Filters

US demand to exceed $12 billion in 2015
Demand for filters in the US is expected to increase to just over $12 billion in 2015. This 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. 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. Additionally, heightened consumer concerns about air and water quality will boost demand for filters in the residential market.

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. 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, 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.

Filter shipments are projected 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. 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.

Emissions, cabin air filters to drive key engine segment
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.

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