New research finds that two-thirds of agritech businesses will spend between 10 and 20 percent of their IT budgets on IoT development by the year 2022.
With pressure on land and food resources set to increase, the Internet of Things (IoT) will play an increasingly important role in helping the agriculture sector become more efficient, productive and sustainable. This is according to new independent research commissioned by global mobile satellite company Inmarsat (ISAT.L) which found that spend on, and interest in, IoT is set to rocket over the next five years within agritech.
Market research specialist Vanson Bourne interviewed respondents from 100 large agritech companies across the globe for Inmarsat’s ‘The Future of IoT in Enterprise – 2017′ report, and found that the sector is rapidly taking to IoT technologies. 62 per cent had already fully or partially deployed IoT-based solutions, far outweighing the adoption levels seen in the mining, transport and energy sectors, and a further 27 per cent had plans to do so within the next six months.
Moreover, the spend on IoT-based solutions is set to increase dramatically over the next few years. Today, about five per cent of agritech businesses’ IT budgets are spent on the technology; a figure that is expected to more than double to around 12 per cent by 2022, indicating how important IoT will be for the sector going forward.
Commenting on the findings, Ayan Jobse-Alkemade, Director of Sector Development Agriculture, Inmarsat Enterprise, said: “With the planet estimated to reach a population of 10 billion people by 2050, humanity will face challenges with sustainable water sources, food production, and the best use of land to get the maximum yield from crops. Additionally, using the most efficient method to deliver the resources will increasingly feature on the global agenda. In short, farmers, with the help of the agritech sector, need to get smarter, leaner and faster from field to fork.
“The only way to really do this is with the clever application of new technologies like IoT, and our research demonstrates how quickly agritech businesses are embracing this technology. IoT will fuel a revolution in the farming sector and bring gains that completely eclipse those made in the first Green Revolution in the 1970s,” continued Ayan Jobse-Alkemade.
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