In the last article, we focused on the potential for self-storage to take its place as a core infrastructure of smart cities. In particular, we highlighted the operational strategy of Darak as an innovative example that redefines the value of space through the smart use of idle space within urban areas and an AIoT technology-based operating system. This time, we would like to explore the self-storage market in Japan, which is geographically and culturally the most similar to us, and discuss the developmental direction of the Korean market and the competitiveness that Darak possesses.

Japan: The Largest Self-Storage Market in Asia

In Japan, self-storage began to grow in earnest from the 1990s, and it has now established itself as the largest self-storage market in Asia. Currently, the number of facilities in operation is about 15,000, making it the third-largest after convenience stores and gas stations, which are representative franchise industries. This shows that self-storage has already become a familiar and convenient facility in everyday life in Japan.

<Number of major self-storage sites in Japan / Source: Japan Franchise Association (JFA)>

According to the global market research firm Grand View Research, by 2024, the scale of the Japanese self-storage market is expected to reach $2.1 billion (about 3 trillion won), forming a massive market. What is even more surprising is that it is expected to grow steadily by an average of 6.5% and expand to $3 billion (about 4.3 trillion won) by 2030.

There are several reasons why self-storage has been able to grow in Japan. The most critical reason is the small living space. Particularly in densely populated metropolises like Tokyo and Osaka, the proportion of one-person households living in 1.5-tsubo (about 5 square meters) ultra-small houses is increasing.

According to the Japanese Ministry of Land, Infrastructure, Transport and Tourism, the living area in the metropolitan area has decreased by about 7 square meters (about 2 tsubo) compared to 20 years ago. The increase in material and labor costs has also affected the inability to construct new mansions, which are representative residential forms in the suburbs of Japan.

<Ultra-small houses in Tokyo, Japan / Source: SPILYTUS>

Japan's unique consumer patterns and collecting/hobby culture have also had a significant impact on the self-storage market. Due to Japan's unique subculture represented by 'otaku', the culture of collecting various goods, including figures, has become widely established. Furthermore, self-storage is often utilized for storing equipment needed to enjoy various hobbies and leisure activities.

In fact, a survey conducted by Quraz found that the top reason customers use self-storage is 'to store increased hobby collection items', which accounted for 40% of responses.

Finally, the increase in the aging population and one-person households has a significant impact as well. As Japan enters a super-aged society, the demand for 'decluttering' has increased due to elderly parents passing on belongings to their children, or downsizing their homes. As the proportion of one-person households living alone in big cities increases, the demand for self-storage to efficiently utilize limited living space has naturally risen.

Vending Machines, Parking Lots, and Self-Storage

<Status of self-storage facilities nationwide in Japan / Source: locationsmart>

When traveling in Japan, one facility that is seen much more than in Korea is the vending machine and parking lot. Especially when wandering down alleyways rather than main roads, these facilities are frequently encountered. Self-storage is no different. Walking in major Japanese cities, including Tokyo and Osaka, it is not rare to come across one or two self-storage facilities within a single block.

While there are noticeable signs in some cases, most are quietly located and not easily noticeable. They exist behind apartment complexes, in narrow alleyways, or in the form of converted floors of commercial buildings. Located right in residential areas, it's common to see people transporting their belongings by bicycle or cart instead of using vehicles.

<Self-storage densely located in residential areas / Source: Google Maps>

Some operators, like Quraz, utilize entire buildings to provide self-storage services. They attract attention by using eye-catching building designs and signage on main roads. Since they are situated further away from residential areas compared to smaller facilities, they are required to secure parking spaces for vehicle access. They are primarily used to store bulky hobby items or home appliances.

<Building-based self-storage in Japan / Source: Hello Storage, Quraz>

There are also many container-type storages that are not common in South Korea. In fact, it is common to see outdoor containers operated like parking lots placed outside in residential areas. Some places maximize space utilization by stacking containers two stories high. They primarily store items that can be kept outside, such as bicycles or motorcycles.

<Container-based outdoor storage / Source: Google Maps>

Thus, self-storage in Japan feels more like a 'community-based service' rather than a 'commercial facility.' It has a similar feeling to laundromats or self-service laundry shops in our country. It has become a daily infrastructure that exists as 'a space you can visit anytime'.

How do the Japanese, who have been using it for over 30 years, utilize self-storage? By examining user reviews, one can see that, true to their reputation for being organized, they manage the space almost like another home by utilizing various shelves, devices, and boxes. Darak offers a service where customers can add necessary devices or items to maximize the utility of their units.

<Examples of self-storage use in Japan / Source: Self-storage service reviews>

Beyond Japan: Becoming Asia's Representative Self-Storage Country

It is analyzed that there is about a 10-year gap between South Korea and Japan in terms of social structure and consumer culture. This gap characteristic also appears in a similar pattern in the self-storage industry.

Currently, Japan's self-storage is evolving into diverse forms such as real estate assetization, housing expansion services, and franchise business models. In some housing contracts, self-storage usage rights are even included as standard options, indicating that it is perceived as a common service. This shows that self-storage is recognized not just as a simple storage space but as an extended housing infrastructure.

Recently, there has been a rapid increase in social interest and demand for self-storage in South Korea, and the domestic leader 'Darak' is driving rapid market growth through innovative approaches. However, South Korea is not simply following Japan's development path; it has significant differentiation because it proactively implements a technology-centered, future-oriented self-storage paradigm that Japan's market has yet to reach. This will be an important capability for South Korea as it moves toward becoming Asia's largest self-storage market.

We are still at the starting point. But as the way of life changes, cities transform, and housing forms evolve, 'Darak' will firmly establish itself as another daily infrastructure.