Click and Collect Lockers Market Size (2024 – 2030)

As of 2023, the Global Click and Collect Lockers Market recorded a valuation of USD 907.1 million, with projections indicating a market size surge to USD 2055.9 million by 2030. Forecasts for the period spanning 2024 to 2030 predict a steady market expansion at a Compound Annual Growth Rate (CAGR) of 12.4%. This growth trajectory primarily stems from the burgeoning post and parcel sector, which forecasts a heightened adoption of modernized smart parcel lockers worldwide. The rising trend of Buy Online, Pick Up In-Store (BOPIS) is swiftly gaining traction as a favored retail tactic. This model empowers customers to make purchases from the comfort of their residences and collect their orders at designated stores or pickup points, consequently propelling the Click and Collect Lockers market.

Overview of the Click and Collect Lockers Market

Consumer anticipation for a post-pandemic era is palpable, especially with the increasing distribution of vaccinations in numerous countries. The collective experiences of shoppers throughout the past year have instigated new behavioral paradigms, many of which are likely to become enduring fixtures in consumers' daily routines. The retail realm witnessed an accelerated digitization of customer experiences, spurred by health concerns among consumers. As a result, relatively new conveniences such as click and collect—where customers place online orders and subsequently retrieve items in person—have gained widespread popularity, anticipated to endure long beyond the pandemic's aftermath. This service allows customers to 'click' for online purchases and 'collect' items at their convenience from physical stores, offering them speed, convenience, and long-term business advantages across various sectors and business scales.

Smart storage lockers emerge as a cost-efficient solution ensuring timely and tailored item retrieval for customers in physical stores. When appropriately implemented, these lockers can serve as platforms to enhance customer engagement, boost sales, and fortify brand loyalty. The challenging landscape of retail has further accentuated the shift towards contactless, self-service experiences, prompting shops and enterprises to maintain competitive edges for survival. Concurrently, curbside pickup—enabling consumers to retrieve orders from outside stores or designated parking areas—gains popularity, cutting down operational costs for both businesses and customers by eliminating shipping expenses. The flexible nature of the click and collect shopping experience is fostering increased utilization of smart parcel delivery locker systems for efficient order storage and management. Notably, in the United States, approximately 67% of consumers utilize click and collect locker services, fueling market growth within the country. Retail giants like Walmart, Home Depot, and others are prominent adopters of the click and collect solution.

Impact of COVID-19 on the Click and Collect Lockers Market

The pandemic's repercussions on eCommerce were substantial, with parcel deliveries significantly delayed across Europe, as highlighted by a survey conducted by eCommerce Europe. To better cater to customers amidst these challenges, retailers across Europe swiftly embraced click and collect services, aligning with varying lockdown regulations across EU member states.

COVID-19 necessitated a paradigm shift in shopping behaviors, especially among older demographics, who increasingly embraced innovative shopping modalities to secure essential items during lockdown periods. The pandemic served as a litmus test for operational resilience among retailers worldwide, while also testing consumers' patience. Fortunately, Click & Collect emerged as a crucial solution, offering built-in safety benefits by eliminating the need for prolonged in-store visits. Although not a new service, click and collect found newfound prominence during the pandemic, evolving from a security-driven necessity to a convenience-driven essential for many consumers. This model is displacing traditional in-store and online delivery methods, favoring companies with local physical presence. In the United Kingdom, enhanced online capabilities and click-and-collect offerings played a pivotal role in mitigating the impact of reduced non-essential retail sales during subsequent lockdowns. Food retailers notably reported boosted online sales due to click-and-collect orders.

Market Drivers

The market's growth is significantly bolstered by the speed and cost-efficiency facilitated by Click and Collect lockers:

Click and collect lockers are revolutionizing retail dynamics, allowing customers and suppliers alike to facilitate deliveries and pickups round the clock. Customers can place orders after regular business hours and collect their items within a few hours at designated click and collect points. This system streamlines supplier-to-locker deliveries, enabling efficient, cost-effective operations with reduced in-store inventory. Implementing click and collect systems has not only boosted sales and attracted new customers but has also streamlined operations, resulting in enhanced service quality and reduced labor costs. Customers benefit economically by avoiding shipping charges, thereby propelling the market towards favorable growth trends.

The availability of secure, convenient parcel collection, and 24/7 delivery options significantly contributes to market expansion:

Parcel pickups and deliveries are seamless and secure, round the clock, aided by the operational support of lockers. Suppliers can directly transport goods to lockers for customer pickup or after-hours stock replenishment, ensuring efficient, low-cost deliveries, and optimized in-store inventory levels. Customers are promptly notified of order availability via SMS, exemplifying customer-centric solutions and operational efficiencies catalyzing market growth.

