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Global demand for filters to reach $80bn by 2018

08 July 2014

Chinese market to lead the charge as global demand for filters is projected to increase 6.2% annually to $80 billion by 2018.

Advances will be supported by an improved outlook for manufacturing activity and rising consumer incomes.

Analyst David Petina explains: "Ongoing investments in water, wastewater, and power generation infrastructure will support filter demand, especially in developing countries.”

In 2013, the US and China were the largest national markets for filters, with 21% and 14% of global demand, respectively. By 2018, China’s filter market will be nearly as large as that in the US and by 2023 China will surpass the US.

In addition, Chinese filter demand will be $6.1 billion higher in 2018 than in 2013, representing approximately 30% of the global increase. These and other trends are presented in World Filters, a new study from market research firm The Freedonia Group.

Through 2018, the bulk of sales growth will come from areas with large, developing industrial bases and nascent regulatory schemes. Filter market advances will be driven by the double-digit annual gains forecast for China and Indonesia, as well as increases of nearly 10 percent per year projected in India and above average growth in a number of other rapidly developing economies.

In addition to general macroeconomic trends, factors supporting filter markets in these countries include rising consumer incomes and increases in motor vehicle ownership. Furthermore, filter demand will be boosted by efforts to reduce air and water pollution, such as via more stringent vehicle emissions standards in China and India that approach those issued in Western Europe. In addition, Indonesia is planning to expand water service from only 20% of the population in 2000 to 60% by 2015.

Worldwide gains will also be boosted by accelerating growth in filter demand in more developed markets, including the US, Japan, and much of Western Europe. Although growth rates will remain well below the global average, the improvement provides significant opportunities due to the large size of these markets. Japan and Germany followed China as the third and fourth largest markets, with seven and six percent of 2013 global sales, respectively.

Filter demand in these and other developed countries will be boosted by improving economic conditions and relatively stringent and well enforced environmental standards. These regions will remain the most intensive users of filters in per capita terms, and the large existing base of filter-containing equipment in use will support aftermarket filter demand.

Information may also be obtained through www.freedoniagroup.com.