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market
   30                                                                                                                                                context


          IoT-DRIVEN INNOVATION IN THE AGRI-FOOD INDUSTRY: INTERNET OF FARMS


                                                                                                                                                     THREATS
          Agri-Food is a large industry facing multiple       OPPORTUNITIES                                                     Saturated market with poor growth opportunities
          challenges at once. Digital Transformation         Increase of an average farm size ->
          helps deal with them                               larger economies of scale                                     Demand for agricultural products slowing down
                                                                                                                            Saturated market with poor growth opportunities
          Overview of key challenges in agriculture      Increase of an average farm size ->                                             High entry barriers due to increasing
                                                                   Strong financial stakes around births and health
                                                                                                                                                             size of players
                                                         larger economies of scale                                    Demand for agricultural products slowing down
                                                                   in general
          •  Agriculture is a mature market with many risks
             and low margins                                   Strong financial stakes around births and health                       High entry barriers due to increasing
                                                                                                                                                Natural disasters risk
          •  There is a global trend towards domination of     in general                                                                               size of players
             large players                                                                                                                 Natural disasters risk
                                                                                                                                               Climate change-related threats
                                  Due to per capita
                                  consumption          Due to population   2007-2016     2007-2016                                        Climate change-related threats
                                  growth or non-food   growth
                                  consumption growth
          5%





        2,5%






          1%











                                                                          Source: IDATE – OECD/FAO 2017
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