Market Outlook for Grain Silos and Storage System

Posted on August 26, 2020

The grain silos & storage system market size is estimated to be valued at USD 1.3billion in 2020 and is projected to reach USD 1.6billion by 2025, recording a CAGR of 4.8%.

The growth of the grain silos and storage system market is driven by factors such as the increase in production of high-quality grains through effective storing, and efficient post-harvest management of grains to drive the market growth.

A majority of the farmers in developing countries focus on deriving maximum farm outputs to meet food demands.

This leads to the production of excessive farm produce that needs to be efficiently stored and offered in the market for a longer time period.

Grain silos play a crucial role in packaging and storing produce, as they are high-capacity commercial structures that are used for permanent grain storage.

Thus, farmers from the North American and European regions are investing in setting-up of silos.

This increasingly facilitates the storage of grains, and with appropriate conditions, they can be stored for a longer period of time, irrespective of the external weather conditions.

Flat bottom silos: The largest growing segment in the grain silos & storage system market, by silo type

Flat bottom silos offer a cost-effective solution for long-term storage, which safely protects the quality of grains for a prolonged period of time, and ensures the best quality of grains are offered to end-users.

The flat bottom silo sizes range from 250T and 20,000T. These flat bottom silos are unloaded through the canal at the bottom of the storage by using an auger transporter.

As compared to the conical silo, the flat-bottomed silo has a lower cost of storing. Thus, the flat bottom silo is one of the most convenient options for long-term grain storage.

Soybean: The fastest growing segment in the grain silos & storage system market, by commodity type

Soybeans are oilseeds crops, which, when crushed, 20% of oil is released, while the other 80% is soybean meal, which is used to feed livestock such as poultry, beef, and pork.

On the other hand, oil is used in food products, such as cooking oil, mayonnaise, and prepared food products. In addition, it is also used in the non-food industries, such as paints, soaps, and plastics.

North America: The largest-growing segment in the grain silos & storage system market

In 2020, North America accounted for the largest share in the grain silos & storage system market owing to the increasing number of expansions from major players in the market, such as AGCO Corporation (US), and AGI (US).

The region is projected to dominate the grain silos & storage system market due to the increased demand in the US, as the grain growers are demanding for high-quality and advanced grain silo and storage system.

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