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market
   32                                                                                                                                                drivers


          MULTIPLE FACTORS DRIVE DIGITAL TRANSFORMATION AND IoT DEMAND IN AGRICULTURE



          Rising interest in precision agriculture
          •  Agricultural equipment manufacturers have come to realise the potential of new precision tools:
             nearly 80% of agricultural equipment sold today has a precision component, reports CEMA.

          Subsidies
          •  Some countries – including many in Europe - provide financial and fiscal measures to help farmers equip
             themselves

          Climatic deregulation
          •  IBM Research estimates that 90% of crop losses are due to weather: by combining weather prediction
             models with precision farming techniques, this damage could be reduced by 25%.

          Regulation on crop protection products
          •  The obligation to justify practices requires sound records.
          •  Those who use digital tools are subject to less control because potential fraud is more limited.

          Tax exemption
          •  Tax breaks favour more ‘green’ devices such as connected input spraying.

          Need for operating profitability
          •  Primary source of motivation for the acquisition of technological solutions.

          Reduction of administrative tasks
          •  Trackers on agricultural equipment render unnecessary the use of logbook to record operator working
             hours and limit fraud.

          Word of mouth
          •  More efficient user community today than in the past.




                                                                         Source: IDATE for CREATE-IoT 2019
   27   28   29   30   31   32   33   34   35   36   37