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
Market Size Value in US$ 356.88 million in 2022 Market Size Value by US$ 6671.32 million by 2030 Growth rate CAGR of 44.20% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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North America Micro Fulfillment Centers Market: Strategic Insights
| Market Size Value in | US$ 356.88 million in 2022 |
| Market Size Value by | US$ 6671.32 million by 2030 |
| Growth rate | CAGR of 44.20% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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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.
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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.
Year | News |
November 2023 | Southern Glazer's Wine & Spirits and Symbotic Inc entered into a strategic partnership with Symbotic to deploy its AI-powered software and robotics warehouse automation technologies in selected distribution centers of Southern Glazer. The companies have pledged to have the first of these systems in place by 2025. |
July 2023 | SoftBank Group Corp and Symbotic Inc announced the formation of GreenBox Systems LLC, a new joint venture, to meet the annual warehouse-as-a-service business demands worth more than US$ 500 billion. Concurrently, Symbotic announced a new client deal worth ~US$ 7.5 billion with GreenBox, which would be the only provider of Symbotic systems in the warehouse-as-a-service sector. It would also offer supply chain services to its customers. |
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Warehouse Size, Technology Solution, End User, Retail Omni Channel, and Country
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
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.
The List of Companies - North America Micro Fulfillment Centers Market
- Alert Innovation
- Attabotics
- Autostore
- Bastian Solutions
- Berkshire Grey
- Davinci Micro Fulfillment
- Dematic
- Exotec
- Fortna
- Get Fabric
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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