Filters In China (Industry forecasts for 2011 & 2016)

Demand for filters in China is projected to increase 14.1 percent per year through 2011 to ¥40.4 billion. Market advances will be stimulated by growth in manufacturing output, building construction spending and urbanization of the population as industrialization efforts continue. Government efforts to alleviate air and water pollution, and to improve the quality of drinking water supplies by enacting more stringent regulations and standards will also contribute to future sales gains. Additionally, growth will be aided by increased demand for newer products, such as motor vehicle cabin air filters and many varieties of household air and water filters, and the development of a significant aftermarket within these segments. Still, aftermarket sales will be slowed by users' tendency to replace filters less often than recommended by manufacturers, as well as by the ongoing development of filters featuring longer lasting media or other technologies that extend their useful life.

Demand for air filters is expected to post the strongest growth through 2011. Advances will be spurred by rising manufacturing output of both durable goods such as HVAC equipment and electronics, and nondurable goods such as chemicals and pharmaceuticals. Many of these manufactured products are either equipped with air filters or produced in manufacturing facilities with high air purification requirements. Rising concerns about air pollution in China will also boost demand for air filters used in a variety of markets. The internal combustion engine and related filters segment e.g., air intake, oil, fuel and cabin air) accounted for the largest share of total demand, 62 percent in 2006, and will rise at a double digit average rate through 2011. Advances will be buoyed by continuing growth in automobile production and the number of motor vehicles in use, the ongoing development of new products and growing aftermarket sales.

Sales of fluid filters will be fueled by an acceleration in nonagricultural water use and expanding urbanization in the nation. The implementation of tougher water and wastewater treatment regulations will also spur filter sales. Fluid filter sales gains will also be driven by the expected growth in production of industrial machinery and equipment, which often use fluid power filters.

The motor vehicle market will continue to account for the largest portion of total demand, with a 41.5 percent share in 2011. The high volume of air intake, oil and fuel filters sold at the original equipment manufacturer level and in the aftermarket will more than offset their relatively low unit prices. Demand for filters in consumer and other markets is projected to post the strongest gains. Consumer market sales will be supported by increasing personal income levels and rising concerns about air and water quality. Sales to the manufacturing sector will be driven by increases in manufacturing activity, with higher output of beverages, chemicals, electronic devices and food products helping to power demand for filters used in their production. Utility filter market gains will continue to be driven by stricter air and water pollution regulations, and the construction of numerous new power plants, water and wastewater treatment facilities, and waste incinerators.

Details on these and other findings are available in the new Freedonia industry study, Filters in China, the study presents historical demand data for the years 1996, 2001 and 2006 as well as forecasts for 2011 and 2016 by filter product and market. In addition, the study considers market environment factors, reviews filter technology, details industry composition, evaluates company market shares and profiles leading domestic and foreign competitors.