M2M/IoT Applications in the Agricultural Industry

M2M/IoT Applications in the Agricultural Industry is a strategyreport from Berg Insight analysing the latest developments on theglobal smart farming market covering precision farming, in-fieldmonitoring, herd management and farm management software.

This strategic research report from Berg Insight provides youwith 160 pages of unique business intelligence, including 5-yearindustry forecasts, expert commentary and real-life case studieson which to base your business decisions.

Highlights from this report:

Insights from 30 executive interviews with market leadingcompanies.
Comprehensive overview of the agricultural technology valuechain and key applications.
In-depth analysis of market trends and key developments in cropand livestock production.
Profiles of 53 agricultural technology providers.
Detailed reviews of the latest precision agriculture initiativeslaunched by industry players.
Summary of OEM propositions from manufacturers of agriculturalequipment.
Forecasts by market segment, region and wireless technologylasting until 2021.

This report answers the following questions:

What are the main applications for wireless IoT in agriculturalproduction systems?
Which are the leading providers of precision farmingtechnologies and in-field sensor systems?
What offerings are available from technology and serviceproviders?
How are the OEMs and agricultural input producers involved inthe ecosystem?
What are the main drivers and barriers for technology adoptionin agricultural production?
What are the precision livestock farming strategies of animalmonitoring specialists and dairy equipment manufacturers?
Which are the main application areas for cellular and LPWAconnectivity?
How will the market evolve in Europe, North America, LatinAmerica, Asia-Pacific and MEA?

Executive summary

Smart farming refers to the application of information and communication technology inagricultural production systems. The electronification of agricultural equipment has advancedover several decades but has accelerated in recent years due to improvements in computingpower, data storage and wireless data transfer. Berg Insight’s definition of smart farmingsolutions include systems installed in agricultural equipment, in the field or fitted to animals.Included are also backoffice IT systems which ensure that agricultural production can beplanned, scheduled and managed to achieve efficient operations.

Precision agriculture is about managing variations in the field to increase crop yield, raiseproductivity and reduce consumption of agricultural inputs. While solutions such as autoguidanceand machine monitoring and control via on-board displays today are mainstreamtechnologies in the agricultural industry, telematics and Variable Rate Technology (VRT) arestill in the early days of adoption. Berg Insight estimates that the total market value forprecision agriculture solutions was € 2.2 billion in 2016. Growing at a compound annualgrowth rate (CAGR) of 13.6 percent, the market value is expected to reach € 4.2 billion in2021. Most major agricultural equipment manufacturers have initiatives related to precisionagriculture although strategies vary markedly. Leading providers of precision agriculturesolutions include Deere & Company, Trimble, Topcon Positioning Systems and RavenIndustries. Other significant vendors include AGCO, Ag Leader Technology, DICKEY-john andHexagon. Important players that specialise in data-oriented applications and agronomicservices are the Monsanto subsidiary The Climate Corporation, Farmers Edge andDowDuPont with its Encirca services.

Remote monitoring solutions incorporate wireless connectivity, data logging, cameras andsensors that record measurements of environmental parameters to support decision makingin agricultural production. In addition to weather and soil moisture content monitoringapplications, these solutions enable growers to apply crop protection chemicals only whenthere is a disease or pest risk. Important players include Davis Instruments, Pessl Instrumentswith its METOS brand and Semios, all having installed bases of over 25,000 in-field sensorsystems across a multitude of countries in North America, Europe and beyond. Topspecialised providers of integrated soil moisture monitoring solutions comprise Hortau,Aquaspy and CropX. Remote irrigation control solutions are offered by the largest OEMs ofcentral pivot irrigation machines and drip irrigation systems including Valmont Industries withits Valley Irrigation brand, Lindsay Corporation with its Zimmatic brand, Netafim and JainIrrigation Systems. Berg Insight estimates that shipments of in-field sensor systems andremote control units amounted to 107,000 in 2016. Growing at a CAGR of 43.5 percent,shipments are expected to reach 653,000 units in 2021.

