Agricultural technology is making it easier than ever to collect and share agricultural data, which is good news for farmers and investors alike. More reliable and comprehensive data collection and higher levels of data analysis and processing ensure that crops are carefully maintained, increasing yields and making agricultural production sustainable.
From applying robotics to the development of farm tools to using artificial intelligence to improve the efficiency of farmers’ field activities, agtech startups are exploring innovative solutions to the challenges of contemporary agriculture, and here are three trends to watch for in the future.
1.Agriculture as a Service (FaaS) continues to grow
Agriculture as a Service (FaaS) generally refers to the provision of innovative, professional-grade solutions for agriculture and related services on a subscription or pay-per-use basis. Given the volatility of agricultural marketing and agricultural prices, FaaS solutions are a boon for farmers and agribusinesses looking to control costs and yields. The global agri-as-a-service market is expected to grow at a CAGR of approximately 15.3% through 2026. The market growth is mainly attributed to the growing demand for the adoption of advanced technologies to enhance productivity in the global agricultural market.
While the early investment to implement advanced technologies is often very high, the FaaS model translates capital expenditure into operational expenditure for customers, making it affordable for most smallholders. Because of its inclusive nature, governments have invested heavily in FaaS startups in recent years to adopt FaaS solutions to help farmers improve productivity and efficiency.
Geographically, North America has dominated the global Agriculture as a Service (FaaS) market over the past few years. Industry players in North America provide best-in-class equipment and services to the market, the popularity of advanced technology and equipment, and the increasing demand for food quality have brought growing profit margins to the North American FaaS market.
2.Intelligent agricultural equipment
Recently, the global agricultural robot market has grown to an estimated $4.1 billion. Major equipment manufacturers such as John Deere are constantly introducing new models and new machines, such as new crop spraying drones. Agricultural tools are becoming smarter, data transmission is becoming easier, and the development of agricultural software is also revolutionizing agricultural production. Through big data analysis and machine learning algorithms, these software can collect and analyze various data of farmland in real time, providing scientific decision support for farmers.
In the wave of agricultural intelligence, drones have become a shining new star. The emergence of new crop spraying drones not only improves the efficiency of spraying and reduces the reliance on manpower, but also reduces the use of chemicals, helping to build a more sustainable agricultural production model. Equipped with advanced sensors and monitoring systems, the drones are able to monitor key indicators such as soil conditions and crop growth in real time, providing farmers with precise agricultural management solutions to maximize yields and reduce costs.
In addition to drones, a variety of intelligent agricultural equipment is also emerging. From intelligent planters to automated harvesters, these devices integrate advanced sensing technology, machine learning and artificial intelligence algorithms to achieve accurate monitoring and management of the entire process of crop growth.
3.Increased investment opportunities in agricultural science and technology
With the progress of science and technology, various cutting-edge technologies began to penetrate into the agricultural field. The development of biotechnology, gene editing, artificial intelligence, big data analysis and other technologies has provided new development opportunities for agriculture. The application of these new technologies has brought more efficient and stable production methods to agriculture, and has also brought high return investment opportunities for investors.
Worldwide, the demand for sustainable agriculture is increasing, people are increasingly concerned about food safety and environmental protection, and sustainable agriculture is gradually becoming the mainstream. New agricultural projects in the fields of ecological agriculture, organic agriculture and precision agriculture are receiving more and more attention and support. These projects can not only protect the ecological environment, reduce the use of pesticides and fertilizers, but also improve the quality of agricultural products and reduce production costs, so they have great potential in terms of return on investment and social benefits.
Smart agriculture technology is considered to be a new track in the field of high-tech investment, and accordingly smart agriculture companies are also very active in the capital market, and the industry generally believes that smart agriculture represented by Faas services is entering a new round of investment blowout period.
In addition, investment in agricultural technology also benefits from the support and encouragement of government policies. Governments around the world have provided investors with a more stable and reliable investment environment through financial subsidies, tax incentives, research funding and other forms. At the same time, the government has further promoted the increase of investment opportunities in agricultural science and technology through measures such as strengthening scientific and technological innovation and promoting industrial upgrading.
Post time: Apr-10-2024