Modular Storage System Is Estimated To Witness High Growth Owing To Opportunity Of Increasing Commercial And Residential Construction
Modular Storage System Market
Modular storage system refer to building blocks like cabinets, drawers, and
shelves that can be combined in various configurations based on storage needs.
These prefabricated storage units find extensive usage in home offices,
garages, basements, apartments and commercial spaces like offices. With growing
urbanization and real estate demand, modular storage units provide an efficient
solution to maximize available space without permanent construction.
The global Modular Storage System Market
is estimated to be valued at US$ 3.84
Billion in 2024 and is expected to exhibit a CAGR Of 11% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent
Market Insights.
Market Opportunity:
Increasing commercial and residential construction across the globe is
estimated to drive the market growth of modular storage systems over the
forecast period. Rapid urbanization has bolstered the demand for efficient
utilization of space in residential and office buildings. Modular storage
systems allow flexible and configurable storage according to changing space
requirements without permanent alterations. Furthermore, minimal installation
requirements and reusability of modular units reduce renovation and remodeling
costs associated with construction projects. The growing construction industry
is thus expected to create significant lucrative opportunities for modular
storage system manufacturers globally.
Porter's Analysis
Threat of new entrants: Low economies of scale and high capital requirements
act as a deterrent for new companies to enter the market. The existing players
have strong brand recognition and customer loyalty.
Bargaining power of buyers: Buyers have moderate bargaining power due to the
availability of differentiated product offerings from various vendors. However,
switching costs are low.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power
as there are several component manufacturers for modular storage systems.
Threat of new substitutes: Threat of substitution is low as there are limited
substitutes that can provide the versatile and customizable storage solutions
offered by modular systems.
Competitive rivalry: High as the market is dominated by few major players
competing on the basis of product innovation, price, and sales &
distribution.
SWOT Analysis
Strength: Modular storage allows flexible configuration and expansion. It
offers an optimized use of space.
Weakness: High initial costs compared to conventional storage solutions.
Require specialized installation or assembly.
Opportunity: Growing demand from industries like healthcare and education
driving market growth. Rise in infrastructure development projects worldwide.
Threats:
Economic slowdowns can decrease spends on office interior projects. Trade
barriers and geopolitical tensions affect global supply chains.
Key Takeaways
The Global Modular Storage System Market Demand
is expected to witness high growth
during the forecast period of 2024 to 2031. The market size for 2024 is US$
3.84 Bn and is expected to grow at a CAGR of 11%.
Regional analysis:
North
America dominates the global market currently owing to rapid industrialization
and demand from end-use sectors in the US and Canada. Asia Pacific is expected
to be the fastest growing region on account of increasing construction
activities, growing e-commerce industry and rapid urbanization in China and
India.
Key players:
Key players operating in the modular storage system market are Tampa Elctric LLC, Sustainable Modular Systems, Merlin System and SpaceSaver corporation. Tampa Electric LLC offers customized modular storage solutions for industrial and commercial applications. Sustainable Modular Systems provides mobile and modular offsite storage structures.
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