Grain Silo and Storage Market - Forecasts from 2023 to 2028

The grain silo and storage market is projected to grow at a CAGR of 3.60% over the forecast period, increasing from US$1,315.492 million in 2021 to reach US$1,684.496 million by 2028.

Silo is a structure where material in bulk amount is stored before they are made available in the market. Post-harvested grains are stored in silos for long periods due to their structure which includes various gates from top to bottom that help in aeration and acid arrangements. To prevent the spoilage of grains, proper temperature and high moisture content is required while on the other hand, grains also need protection from mites, birds, rodents, insect infusion, and enzymatic actions. Due to all these concerns, there is an increased demand for grain storage. Leading grain-producer countries in the world are major contributors to the grain storage silo industry.

Moreover, growing population is leading to rising demand for food which is further boosting the demand for grain silo storage. According to Food and Agriculture Organization, the global population is estimated to reach 9.1 billion by the end of 2050 which is expected to increase the demand for food and other healthy food products. Lack of arable land due to growing urbanization is also projected to increase the demand for grain preservice and proper storage.

Rising demand for large-capacity storage

The rising demand for grain storage from leading grain-producing countries such as Russia, India, Brazil, and the United States is one of the major reasons driving the growth of the market in the forecast period. For instance, according to the International Grain Council, the forecasted production for grains that include wheat and coarse grains production for 2023-24 is anticipated to be maintained at 2,294 million tons. The increasing production of grains comes with an increased demand for adequate storage solutions. Accordingly, these silos are cost-effective modes of grain storage as they provide automated transport which result in low operation cost in the long run. Additionally, grain storage silos help in maintaining the moisture content of the crops/grains which is one of the major physiological factors in successful grain storage. If crops or grains are not properly stored, they get exposed to a high moisture content that leads to storage problems because it encourages fungal and insect problems, respiration, and germination.

According to the Ministry of Agriculture & Farmers Welfare, the total food grain production in India is estimated to reach 3,235.54 lakh tons in 2022-23. Rice, Wheat, and Nutri/Coarse Cereals were the major contributors to the growth with 1,308.37 lakh tons, 1,121.82 lakh tons, and 527.86 lakh tons in 2022-23. Therefore, with such significant production by the countries, there is a higher demand for storageto be used for future consumption and imports, which is anticipated to aid in market expansion.

It is projected that the grain silo and storage market in India will grow steadily.

The Indian grain silo and storage market is set to witness growth as the government of India is taking several actionable steps towards improving the agricultural sector, food sustainability, and food grain storage in the country. Due to a lack of a proper storage system, the country is losing grains in the form of theft, pilferage, and transportation. The central government aims to set up steel silos in 249 locations that can hold 11 million tons of food grains. By doing so, India is expected to save about INR 1,350 crores per year. Food sustainability in India is an important concern for the country to become self-reliant and meet the demands of the growing population, both domestically and internationally.

India’s National Policy on handling, storage, and transportation of food grains primarily aims at modernizing the system of handling, storing, and transportation of food grains to reduce storage and transit losses. Under this policy, the government of India has outlined the infrastructural framework, which includes the transportation of grains from farms to silos through specially designed trucks, the construction of silo complexes for procurement and distribution, along with providing dedicated trains and rail wagons (specially designed for top filling and bottom discharge in association with Ministry of Railways). The private sector is encouraged to build storage capacities and maintain these facilities in coordination with FCI. For the first ten years, FCI will guarantee 100% utilization of these facilities for the first ten years and 75% for the next ten years. The following chart shows the storage capacity with FCI (Owned+Hired) and Utilization Summary as of 1st July 2022.

Segmentation:

By Type

• Flat Bottom
• Hopper

By Grain Type

• Rice
• Wheat
• Others

By Geography

• North America
• By Type
• By Grain Type
• By Country
• USA
• Canada
• Mexico
• South America
• By Type
• By Grain Type
• By Country
• Brazil
• Argentina
• Others
• Europe
• By Type
• By Grain Type
• By Country
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• By Type
• By Grain Type
• By Country
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• By Type
• By Grain Type
• By Country
• China
• Japan
• South Korea
• India
• Taiwan
• Thailand
• Others