A clear trend is emerging in agriculture: more and more machine manufacturers and key players in the agricultural business are adding software functions to their cloud platforms in order to offer end customers a smart farming world to match their machines. This combination of machines and other software products should provide many of the required functions.
At the same time, it is becoming increasingly difficult for providers of agricultural software to generate sufficient revenue on the market through the sale of software licenses alone. In addition, demand for smart farming products and solutions from end customers is currently still subdued. DKE-Data identifies three main reasons why end customers use smart farming technologies:
- Optimization of production processes: Large arable farms in particular tend to use smart farming technologies.
- Fulfillment of extensive documentation obligations: In some countries, such as Denmark, digital documentation processes are already well advanced.
- Food industry documentation requirements: These will increase with regard to sustainability requirements.
The current market situation clearly shows that many end customers have not yet recognized or understood the benefits of smart farming. Without a compelling reason, the majority of customers are not engaging with smart farming technologies.
The industry is already responding to this: sales staff are in the process of learning the new technologies and then explaining them to their customers, along with the added value. In addition, more and more retailers are hiring smart farming specialists or setting up smart farming demo farms.
The trend towards smart farming has currently died down somewhat for various reasons. However, DKE-Data expects an upswing in the coming years, as smart farming has enormous potential, which can be promoted through proactive advice and support during implementation.
Other measures demanded by the market include:
- More smart farming specialists at dealers, regardless of manufacturer, with a focus on added value for customers.
- More regional information events by dealers, supported by manufacturers.
- Intensive exchange with consultants, both private and public.
These developments require increased attention from all those involved in the sector in order to fully exploit the opportunities offered by smart farming.