![]() ![]() Past advances were mostly mechanical, in the form of more powerful and efficient machinery, and genetic, in the form of more productive seed and fertilizers. Yet agriculture remains less digitized compared with many other industries globally. To address these forces poised to further roil the industry, agriculture must embrace a digital transformation enabled by connectivity. And then there are increasing environmental pressures, such as climate change and the economic impact of catastrophic weather events, and social pressures, including the push for more ethical and sustainable farm practices, such as higher standards for farm-animal welfare and reduced use of chemicals and water. 4 The State of the World’s Land and Water Resources for Food and Agriculture: Managing systems at risk, Food and Agriculture Organization of the United Nations and Earthscan, 2011. About one-quarter of arable land is degraded and needs significant restoration before it can again sustain crops at scale. and rising energy, labor, and nutrient costs are already pressuring profit margins. By 2030, the water supply will fall 40 percent short of meeting global water needs, 3 World Could Face Water Availability Shortfall by 2030 if Current Trends Continue, Secretary-General Warns at Meeting of High-Level Panel, United Nations, 2016. 2 World Resources Report: Creating a Sustainable Food Future, United Nations, World Resources Institute, and the World Bank, 2013. requiring a corresponding 70 percent increase in calories available for consumption, even as the cost of the inputs needed to generate those calories is rising. The world’s population is on track to reach 9.7 billion by 2050, 1 The World Population Prospects: 2015 Revision, United Nations, Department of Economic and Social Affairs, Population Division, 2015. It is one of just seven sectors that, fueled by advanced connectivity, will contribute $2 trillion to $3 trillion in additional value to global GDP over the next decade, according to research by the McKinsey Center for Advanced Connectivity and the McKinsey Global Institute (MGI) (see sidebar “The future of connectivity”).ĭemand for food is growing at the same time the supply side faces constraints in land and farming inputs. This would amount to a 7 to 9 percent improvement from its expected total and would alleviate much of the present pressure on farmers. If connectivity is implemented successfully in agriculture, the industry could tack on $500 billion in additional value to the global gross domestic product by 2030, according to our research. Without a solid connectivity infrastructure, however, none of this is possible. And mission-critical services will take advantage of ultralow-latency, high-reliability, and high-security connections. Massive use of Internet of Things (IoT) applications and use cases will be enabled as new technologies allow very high device densities. ![]() Near-global coverage will allow the expansion of use cases even to remote areas and will enable constant connectivity universally. Together, these technological developments will unlock powerful new capabilities across industries. In addition, new types of more revolutionary-and more capital-intensive-frontier connectivity, like high-band 5G and low-Earth-orbit (LEO) satellites, will begin to come online. At the same time, new generations of these technologies will appear, with upgraded standards. Over the next decade, existing technologies like fiber, low-power wide-area networks (LPWAN), Wi-Fi 6, low- to mid-band 5G, and short-range connections like radio-frequency identification (RFID) will expand their reach as networks are built out and adoption grows. As the world experiences a quantum leap in the speed and scope of digital connections, industries are gaining new and enhanced tools to boost productivity and spur innovation. ![]()
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