Technological Advancements Supporting Agricultural Sector
The expanding urban population’s improved standard of life has raised the demand for fresh crop produce and animal protein throughout the world. Rising global food production demand, combined with the need to provide a consistent supply of high-quality agricultural products, has produced an unpleasant situation for producers worldwide, who are battling to raise productivity per hectare.
Concerns and pressures on the agricultural business, combined with rising global demand for food supply, drive farmers to improve farm profitability despite declining yield trends in numerous staple crops. As technological improvements lead to a more efficient world, the agricultural industry is progressively implementing smart technology on farms for profitable farming.
The agriculture business has transformed because of the introduction and advancement of information and communication technology during the last decade. Professionals and industry experts from across the world are comparing this revolution to the previous century’s revolution, when new agricultural equipment and machinery, pesticides, fertilizers, and high-yield crop varieties led to the development in food output around the world.
According to BIS Research, the worldwide agriculture technology-as-a-service market (ATaaS) is expected to increase from $1,101.6 million in 2020 to $3,089.8 million by 2025, at a CAGR of 22.91 percent from 2020 to 2025.
Agriculture technology-as-a-service (ATaaS) is a model that enables customers to obtain their preferred agriculture technology as a service under various cost-effective pricing models rather than purchasing it as a one-time purchase.
The pay-per-use (PPU) and subscription pricing models are two of the most prevalent ATaaS pricing strategies. While the PPU model gives consumers entire control and responsibility for adopting farm technology as they see fit, the subscription model requires customers to utilize the technology for the period of the service provider’s package, such as monthly or yearly.
Technologies That will Shape the Future of Agriculture
· Drones: They will aid in the precision application of inputs and mapping the spread of the destructive weed blackgrass, which might boost wheat yields.
· Farming data: The farm creates a large amount of rich and diverse data. Data may be utilized as proof, lowering the amount of time spent on grant applications and farm inspections, resulting in a reduction in yearly farm spending.
· Texting technology: Sensors connected to cattle enable continuous monitoring of animal health and well-being. They can send SMS when a cow is about to give birth or develops an infection.
· Smart tractors: Smart tractors reduce soil erosion because of GPS-controlled steering and route planning.
· A fleet of agribots: Weeding, fertilizing, and harvesting is all done by a number of specialized agribots. Fertilizer costs are reduced by robots capable of micro application.
As the agricultural business integrates and experiences the rise of agriculture technologies into the farming cycle, it also faces the obstacles that come with its acceptance. The high capital inputs necessary for its purchase and operation are one of the major constraints of adoption.
The majority of farming communities across the world lack the financial resources to make capital investments. As the prices of technologically farm machinery are greater than those of conventional farm equipment, there is a significant gap between the availability of agricultural technology equipment and its acceptance.
Due to the dependence on favorable seasons, a farmer is hesitant to invest in agriculture technology equipment with high upfront expenditures. As a result, stakeholders in the agriculture technology industry are under pressure from the market to examine and implement alternative payment and business models to encourage the use of these technologies in today’s subscription-based economy.
Increased Use of Modern Technologies in Agriculture
The German government invented the phrase “Industry 4.0” in 2011. Industry 4.0 has resulted in a surge in the adoption of all available digital technologies across the industry, not just in Germany but practically everywhere. Before Industry 4.0, each digital technology was developed independently, with no overlap or potential application crossover.
Industry 4.0 covers nearly all digital and contemporary automated technologies that contribute to the growth of modern industries. This prompted the establishment of several research and development programs, which began the integration of Industry 4.0 technologies into non-industrial or non-mechanical economic sectors such as agriculture, banking, financial services, and insurance (BFSI), as well as education and entertainment.
Industry 4.0’s rising influence has led to the development of the term Agriculture 4.0, which is intended as a reflection of Industry 4.0 in agriculture. IoT, precision agriculture, data analytics, autonomous machinery, and artificial intelligence (AI) are predicted to improve agricultural efficiency, resulting in a higher total yield from agriculture. This might contribute to global food security.
To summarize in a few words, Agriculture technology-as-a-service (ATaaS) is a platform that allows individuals to lease their chosen agriculture technology rather than buying it outright.
ATaaS business models provide farmers benefits, including simple scalability and upgradeability, easy accessibility, rapid implementation, and dependable data backups. sINCE the service model relieves clients of ownership of agriculture technology, the full burden of asset ownership falls on the service providers, resulting in a greater cost of operations.
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