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The storage and warehousing leasing market size is forecast to increase by USD 107.2 billion, at a CAGR of 7.8% between 2023 and 2028. Market growth is driven by several key factors: a rising global demand for warehousing and storage services, the expansion of the global third-party logistics (3PL) market, and increasing requirements for refrigerated warehouses to store frozen food. These elements fuel growth across the logistics and supply chain sectors. The surge in warehousing demand reflects the growing complexities of global trade and e-commerce, necessitating efficient storage solutions. Concurrently, the growth of the 3PL market signifies a shift towards outsourced logistics services to enhance operational flexibility and cost-efficiency. Additionally, the rising need for refrigerated warehouses underscores advancements in food preservation and distribution logistics, meeting consumer demand for fresh and frozen food products. These trends present opportunities for industry players to innovate in storage technologies, expand service offerings, and capitalize on evolving market dynamics to meet the needs of diverse global supply chain. Our market growth analysis report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
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The market caters to a diverse range of clients including businesses, individuals, and entities requiring physical spaces for storage needs. Options vary from non-climate controlled storage suitable for bulk items to climate-controlled facilities ideal for sensitive goods. Factors influencing market dynamics include lease duration, E-commerce trends driving demand for storage space, and metrics such as rental vacancy rates and homeownership rate impacting supply and demand. With the rise of omnichannel models and the globalization trend, businesses increasingly seek flexible storage solutions to accommodate manufactured products and support online buying trends while maintaining offline store operations. Market growth also reflects advancements in automation within warehousing, enhancing efficiency in handling and distribution across industrial production index. Overall, the storage and warehousing leasing market adapts to evolving economic conditions and consumer behaviors, offering essential services to facilitate logistics and supply chain management.
The increase in global demand for the warehousing and storage market is one of the key drivers supporting the market growth. The storage and warehouse facilities are used to store automotive, chemical, food and beverage, pharmaceutical, FMCG, and electronic products. Controlled rooms, including cold storage facilities, maintain precise temperatures crucial for storing healthcare injections, creams, and perishable goods, serving both general warehousing needs and private warehouse requirements.
In addition, the high real estate prices further increase the construction cost for the different end-user industries. Therefore, end-user industries prefer leased storage and warehouse facilities to achieve economies of scale. This growth in the demand for warehousing and storage services will support the growth of the global storage and warehouse leasing market during the forecast period.
Increased use of technology for the modernization of warehouses is one of the key storage and warehouse leasing market trends that is contributing to the market growth. Vendors provide tools and methodologies to automate business process areas, integrate cross-functional business process components, and effectively identify, track, quantify, and report on various sustainability factors. Moreover, the Internet of Things (IoT) involves the use of sensors and robotic systems in warehouses. Also, analytical tools are used to process data in the most productive, efficient, convenient, and secure way.
Moreover, the use of battery-driven or automated guided vehicles, radio frequency identification (RFID)-enabled tags, automated conveyor belts, automated storage/retrieval systems, and warehouse management systems (WMS) will make warehousing operations lean and result in cost savings. For instance, to store the same volume of products, warehouses equipped with automated storage and retrieval system use 40% lesser space than conventional warehouses. The demand for warehouses equipped with IoT solutions will drive the global storage and warehouse leasing market during the forecast period.
Increasing warehouse rent driving buyers to invest in storage and warehouse facilities is one of the factors hindering the market growth. The location of storage and storage facilities is a key strategic decision requiring analysis of various factors such as area, connectivity, and land value. The property price is a decisive factor for warehouse operators. Rising rents for storage and warehouses are creating a difficult business environment for market operators and also it driving buyers to build new facilities or develop a strategic alliance to optimize their operational efficiency. The construction of new warehouses and warehouses will restrain the market growth during the forecast period.
For instance, in the US, the growth of the various end-user industries, such as e-commerce and the government initiative of reduction in the corporate tax from 35% to 21% in December 2017, will drive the manufacturing industries, which will lead to the increase in the demand for storage and warehouse facility. This will reduce the vacancy rate of warehouses, thereby increasing the rent of the storage and warehouse facilities. In 2021, the vacancy rate of warehouses in the US reduced to 3.9%. Therefore, the low vacancy rate in the US raised the warehouses' rent. Such factors will hinder the market growth during the forecast period.
The non-climate-controlled segment will account for a major share of the market's growth during the forecast period. Non-climate-controlled storage space or warehouse is defined as a facility that is not equipped with temperature-controlling units such as air conditioners and heat blowers. Non-climate-controlled self-storage systems are outdoor storage units that are used to store certain types of clothing, furniture, and kitchen items. Such factors will increase the demand for this segment during the forecast period.
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The non-climate-controlled segment was valued at USD 160.50 billion in 2018. The demand for non-climate-controlled self-storage is driven by the growth of the global e-commerce industry. According to United Nations Conference on Trade and Development (UNCTAD) data, e-commerce retail sales as a share of total retail sales raised to 19% in 2020, compared to 16% in 2019. As per The World Bank Group, in 2020, Internet penetration in countries such as the US reached 91%, which helped a large section of consumers gain access to e-commerce platforms. Thus, the growth of retail e-commerce sales is expected to drive the non-climate-controlled segment of the market in focus during the forecast period
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North America is estimated to contribute 38% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The North American storage and warehouse leasing market is primarily driven by countries such as the United States, Mexico, and Canada. The United States is one of the largest consumers and producers of services offered by storage and warehouse leasing vendors in the region. In 2022, the United States accounted for the largest regional market share. With the growth of industries such as manufacturing, food and beverages, chemicals, and e-commerce, as well as proliferating trade, the country is further expected to foster the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Agility Public Warehousing Co. K.S.C.P: The company offers storage and warehousing leasing through prepaid freight.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
Adwise Realty LLP, Agility Public Warehousing Co. K.S.C.P, American Warehouses, Avison Young, CBRE Group Inc., Central Storage and Warehouse Co., Colliers International Property Consultants Inc., CubeSmart LP, Foster Van Lines, Lee and Associates Licensing and Administration Co. LP, Prologis Inc., Public Storage, Radius Commercial Real Estate, Royal Commercial Real Estate LLC, Safestore Holdings plc, Saltbox, TransWestern Commercial Services LLC, W. T. Young LLC, Ward North American, and Warehouses Plus
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research and growth report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market has evolved significantly to meet diverse needs ranging from non climate controlled storage for general goods to climate controlled facilities crucial for storing perishable items like insulins, antibiotic liquids, and eye drops. This sector is deeply influenced by trends such as E commerce expansion, prompting increased demand for sustainable warehousing solutions and advanced technologies like robotics, big data analytics, and Warehouse Management Systems (WMS). With the rise of omnichannel model in online buying trend, business sentiment are adopting strategies to integrate offline stores with digital platforms, necessitating efficient inventory management and omnichannel distribution capabilities. The market also caters extensively to SMEs requiring flexible storage options for essential household goods and perishable products. Innovations in GPS, RFID, and VoIP devices enhance inventory tracking and security, while multi-story warehouses optimize space utilization in urban areas. Overall, the storage and warehousing leasing market is poised for growth driven by technological advancements and changing consumer behaviors in logistics and supply chain management.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.8% |
Market Growth 2024-2028 |
USD 107.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.23 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, China, India, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adwise Realty LLP, Agility Public Warehousing Co. K.S.C.P, American Warehouses, Avison Young, CBRE Group Inc., Central Storage and Warehouse Co., Colliers International Property Consultants Inc., CubeSmart LP, Foster Van Lines, Lee and Associates Licensing and Administration Co. LP, Prologis Inc., Public Storage, Radius Commercial Real Estate, Royal Commercial Real Estate LLC, Safestore Holdings plc, Saltbox, TransWestern Commercial Services LLC, W. T. Young LLC, Ward North American, and Warehouses Plus |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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