The Saudi Arabia self-storage market size was valued at $ 15,909.57 thousand in 2022, and is projected to reach $22,868.8 thousand by 2032, registering a CAGR of 3.5% from 2023 to 2032. Self-storage is a flexible, short-term, or long-term storage rental available for both individuals and businesses. Self-storage facilities are very professional, and nothing compares to an empty shed or attic. The self-storage facilities have all the features needed to keep the belongings safe. Self-storage facilities are equipped with all the necessary features to ensure safe storage of your belongings. These facilities are used to reduce unused items both in offices and homes. These units are secured using advanced technology and above all the premises are as well secured with gated entry, surveillance cameras, and exterior lighting to increase the visibility, security fences, and security guards. In addition, with the increase in demand for storing large items, most storage facilities have started creating large spaces to store items to cater the needs of customer.
Report Key Highlighters
- The Saudi Arabia self-storage market report offers a breakdown analysis in terms of value ($million) available from 2022 to 2032.
- The research combined high-quality data, professional opinion and research, with significant independent opinion. The research methodology aims to provide a balanced view of the market, and help stakeholders make educated decisions to achieve ambitious growth objectives.
- The research reviewed more than 3,700 product catalogs, annual reports, industry descriptions, and other comparable resources from leading industry players to gain a better understanding of the market.
- The Saudi Arabia self-storage market share is marginally fragmented, with players such as Beck & Pack Logistics, Buzyb Shipping, Four Winds, Freights Solutions Co, Logexa, Makhzny Self Storage, Mostawdae, Sahel Storage, Self-Storage and WheeKeep.
Market dynamics
Saudi Arabia self-storage Market Overview Population growth and rapid urbanization are the main factors driving the growth of the self-storage market in Saudi Arabia. Moreover, according to a recent Ministry of Health report, Saudi Arabia's population will reach 34 million in 2021. Saudi Arabia is seeing an absolute increase in urban population due to rising middle class income levels and democratic stability. According to the World Bank Development Indicators Collection, Saudi Arabia's urbanization rate will be around 84% in 2021. All these factors are expected to create lucrative opportunities for the Saudi Arabia self-storage market growth during the forecast period.
In addition, rise in real estate prices in Saudi Arabia are expected to restrain the growth of the self-storage market. For instance, real estate prices in Saudi Arabia increased by 1.6 percent in the fourth quarter of 2022, compared to the same period in 2021. This is mainly due to rising housing prices. According to the latest report of the General Statistics Office, the rise in real estate prices will also hamper the self-storage market demand. Furthermore, growing tourism industry is expected to have a positive impact on the Saudi Arabia self-storage market during the forecast period. For instance, the Saudi Arabia is developing several tourism projects, such as Neom, a $500 billion futuristic city, featuring a nature reserve, coral reefs and heritage sites on several islands along the Red Sea, and Qiddiya, a huge entertainment and sports project in Riyadh. All such factors are anticipated to boost the market growth.
Furthermore, the fast-paced growth in Saudi Arabia’s industrial sector has also been supported by strategic and precision initiatives by MODON (Saudi Arabia’s industrial real estate authority) to further grow the sector. Apart from developing and managing 36 industrial cities around the Kingdom, spread across more than 200 million sqm of developed land, MODON has started to offer new products and services, such as ready warehouses, self-storage units and financing solutions to small and medium enterprises and entrepreneurs, including ‘plug n’ play’ factories. Such initiatives are expected to boost the growth of the Saudi Arabia self-storage market during the forecast period.
The degree of industry attractiveness in the Saudi Arabia self-storage market is analyzed on the basis of impact of five major forces on the market. Porter’s five forces analysis includes impact of suppliers, industry rivals, new entrants, substitute products, and buyers on the market growth. The bargaining power of the suppliers is fairly high; however, the bargaining power of buyers is relatively moderate. Moreover, the threat of substitutes is relatively high and the threat of new entrants is on the moderate to low side. Moreover, the intensity of rivalry is moderate to high.
Segmental Overview
The Saudi Arabia self-storage market son the basis of type and application. By type, it is divided into short term lease and long term lease. By application, it is divided into personal and business.
By Type
The short term lease segment is projected to grow at a significant CAGR during the forecast period.
By type, the Saudi Arabia self storage market is divided into short term lease and long-term lease. In 2022, the long-term lease segment dominated the market, in terms of revenue, and short-term lease segment is expected to grow at a highest CAGR during the forecast period. Self-storage is used to safely store private and commercial items. Short-term storage is used for various purposes such as traveling and moving. Short-term self-storage units are convenient for keeping everything in one place, and it also offers a variety of benefits such as easy access, security, and cost-effectiveness. Self-storage facility rentals are generally billed on a monthly basis. It is ideal for short-term storage and can be easily moved from the self-storage unit. In addition, air-conditioned storage rooms for storing products such as furniture, electronics, and musical instruments are suitable for short-term storage. Moreover, a portable storage container is like having your own storage room in your driveway. It is a popular short-term storage option because of easy access to the belongings. In addition, long-term storage facilities are used for long-term storage of items such as gardening equipment, sports equipment, toys and furniture. It has various advantages such as safety, convenience, space saving, home organization, and renovation, and is expected to increase the demand for long-term rental storage. Moreover, self-storage facility offers security against theft and fire damage. In self-storage belongings will always be safe, even if they are no longer used daily and it also provides insurance coverage if anything happens to the belongings. A growing real estate industry in Saudi Arabia is also expected to boost demand for the self-storage market. For example, Saudi Arabia's real estate industry is expected to grow to US$161.3 billion in 2023. All these factors are expected to propel the growth of the self-storage market in Saudi Arabia during the forecast period.
