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The grain silos and ancillary equipment market size is forecast to increase by USD 1.04 billion at a CAGR of 4.95% between 2023 and 2028. The market is experiencing growth, driven by various factors. There's a rising demand for grain storage solutions globally, necessitated by the expanding agricultural sector. Governments worldwide are providing substantial support to enhance grain silo infrastructure, fostering market growth. Additionally, the increasing adoption of certified safe grain silos and ancillary equipment reflects a growing emphasis on food safety and quality assurance standards, further propelling market expansion in this vital agricultural segment.
The market encompasses the production and distribution of wheat, corn, rice, barley, and other grains, as well as the ancillary equipment such as conveyors, elevators, aeration systems, temperature monitoring systems, grain dryers, and silos. The market is significantly influenced by agricultural production levels, infrastructure development, and global supply chains. Manufacturing capacity expansion and investment decisions are key factors driving the market. Agricultural activities and global trade dynamics are also crucial elements shaping the market. The growing global population and changing dietary preferences are creating a high demand for grain storage solutions. Advancements in technology have led to functionality, efficiency, monitoring systems, automation, and data analytics, enabling remote control capabilities. Despite the significant upfront investment required, farmers and grain producers continue to invest in these systems to optimize their operations.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The grain silos segment is estimated to witness significant growth during the forecast period. The Grain Silos market encompasses the production and sale of grain storage solutions, including silos for wheat, corn, rice, and barley, as well as ancillary equipment such as conveyors, elevators, aeration systems, temperature monitoring systems, grain dryers, and various silo designs like flat bottom and hopper bottom. This market is driven by agricultural production levels and infrastructure development in the agricultural sector and food industries. Global supply chains rely on grain silos to maintain unspoiled grains for extended periods, reducing losses during transportation and storage. Investment decisions in this market are influenced by global trade dynamics, agricultural activities such as planting and harvesting, and weather conditions.
Further, ancillary equipment, including conveyors, elevators, and automation systems, enhance functionality, efficiency, and monitoring capabilities. Significant upfront investment is required for farmers and agricultural businesses to implement these systems, making them essential for managing the growing global population and changing dietary preferences in the food industry. Advancements in technology, such as remote control capabilities, data analytics, and automation, continue to shape the market. Geopolitical events and weather conditions can cause supply chain disruptions, impacting market growth.
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The grain silos segment accounted for USD 2.004 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The North American the market is primarily driven by farm consolidation and the increasing production of grains, including corn, wheat, sorghum, barley, and oats. This demand is leading to the expansion and construction of grain storage facilities, with the US being a significant contributor due to its status as the largest grain producer in the region. On-farm and off-farm storage capacities in the US have grown significantly, reaching 15.58 billion bushels in 2022. Supply chain management is a crucial factor in this market, with financial institutions offering loans and investment opportunities for installing grain silos and related equipment.
Additionally, risk management solutions, insurance products, and hedging strategies are also essential for farmers. Supportive government policies and technological advancements, such as innovations in agricultural practices and grain transportation and storage, are boosting the market. However, infrastructure constraints and restraining factors, such as high initial investment costs and regional factors, may hinder market growth.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increase in demand for grain storage is the key driver of the market. The agriculture sector and food industry's expansion have led to an increase in grain production, necessitating the need for larger storage capacities. Grain silos and ancillary equipment, including conveyors, elevators, aeration systems, temperature monitoring systems, grain dryers, and various silo types like flat bottom and hopper bottom, are in high demand. This demand is driven by agricultural production levels, infrastructure development, and global supply chain requirements. With the world population growing at a rate of approximately 1.09% per year, the emphasis on increasing grain production is crucial. Ancillary equipment such as conveyors, elevators, and aeration systems enhance functionality, efficiency, monitoring systems, automation, and data analytics, making investment decisions essential for farmers and agricultural businesses.
Further, weather conditions, geopolitical events, and changing dietary preferences also impact grain production and global trade dynamics, leading to potential supply chain disruptions. Significant upfront investment in advanced technology and equipment is necessary to maintain optimal grain storage conditions and ensure the availability of essential food products.
