Deloitte Predicts Major Growth in IoT for Agriculture and its Potential for Environmental Sustainability
The latest TMT Predictions 2024 report by Deloitte Center for Technology, Media & Telecommunications projects a robust growth in the Internet of Things (IoT) for agricultural applications. The report anticipates an escalation from 200 million IoT endpoints in 2022 to almost 300 million by 2024, marking a phenomenal 50% increase.
AgTech Sector: A Promising Growth
The growth is primarily attributed to the burgeoning global demand for more efficient agricultural technology (AgTech) in the face of manifold challenges. Including IoT endpoints and connectivity devices, the AgTech sector is poised to generate a revenue opportunity of US$18 billion worldwide in 2024. This reflects a strong 19% compound annual growth rate (CAGR) from 2020 to 2024.
The Environmental Sustainability Potential
Deloitte’s research, conducted in collaboration with the Environmental Defense Fund, underscores the potential of precision agriculture technologies in enhancing environmental sustainability. These innovations could potentially reduce around 9.8 gigatons of carbon dioxide-equivalent emissions between 2020 and 2050. They are also projected to save farmers an estimated US$40 billion to US$100 billion in costs by 2030.
Challenges and Opportunities in Agriculture
Agriculture is a critical sector for global food supply and a significant source of CO2e emissions, contributing over 20%, and accounts for 40% of freshwater withdrawals. The report points to the burgeoning global population, which is expected to touch 10 billion by 2050, and the aging farmer demographic as key challenges for food security and the adoption of sustainable agricultural practices.
This massive growth prediction in the AgTech sector is a clear indication of the increasing adoption of IoT and other smart technologies in agriculture. The convergence of IoT and precision agriculture is enabling farmers to make informed decisions regarding nutrient application, optimizing crop yields, and promoting sustainable farming practices. The role of AI and ML algorithms, edge computing, and blockchain technology in enhancing IoT processes also cannot be overlooked.
However, the journey ahead is not without challenges. The integration of state-of-the-art technology within the agriculture industry needs to balance with the concern of security and privacy measures. It is a dance of evolution with caution. But with the ongoing advancements in the IoT ecosystem, one can expect to see a more significant, positive impact on industries like agriculture, transforming them for a more sustainable future.