Micro Fulfillment Global Market Report 2024

Micro fulfillment is a strategic approach involving the establishment of compact warehousing facilities in densely populated urban areas to optimize delivery times. A micro fulfillment center (MFC) serves as a small-scale storage facility utilized by e-commerce retailers for proximity-based inventory storage, reducing costs and transit times. These fulfillment centers often incorporate high levels of automation to enhance operational efficiency.

The primary categories of micro fulfillment include autostore, shuttle-based, and other innovative models. Autostore, in this context, denotes a middle-tier application implemented in corporate settings for capturing, managing, and routing both paper and electronic documents. Recognized as a cost-effective investment, Autostore delivers a productivity boost essential for maintaining competitiveness. Its robotic technology, modular components, intelligent software, and user-friendly controls position it as a key player in supply chain management, ensuring customer satisfaction. Micro-fulfillment technologies encompass traditional Warehouse Management Systems (WMS), mobile Autonomous Mobile Robots (AMR), and piece-picking robots tailored for both small and large warehouses. These technologies find application across various sectors, including grocery, general merchandise, and others, catering to the needs of e-commerce, industries, and general stores.

The micro-fulfillment market research report is one of a series of new reports from The Business Research Company that provides micro-fulfillment market statistics, including the micro-fulfillment industry's global market size, regional shares, competitors with a micro-fulfillment market share, detailed micro-fulfillment market segments, market trends, and opportunities, and any further data you may need to thrive in the micro-fulfillment industry. This micro-fulfillment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The micro fulfillment market size has grown exponentially in recent years. It will grow from $4.5 billion in 2023 to $6.55 billion in 2024 at a compound annual growth rate (CAGR) of 45.4%. The expansion observed in the historical period can be attributed to several factors, including the surge in e-commerce, urbanization, and population density. Additionally, advancements in supply chain optimization, changes in consumer expectations, and the emergence of grocery delivery services have played pivotal roles in driving this growth.

The micro fulfillment market size is expected to see exponential growth in the next few years. It will grow to $29.51 billion in 2028 at a compound annual growth rate (CAGR) of 45.7%. The anticipated growth in the forecast period is linked to several key factors, including the rapid trajectory of urbanization, the flourishing online grocery segment, heightened expectations for same-day delivery services, increased integration of advanced software solutions, a growing demand for sustainable practices, intensified market competition, and a focus on cost optimization. Notable trends expected in this forecast period encompass customer-centric solutions, strategic partnerships, collaborative efforts with third-party logistics (3PL) providers, the ascendancy of robotic handling, the integration of real-time analytics and artificial intelligence (AI), as well as the development of specialized solutions tailored for specific industry verticals.

The anticipated surge in demand for the e-commerce sector is poised to drive the growth of the micro-fulfillment market in the foreseeable future. The e-commerce industry encompasses the online buying and selling of goods and services, utilizing various tools and processes for both consumers and sellers, such as smartphone shopping and secure online payment encryption. E-commerce fulfillment streamlines the logistics involved in delivering online orders to customers' doorsteps, eliminating the need for manual handling of each order. The escalating demand in the e-commerce sector is expected to be a significant catalyst for the expansion of the micro-fulfillment market. As an illustration, a Forbes article in February 2023 reported that e-commerce sales surged from $5.21 trillion in 2021 to over $5.72 trillion in 2023, with projections indicating the market could surpass $8.1 trillion by 2026. Consequently, the increasing demand in the e-commerce sector is a driving force behind the growth of the micro-fulfillment market.

The growth of the micro-fulfillment market is further propelled by the increasing penetration of the internet. Internet penetration refers to the percentage of the population with access to the internet, facilitating online ordering and enabling customers from diverse locations to easily access the offerings of micro-fulfillment centers. This accessibility ensures accurate order fulfillment, contributing to seamless operations. Notably, as of October 2023, DataReportal, a Singapore-based online reference library, reported a global internet user base of 5.30 billion people, constituting 65.7% of the world's total population. Over the past 12 months, the connected population increased by more than 189 million. Consequently, the growing internet penetration emerges as a significant driver for the micro-fulfillment market.

Technological advancements within the micro-fulfillment market are gaining significant traction as major companies strive to innovate and maintain their competitive positions. Notably, in September 2021, Honeywell, a prominent American conglomerate corporation, introduced cutting-edge robotic technology by launching smart de-palletizing robots designed for micro-fulfillment. This innovative product is anticipated to enhance automation in warehouses and distribution centers, particularly in roles prone to risks or high turnover rates. The Smart Flexible De-palletizer leverages advanced machine learning and grasping technologies to facilitate pallet unloading without the need for pre-programming or user intervention.

Major players in the micro-fulfillment market are actively pursuing strategic partnerships to offer real-time inbound container freight management and visibility services to clients involved in micro and fast-forward fulfillment, as well as channel integration. One notable example is the strategic collaboration announced in October 2022 between EDRAY, a US-based collaborative port logistics platform, and Davinci Micro Fulfillment, a provider of e-commerce fulfillment and merchandising services. EDRAY is now delivering technology and managed transportation solutions for ocean freight at Davinci Micro Fulfillment's locations, enhancing inbound controls and workflow management.

In September 2022, Walmart, a leading American multinational retail corporation, made a strategic acquisition of Alert Innovation for an undisclosed amount. This move is expected to integrate Alert's technology across Walmart's operations, paving the way for the next generation of fulfillment centers. The acquisition positions Walmart to deploy Alert's technology rapidly, offering an unparalleled shopping experience and a competitive edge in omnichannel fulfillment. Alert Innovation, based in the US, specializes in e-grocery technology for e-grocery fulfillment automation.

Major companies operating in the micro fulfillment market report are LG CNS Co. Ltd., Dematic, Fortna Inc., Instacart, TGW Logistic Group, Opex Corporation, Exotec Solutions, KPI Integrated Solutions, The Kroger Company, Hormann LLC, Huboo Technologies Ltd., Berkshire Grey Inc., Pack & Send Holdings Pty. Ltd., Swisslog Holding AG, Alert Innovation Inc., StrongPoint ASA, DCL Logistics, Honeywell International Inc., Tompkins Robotics, Armstrong Ltd., PeakLogix., Get Fabric Inc., Diamond Logistics Ltd., Via.Delivery Corporation, Pacline Overhead Conveyors, Takeoff Technologies Inc., Davinci Micro Fulfillment Inc.

North America was the largest region in the micro fulfillment market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the micro fulfillment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the micro fulfillment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The micro fulfillment market includes revenues earned by entities by providing warehouse automation, e-grocery micro fulfillment solutions, and e-commerce fulfillment services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Micro Fulfillment Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on micro fulfillment market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for micro fulfillment ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The micro fulfillment market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Types: AutoStore; Shuttle Based; Other Technologies
• 2) By Technology: Traditional WMS; Mobile AMR; Piece Picking Robots
• 3) By Warehouse Size: Small Size; Large Size
• 4) By Applications: Grocery; General Merchandise; Other Applications
• 5) By End-User: E-Commerce; Industries; General Stores
• Companies Mentioned: LG CNS Co. Ltd; Dematic; Fortna Inc.; Instacart; TGW Logistic Group
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.