Industrial Filters

Industrial Filters Global Market Outlook

• Global Industrial Filters market is expected to grow at a CAGR of 6% y-o-y until 2025 and expected to reach the market value of around $4 Billion during the forecasted period. Growing industrialisation, coupled with stringent emission norms by most of the developed and developing countries, would influence the growth of the market.

• The growth is set to be driven by the rapid industrialisation growth in developing countries such as India, China, Brazil etc. Also, stringent government regulations of emission and treatment of industrial waste would drive the industrial filters market in the coming years

• Growing industrialization and urbanization is a major factor driving the industrial filters market. The requirement of a safe working environment in industrial facilities is also driving the demand for industrial filters

• In developing countries such as India and China, the filter market growth is expected to grow faster due to degrading air quality and global warming which has forced them to impose strict air emission regulations on industries such as power generation, metal processing, chemicals etc to reduce the pollutants released in the air

• By type, the gas and liquid segment garnered the largest share in the filtration market. The liquid filter media segment is expected to hold larger market share during the forecast period

• Currently the manufacturers of filtration & separation systems are keen on business expansion with new technology products in filtration systems and working towards their strategy to increase their filtration & separation market share

Global Industrial Filtration and Separation Industry Outlook

• Europe serves as a potential market for air and water filter, due to its advanced infrastructure, easy availability of high-end products, and high disposable income. The growth of the Europe air filter market is driven by rise in demand for HVAC systems

• The Asia-Pacific separation and filtration market is anticipated to witness high growth rate, owing to rapid urbanization, and presence of emerging economies. Countries such as Japan, China, India, Indonesia, Singapore, and others, have witnessed sudden rise in air and water pollution which would force government to curb industrial pollution

Global Filter Industry Drivers and Constraints

In general Industrial Filters are an indispensable and a mandatory requirement in almost all key industries across the Globe. With the emergence of new regulations and technology to back it up there has always been an strong surge in this market even despite the pandemic. Demand for filtration is driven by the launch of new transforming and innovative technology in filtration and the increasing research activities in multiple industries to reduce operating costs associated with it.

Drivers

Increase in Industrial Production:

• The Filters industry is propelled by industrial production. While the global industrial output is gradually increasing, so is the Filters market

Growth of biopharmaceuticals industry:

• Demand for pharmaceutical filters are on rise due to introduction of novel biologics, vaccines, and protein that require sterility and no contamination. Further, vaccine production requirement for Covid-19 pandemic has stirred up filtration demand rapidly

Constraints

Volatility in Oil and Gas:

• Oil price volatility serves as a challenge to Industrial Filters as oil related commodities are required for the manufacture of Industrial Filters

High capital investments associated with setting up a new production facility

• The initial purchase price and operating cost of air filters are both high. For example, Heating, Ventilation, and Air Conditioning (HVAC) filters have the ability to remove high particulate matter, but these filters also create significant airflow resistance. This air flow resistance causes HVAC systems to require powerful fans to move air, which results in use of a high amount of energy and production of CO2 emissions. In addition, it is estimated that around 70%-80% of the total lifetime cost of filters is related to energy

Cost Structure of Filters

Major cost components are raw materials (69.47%) and direct labor (7.93%) for manufacturing filters. Also, Interest rates of the country has significant effect on the net cost of filters

Impact of Components on total Cost

• Main cost drivers are raw materials (69.47%) and direct labor (7.93%) for manufacturing filters.

• Interest rates of the country has significant effect on the net cost of filters

• Commodity prices (raw material prices), demand supply balance are also drivers

• Base material costs have significant impacts on the overall cost of the filters.

• A major cost constraint is cost of finance - the cost capital allocated on production costs (including raw material, salaries, utilities, etc.), as the payments are received after the filters are delivered to the customers.