By Application
The persoanl segment is expected to hold a majority share of the market in 2022
By application, the Saudi Arabia self-storage market is divided into personal and business. In 2022, personal segment accounted for the highest share in the Saudi Arabia self-storage market share, and business segment is anticipated to grow at a significant CAGR during the forecast period. Business self-storage is a convenient short-term or long-term storage location for raw materials, equipment, documents, unused office furniture, and more, depending on the needs. In addition, businesses are attracted to storage facilities due to convenience such as renting space with a short- or long-term contract, 24/7 access to the facility to allow the renter to move or deposit a few more items, to protect against any damage to clean and protect the space, etc. Moreover, it also provides insurance for items stored at the facility, transportation to bring the item to the facility, to take the item back to the home or office, packing the item, and other services such as cleaning at minimal cost.
Personal storage is mainly used for used for various reasons such as renovation of the existing home, relocating, travelling and simply running out of the space is expected to boost the demand of self-storage market. It offers various advantages to storers such as ease of storing goods, a safe secure and well managed space to store valuables with 24/7 accessibility with the insurance facility for the goods stored. It also provides a secure and economical option for accommodating the extra items of the home. Moreover, rising adoption of technological advancements such as climate-controlled storage unit or automated self-storage unit, which creates demand from the end-users are anticipated to boost the demand of the Saudi Arabia self-storage market during the forecast period.
Most self-storage units, such as Makhzany and Self-Storage Co., are located in the Eastern Province, and due to its success and high demand, developers elsewhere in the Kingdom have also launched similar new projects. The ease of access and relatively convenient lease terms mean self-storage facilities also appeal to small, start-up businesses. Considering that the concept is relatively new to Saudi Arabia, the potential for this nascent and underserved industrial subsector appears to be quite high. All such factors are anticipated to provide lucrative opportunities for the market during the forecast period. Makhzny Self Storage, Freights Solutions Co, Buzyb Shipping and others are some of the major players which offer storage facilities with different specifications such as long term & short-term storage, computerized inventory management, pickup & delivery of goods, security monitored facilities, fire safety & prevention arrangements and security monitored facilities to the market. Such factor is anticipated to provide lucrative opportunities for the Saudi Arabia self-storage market during the forecast period.
Competition Analysis
Competitive analysis and profiles of the major players in the Saudi Arabia self-storage market, such as Beck & Pack Logistics, Buzyb Shipping, Four Winds, Freights Solutions Co, Logexa, Makhzny Self Storage, Mostawdae, Sahel Storage, Self-Storage and WheeKeep are provided in this report. Moreover, the company profiles include various data-points such as company overview, company executives, recent financials of the company, major growth strategies espoused by company, new initiatives and advancements by company to sustain and mend their position in the Saudi Arabia self-storage Market.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current and emerging Saudi Arabia self-storage market trends and dynamics.
- In-depth market Saudi Arabia self-storage market analysis is conducted by constructing market estimations for key market segments between 2022 and 2032.
- Extensive analysis of Saudi Arabia self-storage market is conducted by following key product positioning and monitoring of top competitors within the market framework.
- A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
- Saudi Arabia self-storage market forecast analysis from 2023 to 2032 is included in the report.
- The key players within Saudi Arabia self-storage market are profiled in this report and their strategies are analysed thoroughly, which help understand the competitive outlook of Saudi Arabia self-storage industry.
Saudi Arabia Self-Storage Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Facility type |
|
 By Application |
|
 Key Market Players | Makhzny Self Storage, Sahel Storage, WheeKeep, Mostawdae, Beck & Pack Logistics, Logexa, Four Winds, Freights Solutions Co, Self-Storage, Buzyb Shipping |
Analyst Review
A self-storage unit is a space that individuals and businesses can rent on short-term or long-term basis to store personal belongings as well as products. A good self-storage unit has monitored access points, security cameras, gated parking lots, and security guards, which help to create demand for self-storage. Moreover, there are several factors that contribute to rising demand for these facilities in Saudi Arabia such as rise in population and growth of the tourism industry. For instance, international tourist spending in Saudi Arabia rose to $7.2 billion in the first six months of 2022, with visitor numbers surged to 46 thousand, according to the Ministry of Investment. In addition, Saudi Arabia is developing a number of tourism projects, such as Neom, a $500 billion futuristic city featuring a nature reserve, coral reefs, and heritage sites on several islands along the Red Sea and Qiddiya, a huge entertainment and sports project in Riyadh.
Most self-storage units providers, such as Makhzny Self-Storage Co., are located in the Eastern Province, and due to its success & high demand, developers elsewhere in the Saudi Arabia have also launched similar new projects. The ease of access and relatively convenient lease terms mean self-storage facilities also appeal to small, start-up businesses. Considering the concept is relatively new in Saudi Arabia, the potential for the self-storage market appears to be quite high. All such factors are anticipated to provide lucrative opportunities for the Saudi Arabia self-storage market during the forecast period.
The Saudi Arabia self-storage market was valued at $15,909.6 thousand in 2022
Based on type, the long term lease segment are the most dominant segment of the overall market in 2022
The Saudi Arabia Self Storage market is projected to reach $22,868.8 thousand by 2032.
Development in tourism industry and growing urbanization are the key trends in the Saudi Arabia Self Storage market.
The product launch is key growth strategy of Saudi Arabia Self Storage industry players.
The company profile has been selected on factors such as geographical presence, market dominance (in terms of revenue and volume sales), various strategies and recent developments.
Increase real estate price is one of the effecting factor for Saudi Arabia Self Storage market.
The applications of Saudi Arabia Self Storage includes business and personal.
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