Precision livestock farming technologies are mainly applied to the husbandry of dairy cattle,poultry and pigs. Consolidation and growth of dairy farms have resulted in larger herds perfarmer, which makes manual observations challenging. Body-mounted sensor systemstogether with herd management software are used to achieve satisfactory herd health andtimely insemination when a cow is in oestrous. A majority of the leading dairy equipmentOEMs including GEA Group, Lely and BouMatic partner with specialised companies toprovide advanced sensor technology for herd management. The world’s largest dairyequipment manufacturer DeLaval offers its in-house developed activity monitoring systemalong with its milking and dairy farming infrastructure solutions. Important providers of sensorsystems for herd management furthermore include Netherlands-based Nedap and The AllflexGroup subsidiary SCR which both sell their systems to a number of leading dairy equipmentmanufacturers and genetics companies. Other significant players include Fullwood,Dairymaster and Afimilk which acquired Silent Herdsman in February 2016.

Berg Insight’s outlook for the market for smart farming solutions is positive as agriculturalproduction remains greatly underpenetrated by IoT technologies. The number of installedwireless devices for applications in agricultural production is forecasted to grow at a CAGR of10.0 percent from 17.0 million connections at the end of 2016 to 27.4 million connecteddevices by 2021. Cellular connections amounted to 0.8 million at the end of 2016 and areexpected to reach 3.1 million in 2021. The main application areas for cellular communicationcomprise telematics and in-field sensor systems. LPWA technologies are expected to achievethe highest growth rate and realise a significant market position in the remote monitoring andcontrol segment. 802.15.4-based standards comprise the most employed wirelesstechnology due to its wide adoption in dairy cow monitoring applications.

