Agricultural technology has made it easier than ever to collect and share agricultural data, which is good technology news for farmers and investors alike. More reliable and comprehensive data collection and higher levels of data analysis and processing can ensure that crops are well-maintained, yields are increased and agricultural production is sustainable.
From the application of robotics in the development of agricultural tools to the use of artificial intelligence to improve the efficiency of farmers’ field activities, agri-tech startups are committed to exploring innovative solutions to meet the challenges of contemporary agriculture, the following are the three major trends worth focusing on in the future.
Function as a Service (FaaS) Continued Growth
Agriculture as a service (FaaS) usually refers to a subscription or pay-per-use model for agriculture and related services to provide innovative, professional-grade solutions. Given the volatility of agricultural marketing and produce prices, FaaS solutions are a boon for farmers and agribusinesses looking to control costs and yields. The global agriculture-as-a-service market is expected to grow at a CAGR of around 15.3% through 2026. The market growth is mainly attributed to the growing demand for the adoption of advanced technologies to improve productivity in the global agriculture market.
Usually, the early investment in the application of advanced technology is very high, whereas the FaaS model converts the capital expenditure into operational expenditure for the customer, making it affordable for most small farmers. Because of its universality, governments have invested heavily in recent years to support FaaS startups adopting 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 have provided best-in-class equipment and services to the market, such as PinnacleFood’s smart agriculture solution, which combines agricultural big data and vertical farming technologies to provide modular and system-integrated agriculture service solutions for users of different sizes, ranging from households to communities and cities, to achieve sustainable and economical production of agriculture, and to achieve full digitization of agriculture from planting to harvesting. The popularity of advanced technology and equipment, as well as people’s increasing demand for food quality, have brought growing profit margins to the North American FaaS market.
Agricultural Equipment Intelligence
Recently, the global agricultural robotics market grew to a valuation of $4.1 billion. Major equipment manufacturers such as John Deere continue to introduce new models and machines such as new crop spraying drones. Agricultural tools are becoming smarter, data transfer is easier, and the development of agricultural software is revolutionizing agricultural production. Through big data analysis and machine learning algorithms, this software can collect and analyze all kinds of data from farmland in real-time, providing farmers with scientific decision support.
In the wave of agricultural intelligence, drones have become a shining new star. The emergence of new crop spraying drones not only improves spraying efficiency and reduces reliance on manpower, but also reduces the amount of chemical substances used, helping to build a more sustainable agricultural production model. Equipped with advanced sensors and monitoring systems, drones can monitor soil conditions, crop growth, and other key indicators in real-time, providing farmers with precise agricultural management solutions that maximize yields and reduce costs.
In addition to drones, a variety of intelligent agricultural equipment is also emerging. From intelligent seeders to automated harvesters, these devices achieve precise monitoring and management of the entire process of crop growth by integrating advanced sensing technology, machine learning, and artificial intelligence algorithms.
Agricultural Technology Investment Opportunities Increase
With the advancement of science and technology, a variety of cutting-edge technologies have begun to penetrate the agricultural sector. The development of biotechnology, gene editing, artificial intelligence, big data analysis, and other technologies provide new development opportunities for agriculture. The application of these new technologies has brought more efficient and stable production methods to agriculture, as well as high-return investment opportunities for investors.
Globally, the demand for sustainable agriculture is increasing, people are increasingly concerned about food safety and environmental protection, and the sustainable agriculture model is gradually becoming mainstream. New agricultural projects in the fields of eco-agriculture, organic agriculture, and precision agriculture are gaining more and more attention and support. These projects not only protect the ecological environment and reduce the use of pesticides and chemical fertilizers, but also improve the quality of agricultural products and reduce production costs, and therefore have great potential in terms of both returns on investment and social benefits.
Intelligent agricultural technology is considered a new track in the field of high-tech investment, and accordingly, intelligent agricultural companies are also very active in the capital market. The PinnacleFood company mentioned above has been rumoured to be about to land on the Nasdaq market, and the industry is generally of the view that intelligent agriculture, represented by the Faas service, is entering a new round of investment blowout period.
In addition, agricultural technology investment also benefits from the support and encouragement of government policies. Governments 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, governments have further facilitated the increase of investment opportunities in agricultural science and technology by strengthening scientific and technological innovation, promoting industrial upgrading, and other initiatives.
