CLEVELAND, July 7, 2016 /PRNewswire/ -- Demand for self-storage and moving services in the US is expected to increase 4.2 percent per year to $71 billion in 2020. Advances will be driven by increased mobility nationwide, as individuals and businesses are relocating at higher rates following the recession and extended slow recovery. Growth will also stem from the lack of storage space in many US homes. These and other trends are presented in Self-Storage & Moving Services, a new study from The Freedonia Group, a Cleveland-based industry research firm.
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Some people move to get more storage space, while others living in urban areas seek supplemental space nearby. According to Jennifer Mapes-Christ, Manager of Consumer and Commercial Products, "The trend of off-site storage is also fed by more previously unfinished storage spaces in basements, attics, and sometimes garages being finished for use as living space, leaving less room in homes for storage. Additionally, as more baby boomers downsize, family heirlooms and other large possessions will increasingly be kept in storage."
Further gains will be restrained by an increasingly competitive environment, as many of these service segments do not have high barriers to entry. However, as more geographic areas become saturated with participants, price and quality of service will be important competitive factors. As prices fall, revenue gains will slow. To some degree, that trend will be balanced by participants offering improved service quality, additional related services, and other value-added innovations.
Through the forecast period, self-storage is projected to achieve the fastest annual gains. Growth will largely stem from gains in the small but rapidly developing mobile storage segment, which can still price at a premium compared to most fixed storage due to convenience issues. The increasing preference for value-added climate-controlled storage will further boost growth in the self-storage segment.
Full-service moving is expected to outpace DIY moving truck rental through 2020. This segment will benefit from an increasing number of older households downsizing and moving, as they are often unable or unwilling to perform the moves themselves, but are able to afford the assistance. Additionally, as the economy continues to improve, more households will pay for the greater convenience of full-service moving.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players. Reports can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group