Deloitte 2024 Outlook: AgTech’s Rising Impact

Key Takeaways:

1. Deloitte forecasts a significant growth in IoT endpoints for precision agriculture, estimating a 50% increase to 300 million by the end of 2024.
2. AgTech is expected to generate $18 billion globally in 2024, with a 19% CAGR from 2020-2024.
3. Precision agriculture technology could substantially reduce CO2e emissions and save billions in farming costs.
4. Global challenges like climate change, geopolitical tensions, and resource shortages highlight the need for efficient AgTech solutions.
5. AgTech offers diverse solutions for field preparation, crop growth, harvesting, and livestock management, with the potential for substantial economic and environmental benefits.

Deloitte Center for Technology, Media & Telecommunications’ TMT Predictions 2024

Rising Demand for AgTech Amidst Global Challenges

The Deloitte Center for Technology, Media & Telecommunications’ TMT Predictions 2024 sheds light on the significant growth of the Internet of Things (IoT) for precision crop farming, livestock management, and agricultural equipment tracking. The report predicts an increase from 200 million IoT endpoints in 2022 to nearly 300 million by 2024, a 50% growth. This surge aligns with the escalating global demand for efficient agricultural technology (AgTech) amidst various challenges.

AgTech’s Financial Outlook

The AgTech market, including IoT endpoints and connectivity devices, is projected to reach a revenue opportunity of US$18 billion globally in 2024. This represents a robust 19% compound annual growth rate (CAGR) between 2020 and 2024.

Environmental and Economic Benefits

In collaboration with the Environmental Defense Fund, Deloitte’s study highlights the potential of precision agriculture tech solutions in environmental sustainability. These technologies could abate approximately 9.8 gigatons of carbon dioxide-equivalent emissions from 2020 to 2050 and save an estimated US$40 billion to US$100 billion in costs to farmers by 2030.

Global Agriculture: A Balancing Act

Agriculture’s Environmental Footprint

Agriculture, vital for feeding billions, is also a significant contributor to global CO2e emissions, accounting for more than 20%. Moreover, it is responsible for 40% of freshwater withdrawals. According to Deloitte, the escalating global population, which is expected to reach 10 billion by 2050, and the increasing average age of farmers pose significant challenges to food security and sustainable agricultural practices.

Geopolitical and Economic Factors

Deloitte’s report states that the sector faces rising commodity prices and supply-side issues, exacerbated by geopolitical tensions, the Russia-Ukraine war, and the pandemic’s aftereffects. These factors have disrupted logistics and food supplies, escalating food security concerns globally.

AgTech: Deloitte’s Report Predict A Solution in Sight

Innovative AgTech Solutions

New AgTech solutions promise to scale agricultural production efficiently and cost-effectively. According to Deloitte, technologies like hydroponics, AI-based cultivation methods, and IoT-enabled smart farming are revolutionizing agriculture. The report states that venture capitalists remain interested in AgTech startups.

AgTech in Action: From Field to Harvest

• Preparing the Field: IoT devices and satellite connectivity enable precision agriculture by providing critical farm data, leading to efficient resource utilization.
• Growing and Protecting Crops: Technologies like infrared mapping and AI-driven insights assist in precise crop management and targeted spraying operations.
• Harvesting: With labor shortages, robots and robotic technologies are becoming crucial in harvesting, offering precision and efficiency.
• Managing Livestock: Innovations like virtual fences and GPS tracking transform livestock management, improve productivity, and reduce environmental impact.

The Road Ahead

Despite these advancements, challenges remain in integrating AgTech solutions, particularly for small-holder farmers. However, the push towards decarbonization and the need for efficient resource management are driving the adoption of AgTech.

Read the complete report by Deloitte, here.