According to the Freedonia Group report, this demand will be supported by a rapid growth in motor vehicle and other transportation equipment production and stocks, and government policies that promote energy conservation and emission reductions. Motor vehicles will remain the largest filter market in China through 2014, when sales will reach 24.6 billion yuan due to the high volume of air intake, oil and fuel filters sold. Currently, internal combustion engine filters account for the majority of Chinese filter demand and will post the strongest gains at 14% annually through 2014, driven by growth in the production and stock of motor vehicles and other transportation equipment, Freedonia says.
Sales of fluid filters will be fueled by the growth in non-agricultural water use and expanding urbanisation, and sales of air filters are projected to rise 13.7% per year through 2014. Demand will be spurred by rising manufacturing output of HVAC equipment, metal products and building construction materials, and chemicals and pharmaceuticals. Many of these manufactured products are either equipped with air filters or produced in manufacturing facilities with high air purification requirements.
Filter demand in the manufacturing sector will benefit from increases in manufacturing activity. Utility filter market gains will be supported by the implementation of stricter air and water pollution regulations, and the construction of numerous new power plants, water and wastewater treatment facilities and waste incinerators.
As income levels grow, more people in China will be able to afford home water and air purification equipment, and rising demand for higher quality and extended life filters are likely to boost overall market value. Growth will be aided by increased demand for newer products such as motor vehicle cabin air filters and by the development of a significant aftermarket for these items. The demand for filters in consumer and other markets will be fueled by increasing personal income levels and rising concerns about air and water quality.