Global demand for filters is forecast to expand 5.1 percent per year to $58.3 billion in 2013, according to a report by the Freedonia Group (www.freedoniagroup.com). Market advances in the Africa/Mideast region, developing parts of the Asia/Pacific region, Eastern Europe and Latin America are expected to considerably outpace increases in the United States, Western Europe and Japan. Product sales in developing areas will be driven by healthy economic growth, ongoing industrialization efforts and rising per capita incomes, all of which will bolster manufacturing output, building construction spending, and motor vehicle and internal combustion engine (ICE) motorcycle ownership levels.

WORLD FILTER DEMAND

(million dollars)

% Annual Growth

Item

2003

2008

2013

03-08

08-13

Filter Demand

32800

45500

58300

6.8

5.1

North America

10000

12450

14850

4.5

3.6

Western Europe

9180

12400

14050

6.2

2.5

Asia/Pacific

9270

14000

19800

8.6

7.2

Latin America

1410

2020

2840

7.5

7.1

Eastern Europe

1790

2750

3920

9.0

7.3

Africa/Mideast

1150

1880

2840

10.3

8.6

© 2009 by The Freedonia Group, Inc

Freedonia says China is expected to post the biggest gains of any national market, enabling it to surpass Japan to become the second largest filter market in the world behind the United States in 2013. Sales growth is also expected to be strong in the other BRIC nations of India, Russia and Brazil, as well as in Indonesia, Turkey, Iran and South Africa.

Freedonia predicts sales of air purification filters will increase 5.8 percent annually through 2013, while the market for fluid filters will climb at a 4.9 percent annual pace, spurred by growth in nonagricultural water withdrawals, the implementation of stricter water pollution control standards, and an ongoing trend toward urbanization, resulting in greater spending for water and wastewater treatment. However, ICE and related filters will remain by far the largest product segment, expanding 4.8 percent per annum through 2013. Demand for these items will be driven by growth in the number of motor vehicles and other ICE-powered equipment in use (most notably in China), further increases in motor vehicle output and climbing demand for products like cabin air and diesel particulate filters.

Consumer- and utility-related sales will grow more quickly than demand for filtration products used in other applications, according to Freedonia. Consumer filter sales will be fueled by concerns about the quality of indoor air and drinking water supplies, population growth in rural and semi-rural areas where municipal supplies are not available, and higher per capita incomes in most parts of the world, helping make consumer filters more affordable. Utilities filter market gains will be stimulated by rising global demand for water and electric utility services. However, transportation equipment will remain the biggest single market for filters in 2013, benefitting from an expansion in the overall number of motor vehicles, motorcycles and other transportation equipment.