Micro-Fulfillment Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Description

The Global Micro-Fulfillment Market was valued at USD 5.16 billion in 2023 and is projected to grow at a CAGR exceeding 35% from 2024 to 2032. This rapid expansion is driven by rising consumer demand for quicker and more efficient delivery solutions. As online shopping surges, it reshapes the micro-fulfillment landscape. Consumers favor e-commerce for its convenience and diverse product offerings, pressuring retailers to optimize supply chains. Micro-fulfillment centers (MFCs), strategically located near urban hubs, reduce delivery times and shipping costs. The demand for same-day and next-day deliveries intensifies, prompting businesses to invest in micro-fulfillment. Urban population growth significantly influences the micro-fulfillment landscape.

The overall micro-fulfillment industry is classified based on the components, type, end-user, and region.

The market is segmented by components into hardware, software, and services. Dominating the market, the hardware segment is projected to exceed USD 35 billion by 2032. The hardware segment of the omnichannel logistics market encompasses essential physical equipment and technology that streamline logistics operations across multiple channels. Key components include automated systems like robotics, conveyor belts, inventory management tools, and sorting machines. By investing in advanced hardware, and reducing manual labor, businesses better manage high order volumes and decrease errors. As e-commerce expands, the demand for innovative hardware solutions to navigate complex logistics operations rises, spurring advancements and competition in this segment.

Market segmentation by type includes standalone, store-integrated/in-store, and dark stores. The store-integrated/in-store segment is the fastest-growing, with a projected CAGR of over 8% from 2024 to 2032. In the omnichannel logistics arena, the store-integrated or in-store segment merges traditional retail with the digital and e-commerce landscape. This integration aims to provide a cohesive shopping experience. It synchronizes in-store inventory with online platforms, supports services like click-and-collect, allows in-store returns for online purchases, and offers real-time inventory updates. As consumers increasingly seek a unified shopping experience, businesses invest in these store-integrated solutions to elevate operational efficiency and strengthen their omnichannel strategies.

In 2023, North America led the global micro-fulfillment market with a share exceeding 37%. The U.S., bolstered by its advanced technological infrastructure and a thriving e-commerce sector, plays a central role in this market. Retailers and logistics providers in the U.S. turn to micro-fulfillment centers to meet the growing consumer demand for swift and dependable delivery services. With substantial investments in cutting-edge technologies and logistics solutions, the U.S. market is poised for a continued rise in demand for micro-fulfillment solutions, solidifying its position as a frontrunner in the logistics and fulfillment landscape.

Product Code: 10863

Chapter 1 Methodology and Scope

1.1 Market scope and definition
1.2 Base estimates and calculations
1.3 Forecast calculation
1.4 Data sources
- 1.4.1 Primary
- 1.4.2 Secondary
  - 1.4.2.1 Paid sources
  - 1.4.2.2 Public sources

Chapter 2 Executive Summary

2.1 Industry 360° synopsis, 2021 - 2032

Chapter 3 Industry Insights

3.1 Industry ecosystem analysis
3.2 Vendor matrix
3.3 Profit margin analysis
3.4 Technology and innovation landscape
3.5 Patent analysis
3.6 Key news and initiatives
3.7 Regulatory landscape
3.8 Impact forces
- 3.8.1 Growth drivers
  - 3.8.1.1 Growth in online shopping demand
  - 3.8.1.2 Expansion of urban population centers
  - 3.8.1.3 Rising consumer expectations for speed
  - 3.8.1.4 Advancements in automation technology
  - 3.8.1.5 Intensifying retail industry competition
- 3.8.2 Industry pitfalls and challenges
  - 3.8.2.1 High initial setup costs
  - 3.8.2.2 Complex integration with existing systems
3.9 Growth potential analysis
3.10 Porter's analysis
- 3.10.1 Supplier power
- 3.10.2 Buyer power
- 3.10.3 Threat of new entrants
- 3.10.4 Threat of substitutes
- 3.10.5 Industry rivalry
3.11 PESTEL analysis

Chapter 4 Competitive Landscape, 2023

4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix

Chapter 5 Market Estimates and Forecast, By Component, 2021 - 2032 (USD Million)

5.1 Key trends
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 and transport management
5.4 Services
- 5.4.1 Professional services
- 5.4.2 Managed services

Chapter 6 Market Estimates and Forecast, By Type, 2021 - 2032 (USD Million)

6.1 Key trends
6.2 Standalone
6.3 Store-integrated/in store
6.4 Dark stores

Chapter 7 Market Estimates and Forecast, By End-User, 2021 - 2032 (USD Million)

7.1 Key trends
7.2 E-commerce
7.3 Retailers and distributors
7.4 Manufacturers

Chapter 8 Market Estimates and Forecast, By Region, 2021 - 2032 (USD Million)

8.1 Key trends
8.2 North America
- 8.2.1 U.S.
- 8.2.2 Canada
8.3 Europe
- 8.3.1 UK
- 8.3.2 Germany
- 8.3.3 France
- 8.3.4 Italy
- 8.3.5 Spain
- 8.3.6 Rest of Europe
8.4 Asia Pacific
- 8.4.1 China
- 8.4.2 India
- 8.4.3 Japan
- 8.4.4 South Korea
- 8.4.5 ANZ
- 8.4.6 Rest of Asia Pacific
8.5 Latin America
- 8.5.1 Brazil
- 8.5.2 Mexico
- 8.5.3 Rest of Latin America
8.6 MEA
- 8.6.1 UAE
- 8.6.2 South Africa
- 8.6.3 Saudi Arabia
- 8.6.4 Rest of MEA

Chapter 9 Company Profiles

9.1 Ahold Delhaize
9.2 Alert Innovation, Inc.
9.3 AutoStore
9.4 Bastian Solutions, LLC
9.5 Davinci Micro Fulfillment
9.6 Dematic
9.7 Exotec SAS
9.8 Fabric (formerly CommonSense Robotics)
9.9 Flowspace
9.10 Fortna
9.11 Honeywell
9.12 HORMANN
9.13 Instacart
9.14 KPI Solutions
9.15 Kroger
9.16 LOCAD
9.17 OPEX Corporation
9.18 PACK and SEND
9.19 PACLINE
9.20 Swisslog Holding AG
9.21 Takeoff Technologies
9.22 TGW Logistics Group