Demand for consumer water purification and air cleaning systems is projected to increase 5.6 percent per year to $1.6 billion in 2008. Gains will be driven by consumer concerns about the quality of the air and water in the home, and greater awareness of the healthful and aesthetic benefits of these systems. Existing owners of purification systems are continuing to upgrade to the more efficient and better performing equipment featured in higher value systems. The industry also creates a large market for replacement filters and membranes. These and other trends are presented in Consumer Water Purification & Air Cleaning Systems, a new study from The Freedonia Group, Inc., a Cleveland-based market research firm. Water purification systems that feature conventional filtration media accounted for the majority of demand for water systems in 2003, with 81 percent of sales. Sales growth for this segment will be outpaced by demand for higher value reverse osmosis and distillation systems, albeit from a significantly smaller base. Gains will be fueled by their ability to process a broader range of contaminants compared to conventional filters. Among air cleaners, electrostatic systems accounted for the largest share of value demand with 53 percent in 2003, and will also achieve the most rapid gains through 2008. Demand for electrostatic air cleaners will be driven by the rising popularity of electrostatic precipitators. Systems with conventional media filtration accounted for the second largest share of air cleaner demand in 2003, with a 44-percent share of sales. In 2003, water purification and air cleaning system demand was dominated by equipment intended for use in a limited area of the house. Point-of-use (POU) water purification systems, which are installed at a single outlet, had the largest share of demand for water systems in 2003, and are also expected to post stronger annual growth rates through 2008 compared to point-of-entry systems. Similarly, portable air cleaners, which are designed to treat the air in a single room, accounted for the largest share of sales of air cleaners in 2003 and will post faster growth through 2008 compared to whole-house air cleaners.

US CONSUMER WATER & AIR PURIFICATION EQUIPMENT (million dollars)

% Annual Growth
Item	1998	2003	2008	03/98	08/03
Purification Systems Demand	850	1215	1595	7.4	5.6
Water	555	820	1080	8.1	5.7
Point-of-Entry	245	325	405	5.8	4.5
Point-of-Use	310	495	675	9.8	6.4
Air	295	395	515	6.0	5.4
Whole-House	100	120	145	3.7	3.9
Portable	195	275	370	7.1	6.1

© 2004 by The Freedonia Group, Inc.