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A Smart Agriculture
Market Assessment
Opportunities
Market Dynamics
Value Chain
Applications of IoT in Smart Agriculture
Telecom Operators' Role in Agriculture
Smart Agriculture Use Cases
End User Analysis
Future
Overview
Internet of Things (IoT) technology is expected to play a production, making farms more intelligent and more
significant role in enhancing agricultural productivity to connected. The total addressable market for smart
meet food demand. Smart agriculture incorporates IoT- agriculture is expected to grow from USD 13.7 billion
based advanced technologies and solutions to improve in 2015 to 26.8 billion by 2020 with a compound annual
operational efficiency, maximize yield, and minimize growth rate (CAGR) of 14.3%.
wastage through real-time field data collection, data
analysis, and deployment of control mechanism.
Diverse IoT-based applications such as variable The total addressable market for smart
rate technology, precision farming, smart irrigation, agriculture is expected to grow from USD 13.7
and smart greenhouse will be instrumental to the billion in 2015 to 26.8 billion by 2020 growing at a
enhancement of agricultural CAGR of 14.3%.
processes. IoT can addressagriculture-based issues
and increase the quality and quantity of agricultural
23,102.0
20,105.0
17,573.0
20,000
15,515.0
13,742.0
12,000
4,000
0
2015 2016 2017 2018 2019 2020
Restraints
Fragmented Agricultural Market – The agricultural High Capital Investment Requirement – Farmers must
sector is not dominated by a few major players but lend significant initial investment to establish and
consists of many small players that offer solutions for revolutionize the existing field infrastructure set-up to
various phases of agricultural value chain. Farmers find deploy a capable and sustainable IoT ecosystem. The
it difficult to achieve economies of scale through the high cost of adopting such smart solutions is a serious
deployment of solutions pertaining to only part of the challenge for farmers in developing countries such as
agricultural process. For instance, solutions on reducing China, Brazil, and India.
costs for transportation or irrigation are in themselves
Data Management for Agricultural Decision Making
of limited help in maximizing return on investment (ROI).
– Data aggregation and data management is a
Lack of Connecting Services for the Agricultural Market troubling obstacle for the smart agriculture market.
– Connections remain to be a key hurdle as connecting One considerable barrier in the efficient use of data is
services in agriculture have not yet reached the the lack of industrial standards for data management
technical maturity level seen in other verticals, such as applications in smart agriculture-based solutions. The
retail and automotive. However, connectivity providers difficulty is rooted in the requirement to standardize the
are on a constant pursuit to expand services for the data management system throughout the agricultural
agricultural sector by partnering with other players. This industry to ensure the widespread uniformity of
revelation will ensure that the challenges surrounding operations.
this topic to be addressed in the near future.
Value chain
Connectivity System
Device/ Mobile
providers Connectivity Application Data integrators,
equipment network End users
(LPWA, Wifi, platform provider analytics outsourcing
manufacturers (2G, 3G, 4G…)
ZigBee…) provider
As indicated in the above value chain, different types of who will process the data and deliver the result to the
solution providers from device manufacturers end users via mobile or web applications.
to system integrators contribute to the deployment System integrators such as IBM, Agribotix, Accenture,
of IoT and technological services in smart agriculture. Logica, Trimble, and Navcom play an important role
The stakeholders in the smart agriculture value in the integration of the software and hardware
chain include device and equipment manufacturers, equipment. These companies are also involved in
connectivity providers, application providers, hosting diagnosing and troubleshooting farm management
and analytic service providers, wireless connectivity solutions, which requires the development of new
providers, mobile operators, and system integrators. concepts related to software and hardware equipment.
Information about farms is collected through field System integrators and solution providers support
sensors and transmitted via connectivity providers the other sub-systems in the smart agriculture value
(LPWA and mobile operators). This information is then chain by allowing for the same language to be spoken.
received by system integrators and solution providers This step helps to harmonize the processes and
From telecom's perspective, providing mainly integrators, and application developers across the
connectivity services has the immense potential to smart agriculture ecosystem help operators to enter
heavily influence multiple facets across the value chain. deeper into the industry while increasing their market
share. This provides a unique opportunity to create
In the future, mobile operators can provide three
strong relationships with organizations by leveraging
categories of services in smart agriculture for increased
brands and assets to help educate farmers on the
market share.
benefits of smart agriculture.
Connectivity – Most telecom operators around the world
Telecom operators can support IoT deployment at
are offering connectivity services, but these services
multiple levels. Beyond connectivity, they can provide
only represent a highly limited proportion of the entire
provisioning, authentication, security, billing, device
smart agriculture market.
management, location-based services, application
Vertical Integration – Telecom operators can offer enablement, and analytic services. In a number of
end to end solutions in smart agriculture and not just cases, mobile operators are likely to provide these
connectivity services. This will certainly lead to an capabilities to LPWA users as cloud services that
exponential increase in the market share of mobile can be easily accessed via application programming
operators. However, vertical integration demands interfaces (APIs). Additionally, operators can manage
significantly higher investment to be made in this area LPWA networks in the same way they manage existing
before further measures and benefits can be seen. networks.
