Consumer Water Purification & Air Cleaning Systems

US demand to rise 4.8% annually through 2014
Demand for consumer water purification and air cleaning systems in the US is expected to increase 4.8 percent annually to $1.7 billion in 2014. Growth will be stimulated by a projected recovery in residential construction spending and personal consumption expenditures. Gains will also be spurred by heightened consumer demand for products that improve one’s health and well-being, compounded by a growing awareness of contaminants in air and water and their potential negative health effects. The development of more advanced systems, and the incorporation of features that make the systems easier to use, will also contribute to value gains.

Aftermarket sales of replacement filters and membranes are forecast to increase 4.4 percent per year to $2.4 billion in 2014. Sales of these replacement components will be driven by increasing system penetration rates and will be further enhanced by the increasingly common incorporation of performance indicators that notify users when a filter or membrane needs to be replaced.

Electrostatic systems to pace air cleaning segment
Air cleaning systems that use conventional filtration technology made up 47 percent of value of air cleaning demand in 2009. Systems using this technology are popular among consumers because of their low purchase price and their ability to significantly reduce the level of common allergens in indoor air. Through 2014, sales of electrostatic air cleaning systems are expected to post the fastest annual growth rate, benefitting from their ability to clean the air more thoroughly and with lower operating costs than many competitive air cleaners.

Reverse osmosis, distillation systems to be fastest growing water purifiers
In value terms, conventional filtration media-based water purification systems made up the largest share of water system demand in 2009, with 76 percent. However, reverse osmosis and distillation systems will experience faster growth through 2014, although from much smaller bases, as consumers increasingly prefer more thorough purification capabilities. In general, sales of water purification systems will be driven by the significant media coverage of contaminants in drinking water. Additionally, consumers continue to turn to water purification systems as a lower-cost and more environmentally conscious alternative to bottled water.

Point-of-use water purification systems to expand dominant position
Sales of whole-house air cleaning systems declined in volume terms between 2004 and 2009 due to a contraction in residential building construction spending. Through 2014, volume sales are expected to improve, slightly outpacing portable air cleaning systems. Volume sales of point-of-entry water purification systems were similarly hampered in the previous five-year period. However, point-of-use systems are projected to achieve faster growth through 2014.

PRESS RELEASE

Demand for Consumer Water Purification and Air Cleaning Systems to Reach $1.7 Billion in 2014

Demand for consumer water purification and air cleaning systems is expected to increase 5.2 percent per year to $1.7 billion in 2014, benefiting in part from projected rebounds in consumer spending on durable goods and in residential construction spending, which both suffered during the 2007-2009 recession. Gains will also be driven by consumer concerns about the quality of the air and water in the home and increased awareness of the health and aesthetic benefits of these systems. These and other trends are presented in Consumer Water Purification & Air Cleaning Systems, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Water purification systems that feature conventional filtration media accounted for the majority of demand for water systems in 2009, with 76 percent of sales value. Faster growth will be registered by higher-value reverse osmosis and distillation systems, although from significantly smaller bases. These systems can remove a broader range of contaminants compared to conventional filters. In general, the market size depends on the quality -- or the perceived quality -- of local tap water supplies.

In 2009, point-of-use (POU) systems, which are installed at a single outlet, had the larger share of demand for water purification systems. However, sales of point-ofentry (POE) systems, which treat all water that enters a home, are expected to post faster growth through 2014, albeit from a very low base, due in part to the rebound of single family home construction.

Among air cleaners, conventional filtration systems accounted for the largest share of value demand with 47 percent in 2009, because they offer relatively inexpensive, thorough air cleaning and minimal to no ozone production. However, electrostatic air cleaners, which often operate more quietly and efficiently, are projected to achieve faster gains through 2014. Portable air cleaners, which are designed to treat the air in a single room, accounted for the larger share of air cleaner sales in 2009. Sales of portable air cleaners are expected to continue to grow at a rate faster than that of whole-house air system sales.