Digital Solutions remain a leading trend for agriculture

The development of the economy in the world takes place within the framework of Industry 4.0 and affects all sectors, including the agriculture. To stay competitive, agribusiness cannot be left out. Agriculture is actively absorbing innovation and is one of the largest consumers of digital solutions. For example, Business Insider Intelligence predicts that already in 2020 the number of IoT devices used in agriculture will reach 75 million compared to 30 million in 2015, the number of sensor sensors on farms will be 12 million by 2023, and the volume precision agriculture market will grow to $ 240 billion by 2050 according to Goldman Sachs forecast. 

The Russian agricultural sector has great potential for increasing production efficiency and increasing profitability, but it has not yet been implemented. Russia is significantly behind in the adoption of digital solutions, occupying the 45th place in the ranking of states by the Global Innovation Index. The aggregate indicator in the section “Knowledge creation” significantly exceeds the same indicator in the section “Influences of knowledge” (22nd place in the world ranking against 111th). The lag is observed in the whole economy and in the agricultural sector in particular. 

Transformation within Industry 4.0 can become the main source of growth provided that technology is effectively introduced. According to the Analytical Center of the Ministry of Agriculture, the digitalization of agribusiness, subject to an integrated approach to implementation, has the potential to reduce costs by more than 23%, and the total increase in agricultural production can reach 361.4 billion rubles.