Global Micro Fulfillment Market is valued at USD 5.99 Billion in 2021 and is expected to reach USD 12.77 Million by 2028 with a CAGR of 11.42% over the forecast period.
A good strategy that retailers use to make the fulfilment process more efficient from receiving an online order to packing it and in some cases offering last-mile delivery is known as micro fulfilment. Its approach is mainly focused to take the speed of localized, in-store pick-up and combine it with the efficiency of large, automated warehouses. The micro fulfillment technology involves the use of highly automated & small storage facilities close to the customer which brings down the time and cost goods. The Micro fulfillment is the combination of software management system and physical infrastructure which helps in order processing and item pick from storage and sent them for packaging & transportation. Sometimes, micro fulfilment services also include last-mile delivery to a customer’s address. The insides of this micro fulfilment have become an ultimate alternative for grocers to look to bring fulfilment closer to customers for curbside pickup or home delivery as demand for e-grocery services grows.
Covid 19 has shown positive impact on the Micro fulfillment market owing to increasing e-commerce platform across the globe. Due to government rules & regulations, consumers prefer online shopping. So, number of ecommerce businesses has used the micro fulfillment strategy for exploring new ways to fulfill orders and get closer to the consumer is crucial when it comes to gaining a competitive edge. For example, Grocery retailer Woolworths has entered into an exclusive partnership with US-based Takeoff Technologies last year to build automated micro-fulfilment centers in or next to existing stores & made further commitments to double its online capacity in response to the huge spike in online demand. Thus, micro fulfillment market is expected to have positive impact on the growth and likely to develop in the same way for next few years.
Global micro fulfillment market is segmented into type and applications. On the basis of type the market is segmented into AutoStore, shuttle based and other technologies. On the basis of applications, the market is segmented into grocery, general merchandise and others.
The regions covered in this Micro Fulfillment market report are North America, Europe, Asia-Pacific, and Rest of the World. Based on country level, the market of Micro Fulfillment is sub divided into U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, Southeast Asia, Middle East, GCC (UAE, Saudi Arabia, Kuwait), Africa, etc
Increasing adoption and implementation of micro fulfillment strategy is a key driver for driving growth of global micro fulfillment market.
Since the start of this COVID-19 pandemic, it is clear that e-commerce brands are taking over brick-and-mortar stores. Demand for online shopping has skyrocketed. Thus, in order to fulfill the increasing demand, businesses have to build their e-commerce capabilities, including micro fulfillment strategy as this hybrid model like micro-fulfillment helps them to move closer to consumers easily. Number of Retailers such as Amazon, Walmart, Kroger, Ocado, Woolworths, Carrefour, H-E-B, Albertsons, Uniqlo, Meijer, and many others have already started adopting & implementing the new technologies such as micro fulfillment during pandemic.
Also, the increasing demand for same-day deliveries has directed many e-commerce companies to try micro-fulfillment centers. Number of consumers wants the same day delivery for their goods/stuffs. For example, According to Invesp – a leading provider of ecommerce conversion rate optimization software and services, about 56% online consumers between the ages of 18-34 years expect same day delivery, whereas, about 61% customers are willing to pay extra for the same-day delivery. This has boosted the micro fulfillment strategies by organizations, which is driving the growth of the market.
However, complexity in supply chain impacts businesses of micro fulfillment strategy, and it is restraining the growth of the market. Moreover, when micro-fulfillment centers develop rapidly, they will be accepted by fast-growing e-commerce sectors like fashion, healthcare, etc., and this will be a new opportunity for the market growth in forecast period.
On July 14, 2021- SpartanNash has planned to open its first SpartanNash Micro-Fulfillment Center. The center will be located at 5199 68th St. SE in Caledonia, Mich. This facility is spread in the area of 55,000-square-foot and hold approximately 16,000 products. The pick and pack Fast Lane orders for D&W Fresh Market, 24 Ada Fresh Market, Family Fare and Forest Hills Foods stores throughout West Michigan that mainly in the Grand Rapids and Holland area.
North America is dominating the micro fulfillment market followed by Europe over the forecast period. In North America region, U.S. is the leading country for the recent development of micro fulfillment strategy. For example, U.S. has AutoStore Company which is an old & proven technology with hundreds of installations in ecommerce fulfillment including the recent partnership with Swisslog and H-E-B for micro fulfillment center in U.S.
Europe is expected to be the second largest region in micro fulfillment market owing to the new developments in micro fulfillment technologies in their ecommerce sector. Additionally, the automation in various businesses such as grocery, food & beverages, retail, etc., in the Europe region has led number of ecommerce centers to focus on this micro fulfillment strategy. This has also driven the growth of micro fulfillment market in Europe region.
|2015 - 2021
|2022 - 2028
|Market Size in 2021:
|USD 5.99 Billion
|Base year considered
|Forecast Period CAGR %:
|Market Size Expected in 2028:
|USD 12.77 Billion
|Tables, Charts & Figures:
|Micro Fulfillment Companies
|Addverb Technologies, Swisslog, Alert Innovation, Dematic, Fabric, Attabotics, Opex Corporation, Vanderlande, TGW, Autostore, Ocado, Honeywell Intelligrated, Takeoff Technologies, Exotec Solutions others
|By Type, By Applications
|North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa
We are always looking to hire talented individuals with equal and extraordinary proportions of industry expertise, problem solving ability and inclination interested? please email us firstname.lastname@example.orgJOIN US
BrandEssence® Market Research and Consulting Pvt ltd.
124, City Road, London EC1V 2NX
© Copyright 2024-25 BrandEssence® Market Research and Consulting Pvt ltd. All Rights Reserved | Designed by BrandEssence®