Global Warehousing Market Expected to Grow by $107B by 2028
A new Technavio report highlights the integration of technology as a key driver of growth in the warehousing market.
The global storage and warehousing leasing market is projected to grow by $107.2 billion from 2024 to 2028, according to a new report from Technavio. This growth, estimated at a compound annual growth rate (CAGR) of 7.8%, is driven by the rising global demand for warehousing and storage services, alongside the increased use of technology to modernize these facilities.
The integration of technology into warehousing is spearheading this growth. Vendors are adopting automated storage and retrieval systems, RFID tags, conveyor belts, and warehouse management systems to enhance efficiency. These technologies can reduce space usage by up to 40%, leading to significant cost savings. Additionally, modern construction methods like precast concrete and insulated steel panels are reducing carbon emissions and energy costs, further contributing to market growth.
The booming e-commerce sector is a significant trend driving the demand for warehouse space. Online retail and the omnichannel model are creating a surge in the need for warehousing solutions. Climate-controlled storage is particularly popular for sensitive items like food products and essential household goods. Moreover, the low rental vacancy rates, due to high business sentiment and industrial production index, indicate a strong market demand.
However, the increasing cost of warehouse rent poses a challenge, pushing some buyers to invest in building their own storage and warehouse facilities. The location of these facilities is critical, considering factors like land area, connectivity, and real estate prices. Rising rents are leading to more strategic alliances and the construction of new facilities to enhance operational efficiency.
The market also faces challenges from escalating land and warehouse prices, prompting some end-users to invest in their own facilities. Despite these challenges, advancements in technology, such as big data analytics for inventory management and the use of GPS, RFID, VoIP devices, and imaging technology, are transforming warehouse operations and helping businesses meet demand.
The report highlights top companies in the field 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, and Warehouses Plus.
