Automotive Filters Market Analysis

Automotive Filters Market Analysis

Based on products, the automotive filters market is segmented into air, fuel and oil filters. Oil filters are projected to witness significant growth in terms of revenue as they are changed frequently and plays an important role in vehicle lubrication system. These filters protect oil pumps from damage and wear & tear and extending the life of engine oil by removing carbon deposits, abraded metals, soot particles and dust. 

The average life cycle of vehicle has witnessed an increasing trend in recent years owing to the technological improvements across the automotive industry. For instance, the average vehicle age on road in America is over 11 years. High maintenance cost & concern related to engine damage of old vehicles is anticipated to boost the product demand. The unfiltered oil in the car may lead to saturated & hard particles that can damage and affect the overall engine quality.

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Based on application, the market is segmented into passenger cars, light & heavy commercial vehicles segment. LCVs and HCVs are expected to fuel product demand as they cover a large distance and needs a continuous supply of air to run smoothly. Global commercial vehicle sales have witnessed significant gains of 26.3 million units in 2018. The advent and growth of the e-commerce industry have fueled logistics activities to meet end to end and swift delivery solutions.
 

Favorable trade agreements between NAFTA, ASEAN, CPTPP, DCFTA and PAFTA will boost the logistics industry. Cross country exchange of goods with high frequency and long-distance coverage will augment demand for heavy tonnage vehicles. For instance, China Belt Road Initiative (BRI) aiming to connect 152 countries through roads, rails and sea routes will increase requirement for heavy duty vehicles.
 

Global automotive air filters aftermarket revenue is projected to surpass USD 16 billion by 2025. The demand for automotive aftermarket components is high owing to easy availability and low cost over OEM products. OEMs products are comparatively priced higher as a result consumer are more inclined towards alternatives with similar technical specification and performance. Moreover, easy availability of the product through ecommerce has enhanced the component delivery sales and services.
 

Catering wide range of customers and high profit margin in aftermarket space to gain attention among OEM manufacturers in coming years. For instance, in May 2016, MANN+HUMMELS, announced the acquisition of global filtration operations of Affinia Group, engaged in manufacturing of WIX and FILTRON brand of filters for expand its product portfolio and presence in North America.
 

The Asia Pacific automotive filters market is expected to witness growth at over 6.5% CAGR from 2019 to 2025 due to the increasing disposable incomes, rapid industrialization, and increase in passenger car sales. High automotive output from India and China will create improved replacement demand in coming years. Favorable FDI policies on aftermarket parts manufacturing and government regulations focused on reducing the carbon emissions will create notable gains up to 2025.
 

Key manufacturers are focusing on developing niche products and capacity expansions owing to strong demand for low cost aftermarket products in the region. For example, In December 2018, Donaldson filtration solution has announced expansion of its Wuxi manufacturing plant in China. Through this expansion, the company will be able to increase its air filter manufacturing capacity and setup of first Chinese based liquid filtration production capacity.