Dublin, Sept. 27, 2023 (GLOBE NEWSWIRE) -- The "Micro Fulfillment Market to 2030, By Technologies, By End-User, By Deployment, By Warehouse Size, By Key Countries and Regions" report has been added to ResearchAndMarkets.com's offering.
The Micro Fulfillment Center (MFC) market is rapidly growing and is expected to offer substantial opportunities in the coming years, with a cumulative opportunity worth $36 billion by 2030.
The market is projected to witness significant growth, with an installed base of over 5,600 MFCs if the technology and concept continue to expand. By 2025, the market is anticipated to reach approximately $3 billion in installed capacity, setting the stage for future growth.
Key Highlights of the Micro Fulfillment Market Study:
- Growth Trajectory: The study predicts that annual MFC installations will grow over 20 times by 2030, from the current installed base of around 250 to approximately 5,600 in 2030.
- Geographical Deployment: More than 50% of these micro fulfillment centers are expected to be deployed in the United States in 2023, making it the leading market for MFCs.
- Market Expansion: The Micro Fulfillment Market is projected to grow 2 times by 2025 and 12 times by 2030 compared to the current market size in 2022.
- Contributions: MFC services are expected to contribute approximately $2 billion by 2030, highlighting the significance of this emerging market.
- Technology Trends: Nearly 60% of MFC installations in 2030 are expected to deploy Shuttle-Based and Cube-Storage technologies, with players like AutoStore and Takeoff Technologies leading the way. Other companies like Geek Plus, Grey Orange, and Hai Robotics are also entering the market with Automated Mobile Robots (AMR) solutions.
- Market Revenue: The market is expected to generate more than $5 billion in revenue from Micro Fulfillment automation by 2030, primarily driven by Grocery Omnichannel and Pure-Play E-commerce/Q-commerce players.
- Deployment Locations: The study forecasts approximately 1,000 MFC installations for in-store deployment and around 120 installations for dark stores in 2030. Some installations may also be integrated within existing or new Distribution Centers (DCs) or Fulfillment Centers (FCs).
- Warehouse Sizes: Over 50% of MFC installations are projected to target warehouses with sizes between 5,000 square feet and 25,000 square feet. There is also expected growth in the less than 5,000 square feet segment, driven by new dark stores opened by ultrafast delivery players.
- Delivery Services: For delivery service providers like Getir, Grofers, GoPuff, Instacart, and others, manual order fulfillment is not a sustainable or profitable model. Automation is seen as a key solution, and these providers may partner with retailers or establish their own dark stores to automate the fulfillment process.
- Global Market Dominance: The United States is expected to dominate the market for the next decade, accounting for nearly 50% of the worldwide market share by 2030.
Micro Fulfillment - Meeting the Growing Demand:
Micro Fulfillment Centers are considered a crucial solution to meet the rising demand for e-commerce, especially for same-day or same-hour delivery. Industry giants like Amazon, Walmart, and Alibaba have been at the forefront of adopting these technologies to enhance efficiency and meet consumer expectations.
The key drivers for adopting MFCs include:
- E-Grocery Growth: It is estimated that online grocery will contribute more than 10% of overall grocery sales in the US by 2025.
- Consumer Habits: Consumers have developed a habit of buying groceries online, especially during the pandemic, and are likely to continue this behavior.
- Delivery Options: Multiple delivery options such as home delivery, in-store pick-up, curb-side pickup, and locker delivery are expected to be available.
- Urban Warehouses: Urban warehouses with automation are essential to meet same-day delivery expectations.
- Delivery Fee: The cost of delivery is a key factor influencing the choice of digital channels in the long term.
Overall, Micro Fulfillment Centers have the potential to make online grocery businesses more profitable by reducing costs related to storage, retrieval, picking, last-mile delivery, and real estate.
Market Trends in Micro Fulfillment:
- The Micro Fulfillment Market has emerged as a critical trend, especially during the COVID-19 pandemic. It is driven by factors such as eGrocery Growth, Urban Warehouses, Dark Stores, and Automated Cold Storages. Major investments have been made in startups specializing in MFC technologies, and established players are also entering this space.
- Key technologies in the MFC market include AutoStore, Takeoff Technologies, Fabric, Exotec Solutions, Attabotics, Berkshire Grey, Geek Plus, and Alert Innovation. These technologies offer various advantages and are suitable for different types of fulfillment centers.
- Software is expected to play a significant role in differentiating MFC systems and adding value to the overall solution. Both in-house software capabilities and partnerships are being utilized to enhance MFC operations.
- Geographically, the United States is expected to lead the market for the next decade, followed by the United Kingdom, China, Japan, and France.
- Micro Fulfillment is recognized as a crucial solution to improve the efficiency and profitability of e-commerce, particularly in the rapidly evolving grocery sector. The market is expected to witness substantial growth in the coming years, with a significant number of installations and innovations in technology and processes.
