Global demand for filters is projected to increase 6.9 percent annually to $79.9 billion in 2018. This growth rate is an acceleration from the gains of the 2008- 2013 period, reflecting in part the relatively low 2013 bases for a number of developed countries. The global recession of 2009 restrained manufacturing activity and capital investments, but economic recovery in several key markets through 2018 will boost gains.
Countries such as China, Indonesia, India, Turkey, and others with large, developing industrial bases and nascent regulatory schemes are expected to see the fastest growth. Filter sales in developing areas will be driven by rising per capita incomes, which will bolster key filter markets such as motor vehicles, motorcycles and consumer applications. Rising environmental standards and increased attention paid to food and beverage safety regulations, along with better enforcement, will also require additional investment in filters.
Economic development and population growth will result in the increased need to tap poor quality water resources in a number of regions. In addition, rising investment in modernizing water, wastewater, and power generation infrastructure will benefit filter demand, particularly in developing economies. However, in many of the least developed countries, especially in Africa and parts of Asia, growth will be limited by lack of adequate funding for major infrastructure projects, and local corruption that impedes progress.
In 2013, the US was the largest national market with 19 percent of global sales, followed closely by China with 18 percent of global sales. Japan and Germany, each with approximately six percent of all global sales, are also leading national markets for filters. China is projected to post the largest growth of any national market, with demand growing 12 percent annually between 2013 and 2018.
Manufacturing is expected to be the fastest growing market for filters through 2018, benefiting from an improvement in manufacturing activity coupled with more stringent pollution control regulations in a number of nations. The utilities market will post above average gains, stimulated by rising global demand for water and electric utility services, which will boost construction of new power plants, water and wastewater treatment facilities, and waste incinerators.
Transportation equipment will remain the largest single market for filters in 2018. This market will also register solid gains, supported by continued growth in the overall number of motor vehicles in use and continued growth in motorcycle ownership.
Sales to the much smaller consumer market will be fueled by concerns about the quality of indoor air, as well as by efforts to improve drinking water quality, particularly in rural and semi-rural areas where municipal supplies are not readily available. Rising per capita incomes will also boost gains by helping make filters more affordable.
Details on these and other findings are contained in the Freedonia industry study, World Filters. This report presents historical demand data for 2003, 2008 and 2013, as well as forecasts for 2018 and 2023 by product, market, worldwide region and for 23 countries. In addition, the study considers key market environment factors, assesses the industry structure, evaluates company market shares and profiles 42 global industry participants such as Donaldson, DENSO, MANN+HUMMEL, MAHLE International and Parker-Hannifin.