AgricultureThe agricultural market was under considerable pressure in 2015 as a result of low commodity prices, the rainfall deficit from the monsoons in India and economic weakness in China and Brazil. This led to the demand for higher performance agriculture equipment shrinking by more than 40 % since its peak in 2013. In 2015, the Drive Systems Segment generated 29 % of its sales from this market.
While market weakness is expected to continue into 2016, the longer-term market fundamentals remain intact since food is a critical and basic necessity, and the global population continues to grow. Oerlikon’s targeted market size in agriculture is estimated to see a CAGR of 1.7 % from 2015 to 2018.
Technologically, this market needs solutions that can deliver higher productivity, energy efficiency and sustainability in food production. The ongoing market opportunity in agriculture for the Drive Systems Segment is based on its broad range of agricultural machinery applications, such as high-performance gears, which enable equipment manufacturers to improve efficiency, durability and performance. In 2015, the Segment introduced the new Torque Hub, a unique solution for modern agricultural sprayers that improves the safety, reliability and efficiency in larger and higher speed machines. Another technological advancement in 2015 was the development of differential housings and bevel sets coated with BALINIT CROMA, in cooperation with the Surface Solutions Segment, thus improving the mechanical features of the components used in agriculture machinery. The Drive Systems Segment will also continue to improve its services to customers. In 2015, it inaugurated its third plant in India to better serve agriculture customers with its offering of transmission synchronizers and CVT transmissions for tractors.