Scandinavia Self-Storage Market Size

Scandinavia Self Storage Market Analysis

The Scandinavia Self-Storage Market is expected to grow at a CAGR of 4.7% over the forecast period 2021 to 2026.

• The Scandinavia Self-Storage Market is still an immature industry, despite the accelerated adoption of the self-storage market. This is principally due to the sluggish growth in the Scandinavia region. Despite, Scandinavian countries are ranking high in terms of consumption per capita, as net household disposable income, according to Trading Economics, in Norway, Sweden, and Denmark grew with 2.07%, 2.37%, and 2.98% respectively by 2020.
• Nevertheless, the self-storage market has expanded significantly in the past few years, due to many growth factors. As per a survey by the Federation of European Self-Storage Association in 2019, there are roughly 4,290 facilities across Europe, rendering over 9.9 million square meters of self-storage space. The three Nordic countries, Denmark, Norway, and Sweden, are among the top seven self-storage markets, which were early adopters of self-storage.
• The industry is now proliferating in Norway, with new facilities popping up all over the country, with its first self-storage operator, Self Storage Group ASA. According to Inside Self-Storage Inc., in terms of development, there are some sizable sites with 300-400 units, but the huge majority contain 20 to 50 units.
• The leaning is for small, independent operators to emerge with 1 facility or perhaps 10 to 20 shipping containers or mobile-storage units. Though Norway is still a less developed self-storage market, the prospect looks bright, as customer awareness grows alongside the development of small apartments all over the country.
• The Scandinavia region is experiencing some substantial investments in terms of mergers and acquisitions. For instance, Shurgard, the largest developer, owner, and operator of self-storage centers in Europe, in June 2018, entered into a final agreement to acquire five self-storage facilities in Sweden from Pelican Self Storage. This transaction will see Shurgard expand its Swedish portfolio from 31 to 36 stores, reinforcing its position as the market leader in Sweden.
• Moreover, Self Storage Group ASA in July 2020 has accepted with Lagerbygg AS to acquire two properties in Norway, Skrubbemoen in Kongsberg, and Hensmoveien 8 in Honefoss. The transaction has a consolidated property value of NOK 10,75 million, with an approximated lettable area of 1100 square meters. The facilities will be conducted under the OK Minilager brand.
• Furthermore, with the arrival of technology, the self-storage industry is also anticipated to be positively influenced. For instance, self-storage software presents features, such as specialized payment options, facility maps, online access for customers, and gate access integration. The cloud-based self-storage software, which has a centralized database hosted online, is gaining popularity among the enterprises because of its numerous advantages.
• Owing to Covid-19, companies like Self Storage Group operates 112 sites across Scandinavia and has implemented several safety routines, such as travel restrictions for all employees, remote offices, and many facility disinfection. A management task force is continuously monitoring the latest development and is implementing mitigating measures on a day-to-day basis.