Hong Kong Self Storage Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 3.67 Million square feet |
| Market Volume (2029) | 5.39 Million square feet |
| CAGR (2024 - 2029) | 8.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Hong Kong Self Storage Market Analysis
The Hong Kong Self-Storage Market size is estimated at 3.67 Million square feet in 2024, and is expected to reach 5.39 Million square feet by 2029, growing at a CAGR of 8% during the forecast period (2024-2029).
The market sizing estimates reflect the number of self-storage facilities in the region and the space available for renting or leasing units to personal and business end users for storage.
- The growth can be attributed to the increasing difficulty in finding spaces for commerce. Moreover, in Hong Kong, people live in small, expensive flats and generally lack space to store their items like old books and clothes.
- Several organizations, such as Self Storage Association Asia, in May 2023, provided operators in Hong Kong with the official endorsement of their sites through its SAFE Programme. The endorsement indicates that each site has been deemed compliant or is on its way to becoming compliant under Hong Kong SAR Government regulations.
- In addition to the acceleration provided by the COVID-19 pandemic, the context of smaller living spaces in the residential area of Hong Kong predates itself as a driving force of the market studied. Residents have opted for self-storage units in the region to store unworn seasonal clothes, unnecessary furniture, important heirlooms, etc., to save space in their small compact living spaces. Increased urbanization and the rise of micro-apartments in Hong Kong have supported the demand for self-storage units.
- Downsizing businesses, especially small and medium-sized enterprises, to combat the dip in demand during the COVID-19 pandemic led to the more extensive use of self-storage facilities. The demand is driven by the restaurant sector, which was compelled to store unused appliances in the facilities, thereby positively impacting the market studied. For instance, according to the Hong Kong Federation of Restaurants & Related Trades, around 1,200 restaurants had to suspend operations in February 2022 as new lockdown measures were imposed.
- There will be a significant impact on the growing self-storagee industry in the region. Investors might find it challenging to get additional capital from financial institutions to expand their facilities in the near future. However, the market is expected to experience a strong demand on account of employees needing extra space as they work from home and students needing space to store their essentials after being asked to vacate their campuses.
- Pandamic has impacted several economies and industries. However, some industries continue to expand steadily. The self-storage industry has not been severely affected by the pandemic and has grown gradually with the consumer demand for storage. Because of the city's limited space, Hong Kong has several local storage providers.
Hong Kong Self Storage Market Trends
Personal Segment is Expected to Drive the Market
- Self-storage is commonly associated with personal use because some people require temporary space to house some important items. Furniture, appliances, electronics, dishes, kitchenware, and personal items are among the most common items that people store.
- Mostly, people in Hong Kong use self-storage during house-shifting. At the same time, in-home remodeling or even painting the house, short- to medium-term storage necessities may develop; storing items in short-term self-storage is a suitable option for moving objects. Also, self-storage can relieve stress by protecting personal belongings from damage during repairs.
- The living space per person in Hong Kong is much less compared to developed economies like the United States. To provide more context, according to the Census and Statistics Department of Hong Kong, in 2023, the average living space of public rental housing tenants in Hong Kong was 13.8 sq. m per person, and it has historically remained between 13 sq. m and 13.5 sq. m from 2017 to 2023.
- When people travel for work or pleasure, leaving their belongings unattended can be highly dangerous, mainly if they contain assets like valuable jewelry and vehicles. Instead of immediately selling belongings to the highest bidder and incurring a loss overall, customers consider a practical alternative like self-storage when moving abroad on secondment for employment. Larger objects like furniture, television, artwork, book collections, bicycles, and cars can be stored in moderately cost storage containers to be in better condition when consumers return from their trip.
- Self-storage businesses have expanded all over Asia, remodeling aging facilities and preparing brand-new construction. Numerous businesses doubled the floor space of their current locations in Hong Kong. For instance, companies such as Storefriendly, Storage One, and others opened new facilities in 2022 to meet consumer demand. With growing urbanization and lifestyle changes, the self-storage market is expected to grow significantly during the forecast period.
Increasing Population Density and Rising Consumerism Driving the Market
- Hong Kong has experienced high residential prices and smaller unit sizes. This, combined with high-income levels for a specific section of the population and a consumption-driven society, generates considerable demand for self-storage. According to a report by the New York Times, a home in Hong Kong costs more than 20 times the median salary of the people.
- The market studied is also characterized by consumers' aversion to paying a significant amount as a security deposit to rent a storage unit. Although most players in the market are operational to procure the deposit, the user preference of not being willing to pay upfront can profoundly influence the current payment structure of the market in the long term.
