Dublin, Jan. 17, 2022 (GLOBE NEWSWIRE) -- The "Micro Fulfillment Market - A Cumulative Opportunity Worth ~$36B by 2030, By Technologies, By End-User, By Deployment, By Warehouse Size, By Key Countries and Regions" report has been added to ResearchAndMarkets.com's offering.
Micro Fulfillment - Need of the hour
Industry giants such as Amazon, Walmart, Ocado, Kroger and Alibaba are driving the "best-in-class" e-commerce fulfillment strategy for the last decade. They are also investing in cutting-edge robotics and automation for their Customer Fulfillment Centers (CFCs) - that are continuously redefining target productivity and service levels.
But these centralized fulfillment centers are situated far away from the city and have an additional transportation cost along with considerably more delivery time as compared to consumer's expectations, especially in grocery and F&B industry.
That's why, Micro Fulfillment Center (MFC) is a perfect solution for urban warehouses with an approximated size between 5000 SF and 25000 SF that can meet the requirement of same day delivery through in-store picking or multiple last-mile delivery options. It can even be deployed at backside of the retail store, dark stores, malls or basements. A typical MFC system is having 1-2 aisles Dry + 1-2 aisles Chilled, 5,000-8,000 totes 10-high storage to 24' x 2-deep, 2 decanting stations and 2-4 pick stations with each station picking at 700-800 UPH.
Highlights of Micro-Fulfillment Market Study:
- 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 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.
- 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.
- 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.
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
Key Questions to be answered through this study
- What are the major trends and drivers impacting the Micro Fulfillment Market?
- What is the revenue outlook (TAM), Installed base and forecast till 2030 for Micro Fulfillment Market by top segments such as Technologies, End-User, Store Type Deployment, Warehouse Size, Services, and Countries?
- What are the key investments, partnerships and M&A in Micro Fulfillment space?
- What is the impact of ultrafast delivery and dark stores on Micro-Fulfillment Market?
- What is the competitive landscape of Micro Fulfillment Market?
- What are the strategic imperative and calls to action that will define growth and success within Micro Fulfillment by 2030?
Introduction & Background
- eCommerce re-shaping Retail Supply Chain
- Retail Supply Chain disrupted with eCommerce arrival
- Evolution of online grocery and ultrafast delivery
- Ultra-fast delivery/on-demand grocery fulfilment
- Dark stores have smaller footprint, lesser SKUs
- Post COVID-19 buying behavior vs Online Grocery
- US online grocery will be a ~$250B market?
- China on-demand grocery sales reach $20B GMV?
- Increased Automation essential for eCommerce/eGrocery fulfilment
- Degree of Automation at loading and unloading stations
- eGrocery demands faster, more efficient supply chains
- Economics of online grocery vs. ultra-fast delivery
- Higher AOV; better product mix critical to online grocery success
- Battle to gain market share through faster delivery times
- Different strategies used for online grocery fulfillment
- eGrocery will drive Micro-Fulfillment growth
- Introduction of Micro Fulfilment Centers (MFC)
- Centralized Fulfillment Center (CFC) vs Micro Fulfillment (MFC)
- Regional Micro-Fulfillment Center (MFC) vs True Micro-Fulfillment Center (MFC)
- Enabling Technologies for Micro Fulfillment Center (MFC)
- Key Developments in MFC space
- Market Readiness of Retailers to Invest in Micro-Fulfillment Centers
- Emerging Customer Base for MFCs
- Instant / Ultrafast Delivery Service Companies in USA
- Instant / Ultrafast Delivery Service Companies in Europe
Emerging Trends
- Goods to Robots (G2R)
- Piece Picking Robots
- Righthand Robotics
- Berkshire Grey
- Plus One Robotics
- Last Mile Delivery
Micro Fulfilment Centre - Drivers and Challenges
- End-User Behaviour and eCommerce penetration
- Skilled Labour Shortage and High Labour Cost
- Advances in AI and Machine Vision are accelerating development of MFCs
- Increasing urbanization moving FCs closer to end-consumer
- Customer Expectations and last-mile delivery
- Capex and Need for complex software poses some challenges
- Pros and cons of Micro-Fulfillment Centers
Cost Comparison and Advantages
- Micro Fulfillment Center (MFC) vs Centralized Fulfillment Center (CFC)
- Inventory Carrying Cost (ICC) Saving
- Cost Comparison between MFC and other FC formats
- Current state of eGrocery fulfilment strategies
Case Studies
- Alert Innovation and Muratec with Alpen Group (Japan)
- Takeoff Technologies and Carrefour operated by Majid-Al-Futtaim (UAE)
- Alert Innovation and Walmart (USA)
- Dematic and PepsiCo (USA)
- Takeoff Technologies and Woolworths (Australia)
- Fabric and FreshDirect (USA)
- Swisslog and H-E-B (USA)
- Takeoff Technologies and Sedano's (USA)
- Takeoff Technologies and ShopRite (USA)
- Ocado and Kroger (USA)
Companies Analyzed: Company snapshot of innovative start-ups
- Alert Innovation
- Dematic
- Exotec
- Fabric
- Company Profiles
- Addverb Technologies
- Alert Innovation
- Attabotics
- AutoStore
- Cleveron
- Dematic
- Exotec
- Geek Plus
- Fabric
- Home Delivery Service (HDS)
- Honeywell Intelligrated
- i-Collector
- Knapp
- Myrmex
- Ocado Technologies
- OPEX Corporation
- Takeoff Technologies
- Tompkins Robotics
- Vanderlande
- Savoye
- TGW Logistics Group
- KPI Solutions
For more information about this report visit https://www.researchandmarkets.com/r/gs0xai
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