Micro Fulfillment Market
Micro-Fulfillment Market Forecasts to 2030 - Global Analysis By Component (Hardware, Software and Services), Type (Standalone, Store-integrated/in Store, Dark Stores and Other Types), End User and by Geography
|
Years Covered |
2022-2030 |
|
Estimated Year Value (2024) |
US $6.31 BN |
|
Projected Year Value (2030) |
US $34.63 BN |
|
CAGR (2024 - 2030) |
32.80% |
|
Regions Covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
|
Countries Covered |
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa |
|
Largest Market |
North America |
|
Highest Growing Market |
Asia Pacific |
According to Stratistics MRC, the Global Micro-Fulfillment Market is accounted for $6.31 billion in 2024 and is expected to reach $34.63 billion by 2030 growing at a CAGR of 32.80% during the forecast period. Micro-fulfillment is a logistics strategy that uses small, automated fulfillment centers near or in cities to receive orders from final customers. The time between placing an order and delivery is decreased by these centers enhanced ability to manage last-mile delivery. Advanced robotics and AI-driven systems are commonly employed by micro-fulfillment centers (MFCs) to enhance the efficiency of their storage, picking, and packing procedures. This strategy is especially helpful for grocery stores, e-commerce businesses, and organizations that must satisfy the growing demand from customers for quick, same-day, or next-day delivery.
According to a report by the U.S. Census Bureau, e-commerce sales in the U.S. accounted for 15.7% of total retail sales in Q1 2024, reflecting the growing demand for faster delivery solutions like micro-fulfillment to meet the increasing consumer expectations for quick and convenient delivery.
Market Dynamics:
Driver:
Growing customer speed expectations
The expectations of consumers regarding speed have increased significantly due to their acclimatization to the expedited delivery services provided by major players such as Amazon. Studies show that 66% of customers are prepared to pay more for same-day delivery, emphasizing how important speed is when making decisions. Retailers need to adjust by putting in place MFCs that have rapid and effective order processing. Additionally, these centers meet customer demands and gain a competitive edge in a crowded market by using sophisticated picking technologies and optimized workflows to ensure that orders are fulfilled promptly.
Restraint:
Exorbitant setup expenses
A significant amount of capital must be invested in order to establish a micro-fulfillment center (MFC). Automation, infrastructure, and technology costs can be extremely high. For example, the cost of a typical MFC, which is between 10,000 and 12,000 square feet, can range from $3 million to $5 million, depending on the site and the technology needed. These costs cover the integration of sophisticated warehouse management software in addition to the purchase of sophisticated robotics and conveyor systems. Furthermore, smaller retailers and startups face an especially difficult financial burden because they might not have the resources to make such large investments.
Opportunity:
Improved experience for customers
Retailers can provide faster delivery times and better service options by strategically placing micro-fulfillment centers closer to their customers. Since same-day or even immediate delivery services are made possible by this proximity, customers are starting to expect them as standard. Through faster order fulfillment, flexible delivery options (like curbside pickup), and effective return and exchange management, businesses can improve customer satisfaction by using MFCs.
Threat:
Lack of workers and skill vacancies
The effective management of micro-fulfillment operations still requires skilled labor, even with the advancements in automation technologies. In a labor market that is competitive, finding qualified workers can be very difficult. Lack of workers can make it more difficult for MFCs to meet demand quickly or run at maximum efficiency. Furthermore, operational inefficiencies and higher error rates may result from current staff members lacking the skills required to operate sophisticated automated systems or properly manage inventory.
Covid-19 Impact:
The COVID-19 pandemic prompted consumers to switch to online shopping for necessities due to lockdowns and social distancing measures, which dramatically accelerated the growth of the micro-fulfillment market. E-commerce platforms saw a spike in demand as physical stores closed or had limited space, which led retailers to implement micro-fulfillment centers (MFCs) to meet the demand for quicker and more effective delivery options. Moreover, this change not only affected customer purchasing habits but also brought attention to the shortcomings of conventional fulfilment techniques, which prompted more investments in MFC technologies.
The Store-integrated/in Store segment is expected to be the largest during the forecast period
The segment with the largest projected share is the store-integrated/in-store segment. In order to enable retailers to use their physical stores as fulfillment centers, this segment is defined by the direct integration of micro-fulfillment capabilities within already-existing retail locations. By making use of already-built infrastructure, this strategy not only increases efficiency but also dramatically cuts down on last-mile delivery times, satisfying the growing demand from customers for prompt service. Additionally, grocery retailers especially benefit from the store-integrated model because it allows them to efficiently manage inventory while giving customers easy access to merchandise.
The Traditional Retailers & Distributors segment is expected to have the highest CAGR during the forecast period
Over the course of the forecast period, the traditional retailers & distributors segment is expected to register the highest CAGR. The current infrastructure of traditional retailers is advantageous to this market segment since they can efficiently execute micro-fulfillment operations by utilizing their physical stores, warehouses, and distribution networks. Furthermore, these retailers can maximize space utilization and improve order fulfillment efficiency by repurposing unused areas within their stores or backrooms for micro-fulfillment centers (MFCs).
Region with largest share:
The micro-fulfillment market is dominated by the North American region. The main forces behind this dominance are the strong expansion of e-commerce and the existence of large retailers like Amazon and Walmart, who are progressively implementing micro-fulfillment tactics to improve their logistical capacities. Moreover, retailers are placing MFCs strategically in urban areas due to the high consumer demand for prompt and dependable delivery services, which further solidifies North America's dominant position in the micro-fulfillment market.
Region with highest CAGR:
Due to the rapidly growing e-commerce landscape and rising demand for effective last-mile delivery solutions, the Asia-Pacific region is anticipated to exhibit the highest CAGR in the micro-fulfillment market. The surge in online shopping, especially among urban populations in countries like China and India, is driving this growth through substantial investments in logistics infrastructure and technology. Additionally, the distinctive demographics of the area, which include a sizable and technologically literate customer base, also support the growing demand for micro-fulfillment centers (MFCs).
Key players in the market
Some of the key players in Micro-Fulfillment market include KPI Integrated Solutions, Honeywell International Inc., Dematic, OPEX Corp, TGW Logistic Group GmbH, Swisslog Holding AG, Exotec SAS, Alert Innovation, Inc., Geekplus Technology Co., Ltd, Fortna Inc, Attabotics, Bastian Solutions, LLC, Ocado Group and Kroger Company.
Key Developments:
In July 2024, Honeywell has entered into a long-term agreement with Air India Limited, India’s premier global airline and a part of the Tata Group, to provide Auxiliary Power Unit (APU) aftermarket support for both the existing and new fleets. This agreement ensures comprehensive maintenance for Honeywell APUs, enhancing aircraft dispatch reliability, fleet availability, and reducing unplanned maintenance costs across Air India’s fleet.
In March 2024, The Kroger Co. announced that it has entered into a definitive agreement for the sale of its specialty pharmacy business to CarelonRx, a subsidiary of Elevance Health. Kroger Specialty Pharmacy has been part of our company since 2012, and we want to thank our management team and associates for their enduring commitment to their patients.
In July 2022, KPI Integrated Solutions, a leading supply chain consulting, software, systems integration and automation supplier, announced the acquisition of Commonwealth Supply Chain Advisors, a Boston-based independent supply chain consulting firm that designs innovative, demand-centric distribution networks, facilities and systems.
Components Covered:
• Hardware
• Software
• Services
Types Covered:
• Standalone
• Store-integrated/in Store
• Dark Stores
• Other Types
End Users Covered:
• E-commerce
• Traditional Retailers & Distributors
• Manufacturers
• General Retail Stores
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 End User Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Micro-Fulfillment Market, By Component
