U.S. demand for filters forecast to increase 7.1% per year to US$12.6B in 2015 spurred by improved manufacturing activity, industrial investment, recovery in vehicle production and sales, growing environmental concerns

Kendall Sinclair

CLEVELAND , December 13, 2011 (press release) – Demand for filters in the US is expected to increase 7.1 percent per year to $12.6 billion in 2015. This reflects a turnaround from the declines registered during the 2005-2010 period due to the economic recession that occurred during the latter half of that period. Advances will be spurred by improved manufacturing activity and industrial investment, a recovery in motor vehicle production and sales, and a rebound in consumer spending from a low 2010 base. An ongoing trend toward strengthened environmental regulations -- particularly those involving reduced emissions from electric utilities and diesel engines, and better water quality -- will also aid gains. Additionally, heightened concerns about water and indoor air quality will boost demand for filters in the consumer market. These and other trends are presented in Filters, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Ongoing sales in the aftermarket, which accounts for the vast majority of demand, will also drive gains. The growing market penetration of motor vehicle cabin air filters, diesel emissions filters, and home air and water filters will contribute to aftermarket demand gains. As the number of these types of filters in operation increases and awareness among consumers of their recommended replacement schedule improves, demand for replacement filters will also increase. However, growth in the aftermarket will be offset somewhat by users’ tendency to replace filters less often than recommended by manufacturers. The ongoing development of filters featuring longer lasting media or other technologies that extend their life will also restrain sales.

In 2010, fluid filters (e.g., fluid power, municipal water and waste, consumer water and industrial fluid filters) accounted for the largest share of filter shipments. Filters used in internal combustion engines (oil filters, air intake filters, fuel filters, cabin air filters and others) accounted for the second largest share of total shipments and are expected to grow fastest through 2015, albeit from a low 2010 base. Shipments of air filters are expected to improve over the weaker gains in the 2005-2010 period.

The motor vehicle market accounted for the largest share of filter sales in 2010 with 24 percent. However, demand for filters in the industrial and manufacturing market, which was hampered by weak nonresidential fixed investment and manufacturing activity in 2009 and 2010, is projected to grow the fastest through 2015.

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