Micro Fulfillment Market (MFC) to have $8.7 Billion TAM with an Installed Base of 6600 MFCs by 2030 - LogisticsIQ

Rhea-AI Summary

The Micro Fulfillment Market is projected to reach a cumulative opportunity of $36 billion by 2030, with over 6,600 Micro Fulfillment Centers (MFCs) installed. The growth is anticipated to be driven by online grocery demand and rapid delivery services. By 2025, MFC installations are expected to increase more than 20 times from approximately 50 in 2020. The market is expected to expand 10 times by 2025 and 30 times by 2030, generating over $6 billion in revenue from automation. North America will account for over 80% of MFC deployments in 2022, with the USA projected to hold more than 50% of the global market by 2030.

Positive

• Projected cumulative market opportunity of $36 billion by 2030.
• Installation of 6,600 Micro Fulfillment Centers expected by 2030.
• Market revenue from automation projected to exceed $6 billion.
• MFC installations expected to grow from 50 in 2020 to 1,000 for in-store and 380 for dark stores by 2030.

Negative

• The business model for rapid delivery services is not sustainable, leading to potential financial instability.

NEW DELHI, Feb. 6, 2023 /PRNewswire/ -- Micro Fulfillment Market is expected to have a cumulative opportunity worth ~ $36B in next 10 years by 2030 with an installed base of ~ 6600 MFCs driven by online grocery, rapid delivery and dark stores. Year 2022 & 2023 are going to be the cornerstone for Micro Fulfillment market touching a billion-dollar mark and setting the base for the future.

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Highlights of Micro Fulfillment Market:

• Annual Micro-Fulfillment Center installations will grow more than 20x by 2030, from current installed base of ~50 in 2020 to be around ~6600 in 2030
• More than 80% of these micro fulfilment centers will be deployed in North America in 2022.
• Micro-Fulfillment Market is supposed to grow with 10X by 2025 and 30X by 2030 as compared to current market of 2021. MFC Services itself will contribute more than $1.6 Billion by 2030 in this emerging space.
• Almost 65% installation are supposed to be deployed with Shuttle-Based and Cube-Storage technologies in 2030 led by AutoStore and Takeoff Technologies. Players like Geek Plus and Hai Robotics have also entered in this market through their AMR based solutions to give a tough competition to traditional players.
• It is expected to have more than $6B market revenue of Micro-Fulfillment automation from Grocery Omnichannel (Walmart, Kroger, Ocado, Tesco, Albertsons, Meijer, Ahold Delhaize, Target, Carrefour) and Pure-Play E-commerce/Q-commerce players (Amazon, Gopuff, Instacart, Grofers, Missfresh, Dingdong) players only by 2030.
• We have forecasted ~1000 MFC installation for In-store deployment and ~380 installation for dark stores in 2030 although there can be some installation within existing or new DC/FC as well.
• More than 50% of such MFC installations are supposed to be targeted for warehouses having a size of between 5000 sq. ft. and 25,000 sq. ft. as we are expecting a good growth for less than 5000 sq. ft. segment due to new dark stores opened by ultrafast delivery players
• It is not a sustainable or profitable business for rapid delivery service providers like Getir, Grofers, GoPuff, Instacart, Uber, Jokr, Fridge No More, Gorillas, Buyk, Delivery Hero, Swiggy, Zapp, Rappi, DoorDash, Weezy, Picnic, Jiffy, Shipt, Deliveroo, 1520, Dijas, Caviar, Rakuten, Flink, Justo, BevMo etc. to fulfil and deliver the order manually although they can expect advertisement revenue from FMCG players.
• Rapid Delivery service providers may partner with retailers or may have their own dark stores to automate the fulfilment process. Gopuff itself is having more than 500 dark stores and it reflects the huge opportunity of automation in this new customer base once number of SKUs increases.
• USA is going to be main market for next 10 years followed by U.K., Japan, France and China. We do expect around 3400 MFC installed base i.e., more than 50% of worldwide market within USA by 2030.

