North America Micro Fulfillment Centers Market Share by 2030

The North America micro fulfillment centers market was valued at US$ 356.88 million in 2022 and is projected to reach US$ 6671.32 million by 2030; it is expected to grow at a CAGR of 44.20% during 2022–2030.

Analyst Perspective:

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.

Market Overview:

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.

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North America Micro Fulfillment Centers Market: Strategic Insights

North America Micro Fulfillment Centers Market

• Market Size 2022
  US$ 356.88 Million
• Market Size 2030
  US$ 6671.32 Million

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• North America

Market Segmentation

Warehouse Size

• Less than 5000 Sq Ft
• Between 5000 Sq Ft and 25000 Sq Ft
• More than 25000 Sq Ft

Technology Solution

• Cube Storage
• Shuttle Based
• AMR Based

End User

• Grocery Omni Channel
• Pure Play E-Commerce/Q-Commerce
• Retail Omni Channel

Retail Omni Channel

• Pharmaceutical
• Health & Beauty
• Food & Beverage
• Apparel
• Consumer Electronics
• Automotive Parts & Accessories
• Toys/Hobbies
• Hardware/Home Improvement
• Sporting Goods
• Houseware & Home Furnishings
• Jewelry

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Market Driver:

Rising Focus on Reducing Waiting Time and Accelerating Goods Delivery Process is Driving the North America Micro Fulfillment Centers Market Growth

The rising demand for home delivery services for groceries and retail items is a major factor propelling the North America micro fulfillment centers market size. 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. To cater to the faster delivery demands generated by consumers, warehouse operators have been integrating different automation solutions across their premises to automate warehouse operations and achieve faster and more effective operations in warehouses or micro fulfillment centers. Further, a continuous increase in the adoption of online platforms among both sellers and buyers, especially after the onset of the COVID-19 pandemic, supports the North America micro fulfillment centers market growth across North America.

Segmental Analysis:

The North America micro fulfillment centers market, based on warehouse size, has been segmented into less than 5,000 sq ft, between 5,000 and 25,000 sq ft, and more than 25,000 sq ft. In 2022, the 5,000 sq. ft and 25,000 sq. ft segment dominated the North America micro fulfillment centers market, and it is likely to retain its dominance during 2022–2030. Many large-scale retailers such as Walmart and Amazon have been heavily investing in the establishment and deployment of small and large-scale micro fulfillment centers in different North American countries. A majority of the existing micro fulfillment centers in North America have sizes in the range of 5,000–25,000 sq. ft. In addition, plans and investment prospects of retailers for the construction of new micro fulfillment centers are likely to boost the growth of the North America micro fulfillment centers market for the 5,000–25,000 sq. ft segment in the coming years.

The demand for micro fulfillment centers of areas less than 5000 sq ft is mainly driven by an upsurge in the number of ultrafast delivery stores to cater to local residential colonies, wherein customers have subscriptions to quick delivery apps in large numbers. These stores generate the demand for new small-size micro fulfillment centers. In 2022, the segment accounted for the second largest share of the North America micro fulfillment centers market, based on warehouse size, and it is further likely to retain its position during the forecast period.

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Regional Analysis:

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 in the third quarter of 2023 were estimated to be ~US$ 284 billion; the value surged at a rate of 2.3% compared to the second quarter of 2023. Further, sales in the third quarter of 2023 grew at a rate of 7.6% compared to the Q3 of 2022. A few of the major factors supporting the growth of the North America micro fulfillment centers market share in the US include the constantly growing e-commerce and q-commerce industries, surging retail commerce sales, rising number of online shopping subscriptions, and increasing number of warehouses along with the demand for automation across small-scale warehouses and retail stores.

Key Player Analysis:

Alert Innovation, Attabotics, Autostore, Bastian Solutions, Berkshire Grey, Davinci Micro Fulfillment, Dematic, Exotec, Fortna, Get Fabric, Hai Robotics, Hoj Innovations, Honeywell International, Kardex, Knapp AG, KPI Solutions, Locus Robotics, Nimble Robotics, Ocado Group, OPEX, Pacline Overhead Conveyors, PeakLogix, RightHand Robotics, StrongPoint, Swisslog, Symbiotic, Takeoff Technologies, TGW Logistic Group, The Hormann Group, and Urbx are the prominent players in the North America micro fulfillment centers market.

Recent Developments: 

Strategies such as mergers and acquisitions are highly adopted by companies in the North America micro fulfillment centers market. The market initiative is a strategy adopted to expand their footprint across the world and to meet the growing customer demand. The North America micro fulfillment centers market players are mainly focusing on product and service enhancements by integrating advanced features and technologies into their offerings. A few recent developments by key market players in the market are listed below.

North America Micro Fulfillment Centers Market Report Scope