Operators have begun to add specialised storage options such as wine storage, firearms storage and high-security storage.
Melbourne, Australia (PRWEB) May 10, 2014
Over the past five years, the Self-Storage Services industry has been supported by steady demand from Australian consumers, especially those relocating for short-term purposes such as employment or study. According to IBISWorld industry analyst Ryan Lin, “The industry has also grown steadily thanks to the lack of feasible substitutes for self-storage services, with consumers turning to industry operators to store larger items such as furniture or automobiles for later use.” As a result, over the five years through 2013-14, the Self-Storage Services industry is expected to grow at an annualised 1.8%. Profitability for the industry has also grown over the past five years as operators have aimed to reduce costs. IBISWorld expects that the industry is undergoing a phase of divesting non-core physical assets, and is selling previously acquired property and land to investment funds in order to focus more on the management of storage facilities. In 2013-14, industry revenue is expected to increase by 2.3% to total $741.1 million as low interest rates and high consumer confidence support growing industry demand.
Over recent years, industry operators have begun to increase their range of services, with the addition of specialised storage options such as wine storage, firearms storage and high-security storage options. “These higher value service options are likely a result of cost reductions made by industry operators, allowing them to focus more of their assets towards the provision of value added services to attract and maintain a wider consumer base,” says Lin. The industry exhibits a low level of market share concentration. Major players include Kennards Self Storage Pty Limited, Storage King Management Pty Ltd and National Storage Pty Ltd.
Aided by steady demand and growing service options, the Self-Storage Services industry is expected to continue to record strong profits. Large industry operators are expected to continue in their pursuit of acquisitions in an effort to build greater economies of scale. As a result, cost cuts by larger industry players will persist. Despite these favourable conditions, competitive pressure is forecast to build up as competition becomes increasingly geared towards price, especially for generic self-storage options.
For more information, visit IBISWorld’s Self-Storage Services report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau.
IBISWorld industry Report Key Topics
Businesses in this industry provide facilities and services that allow consumers to store their own goods.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.