- According to a survey conducted by Greenpeace, Hong Kong ranked at the top or second in 10 out of 12 indicators that confirmed a tendency to overspend on material goods due to an unhealthy reliance on shopping.
- As consumers expect next-day deliveries, companies have come to value logistics even more and have resorted to self-storage. Multiple market vendors have acted positively on a similar note. Along with the rising growth of the e-commerce sector in Hong Kong, niche service demands, like climate-controlled environments and specialized spaces, are expected to provide growth opportunities to the self-storage market in the near term.
- The expansion of e-commerce and the opening of smaller e-shops is also expected to act as a significant growth driver for the market. Larger e-commerce firms increasingly use third-party logistic services due to a need for more space. According to the Office of the Communications Authority, e-commerce is expected to account for 5.6% of total retail sales by Oct 2023.
Hong Kong Self Storage Industry Overview
The competitive landscape of the Hong Kong self-storage market is fragmented, with more than 90 operators handling about 415 odd facilities in the region. The growing need for self-storage facilities is expected to aid new players entering the market. Some of the recent developments in the market are as follows:-
- August 2023 - Hong Kong self-storage operator One Storage Management Co. Ltd. has introduced a mobile application that uses artificial intelligence (AI) to help customers find facility locations and manage their accounts, including the ability to make online payments. According to a press release, the app “incorporates a big-data infrastructure” that’ll also benefit employees.
Hong Kong Self Storage Market Leaders
Storefriendly Self Storage Group
Sc Storage
Apple Storage (tai Yau Storage Group Limited)
Cube Self Storage
Red Box Storage
*Disclaimer: Major Players sorted in no particular order
Hong Kong Self Storage Market News
- April 2023 - Storefriendly, the Asia self-storage operator backed by investment giant Blackstone, recently introduced its two latest locations at redeveloped properties on Hong Kong Island and in the New Territories.
- December 2023 - A joint venture between US private equity giant Blackstone and Hong Kong-based self-storage operator StoreFriendly has acquired an industrial building in Hong Kong’s New Territories for HKD560 million (USD 72 million), with plans to convert the Tsuen Wan property into a self-storage facility.
Hong Kong Self Storage Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat Of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Population Density is the Key Driver of the Market
5.2 Market Restraints
5.2.1 Lack of Enough Space to Build Self-storage Facilities
6. MARKET SEGMENTATION
6.1 End User
6.1.1 Personal
6.1.2 Business
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Storefriendly Self Storage Group
7.1.2 SC Storage
7.1.3 Apple Storage (tai Yau Storage Group Limited)
7.1.4 Cube Self Storage
7.1.5 Red Box Storage
7.1.6 Spacebox Limited
7.1.7 Boxful Self Storage
7.1.8 In N Out Storage
7.1.9 Hongkong Storage
7.1.10 Metropolitan Lifestyle (H.K) Limited
7.1.11 Extra Space Pte Ltd
7.1.12 Storhub Self Storage
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Hong Kong Self Storage Industry Segmentation
Self-storage facilities give people access to space to rent and store any household or business possessions. Rental agreements for storage space, often known as storage units, are month-to-month agreements. Self-storage allows the user much greater control than full-service storage options, which restrict the customer's access to their possessions and dependence on the storage provider to maintain and manage them.
The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study tracks the number of facilities and total lettable area and summarizes end-users. In addition, the study provides self-storage market trends, along with crucial vendor profiles. The market sizes and forecasts are in terms of value (USD) for all the above segments.
| End User | |
| Personal | |
| Business |
Hong Kong Self Storage Market Research FAQs
How big is the Hong Kong Self-Storage Market?
The Hong Kong Self-Storage Market size is expected to reach 3.67 million square feet in 2024 and grow at a CAGR of 8% to reach 5.39 million square feet by 2029.
What is the current Hong Kong Self-Storage Market size?
In 2024, the Hong Kong Self-Storage Market size is expected to reach 3.67 million square feet.
Who are the key players in Hong Kong Self-Storage Market?
Storefriendly Self Storage Group, Sc Storage, Apple Storage (tai Yau Storage Group Limited), Cube Self Storage and Red Box Storage are the major companies operating in the Hong Kong Self-Storage Market.
What years does this Hong Kong Self-Storage Market cover, and what was the market size in 2023?
In 2023, the Hong Kong Self-Storage Market size was estimated at 3.38 million square feet. The report covers the Hong Kong Self-Storage Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Hong Kong Self-Storage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Hong Kong Self Storage Industry Report
Statistics for the 2024 Hong Kong Self Storage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hong Kong Self Storage analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
