According to a new Freedonia industry study, demand for filters in the US is expected to increase to just over $12 billion in 2015. The ‘US Filter Market' study says the growth reflects an improvement over the weaker gains registered during the 2005 to 2010 period due to the economic recession that occurred during the latter half of that period.

The study also says advances will be spurred by improved manufacturing activity, and motor vehicle production and sales, as well as strengthened environmental regulations, particularly those involving reduced emissions from electric utilities and diesel engines, and better water quality. In addition, heightened consumer concerns about air and water quality will boost demand for filters in the residential market, the study says.

Aftermarket sales to continue dominant role

"Ongoing sales in the aftermarket, which accounts for the majority of demand, will also drive gains. The growing market penetration of such products as motor vehicle cabin air filters, diesel emissions filters, and home air and water filters will contribute to aftermarket demand growth," the study explains.

"As the number of filters in operation increases and awareness among consumers of their recommended replacement schedule improves, demand for replacement filters will also increase."

However, the study says, growth in the aftermarket will be offset somewhat by users' tendency to replace filters less often than recommended by the manufacturers. The ongoing development of filters featuring longer lasting media or other technologies that extend their useful life will also restrain sales of aftermarket filters.

The study predicts filter shipments will advance to advance to nearly $11.5 billion in 2015, albeit at a rate below that of demand. Gains in shipments are driven by many of the same factors as demand, since filters produced in the US are often ultimately used in the US, the study says.

Domestic shipment growth will be limited as US manufacturers increasingly move production, particularly of more basic filters, offshore and other countries develop their own filter industries for export and domestic use. US manufacturers are projected to remain strong, however, in specialty and high-end filters.

In 2010, internal combustion engine filters (oil, air intake, fuel, cabin air filters and others) accounted for the largest share of filter shipments. Although this is a relatively mature product group, sales will benefit from the ongoing development of new types of emissions filters, particularly for diesel engines, and the growing aftermarket for cabin air filters, as well as a rebound in motor vehicle production and sales.

Additionally, rising gas prices will continue to motivate consumers to re-place filters regularly in order to optimize engine performance and fuel efficiency. Shipments of air filters are also expected to improve over the weaker gains in the previous five-year period, benefiting from improved manufacturing activity and strengthened environmental regulations.

Motor vehicles to remain largest market

The motor vehicle market will continue to account for the largest portion of total demand in 2015. Although the high level of price competition in this market will temper gains, advances will be aided by the large volume of these filters sold both as original equipment and in the aftermarket. Demand for filters in the industrial and manufacturing market is projected to post the fastest gains, driven by increased manufacturing activity.

Study coverage

This new Freedonia industry study, presents historical demand data (2000, 2005 and 2010) plus forecasts for 2015 and 2020 by filter technology, product and market. The study also considers market environment factors, assesses industry structure, evaluates company market share and profiles 38 players in the US industry.