Grain Silos and Ancillary Equipment Market size is set to grow by USD 1.22 billion from 2023-2027, increase in demand for grain storage boost the market, Technavio

NEW YORK, April 19, 2024 /PRNewswire/ -- The global grain silos and ancillary equipment market size is estimated to grow by USD 1222.38 mn from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of almost 5.95%  during the forecast period.  The agriculture sector's growth and the rising global population drive the need for increased grain production and storage. Farmers invest in grain silos and ancillary equipment due to price volatility. FAO recommends a country's storage capacity be 1.2 times its annual agricultural production. Key factors include efficiency, monitoring systems, automation, data analytics, and significant upfront investment. Ancillary equipment includes conveyors, elevators, aeration systems, and temperature monitoring systems. Market growth is influenced by weather conditions, geopolitical events, farm consolidation, and infrastructure development. Investment opportunities exist in loans, rental services, risk management solutions, insurance products, and hedging strategies. Technological advancements and supportive government policies propel the grain silos and ancillary equipment market. 

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Segment Overview 

This grain silos and ancillary equipment market report extensively covers market segmentation by Type (Grain silos, Ancillary equipment) Application (Grain transportation, Grain storage) Geography (North America, Europe, APAC, South America, Middle East and Africa)

Market segmentation by Type

The Grain Silos and Ancillary Equipment Market experienced growth in 2022, with grain transportation segment dominating due to efficiency and flexibility for farmers and agricultural businesses. Monitoring systems, automation, and data analytics are key trends, enabling remote control capabilities and risk management solutions. Significant upfront investment in installing grain silos and related equipment, such as conveyors, elevators, aeration systems, and temperature monitoring systems, can be mitigated through loans and rental services. Weather conditions, geopolitical events, farm consolidation, and supply chain management influence market dynamics. Technological advancements and innovations, including grain dryers and hopper bottom silos, support agricultural practices and infrastructure development. Ancillary equipment, including grain augers, conveyors, and elevators, offer rental services and insurance products for hedging strategies and investment opportunities. Government policies and infrastructure constraints are restraining factors. Overall, the Grain Silos and Ancillary Equipment Market, including wheat, corn, rice, and barley, is shaped by agricultural production levels, infrastructure development, and technological innovations.

Geography Overview

The Grain Silos and Ancillary Equipment Market in North America is experiencing significant growth, driven by the organized agricultural sector and increasing production of grains such as wheat, corn, rice, barley, and oats. The US, as the largest producer in the region, is a major contributor, with both on-farm and off-farm storage capacities expanding. In 2022, the US on-farm storage capacity reached 15.58 billion bushels. Ancillary equipment, including conveyors, elevators, aeration systems, temperature monitoring systems, grain dryers, and various silo types like flat bottom and hopper bottom, are essential for efficient grain handling and storage. Agricultural production levels, infrastructure development, and global supply chain dynamics influence investment decisions in this market. Factors like reduced manufacturing capacity, agricultural activities, planting, harvesting, transportation, weather conditions, geopolitical events, farm consolidation, and supply chain management impact market trends. Advanced technology, functionality, efficiency, monitoring systems, automation, data analytics, and remote control capabilities are key features of modern grain silos and ancillary equipment. Despite the significant upfront investment, farmers and agricultural businesses continue to install these systems to meet the demands of a growing global population with changing dietary preferences and food product requirements. 

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• The grain silos and ancillary equipment market prioritizes corrosion-resistant solutions like galvanization for long-term protection against rust. Global food safety awareness drives demand for grain silos made of galvanized or pre-lacquered steel. Ancillary equipment, including conveyors, elevators, and temperature monitoring systems, also benefits from this metal coating. Key factors influencing market growth include agricultural production levels, infrastructure development, and global supply chain dynamics. Significant upfront investment is required for installation.
• Grain silos and ancillary equipment production costs are significantly influenced by raw materials like steel and aluminum. Fluctuating prices of these materials, driven by macroeconomic factors, directly impact market costs. Suppliers pass on increased costs to downstream industries, including agriculture, when raw material thresholds are reached. Key factors affecting the market include agricultural activities, global supply chains, investment decisions, technology, infrastructure, and geopolitical events.

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Research Analysis

The Grain Silos and Ancillary Equipment Market encompasses the production and distribution of essential infrastructure for agricultural production levels. This market includes the manufacturing and supply of wheat, corn, rice, barley silos, 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. Infrastructure development in this sector is crucial for global supply chains, as it impacts manufacturing capacity and agricultural activities. Investment decisions in this market are influenced by global trade dynamics, growing global population, and changing dietary preferences. Advancements in technology have led to functionality, efficiency, monitoring systems, automation, data analytics, and remote control capabilities, all of which require significant upfront investment. Farmers rely on this equipment to store and manage their grain, making it a vital component of the agricultural industry.

Market Research Overview

The Grain Silos and Ancillary Equipment Market encompasses the production, sale, and installation of grain silos and related equipment. These systems are crucial for storing and preserving agricultural produce, particularly grains, ensuring food security and reducing post-harvest losses. Ancillary equipment includes conveyor systems, drying systems, and cleaning equipment, which enhance the efficiency and effectiveness of grain storage and handling. The market for grain silos and ancillary equipment is driven by factors such as increasing agricultural productivity, population growth, and the need for modern and efficient grain storage solutions. Companies in this market offer a range of products to cater to various farming operations and sizes, from small-scale farmers to large commercial operations.

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio