Grain Silos and Ancillary Equipment Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Germany, Canada, UK, China - Size and Forecast 2024-2028

Grain Silos And Ancillary Equipment Market Size 2024-2028

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. Our market growth analysis report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.

Market Forecasting and Size

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Market Dynamics

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 the 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 market research and growth data for years, 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.

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 Market 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.

Market Segmentation

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 2.00 billion in 2018. 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 during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout 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.

Key Companies & Market Insights

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.

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

Ag Growth International Inc., 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 

Technavio market forecast the 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.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• 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

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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.

Further, 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.

Consequently, this global grain silos and ancillary equipment market industry report predicts substantial growth, driven by increasing demand in the grain augers market and the expanding US whole grain and high fiber food market. As the need for efficient grain storage solutions rises, the demand for grain silos and ancillary equipment experiences a notable surge. This trend is particularly pronounced in regions where the grain augers market is thriving, indicating a growing need for effective grain handling and storage infrastructure. Additionally, the growth of the US whole grain and high fiber food market contributes to the demand for grain silos, as it necessitates the storage of larger quantities of grains and seeds used in the production of these health-conscious products.

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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 growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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