What Has Been The Historical And Current Growth Of The Micro Fulfillment Market?
The micro fulfillment market has seen considerable growth due to a variety of factors.
•In the past few years, the size of the micro fulfillment market has seen a significant upsurge. Anticipated growth from $6.5 billion in 2024 to $9.39 billion in 2025 indicates a compound annual growth rate (CAGR) of 44.5%.
The surge in this period is due to factors such as the expansion of e-commerce, increased urbanization and population density, enhancements in the supply chain, changes in consumer demands, and the rise of grocery delivery services.
What Is The Forecast For The Micro Fulfillment Market By 2029?
The micro fulfillment market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for the micro fulfillment market size to experience substantial growth in the upcoming years, reaching a value of $43.66 billion by 2029, with a projected compound annual growth rate (CAGR) of 46.8%.
This predicted growth over the forecast period is linked to several factors, such as escalating urbanization, the expansion of online grocery shopping, an increased emphasis on same-day delivery, superior software integration, a surge in demand for environmentally-friendly solutions, market rivalry, and cost refinement. Notable trends for the forecast period feature customer-focused solutions, strategic partnerships and third-party logistics (3PL) collaborations, the advent of robotic handling, the application of real-time analytics and artificial intelligence (AI), and the development of tailored solutions for specific industries.
Which Key Drivers Are Propelling The Micro Fulfillment Market's Growth?
The anticipated rise in demand for the e-commerce industry is projected to fuel the expansion of the micro fulfillment market. The term e-commerce pertains to the digital buying and selling of products and services, encompassing a broad spectrum of data, methods, and tools for online buyers and sellers, like shopping through smartphones and the encryption of online payments. E-commerce fulfillment oversees the logistical aspects of delivering an online purchase to a customer's doorstep, removing the need for an individual to package, label, and send each order separately. The growing need for the e-commerce sector will further stimulate the growth of the micro fulfillment market. For example, in February 2023, an article published by Forbes, a US business magazine, revealed that e-commerce sales rose from $5.21 trillion in 2021 to over $5.72 trillion in 2023, and forecasted that by 2026, the e-commerce market could be worth over $8.1 trillion. Consequently, the surge in demand for the e-commerce sector catalyzes the micro fulfillment market.
What Are The Key Segments Within The Global Micro Fulfillment Market?
The micro fulfillment market covered in this report is segmented –
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
Subsegments:
1) By AutoStore: AutoStore Robots, AutoStore Storage Systems
2) By Shuttle Based: Single-Shuttle Systems, Multi-Shuttle Systems
3) By Other Technologies: Conveyor Systems, Mobile Shelving Systems, Pick-To-Light Systems
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How Are New Trends Impacting The Size Of The Micro Fulfillment Market?
Innovations in technology are increasingly gaining traction within the micro fulfillment sector. The key players in this market are concentrating on the development of novel technology to maintain their market standing. In October 2024, for example, Amazon Inc, an American e-commerce enterprise, unveiled its inaugural automated micro-fulfillment center. This modern facility, incorporating sophisticated robotics and automation technology, has been engineered to optimize order processing and expedite deliveries. This is expected to bolster Amazon's capacity to process orders, especially in urban areas with high demand, by reducing the need for manual labor and shortening fulfillment periods.
Who Are the Key Players in the Micro Fulfillment Market?
Major companies operating in the micro fulfillment market include:
• LG CNS Co. Ltd
• Dematic
• Fortna Inc.
• Instacart
• TGW Logistic Group
• Opex Corporation
• Exotec Solutions
• KPI Integrated Solutions
• The Kroger Company
• Hörmann 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.
What are the Regional Insights into the Micro Fulfillment Market?
North America was the largest region in the micro fulfillment market in 2024. 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.