Key Topics Covered:
1 Introduction & Background
- eCommerce re-shaping Retail Supply Chain
- Retail Supply Chain disrupted with eCommerce arrival
- Consumer prefer convenience in grocery shopping
- Evolution of online grocery and ultrafast delivery
- Existing and Emerging models in online grocery
- Ultra-fast delivery/on-demand grocery fulfilment
- Dark stores have smaller footprint, lesser SKUs
- Emerging Customer Base for MFCs
- Instant / Ultrafast Delivery Service Companies in USA
- Instant / Ultrafast Delivery Service Companies in Europe
- Ultrafast Delivery Update
- US online grocery will be a ~$250B market?
- Customer expectations have shifted to home delivery
- Pickup/click-and-collect is expected to see higher growth
- China on-demand grocery sales reach $20B GMV?
- Grocers need investments to improve customer experience and to be digitally mature
- Increased Automation essential for eCommerce/eGrocery fulfilment
- Degree of Automation at loading and unloading stations
- eGrocery demands faster, more efficient supply chains
- Economics of online grocery vs. ultra-fast delivery
- Higher AOV; better product mix critical to online grocery success
- Battle to gain market share through faster delivery times
- Different strategies used for online grocery fulfillment
- eGrocery will drive Micro-Fulfillment growth
- Introduction of Micro Fulfilment Centers (MFC)
- Centralized Fulfillment Center (CFC) vs Micro Fulfillment (MFC)
- Regional Micro-Fulfillment Center (MFC) vs True Micro-Fulfillment Center (MFC)
- Factors to be considered before MFC implementation
- Enabling Technologies for Micro Fulfillment Center (MFC)
- Key Developments in MFC space
- Market Readiness of Retailers to Invest in Micro-Fulfillment Centers
2 Micro Fulfilment Centre - Drivers and Challenges
- End-User Behaviour and eCommerce penetration
- Skilled Labour Shortage and High Labour Cost
- Advances in AI and Machine Vision are accelerating development of MFCs
- Increasing urbanization moving FCs closer to end-consumer
- Customer Expectations and last-mile delivery
- Capex and Need for complex software poses some challenges
- Pros and cons of Micro-Fulfillment Centers
3 Cost Comparison and Advantages
- Micro Fulfillment Center (MFC) vs Centralized Fulfillment Center (CFC)
- Inventory Carrying Cost (ICC) Saving
- Cost Comparison between MFC and other FC formats
- Current state of eGrocery fulfilment strategies
4 Case Studies
- Alert Innovation and Muratec with Alpen Group (Japan)
- Takeoff Technologies and Carrefour operated by Majid-Al-Futtaim (UAE)
- Alert Innovation and Walmart (USA)
- Dematic and PepsiCo (USA)
- Takeoff Technologies and Woolworths (Australia)
- Fabric and FreshDirect (USA)
- Swisslog and H-E-B (USA)
- Takeoff Technologies and Sedano's (USA)
- Takeoff Technologies and ShopRite (USA)
- Ocado and Kroger (USA)
5 Micro Fulfilment Center Market, By Value, Volume, Installed Base and Service Revenue
- Global Micro-Fulfillment Market - Installed Base and Forecast till 2030
- MFC Installations by Country and Forecast till 2030
- Global Micro-Fulfillment Market (USD Million) and Forecast till 2030
- Global Micro-Fulfillment Market (USD Million) by Country and Forecast till 2030
- Global Micro-Fulfillment Market - Service Revenue (USD Million)
6 Micro Fulfillment Market By Technology Solutions - Installed Base and Market Size (USD Million)
- Cube-Storage (#Installation, Market Size and Forecast till 2030)
- Shuttle Based (#Installation, Market Size and Forecast till 2030)
- AMR Based (#Installation, Market Size and Forecast till 2030)
- Others (#Installation, Market Size and Forecast till 2030)
7 Micro Fulfilment Center Market, By End-User - Installed Base and Market Size (USD Million)
- Grocery Omni-Channel (#Installation, Market Size and Forecast till 2030)
- Pure-Play E-Commerce / Q-Commerce (#Installation, Market Size and Forecast till 2030)
- Retail Omni-Channel (#Installation, Market Size and Forecast till 2030)
- Others (#Installation, Market Size and Forecast till 2030)
8 Micro Fulfilment Center Market, By Warehouse Size - Installed Base and Market Size (USD Million)
- Less than 5000 Sq. Ft. (#Installation and Forecast till 2030)
- Between 5000 Sq. Ft. and 25000 Sq. Ft. (#Installation and Forecast till 2030)
- More than 25000 Sq. Ft. (#Installation and Forecast till 2030)
9 Micro Fulfilment Center Market, By Store Type Deployment - - Installed Base and Market Size (USD Million)
- In-Store / Backside of Store (#Installation and Forecast till 2030)
- Dark Stores (#Installation and Forecast till 2030)
- Others - DC, FC, MFaaS (#Installation and Forecast till 2030)
10 Micro Fulfillment Market By Geography and Country - Installed Base and Market Size (USD Million)
11 Competitive Landscape
12 Companies Analyzed
13 Emerging Trends
14 Research Methodology
15 Acknowledgements
16 About the Publisher
For more information about this report visit https://www.researchandmarkets.com/r/1q44up
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