Precision Farming: Precision farming is an approach to Smart Irrigation: The need to enhance the efficiency
farm management that uses IoT and information and of irrigation processes and minimize water losses is
communication (ICT) technologies to optimize returns on the rise. There is an increasing awareness on the
and ensure the preservation of resources. Precise conservation of existing water resources by employing
farming entails the obtaining of real-time data on the
sustainable and efficient irrigation systems. IoT-based
conditions of crops, soil, and air. This approach aims at
smart irrigation measures various parameters such as
ensuring profitability and sustainability while protecting
humidity, soil moisture, temperature, and light intensity
the environment.
to calculate the precise requirements for water. It has
Variable Rate Technology (VRT): VRT refers to any been proved that such mechanism can contribute to
technology which enables producers to vary the rate higher irrigation efficiency.
of crop inputs. It combines a variable-rate (VR) control
total quantity of harvested grain. Yield monitoring offers supports real-time monitoring of productions, health,
real-time information to farmers to facilitate decision- and welfare of livestock to ensuring optimal yield.
making. Yield monitoring helps to reduce operational Advanced technologies allow for continuous monitoring
costs and enhance productivity. and can facilitate farmers with decision making to
ensure improved health of animals.
Farm Management Systems (FMSs): FMSs assist
farmers and other stakeholders with information
collection and management by leveraging diverse
14000
CAGR 29.0% 12,952.0
Market Size (USD Million)
9,333.0
10000
6,956.0
5,369.0
4,313.0
6000 3,628.0
2000
0
2015 2016 2017 2018 2019 2020
733
Precision Farming
2,422
595
Precision Livestock
2,163
406
Yield Monitoring
1,295
308
Soil Monitoring
920
287
Agricultural Drone
1,179
277
Farm Management System
913
268
Smart Greenhouse
1,127
261
VRT
1,023
210
Smart Imigation
1,036
282
Others
874
2015
In USD Millions 2020
1.3
LA 2.5
Middle East
1.6
and Africa
3.2
(MEA)
4.7
APAC 10.4
3.4
EU 6.5
2.6
NA 5.2
Smart agriculture applications are starting to move to the cloud, with the aim of delivering benefits
in data access, synchronization, and storage. Applications such as VRT, livestock monitoring,
mobile payment, trading and farmers' helpline provide huge advantages/benefits for telecom
operators.
14000
CAGR 29.0% 12,952.0
Market Size (USD Million)
9,333.0
10000
6,956.0
5,369.0
4,313.0
6000 3,628.0
2000
0
2015 2016 2017 2018 2019 2020
Telecom operators can help the world in tackling information and agricultural trading platform presents
the challenge of feeding an estimation of 9.5 billion a great range of opportunities. However, the systems
people by 2050. The immense potential in smart required to deliver these opportunities are increasingly
agriculture applications such as drones, precision complex and fragmented, demanding the collective and
farming, livestock monitoring, payment systems, and unconditional support of all stakeholders.
Challenges and solutions for agricultural farms in India -- Annual savings of 180,000 m3 of water, 1080 MW of
electricity, 180 m3 of fuel, and 18 m3 of soil
Nano-Ganesh.
-- USD 720,000 saved in labor costs
Challenges and Solutions for agricultural farms in India
USE CASE 2
Water Pump Control23 is a cellular based wireless
remote control and alarm system for water pumps Challenges and solutions for agricultural farms in
designed to combat unfavorable irrigation conditions. Colombia.
It can counter routine issues such as fluctuations in Colombia Telecom S.A., Movistar, Claro, and Tigo among
power supply, inhospitable terrain, fear of local wildlife others supported multiple farms in monitoring banana
tampering with pumps, hazardous locations, open plantain crops. Farms in Colombia encountered multiple
wiring, shock hazards, and rain. Another issue in rural hurdles including flooding, decrease of oxygen level in
water supply schemes can be the lack of adequate the soil, high humidity, and low temperature.
coordination between tank levels and water source.
-- 15% increase in productivity Challenges and solutions for agricultural farms in Spain.
-- Improve environmental and agricultural sustainability In Spain, Telefonica provided an automated irrigation
system, which connected hydraulic valves, meters, and
-- Enhance crop traceability
level meters using GPRS in a dozen farms. A specific
USE CASE 3 farm totals an area of 21,000 hectares, which means
Challenges and solutions for agricultural farms in manual operation of irrigation valves is difficult.
Vietnam. Telefonica and ABB provided the remote irrigation
Telecom operators such as Viettel Mobile, MobiFone, system which helped farmers to incorporate computers
and VinaFone further support livestock activities in and mobile phones in setting up a suitable irrigation
transmitting the data from wireless sensors to the schedule. The specific solutions were based on the
sensor platform, and ultimately from sensor platform to mobile telephony network and remote reading registers
cloud servers. with GPRS communications selected.
Coverage 66%
Issues
18% Yes
Long Deployment 41%
Time May Be
High 32%
Bandwidth No
73%
High 31%
Latency
Others 19%
More than 60% of farmers agree that the high More than 70% of farmers are willing to pay for more
investment costs of smart farming technologies and advanced technologies to be implemented provided
coverage issues are the major pain points which must that they can improve productivity and profits. Farmers
be addressed. This is followed by long deployment time are ready to invest more in both precision farming and
and bandwidth concerns. farm management.
Bluetooth 61% 2
16%
45% 3
ZigBee 48%
LPWA 45%
4
(LORA, Sigfox)
5 Very Positive
WIFI 41% 28%
NB-IoT 18%
More than 45% of farmers select satellite navigation More than 70% of farmers are positive towards LPWA
to gather farm topography data. Farmers use 3G or applications in agriculture. LPWA can be used for
4G enabled mobile applications to transmit data diverse agricultural monitoring and control. Such
from the field to the farm management systems for adoption will promote the efficient usage of land and
analysis. ZigBee and Bluetooth are the most common other agricultural resources. The application of LPWA
technical methods currently used alongside WiFi. technologies is expected to increase exponentially after
These technologies assist sensors placed in the fields 2017.
to control several applications such as automated
irrigation and greenhouse farming.
About Huawei
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