Market Restraints

Limited locker capacity emerges as a prominent constraint hindering market expansion:

The industry grapples with meeting the escalating demand for larger, higher-capacity lockers. Despite manufacturers offering tailored options with varying capacities, the market growth faces impediments due to the scarcity of large-sized smart lockers. Additionally, acquiring suitable premises and installing these locker facilities incur considerable costs, acting as deterrents for organizations considering click and collect locker adoption.

Growing apprehensions regarding cybersecurity pose potential hurdles to industry growth:

Rapid digitization raises concerns around security and privacy. The heightened risk of cyber threats and unauthorized access to system data, vehicles, or lockers for malicious activities, including thefts, poses significant challenges. Moreover, substantial investments in robust internet networks and requisite IT infrastructure further add to input costs, exerting negative pressures on market growth.

CLICK AND COLLECT LOCKERS MARKET – BY TYPE

• Ambient Click and Collect Lockers
• Chilled Click and Collect Lockers
• Frozen Click and Collect Lockers

The Click and Collect Lockers market presents a diverse range of locker types tailored to specific requirements. The segment leading in market revenue is Ambient Click and Collect Lockers. These lockers are specifically designed for storing items at room temperature, making them suitable for a wide array of products. Conversely, the segment experiencing the most rapid growth is Chilled Click and Collect Lockers. These lockers maintain a cooler temperature, making them perfect for preserving perishable items such as groceries and beverages.

CLICK AND COLLECT LOCKERS MARKET – BY APPLICATION

• Supermarket
• Shopping Mall
• Hotel
• School
• Other

Click and Collect Lockers are utilized across various industries, providing customized solutions for different sectors. They are commonly employed in Supermarkets, where shoppers can conveniently retrieve their online orders, leading the Supermarket segment to emerge as the primary revenue contributor, reflecting the increasing preference for online grocery shopping. Another significant application is in Shopping Malls. With the evolving retail landscape, Shopping Malls are integrating Click and Collect Lockers to offer a seamless shopping experience for visitors, making this segment the fastest-growing application driven by the aim to enhance customer convenience and engagement, poised to hold substantial market revenue during the forecast period.

CLICK AND COLLECT LOCKERS MARKET - BY REGION

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East and Africa

North America emerges as the dominant region in the Click and Collect Lockers market. The region's early adoption of e-commerce and technological advancements has led to a enthusiastic embrace of Click and Collect services. Within North America, the largest segment is North America itself, indicating a strong preference for this convenient shopping solution. The widespread availability of lockers in various settings, such as supermarkets and retail stores, has significantly contributed to the robust growth of this market in North America.

Europe takes the lead as the fastest-growing region in the Click and Collect Lockers market during the forecast period. The region's rapid expansion can be attributed to several factors, including European consumers' increasing reliance on online shopping, paving the way for the integration of Click and Collect services. Additionally, the well-established retail networks and urban infrastructure in Europe have facilitated the deployment of lockers in key locations, aligning with the evolving retail landscape driven by customer convenience and seamless experiences.

CLICK AND COLLECT LOCKERS MARKET - BY COMPANIES

The Click and Collect Lockers market is consolidated and competitive, with a select few retailers standing out among the many providing click-and-collect services. In 2020, in the United States, seven multichannel retailers accounted for 64% of click-and-collect sales, including:

1. Walmart
2. The Home Depot
3. Best Buy
4. Target
5. Lowe's
6. Macy's
7. Nordstrom

These retailers' financial metrics are intriguing, as not all of them are major e-commerce players or in the top 10 for general retail. This emphasizes the importance of robust click-and-collect locker strategies in the retail business, especially considering that these companies collectively generated over USD 46 billion in click-and-collect locker facilities. Some of the key players in the market include LockTec, Vlocker, Parcel Hive, Penguin Lockers, Locker & Lock, Bell and Howell, Cleveron, Parcel Pending, and Luxer One, among others.

NOTABLE EVENTS IN THE CLICK AND COLLECT LOCKERS MARKET:

PRODUCT LAUNCH - In April 2021, Lowe's, a Canadian home improvement company, introduced smart contactless pickup lockers, enabling consumers to retrieve their online orders. These advanced lockers are currently available in 48 Lowe's locations, with plans for further expansion in the future.

PRODUCT LAUNCH - June 2021 - Your Pick-Up-Point (YPUP) announced the launch of an enhanced pick-up and parcel storage service, offering fully automated collection and drop-off solutions for workplaces, industries, and market areas.

COLLABORATION - In November 2020, American Locker, Inc. entered into an agreement with Quadient, a parcel locker provider, to deliver advanced parcel pending solutions. This solution enables real-time tracking, recipient notifications, and secure package delivery.

COLLABORATION - April 2021 - Grubbrr, a commerce automation business, and Frank Mayer, a leading kiosk provider, formed a strategic agreement to develop click and collect lockers. These smart lockers were distributed to restaurants and retailers to enhance safety in the wake of the COVID-19 pandemic, providing a contactless solution for quick and easy order pickups, saving both customers and employees time.