5.1 Introduction
5.2 Hardware
5.2.1 Automated Storage and Retrieval Systems (AS/RS)
5.2.2 Automated Guided Vehicles/Autonomous Mobile Robot (AGV/AMR)
5.2.3 Conveyor Systems
5.2.4 Sortation Systems
5.3 Software
5.3.1 Warehouse Management System
5.3.2 Order Management
5.3.3 Asset Management
5.3.4 Delivery & Transport Management
5.4 Services
5.4.1 Professional Services
5.4.2 Managed Services
6 Global Micro-Fulfillment Market, By Type
6.1 Introduction
6.2 Standalone
6.3 Store-integrated/in Store
6.4 Dark Stores
6.5 Other Types
7 Global Micro-Fulfillment Market, By End User
7.1 Introduction
7.2 E-commerce
7.3 Traditional Retailers & Distributors
7.4 Manufacturers
7.5 General Retail Stores
7.6 Other End Users
8 Global Micro-Fulfillment Market, By Geography
8.1 Introduction
8.2 North America
8.2.1 US
8.2.2 Canada
8.2.3 Mexico
8.3 Europe
8.3.1 Germany
8.3.2 UK
8.3.3 Italy
8.3.4 France
8.3.5 Spain
8.3.6 Rest of Europe
8.4 Asia Pacific
8.4.1 Japan
8.4.2 China
8.4.3 India
8.4.4 Australia
8.4.5 New Zealand
8.4.6 South Korea
8.4.7 Rest of Asia Pacific
8.5 South America
8.5.1 Argentina
8.5.2 Brazil
8.5.3 Chile
8.5.4 Rest of South America
8.6 Middle East & Africa
8.6.1 Saudi Arabia
8.6.2 UAE
8.6.3 Qatar
8.6.4 South Africa
8.6.5 Rest of Middle East & Africa
9 Key Developments
9.1 Agreements, Partnerships, Collaborations and Joint Ventures
9.2 Acquisitions & Mergers
9.3 New Product Launch
9.4 Expansions
9.5 Other Key Strategies
10 Company Profiling
10.1 KPI Integrated Solutions
10.2 Honeywell International Inc.
10.3 Dematic
10.4 OPEX Corp
10.5 TGW Logistic Group GmbH
10.6 Swisslog Holding AG
10.7 Exotec SAS
10.8 Alert Innovation, Inc.
10.9 Geekplus Technology Co., Ltd
10.10 Fortna Inc
10.11 Attabotics
10.12 Bastian Solutions, LLC
10.13 Ocado Group
10.14 Kroger Company
List of Tables
1 Global Micro-Fulfillment Market Outlook, By Region (2022-2030) ($MN)
2 Global Micro-Fulfillment Market Outlook, By Component (2022-2030) ($MN)
3 Global Micro-Fulfillment Market Outlook, By Hardware (2022-2030) ($MN)
4 Global Micro-Fulfillment Market Outlook, By Automated Storage and Retrieval Systems (AS/RS) (2022-2030) ($MN)
5 Global Micro-Fulfillment Market Outlook, By Automated Guided Vehicles/Autonomous Mobile Robot (AGV/AMR) (2022-2030) ($MN)
6 Global Micro-Fulfillment Market Outlook, By Conveyor Systems (2022-2030) ($MN)
7 Global Micro-Fulfillment Market Outlook, By Sortation Systems (2022-2030) ($MN)
8 Global Micro-Fulfillment Market Outlook, By Software (2022-2030) ($MN)
9 Global Micro-Fulfillment Market Outlook, By Warehouse Management System (2022-2030) ($MN)
10 Global Micro-Fulfillment Market Outlook, By Order Management (2022-2030) ($MN)
11 Global Micro-Fulfillment Market Outlook, By Asset Management (2022-2030) ($MN)
12 Global Micro-Fulfillment Market Outlook, By Delivery & Transport Management (2022-2030) ($MN)
13 Global Micro-Fulfillment Market Outlook, By Services (2022-2030) ($MN)
14 Global Micro-Fulfillment Market Outlook, By Professional Services (2022-2030) ($MN)
15 Global Micro-Fulfillment Market Outlook, By Managed Services (2022-2030) ($MN)
16 Global Micro-Fulfillment Market Outlook, By Type (2022-2030) ($MN)
17 Global Micro-Fulfillment Market Outlook, By Standalone (2022-2030) ($MN)
18 Global Micro-Fulfillment Market Outlook, By Store-integrated/in Store (2022-2030) ($MN)
19 Global Micro-Fulfillment Market Outlook, By Dark Stores (2022-2030) ($MN)
20 Global Micro-Fulfillment Market Outlook, By Other Types (2022-2030) ($MN)
21 Global Micro-Fulfillment Market Outlook, By End User (2022-2030) ($MN)
22 Global Micro-Fulfillment Market Outlook, By E-commerce (2022-2030) ($MN)
23 Global Micro-Fulfillment Market Outlook, By Traditional Retailers & Distributors (2022-2030) ($MN)
24 Global Micro-Fulfillment Market Outlook, By Manufacturers (2022-2030) ($MN)
25 Global Micro-Fulfillment Market Outlook, By General Retail Stores (2022-2030) ($MN)
26 Global Micro-Fulfillment Market Outlook, By Other End Users (2022-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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