Increasing focus on galvanized grain silos is the upcoming trend in the market. The Grain Silos Market encompasses the production and sale of silos used for storing wheat, corn, rice, barley, and other grains. Ancillary equipment such as conveyors, elevators, aeration systems, temperature monitoring systems, grain dryers, and various types of silos including flat bottom and hopper bottom, are integral components of this market. With increasing agricultural production levels and infrastructure development in the agricultural sector, the demand for grain silos and ancillary equipment is on the rise. Food safety awareness is a significant factor driving market growth. Silo manufacturers focus on grain loss reduction and ensuring grain quality by producing silos with metal coatings, such as galvanized or pre-lacquered steel, which offer up to 10 times more corrosion resistance than epoxy paint.
Further, global supply chains, agricultural activities, planting, harvesting, transportation, and investment decisions are influenced by various factors such as weather conditions, geopolitical events, and global trade dynamics. These factors can lead to supply chain disruptions, making the functionality, efficiency, monitoring systems, automation, data analytics, and remote control capabilities of grain silos and ancillary equipment increasingly important. Despite the significant upfront investment required, farmers and agricultural businesses continue to invest in advanced grain storage solutions to maintain grain quality and reduce losses. Advancements in technology, including temperature monitoring systems, grain dryers, and aeration systems, contribute to the overall efficiency and effectiveness of grain silos and ancillary equipment.
Constant fluctuations in raw material prices is a key challenge affecting the market growth. The Grain Silos market encompasses the production and sale of silos for storing wheat, corn, rice, barley, and other grains, as well as ancillary equipment such as conveyors, elevators, aeration systems, temperature monitoring systems, grain dryers, and various types of silos including flat bottom and hopper bottom designs. The cost of raw materials, particularly steel and aluminum, significantly impacts the production cost of grain silos and ancillary equipment. Fluctuations in these prices are driven by macroeconomic factors like inflation, labor costs, and regulatory policy changes. As raw material costs rise, suppliers pass on these increased costs to downstream industries. Agricultural production levels and infrastructure development in the agricultural sector are key factors influencing market growth.
Further, global supply chains, reduced manufacturing capacity, agricultural activities such as planting and harvesting, transportation, and investment decisions are all impacted by global trade dynamics, supply chain disruptions, and the growing global population and changing dietary preferences. Advancements in technology, functionality, efficiency, monitoring systems, automation, and data analytics are also shaping the market. With significant upfront investment, farmers, and agricultural businesses are key stakeholders in the market. Weather conditions and geopolitical events can also impact market trends.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AGCO Corp. - The company offers grain silos and ancillary equipment under its brand GSI and Cimbria.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Grain silos and ancillary equipment play a crucial role in the agricultural sector, ensuring the efficient storage and processing of grains. The grain silos market is driven by various factors, including the increasing global population and the need for food security. Ancillary equipment such as grain dryers, cleaners, and conveyors are essential for optimizing the grain storage process and maintaining grain quality. The market for grain silos and ancillary equipment is expected to grow significantly due to the rising demand for grain storage solutions in developing countries. Additionally, advancements in technology are leading to the development of smart grain silos, which offer features such as remote monitoring and automated grain handling. Overall, the market is a vital sector in the agricultural industry, providing solutions for grain storage, processing, and transportation.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.95% |
Market Growth 2024-2028 |
USD 1.04 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.63 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, Germany, Canada, UK, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ag Growth International Inc., AGCO Corp., Ahrens Group Pty Ltd., Bentall Rowlands Storage Systems Ltd., Berkshire Hathaway Inc., Chief Industries Inc., CST Industries Inc., Henan Haokebang Machinery Equipment Co. Ltd., Kepler Weber SA, Kotzur Pty. Ltd., Mysilo Grain Storage Systems Inc. Co., Nelson Silos, P W Metallbau GmbH and Co. KG, Rostfrei Steels Pvt. Ltd., Satake Corp., Silos Cordoba SL, Sioux Steel Co., Sukup Manufacturing Co., Superior Manufacturing LLC, and Symaga SA |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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