Authored By: Sarah
11 Jul 2024

 Storage And Warehousing Leasing Market Size to grow by USD 107.2 billion between 2024-2028

According to a research report “ Storage And Warehousing Leasing Market” by Type (Non-climate controlled, Climate controlled) End-user (Manufacturing, Retail, Consumer goods, Food and beverages, Others) Geography (North America, APAC, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 107.2 billion, at a CAGR of  7.8% during the forecast period. The global warehousing and storage market encompasses the demand for facilities used to house automotive, chemical, food and beverage, pharmaceuticals, FMCG, and electronics products. Manufacturers, importers, exporters, and logistics providers utilize warehouses to store both finished and semi-finished goods. The construction of new warehouses and storage facilities is a capital-intensive endeavor, with high real estate prices further increasing the cost for various industries. Consequently, leased storage and warehouse facilities offer end-users the opportunity to achieve economies of scale and reduce their capital expenditures. The expansion of the global warehousing and storage market is projected to boost the demand for leased facilities across sectors.

Browse market data tables, figures, and in-depth TOC on “Storage And Warehousing Leasing Market” by Type (Non-climate controlled, Climate controlled) End-user (Manufacturing, Retail, Consumer goods, Food and beverages, Others) Geography (North America, APAC, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Type, the Non-climate controlled segment is projected to dominate the market size in 2024

In the realm of business operations, warehouses serve a pivotal role in storing raw materials and finished products for industries such as manufacturing, e-commerce, construction, vehicles, and agriculture. Prior to distribution, these facilities function as collection points for goods. Warehousing offers uncomplicated storage solutions, making it an attractive option for businesses, particularly those in manufacturing. The need for large equipment in manufacturing processes necessitates the leasing of spacious warehouses. By enabling on-time delivery and optimum distribution, warehousing contributes to increased labor efficiency and customer satisfaction. Moreover, it minimizes errors and damage during order fulfillment, ensuring product safety and integrity. Additionally, warehouses provide secure storage during transit, safeguarding against theft and loss.

By End-user, Manufacturing  segment is expected to hold the largest market size for the year 2024

In the realm of storage and warehousing leasing, non-climate-controlled facilities refer to those lacking temperature-regulation systems such as air conditioners and heat blowers. These facilities comprise outdoor self-storage units, utilized primarily for storing specific consumer goods like certain clothing, furniture, and kitchen items. The burgeoning global e-commerce sector significantly fuels the demand for non-climate-controlled storage solutions. With Internet penetration reaching 76% in countries like China in 2022, as reported by the World Bank Group, a substantial consumer base gained access to e-commerce platforms. Consequently, the expansion of retail e-commerce sales is anticipated to propel the growth of the non-climate-controlled segment within the storage and warehousing leasing market.

North America is forecasted to hold the largest market size by region in 2024

The Storage and Warehousing Leasing Market represents a significant segment of the logistics industry, offering businesses flexible solutions for managing their inventory and supply chain operations. Companies seek out third-party logistics providers to lease storage and warehousing space, ensuring optimal product handling, efficient order fulfillment, and reduced transportation costs. This market caters to various industries, including manufacturing, retail, and e-commerce, enabling them to maintain optimal inventory levels and enhance customer satisfaction.

The Storage And Warehousing Leasing Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Adwise Realty LLP
  • Agility Public Warehousing Co. K.S.C.P
  • American Warehouses
  • Avison Young
  • CBRE Group Inc.
  • Central Storage and Warehouse Co.
  • Colliers International Property Consultants Inc.
  • CubeSmart LP
  • Foster Van Lines
  • Lee and Associates Licensing and Administration Co. LP
  • Prologis Inc.
  • Public Storage
  • Radius Commercial Real Estate
  • Royal Commercial Real Estate LLC
  • Safestore Holdings plc
  • Saltbox
  • TransWestern Commercial Services LLC
  • W. T. Young LLC
  • Ward North American
  • Warehouses Plus
.

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Research Analysis Overview

The Storage and Warehousing Leasing Market has experienced significant growth in recent years due to the globalization trend and the increasing demand for logistics services. With the rise of online buying and the omnichannel model, manufactured products, furniture, and other goods require more physical spaces for storage and distribution. This is particularly true for offline stores, which still play a crucial role in retail sales, especially for bulky items like furniture. The manufacturing sector, driven by industrial production index and business sentiment, also contributes to the demand for warehousing leasing. Automation and climate-controlled storage have become essential features in modern warehouses, ensuring efficient and effective storage and handling of goods. Individuals and businesses alike are increasingly turning to e-commerce for their purchasing needs, leading to a surge in demand for warehousing and logistics services. Factors such as homeownership rate and rental vacancy rates also impact the market, as they influence the availability and affordability of warehouse spaces. Lease durations vary depending on the specific needs of the tenant, with shorter-term leases becoming more common to accommodate the flexible nature of the e-commerce industry. Overall, the Storage and Warehousing Leasing Market is expected to continue growing, driven by the trends of globalization, logistics services, and the online buying trend.

Market Research Overview

The Storage and Warehousing Leasing Market has experienced significant growth in recent years due to various factors, including the globalization trend, e-commerce boom, and omnichannel distribution model. Private warehouses have gained popularity among businesses, particularly those dealing with perishable goods such as food and beverage, healthcare products like creams, eye drops, injections, and antibiotic liquids, and temperature-sensitive items like insulins. Warehouse Management Systems (WMS) have become essential for managing inventory and optimizing warehouse operations. Technological advancements like imaging technology, digital voice (VoIP devices), RFID, and GPS have revolutionized warehouse management. SMEs and manufacturers require climate-controlled storage solutions for their essential household goods and manufactured products. The online buying trend has led to an increase in demand for public storage and refrigerated warehouses. The e-commerce industry's growth has also resulted in the need for multi-story warehouses and sustainable warehousing practices. Big data analytics, robotics, and automation have streamlined warehouse operations and improved business sentiment. The Industrial Production Index, homeownership rate, and rental vacancy rates have influenced the lease duration for warehousing spaces. The future of warehousing leasing looks promising, with continued innovation and adaptation to changing market demands.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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