Saudi Arabia self-storage market is expected to Reach $22,868.8 thousand by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Saudi Arabia Self-Storage Market by type, facility type, application, and region: opportunity analysis and industry forecast, 2023–2032,”The Saudi Arabia self-storage market size was valued at $15,909.6 thousand in 2022 and is projected to reach $22,868.8 thousand by 2032, registering a CAGR of 3.5% from 2023 to 2032.

Saudi Arabia self-storage Market Overview is the process of renting a storage unit, which can be used to store belongings for a short or long period of time. The self-storage facilities have all the features required to ensure the safety of the stored goods. In addition, it offers various advantages such as reduced clutter in houses, enhanced security & safety, and ability to access the storage units whenever required. In addition, old items such as furniture, clothes, and other home appliances can be stored safely in a self-storage unit. These units are well protected with advanced technology and most importantly, the premises are equipped with entrance gates, surveillance cameras, external lighting for increased visibility, security fences, and guards. With increase in demand for storing large items, such as furniture and electronics items, most storage facilities have started creating large spaces to store these large items to cater to the needs of customers.

The government of Saudi Arabia is taking initiatives to boost SMEs. For instance, the government is expected to increase the number of skilled workforce to boost the SME sector with Vision 2030, which aims to reduce the unemployment rate from 11.6% to 7% and raise the female labor force participation rate from 22% to 30%. Furthermore, one of the important steps in supporting these companies is the establishment of the General Authority for Small and Medium Enterprises (Monsha’at) in 2015, which aims to increase the contribution of SMEs in the economy from 500 billion Riyals in 2014 to 2 trillion Riyals in 2030. Thus, the growth of SMEs has boosted the demand for self-storage facilities as many businesses use self-storage facilities to store their products and equipment.

The Saudi Arabia self-storage market segmented is on the basis of type and application. By type, the market is categorized into short-term lease and long-term lease. In 2021, long-term lease segment accounted for the highest market share, and short-term lease segment is anticipated to grow at a significant CAGR. On the basis of application, it is bifurcated into personal and business. In 2021, personal segment accounted for the largest market share in the Saudi Arabia self-storage market and business segment is anticipated to grow at a significant CAGR during the forecast period.

Saudi Arabia self-storage Market Growth However, during the pandemic, the demand for self-storage facilities decreased in Saudi Arabia due to slow growth of SMEs. This break directly impacted demand for self-storage units in the country. In addition, slow down of tourism industry negatively impacted the short-term lease market. However, after two years of COVID-19 outbreak and the introduction of vaccinations, the severity of the pandemic has significantly reduced and key players in the market are recovering rapidly.

The Saudi Arabia self-storage market has witnessed significant growth over the past few years owing to rise in population and rapid urbanization. A number of players are expanding their business in Saudi Arabia owing to increased demand for self-storage facilities. Home relocation is the most common reason behind the use of self-storage facilities. Self-storage is used to store the valuable belongings at the time relocation. This is anticipated to fuel the growth of the Saudi Arabia self-storage market. In addition, rise in demand for home renovation is driving the growth of the market. While renovating a home, self-storage option is a perfect solution to all the problems. All items can be safely placed in the container during home renovation

Key Findings of the Study

• The report provides an extensive analysis of the current and emerging Saudi Arabia self-storage market trends and dynamics. 
• By type, the long term segment dominated the Saudi Arabia self-storage market, in terms of revenue in 2022 and short term segment is projected to grow at a significant CAGR during the forecast period.
• By application, the business segment is anticipated to grow at a higher CAGR during the forecast period.
• Dammam is projected to register highest growth rate in the coming years.
• The key players within the Saudi Arabia self-storage market are profiled in this report, and their strategies are analyzed thoroughly, which help understand competitive outlook of the Saudi Arabia self-storage market industry.
• The report provides an extensive analysis of the current trends and emerging opportunities of the market. 
• In-depth Saudi Arabia self-storage market analysis is conducted by constructing estimations for the key segments between 2022 and 2032.