Agritech is at a Crossroads: Why IoT Can’t Afford to Stall Now

Eseye

IoT Hardware and Connectivity Specialists

LinkedIn

Agriculture has always been an industry of bold ambition. From precision farming to robotic machinery, the promise of connected technology has been clear: smarter, more sustainable, and more productive food systems. And for a moment, it seemed those ambitions were becoming reality.

In our 2024 research report, nearly 87% of Agritech respondents planned to expand their IoT estates, many by double or more. Fast forward just one year, and our latest 2025 State of IoT report reveals those ambitions largely came to life — 76% of Agritech companies now operate estates of 1,001–10,000 devices. But here’s the twist: instead of accelerating, the industry appears to be pulling back.

Fewer than 28% expect to increase IoT budgets over the next 18 months, while 58% anticipate spending less. Even more striking, Agritech tops the list of industries planning to shrink device estates, with 43% preparing to scale down.

This is more than a pause for consolidation. It signals a structural slowdown at precisely the moment agriculture needs connected intelligence most.

From promise to plateau

We added the Agritech industry into our survey mix in 2024 as it’s a vertical that appeared to be quickly growing in IoT adoption. In 2024, the focus was firmly on revenue generation: 68% of respondents named increased revenue as their top IoT benefit.

One year on, the conversation has shifted. Sustainability is now the leading IoT benefit, cited by 41% of respondents. Diversifying into smart, connected products (39%) and boosting revenue (38%) still matter, but the industry’s priorities are aligning with global pressures around climate, food security, and environmental impact.

This pivot makes sense. Agritech has reaped the greatest sustainability-related gains of any sector, with 64% of respondents in 2024 saying IoT helped deliver on ESG goals. Yet, paradoxically, the very industry achieving the clearest results is also the one stepping back.

The climate and funding squeeze

Two forces are squeezing Agritech’s IoT ambitions: climate change and funding.

Farming is already ground zero for the effects of rising temperatures, shifting weather patterns, and water scarcity. Connected devices can help farmers adapt — monitoring soil conditions, tracking livestock health, or automating irrigation to conserve water. These are not futuristic use cases; they’re happening today. Read how IoT is already transforming smart farming here.

Yet, budgets are tightening. Despite clear evidence of impact, investment appetite is waning. In 2024, 61% of Agritech businesses still planned to increase budgets by up to 50%. Today, that optimism has faded, replaced by caution and cost-cutting. Fewer than 28% expect to increase IoT budgets in the next 18 months, and 58% now anticipate spending less.

Agritech innovation is at risk

What’s driving the retreat? Complexity and support.

For the second year running, accessing technical IoT expertise tops the list of challenges (22%). This year it’s joined by device complexity (also 22%), reflecting the difficulty of integrating disparate technologies into one seamless deployment.

In 2024, Agritech stood out as the sector with the fewest IoT issues — 22% reported no challenges at all, compared to much lower averages elsewhere. One year later, the cracks are starting to show.

If these challenges aren’t addressed, Agritech risks losing the momentum it built so quickly. And with 43% of respondents planning to shrink estates, there’s a danger that early successes will be overshadowed by stalled deployments and unrealized potential.

Where IoT proves its value

It’s important to remember: the benefits of IoT in agriculture are not theoretical. They’re tangible, measurable, and transformative.

• Smart crop management: Sensors tracking soil moisture, temperature, and nutrient levels drive precision irrigation and reduce waste.
• Livestock monitoring: Wearables provide insights into animal health and behavior, improving welfare and productivity. Learn how Precision Animal Solutions is reducing bovine respiratory disease here.
• Robotic machinery: Autonomous tractors and drones optimize planting, spraying, and harvesting.
• Automation: IoT-enabled systems control watering and pesticide use, cutting labor costs and environmental impact.

Each of these use cases demonstrates how IoT directly addresses agriculture’s greatest challenges: climate change, rising costs, and resource scarcity. Scaling them back now would be a step in the wrong direction.

What needs to change in Agritech IoT?

Agritech doesn’t need less IoT — it needs better IoT.

That means:

• Simpler solutions: Deployments that abstract away device complexity and work reliably, out-of-the-box.
• Stronger partnerships: Technology providers that don’t just supply devices, but co-own outcomes and provide long-term support.
• Smarter funding models: Approaches that prioritize long-term sustainability and resilience, not just short-term cost control.

At Eseye, we call this being Connected by Design: IoT that’s architected from the start for reliability, scalability, and futureproofing — not bolted together and hoping for the best.

Agritech sits at a crossroads

Agritech sits at a crossroads. It has already proven IoT’s value — delivering measurable ESG gains, unlocking automation, and expanding device estates at scale. But now, just as the need for innovation grows more urgent, investment is slipping.

This is not the time to retreat. The question is: will the industry seize the moment, or step back just when it matters most?

In this article

• From promise to plateau
• The climate and funding squeeze
• Agritech innovation is at risk
• Where IoT proves its value
• What needs to change in Agritech IoT?
• Agritech sits at a crossroads