Global demand for filters is projected to increase a healthy 7.6 percent annually to $65.9 billion in 2015. This growth rate is an acceleration from the gains of the 2005-2010 period, reflecting in part the reduced 2010 bases of the developed countries. While the global recession of 2009 restrained manufacturing activity and capital investments, economic recovery in several key markets through 2015 will boost gains.
Countries such as China, India, Indonesia and others with large, developing industrial bases and nascent regulatory schemes are expected to see the fastest growth. Filter sales in developing areas will also be driven by rising per capita incomes, which will bolster building construction spending, and motor vehicle and motorcycle ownership levels. Rising environmental standards and increased attention paid to food and beverage safety regulations, along with better enforcement, will further drive investment in filters in many parts of the world. Growth will also be based on the increased need to tap poor quality water resources, and rising investment in modernizing water, wastewater and power generation infrastructure.
In 2010, China and Japan were the second and third largest national markets behind the US, representing 13 and 9 percent of global sales, respectively. Additionally, China is expected to post the biggest gains of any national market through 2015.
Product demand in developed countries is fueled by improving economic onditions, higher income levels and the relatively stringent and well enforced nvironmental standards, boosting associated filter sales. North America and Western Europe will record similar market gains through 2015, rebounding from a low 2010 base. Although representing mature markets, these areas will remain the most intensive users of filters in per capita terms, reflecting the advanced nature of their economies, as well as the large numbers of filter-containing equipment in use, supporting substantial aftermarket filter demand. North America, Western Europe and Japan are fairly comparable in terms of the maturity of their water and power generation infrastructures, the regulatory schemes and the technological sophistication of local manufacturing. The increased emphasis on water conservation and air pollution control will also boost sales.
Filter sales in the manufacturing market will grow fastest through 2015, benefiting from an improvement in manufacturing activity. The utilities market for filters, which will post the next fastest gains, will be stimulated by rising global demand for water and electric utility services, leading to the construction of numerous new power plants, water and wastewater treatment facilities, and waste incinerators. However, transportation equipment will remain the biggest single market for filters in 2015, benefiting from an acceleration in the overall number of motor vehicles and motorcycles in use, as well as from an improvement in transportation equipment production. Sales to the much smaller consumer market will be fueled by concerns about the quality of indoor air and drinking water supplies, as well as rising per capita incomes, helping make filters more affordable.
Details on these and other key findings are available in the Freedonia industry study, “World Filters” which presents historical demand data (2000, 2005 and 2010) plus forecasts for 2015 and 2020 by product, market, world region and for 26 major countries. The study also considers market environment factors, evaluates company market share and profiles 42 industry competitors.