Silo is a structure that is used to store bulk material and in this case, it is used to store grains in bulk quantity. A silo may also be used to store coal, cement, carbon black wood chip, food products, or similar products which can be stored in bulk. Silos can be of various types. The most commonly used type of silos is flat bottom silos, hopper silos, and grain bins.
The global grain storage silos market was valued at USD 1.3 billion in 2020 and is expected to grow at a CAGR of 4.8% from 2020 to 2027. North America is the largest market geographically for grain storage silos and is expected to lead other countries in terms of market share during the period of the forecast as well, even though the on-farm and off-farm grain storage capacity has decreased in 2020 as compared to 2015. The growing global population is pushing the need to store excess grains that could be used in times of emergency. The demand may be local or international. This demand for storage is leading to the growth of silos. Keeping in line with this demand, the storage of staple grains in silos has increased over the last decade. The top three grains which are stored in silos are rice, wheat, and maize, and one of the reasons for this is the requirement for staple over other items in times of an emergency.
Currently, different trends in farming are leading to higher yields for farmers along with the harvest for high-quality grains. While the demand in the market is limited, a high shelf life helps store these crops for the future, when they can be sold to compensate for a reduced supply. Therefore, effectively storing and efficient post-harvest management would lead to an overall demand-supply equilibrium and the way to do it is through storage in silos.
There are innovations related to the type of silos. Silos are currently made of steel, metal, or other materials. Depending upon the value and type of grain which would be stored in them, silos can be tailor-made and designed. Also, optimization techniques can help in cost-effective designs of silos which would aid the storage provide utilize the maximum space. These factors will aid in improving yield over the area in which the silo is constructed and therefore help storage providers generate greater revenue. For suppliers, the tailor-made specification will help them improve their selling price and therefore improve profit margins.
The initial investment for the customers of a grain storage silo is high due to the requirement for the purchase of equipment. This can prove a challenge particularly in developing regions in APAC, South America, or Africa as smallholder farmers comprise the majority of the cultivators in these regions and they are devoid of resources to make such a high investment individually or collectively. To provide a perspective, JMS equipment states that the capital budget required to construct a cylindrical silo vessel is approximately USD 50,000. Such an investment is difficult to raise for a smallholder consumer.
The key suppliers of grain storage silos industry are AGCO Corporation, AGI, Silos Córdoba, PRADO SILOS, Symaga, SIMEZA, Bentall Rowlands Silo Storage Ltd, Mysilo, Sukup Manufacturing Co., MICHA£, Privé SA, MULMIX SpAUnipersonale, Polnet, Brock Grain Systems, Behlen Mfg. Co, SCAFCO Grain Systems Co, Sioux Steel Company, Superior Grain Equipment, and Hoffmann, Inc. The market is consolidated with only specialized suppliers operating in the market. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.
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