In 2016, the agricultural market addressed by Oerlikon was approximately CHF 2.5 billion and is expected to grow at a fiveyear CAGR of 1.6 %. In the near term, the market has been challenged by the global farm recession due to declining commodity prices, the slowdown in China’s economy, and low farmer confidence and incomes. Over the long term, agricultural output must expand significantly to support the world’s growing population. This will lead to a demand for agricultural products and for equipment that is more productive, energy efficient, durable and cost-effective, driving demand for Oerlikon’s solutions.
Agriculture is the largest market for Oerlikon’s Drive Systems Segment, and contributed 34 % to the Segment’s total sales in 2016. The Segment has a significant market share in solutions for gearboxes, drives, brakes and other systems used in tractors, combines, harvesters and feed mixers.
With its sharpened strategic focus, the Drive Systems Segment recorded a slight increase in sales in 2016 in the agriculture market despite ongoing market weakness, by winning market share and new business in countries such as Turkey and India. The principal global manufacturers of premium tractors utilize Oerlikon Graziano’s Shifting Solutions in dual-clutch transmissions (DCTs) and have access to a wide portfolio of products, from synchronizers to power shift clutches. Oerlikon Fairfield’s Torque-Hub planetary drives are recognized as a leading brand in North America, and Oerlikon Fairfield now offers the Champion Series of hydrostatic drives, specifically designed for the requirements of modern, self-propelled spray tractors.
The Surface Solutions Segment also provides coating solutions to the agriculture market. For instance, Oerlikon Balzers’ BALINIT C is a special coating that improves the wear resistance and efficiency of differential housings and bevel sets used in farming machinery. Oerlikon Metco’s surface solutions provide reliable protection against corrosion and wear for the most stressed parts of agricultural machinery like harvester blades and other essential components.