The global grain storage silos market is projected to register a CAGR of 4.5 % during the forecast period (2021-2026). Though COVID-19 has impacted Silos business, there was no significant impact on the supply chain and global operations of silos. Due to the exemption of food and agricultural services from lockdown restrictions, the grain storage silos market was less affected by pandemics. Among all the regions covered under the study, North America accounted for the largest share in the grain storage silos market in 2019. High demand for greater storage capacity owing to limited space and rising storage costs across the world have driven the growth in this industry. The market concentration for grain storage silos is highly concentrated with the presence of a few large players like Rostfrei Steels, Titan (FB Industries Inc.), Superior Silo LLC, and Sioux Steel Company, and others dominating the market.
Key Market Trends
Increasing Demand for Large Capacity and Cost-Effective Grain Storage
The growing demand for grain storage from the leading grain-producing countries in the world, namely, the United States, Russia, India, Brazil, and others have driven the grain storage silos industry during the study period. Further, rising input costs and the need for heavy investments for the storage of grains have led to the rise in demand for silos across all the regions. According to the International Grains Council (IGC), the global stocks of wheat have increased from 171.0 million metric ton in 2012-2013 to 268.0 million metric ton in 2017-2018 and in 2020 stock was accounted for 278.0 million metric ton. Silos are cost-effective modes of grain storage owing to the automation of grain transport, resulting in low operational costs in the long run. The loading and unloading costs of silos are also low than grain warehouses, as the automation is operated by the Supervisory Control and Data Acquisition (SCADA) system. The benefits of cost-effectiveness and large holding capacity of silos are driving the grain storage silos market, globally.
North America - The Largest Region using Grain Storage Silos
North America held the largest share in using silos for grain storage in 2019. According to the US Department of Agriculture (USDA), the total off-farm grain storage capacity in the US has increased to 11.47 billion bushels in 2018 from 10.66 billion bushels in 2014. In the region, the US is recorded to have more than 310 million tonnes of silo storage capacity. As per USDA, the recent imposition of tariffs by both the US and China on primary commodities has led to the accumulation of grain surplus for the US farmers in 2018, resulting in 20 percent of the total storage available filled with soybean, corn, and wheat from the previous year's harvest. This is expected to further boost the need for more large storage silos across the country during the forecast period, as the existing ones are reaching full capacity.
The market concentration of the global grain storage silos market is highly consolidated with key players like Rostfrei Steels, Titan (FB Industries Inc.), Superior Silo LLC, and Sioux Steel Company dominating the industry, all together holding a major share of the global silos industry. The most adopted strategy of the leading companies has been an overseas investment and the launch of new varieties of bunker, bags and tower silos to cater to the growing need for grain storage around the world. The silo giant Silos Cordoba has entered into a contract in 2019 to manufacture a grain terminal in Nigeria. Also, there has been a boost to silo manufacturing companies from the governments of developing countries such as India.
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