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The storage and warehouse leasing market is estimated to grow at a CAGR of 7.17% between 2022 and 2027 and the size of the market is forecast to increase by USD 91.27 billion. The growth of the market depends on several factors, the increase in global demand for warehousing and storage services, the growth of the global third-party logistics (3PL) market, and the growing demand for refrigerated warehouses for the storage of frozen food.
This report extensively covers market segmentation by type (non-climate controlled and climate controlled), end-user (manufacturing, retail, consumer goods, food and beverages, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report includes the adoption lifecycle of the market, spanning from the innovator’s stage to the laggard’s stage. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Storage and Warehouse Leasing Market Customer Landscape
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
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. Manufacturers, importers, exporters, and logistics service providers use warehouses to store finished and semi-finished goods. The market growth is expected to have a positive impact on the demand for leased warehouses and storage facilities across the globe. This is because the construction of new warehouses and storage facilities is a capital-intensive task.
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.
Vendors 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.
Adwise Realty LLP: The company offers storage and industrial warehouse leasing. Also, it offers buyers, sellers, developers and investors in industrial real estate in the Indian state of Gujarat.
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 15 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
Type Segment Analysis:
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 152.70 billion in 2017 and continued to grow until 2021. 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
End-user Segment Analysis:
Based on end-user, the market has been segmented into manufacturing, retail, consumer goods, food and beverages, and others. The manufacturing segment will account for the largest share of the type segment. The manufacturing sector, particularly in developing economies such as India, is witnessing a rapid growth rate. India is gradually moving toward Industry 4.0 owing to initiatives such as the National Manufacturing Policy, which is aimed to increase the share of GDP of the manufacturing sector to 25% by 2025, and the production-linked incentive (PLI) scheme for manufacturing, which was launched in 2022 to develop the core manufacturing sector to global manufacturing standards. Such initiatives will spur the growth of the manufacturing sector in India, which will increase the demand for storage and warehouse leasing and, in turn, will boost the growth of the global storage and warehouse leasing market through the manufacturing segment during the forecast period.
North America is estimated to contribute 43% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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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.
In the first half of 2020, the regional market in focus witnessed a decline owing to the COVID-19 outbreak. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Such factors are expected to drive the market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Storage And Warehouse Leasing Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.17% |
Market growth 2023-2027 |
USD 91.27 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.59 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, China, Japan, India, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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