Market Trends of Grain Storage Silos Industry
Steel Silos Segment dominate the market
Steel silos, known for their versatility, ease of assembly, hygienic handling, and cost-effectiveness, have emerged as a preferred choice for grain storage. Dominating the market, these silos are especially favored in regions with robust agricultural yields and a pressing need for grain storage. Designed to optimize storage capacity while minimizing space, steel silos enable the compact storage of vast quantities of grains and other agricultural products. This space efficiency proves invaluable in land-scarce areas, allowing farmers to store more produce without extensive land expansion, thus fueling market growth.
Beyond providing a secure environment, these silos are crucial in maintaining the quality and nutritional integrity of grains until processing or sale. They adeptly tackle challenges like humidity, temperature fluctuations, and machinery weight, all vital for managing bountiful harvests and ensuring a steady grain supply throughout the year. Commonly, steel silos in agriculture store grains like wheat, corn, soybeans, and rice. The FAO reports a rise in wheat production from 772 million metric tons in 2021 to 808 million metric tons in 2022. This surge in grain production directly amplifies the demand for silos, propelling market growth.
Furthermore, global initiatives advocating for the establishment of steel silos significantly influence market expansion. A case in point: In 2023, India, in collaboration with the Food Corporation of India (FCI) and through a public-private partnership (PPP), set up two steel silos for rice storage. Constructed by the National Commodity Management Services Ltd (NCML) in Buxar and Kaimur, Bihar, these silos aim to reduce cereal wastage during storage. Thus, the combination of vast storage capacities, rising cereal production, and the establishment of steel silos underscores the segment's growth trajectory during the forecast period.
North America Dominates the Market
North America leads in the use of silos for grain storage, bolstered by expanding off-farm storage capacities. According to the Global Agricultural Information Network, under the National Agricultural Statistics Service (NASS) of the US Department of Agriculture, on-farm storage in the U.S. reached 15.58 billion bushels in 2022, with Iowa contributing a significant 2.05 billion bushels. Additionally, off-farm grain storage in the United States as recorded at 11.822 billion bushels in December 2022, a slight uptick from 11.817 billion bushels the year prior. This increase in storage capacity aligns with rising grain production. As production continues to grow, the demand for storage will likely be met by adding more silos, further propelling this segment.
The region's commercial sector is rapidly expanding, with new grain storage facilities emerging to bolster agricultural production and trade. In 2024, Canadian agribusiness Parrish & Heimbecker Limited (P&H) expanded its Port of Hamilton facility, adding a new flour mill and two silos. These silos will handle essential ingredients like soymeal, distillers dried grains, and wheat. Equipped with advanced technologies, these facilities cater to both domestic and international market demands, underscoring their role in market growth.
Government initiatives are further propelling the expansion of grain storage facilities. In 2023, the U.S. Grains Council (USGC) launched the Tropical Grain Storage Project in Mexico, which included training on grain storage management and sanitation practices. This initiative not only boosts regional storage capacities but also supports market growth. Thus, the combination of rising off-farm storage capacities, facility expansions, and supportive projects underscores the driving forces behind the market's growth.
