BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated global grain silos and storage system marketsize at USD 1.48 billion in 2021. During the forecast period between 2022 and 2028, BlueWeave expects global grain silos and storage system market size to grow at a steady CAGR of 5.8% reaching a value of USD 2.18 billion by 2028. Global grain silos and storage system market expansion is driven by increasing utilization of grain silos and storage systems in the large-scale agriculture, high adoption of storage system owing to its affordability, surging demand for adequate grain storage to combat food shortages, and rising global population. An increasing use of grain silos and storage systems to store crops while minimizing waste, growing awareness of the necessity of effective post-harvest management coupled with increasing technological advancement to avoid contamination is fueling the global grain silos and storage system market during period in analysis. However, high initial and setup expenditure might restrain the growth of global grain silos and storage system market.
Global Grain Silos and Storage System Market – Overview
Silos play a significant role in post-harvest management by serving as grain collectors and distribution units. Silos handle the initial grain processing purpose by drying, fumigating, and cleaning grains to safeguard the grains. All these features enable the requirement for storage systems to increase in an upward trajectory. COVID-19 pandemic put further pressure on grain and storage unit protection, which could benefit grain silos and the storage sector.
Global Grain Silos and Storage System Market – By Commodity Type
By commodity type, global grain silos and storage system market is Rice, Maize, Wheat, Soybean, and Sunflower. The maize segment is expected to dominate the market due to its utilization in developed and underdeveloped countries. It is also used in livestock feed and refined into a variety of food and commercial goods, including starch, sweeteners, maize oil, beverage and industrial alcohol, and fuel ethanol. The soybean segment which is expected to hold the second highest market share during the forecast period. Soybeans are oilseed crops that produce 20% oil when crushed and the remaining 80% is soybean meal, often used to feed livestock such as poultry, cattle, and pork. However, oil is a component of many food products, including cooking oil, mayonnaise, and prepared foods. Furthermore, it is employed in non-food sectors, such as paints, soaps, and polymers.
Impact of COVID–19 on Global Grain Silos and Storage System Market
COVID-19 pandemic had a slight negative impact on the silos industry, but there was no major effect on the silos supply chain or worldwide operations. The grain storage silos market was less damaged by the pandemic owing to the exemption of food and agricultural services due to lockdown regulations. As a result of the pandemic, the silos market moved slowly and with little disruption in 2020. The market under consideration is steadily recovering and gaining traction, with growing demands for grain storage due to improved economic conditions. It is expected to fuel the growth of Global grain silos and storage system market.
Impact of Russia-Ukraine War on Global Grain Silos and Storage System Market
Global grain silos and storage system market is adversely affected by the ongoing war between Russia and Ukraine, the world’s two largest producers and suppliers of grains. Moreover, further intensity of the war is feared to trigger the global food crisis. According to US Embassy Georgia reports, Russia and Ukraine together held a significant share of 34% in global exports of wheat in 2021. Especially, in the global exports of sunflower cake, both the countries had a whopping 81% share. In addition, Ukraine and Russia held a combined significant market share in the global exports in maize, barley, sunflower oil, and vegetable oils. The report also estimated that Russia and Ukraine supplied about 12% of food calories traded across the globe in 2021.
Ukraine, in particular, is popularly known as the breadbasket of Europe, as the country is the region’s major source of wheat. Since the Russian invasion of Ukraine on February 24, 2022, there have been uncertainties over the supply of grains both from Ukraine and Russia to the world, and to Europe in particular. It has resulted in a significant rise in global food prices. Furthermore, besides experiencing food shortages due to expensive import costs, fiscal deficits, conflict, Middle East and North Africa confront an additional issue. Any further interruption or decrease in grain supply from Ukraine and Russia is anticipated to affect the growth of global grain silos and storage system market.
Global grain silos and storage system market is fiercely competitive with major companies including AGCO Corporation, Silos Córdoba, Bentall Rowlands Silo Storage Ltd, Symaga SA, Sioux Steel Company, SCAFCO Grain Systems Co., Agi, Mysilo, Skup Manufacturing Co., Prive SA, Brock Grain Systems, Scafco Grain Equipment, Prado Silos, Behlen Mfg. Co., Sioux Steel Company, Superior Grain Equipment, Symaga, and Hoffmann, Inc. To further enhance their market share, these players are primarily focused on the development of innovative and efficient products, new product releases, market initiatives, mergers and acquisitions, and other collaborative activities.
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