The North America micro fulfillment centers market has been segmented into the US, Canada, and Mexico. In 2022, the US accounted for the largest share of the market in this region, and it is expected to retain its dominance during the forecast period. Market growth in the US is mainly attributed to the presence of a large number of technology integrators and micro fulfillment center companies such as Alert Innovation, Bastian Solutions, Davinci Micro Fulfillment, and Dematic. Canada is likely to record the fastest CAGR in the North America micro fulfillment centers market during the forecast period.
E-commerce with rapid order fulfillment requirements, awareness of the need to reduce labor costs, and technological leaps in the warehousing sector are a few of the major trends in the North America micro fulfillment centers market. These factors encourage e-commerce companies to integrate automation technologies in their business operations, boosting the demand for technologies required in micro fulfillment centers. The need for improved logistic management through smart parcel sorting systems, intelligent packaging systems, smart conveyor systems, and many other automation technologies across different small-sized warehouses is another major factor driving the growth of the North America micro fulfillment centers market. Several major retail franchises such as Walmart, Amazon, Costco Wholesale, Hy-Vee, and Kroger are also taking initiatives to proactively install new micro fulfillment centers to be able to offer better services and enable rapid delivery operations. In 2023, Walmart announced its plans to add micro fulfillment centers into 70% of its stores in Canada with an investment of ~US$ 2.6 billion. Such rapid growth of the E-commerce industry of Canada is driving the North America micro fulfillment centers market share of the country.
Robotics also play an essential role in Micro fulfillment center systems, where they are used to guide autonomous robots called” self-navigating robots.” Various industries such as automotive, aerospace, food & beverages, pharmaceuticals, and electronics are focused on reducing labor-intensive processes, increasing the accuracy and speed of the storage process, and retrieving their products whenever required. Various systems and components required in micro fulfillment centers are available in the market; many of them are highly flexible. Other benefits include better ergonomics, improved inventory control, and greater workplace safety. However, the high cost associated with installation, along with the overall maintenance cost, hinders the North America micro fulfillment centers market growth.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 356.88 Million |
| Market Size by 2030 | US$ 6671.32 Million |
| Global CAGR (2022 - 2030) | 44.20% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2030 |
| Segments Covered |
By Warehouse Size
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The List of Companies - North America Micro Fulfillment Centers Market
The rising demand for home delivery services for groceries and retail items is a major factor propelling the demand for micro fulfillment centers (MFCs) in North America. A majority of e-commerce companies have been focusing on reducing goods and service delivery times across this region. North America is one of the pioneers in the e-commerce industry, which signifies a conducive environment for innovation in this industry.
The US has the presence of a large number of retail companies fulfilling the demands of customers for their basic and leisure needs, including dairy products, grocery items, consumer electronics, pharmaceuticals, and so on. These businesses are investing heavily in the installation of new micro fulfillment centers. In November 2023, the Census Bureau of the Department of Commerce announced that the total retail e-commerce sales in the US for the third quarter of 2023 was estimated to be around US$ 284 billion that has witnessed an increase of around 2.3% compared to the second quarter of 2023.
The demand for automation in the warehouse industry is one of the major trends catalyzing the growth of the micro fulfillment centers market. Micro fulfillment centers require a lot of automation systems for better performance and effective goods handling.
Several e-commerce businesses offering services such as online delivery of groceries, medicines, couriers, electronics, and other products are investing heavily to deploy more micro fulfillment centers across different locations to enable the faster delivery of goods and services. The US is anticipated to witness more than 40% of the deployment of micro fulfillment centers compared to the total deployments expected worldwide.
Alert Innovation, Dematic, Get Fabric, Honeywell International, Takeoff Technologies are the top key market players operating in the North America courier express and parcel market.