Grain Silos and Ancillary Equipment Market by Type, Application and Geography - Forecast and Analysis 2023-2027

Grain Silos and Ancillary Equipment Market Forecast 2023-2027

The grain silos and ancillary equipment market size is forecast to increase by USD 12.22 billion at a CAGR of 5.95% between 2022 and 2027. 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. This report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Grain Silos And Ancillary Equipment Market During the Forecast Period?

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The market plays a crucial role in facilitating the storage and management of essential grains such as wheat, corn, rice, and barley. Key components like conveyors, elevators, and aeration systems are integral to efficient grain handling within these. With the increasing complexity of global supply chains and agricultural activities, investment decisions in the equipment are becoming strategic imperatives. Moreover, as global trade dynamics continue to evolve, the demand for advanced temperature monitoring systems in grain storage facilities rises to ensure optimal grain quality and safety standards.

Market Dynamics and Customer Landscape

The market is witnessing robust growth, driven by increasing agricultural production levels and infrastructure development worldwide. Wheat, corn, rice, and barley continue to be major commodities stored in silos, necessitating efficient handling systems like conveyors, elevators, and aeration systems. Temperature monitoring systems and grain dryers ensure optimal storage conditions, supported by flat bottom and hopper bottom silos. With advancements in technology, including automation and data analytics, monitoring systems now offer remote control capabilities, enhancing functionality and efficiency. Despite significant upfront investment, farmers are increasingly investing in these systems to meet the demands of a growing global population and changing dietary preferences. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.  

Key Market Driver

The increase in demand for grain storage is driving market growth. Increased food production and greater population have resulted in greater demand for storage facilities such as high-quality grain silos and ancillary equipment. In the US, on-farm storage capacity and off-farm storage capacity reached 15.58 billion bushels and 11.822 billion bushels respectively in 2022. This shall further drive the growth of the market in the US which ensures large-scale secure storage of food with the options of temperature and pest control.

Moreover, they require less space compared to warehouses due to their horizontal structure, also resulting in greater storage capacity. They can be chosen from a variety of capacities and sizes, as per end-user requirements. Hence, the above factors are likely to propel the growth of the market during the forecast period.

Significant Market Trends

The increasing focus on galvanized grain silos is a key trend in the market. Galvanization involves adding a zinc coating on steel to prevent rusting which helps increase the lifespan of silos. Galvanized silos have greater corrosion resistance and reinforced properties. Other factors such as grain loss reduction and ensuring food security and safety by silo manufacturers are also making them more appealing to end users. One such way to ensure possible deformation is by silos having reinforced roofs.

For instance, in January 2020, SILOS CORDOBA launched its new model of farm silos that have an innovative metal coating, ProMag. It is an alloy of aluminum, magnesium, and zinc and offers corrosion resistance up to 10 times more than galvanized steel. Growing awareness about the importance of food storage quality and increasingly stringent regulations are resulting in end users adopting high-quality grain silos. Hence the above factors are likely to propel the growth of the market during the forecast period.

Major Challenge

Constant fluctuations in raw material prices are challenging market growth. Aluminum and steel are vital components in the manufacture, making their price volatility directly impact manufacturing costs. Due to several macroeconomic factors, such as inflation, labor costs, and regulatory policy changes, their prices fluctuate massively.

Additionally, as this cost crosses a certain limit, raw material suppliers are compelled to increase costs to industries they supply, including grain silo manufacturers. Hence, such supply-demand imbalances are predicted to result in further price volatility and cause uncertainty in raw material procurement plans for these manufacturers. Hence the above factors are likely to hinder market growth during the forecast period.

Customer Landscape

Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027. 

Customer Landscape

Who are the Major Market Companies?

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.

Ag Growth International Inc. - The company offers grain silos and ancillary equipment such as Westeel Stiffened grain bins, AGI On-Farm grain storage systems, AGI Ag-Comm grain storage systems.

