for overflow storage. To cater to this tech-savvy group, self-storage operators are focusing on app integration. Using hands-free entry and security, online reservation, and payment options makes things convenient.
Sustainability:
The industry is embracing sustainability measures for 2004. There are options for renewable energy sources — like solar panels. This contributes to environmental responsibility and reduces long-term utility costs. These efforts will enhance a facility’s operational efficiency.
The self-storage industry is not just enduring; it’s thriving in the face of challenges. Occupancy and rates are stabilizing, and development continues to flourish. Success in 2024 involves staying informed, embracing technology, and fostering sustainable practices. The self-storage industry is adaptable and innovative. And we commit to meeting the evolving needs of consumers.
Boxwell is a leading global provider of portable and relocatable self-storage solutions designed to cater to the diverse needs of businesses worldwide. Our extensive reach encompasses storage facilities across various regions, spanning America, Australia, Canada, Europe, Ireland, Germany, the Middle East, the United Kingdom, and beyond. What sets Boxwell apart is our commitment to delivering fully customizable, exceptionally durable, and effortlessly movable storage solutions that meet the unique demands of every client. So, you can focus on running your operation!
Order your portable storage containers and enjoy peace of mind for the peak season ahead. Make sure your storage solutions can withstand the test of time and provide reliable service to your clients. Work with a Boxwell representative to decide your ideal unit mix, custom colors, door configurations and more. Your Boxwell storage units will be shipped flat packed and assembled fast with just a few dozen nuts, bolts, and basic tools. You will be ready to rent them in no time! Check out boxwell.co or call (303) 317-5850 for more information.