Industry Trend Analysis - IoT In Asia's Agribusiness: Australia & China In The Lead - JAN 2017
BMI View: IoT and technology use in agriculture is being spearheaded by the United States, as the country was the first mover in the sector. Although Asia Pacific is lagging behind the US in terms of IoT adoption in agribusiness, the region will outperform others in the coming years, due to strong ICT fundamentals and a positive outlook for agricultural production and trade. Australia and China appear strongest in this area but will follow different approaches to develop ing IoT.
The integration of technology in agriculture is set to continue globally, mainly led by the United States. Following on BMI's primer on the applications and implications technology in the agribusiness sector, this article will focus on the Internet of Things (IoT) outlook in Asia ( see ' IoT & Big Data In Agribusiness: Driving Future Sector Growth ' , October 21).The agribusiness sector offers fertile ground for many technology trends, especially around IoT - defined as the trend of connecting 'things' that can passively or actively monitor, collect and exchange data over a wired or wireless communication network - and 'big data', defined as the collection and analytics of data on a very large scale.
IoT technology use is spearheaded by the United States, as the country was the first to develop an ecosystem of network connected products and services. Basic precision agriculture technologies were used on as much as 30-50% of US corn and soybean acres in 2010-2012. Although Asia Pacific is lagging behind the US in terms of IoT adoption - in general as well as for agriculture - we believe the region will be outperform others in the coming years, due to strong ICT fundamentals, especially high internet penetration rates and an appetite for advanced technology. Japan, South Korea, Australia and China will lead the rest of the region in terms of IoT adoption in the agribusiness sector.
|Patchy Internet Access Will Hinder IoT Farm Adoption In Australia|
|Australia - Businesses With Internet Access By Industry In 2014-2015 (%)|
|Source: ABS, BMI|