Executive summary
1 The agricultural sector
1.1 Agricultural production
1.1.1 Agricultural land use
1.1.2 Irrigated area and irrigation methods
1.1.3 Employment in agriculture
1.1.4 Forestry
1.1.5 The food and agribusiness value chain
1.2 Agricultural commodities
1.3 Demand for agricultural commodities
1.3.1 Population growth and economic development
1.3.2 Consumption of agricultural products
1.4 Agricultural operations
1.4.1 Farm income and capital expenditures
1.4.2 Mixed crop-livestock farming
1.4.3 Crop farming
1.4.4 Livestock farming
1.5 Agricultural equipment
2 Smart farming technologies and solutions
2.1 Smart farming infrastructure
2.1.1 Farm equipment segment
2.1.2 Field segment
2.1.3 Livestock segment
2.1.4 GNSS segment
2.1.5 Network segment
2.1.6 Backoffice segment
2.2 Machinery management
2.2.1 Vehicle diagnostics and maintenance planning
2.3 Precision agriculture
2.3.1 Guidance and automated steering
2.3.2 Yield monitoring and mapping
2.3.3 Precision seeding
2.3.4 Precision fertilising
2.3.5 Precision spraying
2.4 Remote sensing
2.4.1 Satellite and drone imagery
2.5 Remote monitoring and control
2.5.1 Weather monitoring
2.5.2 Pest monitoring and control
2.5.3 Irrigation management
2.6 Precision livestock farming
2.6.1 Pig management
2.6.2 Poultry management
2.6.3 Beef cattle management
2.6.4 Dairy herd management
2.7 Data management and predictive analytics
2.8 Business models and strategies
3 Market forecasts and trends
3.1 Market analysis
3.1.1 Installed base and unit shipments
3.1.2 Regional markets
3.1.3 Wireless technologies
3.1.4 Precision agriculture
3.1.5 Dairy herd management
3.2 Market drivers and barriers
3.2.1 Macroeconomic environment
3.2.2 Regulatory environment
3.2.3 Competitive environment
3.2.4 Technology environment
3.3 Value chain analysis
3.3.1 Precision farming industry players
3.3.2 Farm equipment players
3.3.3 Input industry players
3.3.4 Dairy equipment industry players
3.3.5 Telecom industry players
3.4 Market trends
3.4.1 The emerging digital ecosystem requires a shift towards collaboration
3.4.2 Larger herds drive the adoption of precision livestock farming technologies
3.4.3 IoT start-ups are attractive to investors
3.4.4 Dealerships remain as gateways to customers
3.4.5 Freemium strategies will intensify competition between software vendors
4 OEM products and strategies
4.1 AGCO
4.2 CLAAS Group
4.3 CNH Industrial
4.4 Deere & Company
4.5 Krone
4.6 Kubota
4.7 Mahindra & Mahindra
4.8 SDF
5 Aftermarket solution providers
5.1 Precision farming
5.1.1 Ag Leader Technology
5.1.2 Agjunction
5.1.3 DICKEY-john
5.1.4 The Climate Corporation (Monsanto)
5.1.5 Farmers Edge
5.1.6 Hexagon Agriculture
5.1.7 Raven Industries
5.1.8 Topcon Positioning Systems
5.1.9 Trimble
5.1.10 Yara
5.2 Remote monitoring and control
5.2.1 Arable Labs
5.2.2 Aquaspy
5.2.3 Campbell Scientific
5.2.4 CropX
5.2.5 Davis Instruments
5.2.6 Hortau
5.2.7 Jain Irrigation Systems
5.2.8 Libelium
5.2.9 Lindsay Corporation
5.2.10 Netafim
5.2.11 Net Irrigate
5.2.12 Pessl Instruments
5.2.13 Semios
5.2.14 Spensa Technologies
5.2.15 Valmont Industries
5.3 Dairy herd management
5.3.1 Afimilk
5.3.2 DeLaval
5.3.3 Farmnote
5.3.4 Fullwood
5.3.5 GEA Group
5.3.6 Smartbow
5.3.7 Lely
5.3.8 Moocall
5.3.9 Nedap
5.3.10 SCR (The Allflex Group)
5.4 Data management
5.4.1 365FarmNet
5.4.2 Agrian
5.4.3 Conservis
5.4.4 DKE-Data
5.4.5 DowDuPont Agriculture
5.4.6 Farmers Business Network
5.4.7 FarmLogs
5.4.8 Farmobile
5.4.9 Isagri
5.4.10 SST Software
List of Figures
Figure 1.1: Area and yield trend for wheat, rice, soybean and corn (World 2016)
Figure 1.2: Moving 10-year average growth in crop yield (World 2016)
Figure 1.3: Land use and agricultural land (World 2014)
Figure 1.4: Top ten countries by planted area (World 2014)
Figure 1.5: Employment in agriculture (2016)
Figure 1.6: The agribusiness value chain
Figure 1.7: Major crop production statistics (World 2016)
Figure 1.8: Leading producers of major crops (World 2016)
Figure 1.9: Meat and milk production statistics (World 2016)
Figure 1.10: Live animal stock (World 2014)
Figure 1.11: Agricultural commodity prices
Figure 1.12: Population in billion (World)
Figure 1.13: Use of cereal grains (World 2016)
Figure 1.14: Agricultural tractor shipments (World 2016)
Figure 2.1: Smart farming infrastructure overview
Figure 2.2: Shipments and installed base of GNSS devices for ag (World 2016–2021)
Figure 2.3: Example of smart farming backoffice segment
Figure 2.4: Example of monitored variables in precision livestock farming
Figure 2.5: Wearable devices for cattle monitoring
Figure 3.1: Unit shipments and installed base by segment (World 2016–2021)
Figure 3.2: Unit shipments and installed base by region (World 2016–2021)
Figure 3.3: Unit shipments and installed base by technology (World 2016–2021)
Figure 3.4: Precision agriculture market value (World 2016–2021)
Figure 3.5: Activity monitoring solutions market value (World 2016–2021)
Figure 3.6: Financial data for precision technology companies
Figure 3.7: Mergers and acquisitions among companies active in smart farming
Figure 3.8: Financial data for companies and groups active in precision agriculture
Figure 3.9: Revenues of top providers of crop protection chemicals and seeds
Figure 3.10: Financial data for top providers of dairy equipment
Figure 3.11: Mobile operators by M2M subscriber base (World Q2-2017)
Figure 5.1: Topcon’s AM-53 telematics module
Figure 5.2: The CropX sensor
Figure 5.3: Sensors supported by Davis Instruments’ EviroMonitor system
Figure 5.4: Libelium’s IoT value chain
Figure 5.5: The Z-Trap 1 insect trapping device
Figure 5.6: Stakeholders connected to DKE-Data’s Agrirouter
Figure 5.7: Overview of Granular Farm Management System

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