Micro Fulfillment Market Expected to Reach $88.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Micro Fulfillment Market," The micro fulfillment market size was valued at $2.1 billion in 2021, and is estimated to reach $88.3 billion by 2031, growing at a CAGR of 44.8% from 2022 to 2031.

Commonly observed components in micro fulfillment market include control systems, and material handling. The material handling segment accounted for the largest micro fulfillment market share among these in 2021, owing to the large investments required to acquire material handling components. Furthermore, the merchandise segment under the application registered a higher revenue in 2021, owing to high spendings made on merchandise. In addition, the market is analyzed between different end-user industries of micro fulfillment, including retailers and manufacturers & distributors. The market is mainly driven by rise in e-commerce sector and increase in urbanization. However, high initial cost involved in the setting-up of micro fulfillment facilities constraints the micro fulfillment market growth.

In 2021, North America dominated the global micro fulfillment market, in terms of revenue. Moreover, the market in Asia-Pacific is expected to grow with the highest CAGR. This is attributed to increased investments in residential complexes, and rapid economic growth.

Rise in global population and rapid urbanization propels the growth of the residential complexes; which further propels the growth of the micro fulfillment market.

Moreover, on the basis of end-user industry, the retailer segment is anticipated to grow rapidly during the forecast period, owing to increased demand for products from  the consumer.

Key manufacturers in the market offer a wide range of products and services to sustain the harsh competition in the market. In addition, business expansion also plays a major role in driving the growth of the market. In July 2021, HÖRMANN Logistik, a company involved in providing components and services in fulfillment and logistics industries has expanded its business in the Eastern Europe by establishing its subsidiary HÖRMANN Logistik Polska Sp. z o.o., in Poland.

However, various businesses in the micro fulfillment market had to stop their business in countries such as Canada, the U.S., and Europe, during the pandemic lockdown. This break directly impacted sales of companies involved in micro fulfillment. In addition, lack of manpower and raw materials constricted supply of raw materials for manufacturing various micro fulfillment components; and negatively influenced the growth of the market. However, after two years of COVID-19 outbreak and introduction of vaccinations, the severity of the pandemic has significantly reduced and there is a rapid rate of recovery of key players in the market.

Key companies profiled in the micro fulfillment market forecast report include Ahold Delhaize, Alert Innovation, Inc., Bastian Solutions, LLC, Davinci Micro Fulfillment, Flowspace, Fortna Inc., Honeywell International Inc, HÖRMANN Group (HÖRMANN Logistik), Instacart, KION GROUP AG (Dematic), KPI Integrated Solutions, LOCAD, OPEX, PACK & SEND Holdings Pty Ltd, Pacline Overhead Conveyors, Swisslog, and The Kroger Company.

Key Findings of the Study 

• The report provides an extensive analysis of the current and emerging micro fulfillment market trends and dynamics. 
• By component, the material handling segment dominated the micro fulfillment market, in terms of revenue in 2021 and control systems is projected to grow at a significant CAGR during the forecast period.
• By application, the merchandise segment registered higher revenue in 2021.
• By end-user industry, the retailers segment is anticipated to grow at a higher CAGR during the forecast period.
• Asia-Pacific is projected to register highest growth rate in the coming years.
• The key players within the micro fulfillment are profiled in this micro fulfillment market report, and their strategies are analyzed thoroughly, which help understand competitive outlook of the micro fulfillment industry.
• The report provides an extensive analysis of the current trends and emerging opportunities of the market. 
• In-depth micro fulfillment market analysis is conducted by constructing estimations for the key segments between 2022 and 2031.