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Surging Global Needs for Grain Storage Propel Market Advancements
NEW YORK, April 19, 2024 /PRNewswire/ -- As the global population continues to surge, so does the necessity for advanced grain production and storage solutions. Technavio, a pioneering market research firm, has recently published an in-depth analysis forecasting significant growth in the global grain silos and ancillary equipment market. According to their findings, the market is poised for a boosting growth, with an anticipated increase of USD 1222.38 million from 2023-2027, reflecting a nearly 5.95% CAGR during the forecast period.
The growth of the agriculture sector and the escalating global population have sparked a heightened demand for grain production enhancements and the corresponding storage capabilities. Given the unpredictability of grain prices, farmers are making substantial investments in grain silos and ancillary equipment to manage market fluctuations effectively. Aligning with recommendations from the Food and Agriculture Organization (FAO), nations are advised to maintain storage capacities that are 1.2 times their annual agricultural yield to ensure adequate provisions.
Key aspects that underscore this market growth spurt include refined efficiency, seamless monitoring systems, heightened automation, sophisticated data analytics, and the need for considerable upfront investment. Ancillary equipment plays a significant role in this ecosystem, encompassing essential devices like conveyors, elevators, aeration systems, and temperature monitoring systems.
A myriad of external factors also sway market trajectories: weather patterns, geopolitical events, the trend of farm consolidations, and the state of infrastructure development are all influential elements. At the same time, there exist numerous opportunities for investment, such as loans, rental services, risk management solutions, insurance products, and hedging strategies. Furthermore, the advent of technological refinements, coupled with supportive government regulations, acts as a catalyst, driving forward the grain silos and ancillary equipment market.
Technavio's latest findings are encapsulated in a comprehensive infographic that offers a visual peek into the projected growth of the grain silos and ancillary equipment market for 2023-2027. The infographic (viewable here) underlines the key market trends and drivers that are expected to shape the future of this industry.
Those interested in a more granular analysis of the market's historical (2017 - 2021) and forecasted sizes can delve into the specifics by requesting a sample report. This report offers a treasure trove of information that stakeholders and interested parties can leverage to understand the nuances and opportunities within the market.
The scope of the grain silos and ancillary equipment market is extensive and diverse. It includes various types of silos such as steel silos, concrete silos, and fabric silos, as well as various types of equipment that enhance the storage and handling of grains. This equipment includes conveyors, elevators, aeration systems, and temperature monitoring systems, each playing a critical role in the efficient and safe storage of agricultural products.
Segmentation of the market occurs on several fronts: type (grain silos and ancillary equipment), application (grain transportation and grain storage), and geography (North America, Europe, APAC, South America, and the Middle East and Africa).
In 2022, the market experienced a considerable uptick, primarily attributed to the grain transportation segment. The quest for efficiency and flexibility has been central to farmers and agribusinesses. Novel trends such as enhanced monitoring systems, advanced automation, and in-depth data analytics have introduced remote control capacity and risk management solutions that play pivotal roles in market dynamics. Despite the significant initial costs related to setting up grain silos and associated equipment, the burden can be dampened through strategic financial instruments such as loans and rental services.
Unforeseen weather events, geopolitical upheavals, a trend toward larger agricultural enterprises, and intricate supply chain considerations remain key market influencers. Technological breakthroughs, including state-of-the-art grain dryers and intuitive hopper bottom silos, augment overall agricultural practices and infrastructure improvements, which are crucial for market progress.
In the North American market, marked by an organized agricultural sector, there is a surge in the production of grains such as wheat, corn, rice, barley, and oats. The United States stands as the dominant force in this sector, contributing substantially to regional market growth through both its on-farm and commercial storage capacities, which in 2022 amounted to a staggering 15.58 billion bushels.
The broader global market growth is subject to a range of stimulating factors: agricultural production intensity, the evolution of farm infrastructure, and fluctuations in the global supply chain. The intersection of these elements shapes the environment for investment in the grain silos and ancillary equipment market.
Weather conditions, geopolitical turbulence, farm consolidations, and supply chain leadership are pivotal in determining market trends. Advanced technologies, including comprehensive functionality, enhanced efficiency, improved monitoring systems, sophisticated automation, and elaborate data analytics, have become the norm, and they are revolutionizing the industry. Although significant capital is required upfront, the critical nature of these advanced systems propels farmers and agricultural businesses to continue with their installations.
The expansive nature of the grain silos and ancillary equipment market includes all the essential infrastructure needed for sustaining robust agricultural production levels. It spans the gamut of wheat, corn, rice, and barley silo construction and supply, in addition to the ancillary equipment that aligns with each, such as conveyors and elevators. This sector's infrastructure development is paramount for maintaining global supply chains' integrity, directly influencing manufacturing capacities and agricultural activities.
Market investments are directed by global trading dynamics, the ever-expanding global populace, and shifting dietary preferences. Technology's forward march has introduced advanced functionality, efficiency, and monitoring systems that combine with automation, data analytics, and remote control features. These innovations have become crucial assets for farmers managing their grain, thus bolstering their importance in the agricultural industry.
The structure of the grain silos and ancillary equipment market is notably fragmented, with a range of players contributing key solutions. Companies such as Ag Growth International Inc., AGCO Corp., and Ahrens Group Pty Ltd., among others, have been identified as significant market participants. This diverse portfolio of companies is continually innovating to provide superior solutions that address the complex needs of today's agricultural practices.
Corrosion resistance has emerged as a priority in the market, with galvanization offering long-lasting protection against rust. This is particularly pertinent in the context of global food safety concerns, pushing for grain silos constructed from galvanized or pre-lacquered steel. Ancillary equipment is also benefiting from metal coating technologies.
Costs of production for grain silos and equipment are significantly swayed by raw material expenses, particularly steel and aluminum. As global markets experience ebb and flow, these material costs directly impact production costs, with suppliers typically passing the increments to downstream industries like agriculture when thresholds are reached.
From raw material price volatility to global supply chain intricacies, the grain silos and ancillary equipment market faces a plethora of driving forces, trends, and challenges. Additionally, focus is directed towards factors such as the rise in agricultural activities, investment decisions, and the pressing need for sophisticated technology and infrastructure.
Interested parties seeking insights into these market drivers, trends, and the resultant challenges can gain comprehensive understanding through sample reports available for download, which detail historical and forecasted market evaluations.
Drawing on a vast repository of over 17,000 reports, Technavio stands at the vanguard of technology research and advisory services. Their analyses harness emerging market trends to furnish businesses with actionable insights, which are crucial for navigating potential market opportunities and establishing strong market positions.
With a clientele that boasts over a hundred Fortune 500 companies, Technavio's expertise is trusted industry-wide. Their global presence, backed by a team of over 500 specialized analysts, has laid a foundational role in helping businesses recognize existing market contexts and anticipate forthcoming shifts.
For further inquiries and media interests, Technavio's seasoned team is accessible:
Jesse Maida Media & Marketing Executive US: +1 844 364 1100 UK: +44 203 893 3200 Email: [email protected] Website: www.technavio.com
The grain silos and ancillary equipment market stands as a testament to industry growth and technological evolution within the agricultural sector. As factors like global population growth and resource management continue to challenge the status quo, Technavio's research offers a guiding light for those invested in this critical industry's future.
SOURCE: Technavio
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