Read full report on the Micro-Fulfillment Market – Growth, Trends, and Forecast

Top Factors

• It is estimated that online grocery will contribute more than 10% of overall grocery sale in US by 2025.
• It is expected that consumers will continue with habit of buying online grocery developed during pandemic.
• Delivery options may vary as Home Delivery, In-Store Pick Up, Curb side Pickup, Locker Delivery etc.
• Urban warehouses with automation will be key to meet this demand with same day delivery expectations.
• Delivery Fee is the one of the key factors to decide the digital channel in the long term.
• Key to make online grocery business more profitable as compared to current scenario of either net loss or thin profit margin

The 3^rd edition of this study is having a market analysis of more than 250 players (part of our exclusive Market Map), Key Technologies, Targeted Warehouse Sizes, End-User Industries, Store Types and more than 20 countries/regions although this market is getting adopted mainly in U.S. and U.K. at present. Our analysis is also validated through 50+ in-depth interviews across the value chain with components and technology providers, system integrators & manufacturers, grocery stores and end-user industry verticals. Market size tables (85+) are also available in pivot-excel format to analyse further along with 200 pages in-depth market study. It is a best reference to analyse the market attractiveness, to identify the partner, customer or supplier, to check the competitive landscape, to benchmark the new technologies and to select the right geography & industry vertical for your products and services. Voice and opinion of grocery stores, dark stores and instant delivery service providers have been taken as the key parameter for this market forecast.

Key Players Analysed in Micro-Fulfillment Market Ecosystem:

• Material Handling Equipment / OEM / System Integrator: Dematic, AutoStore, Swisslog, Knapp, Addverb Technologies, Alert Innovation, Honeywell Intelligrated, LG CNS, Element Logic, Attabotics, Exotec, Fortna, OPEX Corporation, Muratec, Ocado Technologies, Fabric, Hörmann Logistik, TGW Logistics, Vanderlande, ALSTEF, AM Logistic Solutions, Reesink Logistic Solutions, Lalesse Logistic Solutions, Conveyco, Dexter, KPI Solutions, S&H Systems, AHS, SSI Schaefer, Beumer Group, Koerber Group, Daifuku, GIEicom, MHS, System Logistics, Urbx Logistics, Fives Intralogistics, Kardex Group, Toyo Kanetsu Co., Ltd. (TKSL), IHI, Rocket Solution, Samsung SDS, SmartLOG, Modula, SoftBank robotics, StrongPoint, ASETEC, Klinkhammer Intralogistics GmbH, LAC Conveyors & Automation, Errevi Elettric, and Ubh Group
• Software: Takeoff Technologies, Berkshire Grey, Food-X Technologies, Samsung SDS, Locai, Pick8ship, Boxed, Emporix, Freshop, Today, Egrowcery, Stor.ai, Homesome, Ohi, StrongPoint, Growcer, Mercato, Fresho, Farmstead, Local Express, Mercatus, Salesforce, My Cloud, ThryveAI, Snappy Shopper, and GrocerKey
• Mobile Robots (AMR): Geek Plus, Grey Orange, Hai Robotics, Tompkins Robotics, TARO, Magazino, CAJA Robotics, and Coalescent Mobile Robotics
• Piece Picking Robots: Righthand Robotics, Kindred AI, Robomotive, Nimble AI, Berkshire Grey, AWL, Covariant, Lyro, Plus One Robotics, Fizyr, No Magic, Osaro, XYZ Robotics, Handplus Robotics, Vicarious, and Mujin Corp.

Know more about Micro Fulfillment Market – Top Players, Cost Analysis, Competition, and Customer Expectation

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FAQ

What is the expected market size of the Micro Fulfillment Market by 2030?

The Micro Fulfillment Market is projected to reach a cumulative opportunity of $36 billion by 2030.

How many Micro Fulfillment Centers are expected to be installed by 2030?

It is expected that around 6,600 Micro Fulfillment Centers will be installed by 2030.

What major factors are driving the growth of the Micro Fulfillment Market?

The growth is driven by the increasing demand for online grocery services and rapid delivery solutions.

Which region will dominate the Micro Fulfillment market installations?

North America is expected to account for over 80% of Micro Fulfillment Center installations in 2022.

What are the prospects for revenue generation in the Micro Fulfillment automation market?

The Micro Fulfillment automation market is projected to exceed $6 billion in revenue by 2030.