AGCO Corp. - The company offers grain silos and ancillary equipment under its brand GSI and Cimbria.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

• 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.
• Sioux Steel Co.
• Sukup Manufacturing Co.
• Superior Manufacturing LLC
• Symaga SA
• Silos Cordoba SL

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Market Segmentation

This report extensively covers market segmentation by type (grain silos and ancillary equipment), application (transportation and storage), and geography (North America, Europe, APAC, South America, and the Middle East and Africa). In the type segment of the market, various types of equipment cater to the evolving needs of agricultural production. Grain dryers, flat bottom silos, and hopper bottom silos are integral components facilitating efficient storage and management of grains. Driven by factors such as infrastructure development, global supply chains, and advancements in technology, the market witnesses a surge in manufacturing capacity and agricultural activities. Investment decisions are influenced by global trade dynamics and the growing global population, coupled with changing dietary preferences. With a focus on functionality, efficiency, and automation, modern grain silos incorporate advanced features such as data analytics and remote control capabilities. While these innovations offer enhanced operational efficiency, they also require significant upfront investment, posing a challenge for farmers looking to adopt new technologies. Nonetheless, the adoption of such equipment is crucial for meeting the increasing demands of agricultural production in a rapidly evolving landscape.

By Type

The grain silos segment in the global market is expected to witness steady growth during the forecast period. They help with the storage of large quantities of grains and help in saving space and keeping food unspoiled for longer compared to warehouses. They help ensure grain loss due to pests, insects, and birds as well as temperature fluctuations are prevented by allowing optimum storage conditions.

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The grain silos segment showed a gradual increase in the market share of USD 1.99 billion in 2017 and continued to grow by 2021. The optimum environmental condition inside silos varies based on the type of grains stored and the external environmental conditions. Technological advancements and improved distribution channels are allowing companies to further expand. A greater number of companies in the market, expanding food production, and high growth in countries like Indonesia and Thailand are positively impacting the global market. All of these factors are likely to boost market growth during the forecast period.

Regional Analysis

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North America is estimated to contribute 40% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  

Within the North American region, the US is the largest revenue contributor to the market due to it being the largest regional producer of grains, and high on-farm storage and off-farm storage capacities. The presence of an organized agricultural sector as well as increasing production of grains like corn, wheat, sorghum, barley, and oats are other factors that positively influence demand in this market. Besides the US, Canada is another significant player in the regional market. However, a key reason the market is larger in the US is due to the carbon tax on drying crops in Canada, which results in a higher production cost. Hence such factors are likely to influence the growth of the market during the forecast period.

Market Analyst Overview

The market is witnessing significant growth fueled by rising agricultural production levels and infrastructure development. Grain silos, along with conveyors, elevators, and aeration systems, play crucial roles in storing and processing rice and other grains. Temperature monitoring systems and grain dryers ensure the quality and safety of stored crops. Both flat bottom silos and hopper bottom silos are essential components of global supply chains, enhancing manufacturing capacity and agricultural activities. Investment decisions are increasingly influenced by global trade dynamics and the growing global population, as well as changing dietary preferences. Advancements in technology have improved the functionality and efficiency of silo systems, with monitoring systems, automation, data analytics, and remote control capabilities being key features. Despite the significant upfront investment, farmers are embracing these innovations to optimize their operations and meet the demands of the modern agricultural landscape.

The market faces various dynamics, including the demand for flat bottom silos, although there's reduced manufacturing capacity impacting the market. Factors like planting, harvesting, and supply chain disruptions affect the market, impacting agricultural businesses worldwide. Weather conditions and geopolitical events further compound challenges, driving farm consolidation and emphasizing the importance of supply chain management. Installing the equipment often requires support from financial institutions, offering loans and investment opportunities. Additionally, rental services, risk management solutions, insurance products, and hedging strategies are crucial for market participants. Supportive government policies play a significant role, but restraining factors such as regional factors and infrastructure constraints influence agricultural practices and market growth.

Segment Overview

The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Grain silos
  • Ancillary equipment

• Application Outlook 
  • Grain-transportation
  • Grain-storage

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Scope
Report Coverage	Details
Page number	161
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.95%
Market growth 2023-2027	USD 12.22 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.49
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 40%
Key countries	US, Canada, China, Germany, and UK
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., Sioux Steel Co., Sukup Manufacturing Co., Superior Manufacturing LLC, Symaga SA, and Silos Cordoba SL
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market forecast and size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the key market companies

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