The Dark Store Market has been gaining significant traction with the proliferation of online shopping and demand for quick delivery of products. Dark stores, also known as micro-fulfillment centers, are small warehouses located close to population centers that allow retailers to consolidate inventory from multiple stores and provide goods to customers within hours through on-demand delivery models. They enable retailers to list a far greater number of stock-keeping units (SKUs) than can be accommodated in conventional physical stores. With growing consumer preference for the convenience and safety of online shopping, dark stores have emerged as an efficient solution to fulfill delivery orders placed through websites and mobile apps of retailers.
Global Dark Store Market is a valuable market. Request for Quote at 50-100 Bn in 2024 Purchase Order 12.03 by Bn in 2031, exhibiting a CAGR of 38.4% by 2031.
Key Takeaways
Key players operating in the dark store market include Amazon, IKEA, Ocado, and Wfm.
The increasing penetration of online shopping platforms and rising demand for speedy, affordable delivery are some of the key opportunities boosting the Dark Store Market Size concept. Major retailers are actively setting up dark stores in tier-1 and tier-2 cities to capture the growing e-commerce demand from smaller towns.
Moreover, several international retailers have announced plans to expand their dark store operations globally. For instance, Ocado plans to open more robotic warehouses in Canada, Europe, Japan and Australia by 2024 to supply grocery orders within hours.
Market Drivers
Rising Internet penetration and increasing adoption of smartphones have made online shopping widespread, thereby driving the need for efficient inventory management and quick order fulfillment through dark stores located nearby populated areas. According to statistics, over 62% of global retail sales are estimated to be conducted online by 2024.
Market Restrains
Establishing and operating dark stores involves high initial capital investments for purchasing land and constructing warehouses, along with procuring inventory handling robots and systems. This poses a major challenge for new retail entrants. Furthermore, maintaining cold chain and ensuring product freshness for groceries remains a hurdle in dark store operations.
Segment Analysis
The dark store market can be segmented based on the type of service provided. The grocery delivery segment dominates the market as people increasingly prefer shopping groceries online rather than visiting physical stores. This segment accounted for over 50% market share in 2067 mainly due to the availability of a wide range of grocery items on online platforms and the convenience of home delivery. The general merchandise segment is expected to grow at a fast pace during the forecast period.
Global Analysis
Regionally, North America dominated the dark store market in 2067 due to high smartphone and internet penetration coupled with rising e-commerce sales. The region accounted for over 35% share. Asia Pacific is emerging as the fastest growing region due to surge in online shopping and increasing investments by dark store players in countries like China and India. Countries in Asia Pacific such as China, Japan and India are expected to offer lucrative opportunities with rising disposable incomes and changing consumer shopping preferences.
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