The Asia-Pacific air filtration market was valued at over USD 3.4 billion in 2015. It is projected to grow at a CAGR of 8.6% during the forecast period (2016-2024). The industry will reach nearly USD 6.6 billion by 2024. Emission norms and environmental regulations will drive the industry. The presence of regulatory bodies such as the EPA (Environmental Protection Agency) and the CCC (Car Care Council) promote greater awareness about emission hazards. Rapid urbanization and resource scarcity will also exhibit a positive effect. Furthermore, the implementation of occupational safety standards across industries will fuel demand.
Increasing research & development (R&D) investments coupled with product developments would contribute to market growth. R&D investments directed towards nanotechnology and development of small fibers will create opportunities for further expansion. This industry focuses on innovation and minimization of operating costs.
Air filtration systems call for high initial investments. And the management of pollutants needs the application of sophisticated technologies. This in-turn increases the operational and maintenance costs of the equipment. The dependence of purchasing decisions on the overall cost could be a key restraint in the market.
Despite coal being the primary source of power generation, focus on alternative and renewable energy sources may hamper industry growth. However, the proliferation of coal-fueled power plants in India and China hold good opportunities for future expansion.
The Asia-Pacific air filtration market is fragmented into applications, products, technologies, and geographies. Applications include pharmaceuticals, metals, power, food, and cement. Power segment can grow at a CAGR of nearly 9.7% over the forecast period.
Advancements in nuclear industry are projected to play a key role in power generation and power defense. Stringent environmental norms require the use of air filters to reduce radioactive pollution. This will propel the market in the years to come. Nuclear installations, such as nuclear energy research facilities, power generation, waste management, and fuel processing would boost overall demand.
The food segment will contribute significantly to the Asia-Pacific air filtration market. Owing to stringent regulations pertaining to health, safety, and hygiene, food manufacturers nowadays emphasize greatly on high-quality filtered air.
Metal processing involves the release of vapors, dust, and fumes in the air. Air filtration machines protect employees from such fumes. The compliance of manufacturing centers with emission standards leads to better manufacturing quality.
Innovations have improved the performance of air filters and consequently the quality of air. At the same time, these systems ensure reduced energy consumption. Advancements in non-woven technology is projected to drive the market in the forthcoming years. Air filtration systems eliminate various airborne contaminants. Large amounts of coarse and contamination particles like oil droplets, abrasion particles like dust, and rust are filtered out.
On the basis of products, the air filtration industry is trifurcated into automotive, industrial, and residential. Automotive air filtration market held over 55% of the total revenue shares in 2015. It is predicted to expand at a CAGR of about 8% till 2024. The need for regularly replacing these filters will stimulate this segment. Automotive air filters prevent debris and dirt particles from harming the internal parts of engines. They provide sufficient ventilation to the engines, thereby reducing emission and optimizing fuel consumption. This leads to better engine performance and greater mileage.
The automotive filtration segment is further split into cabin air filter and intake air filter. Cabin filters will register considerable growth due to the widespread use of these devices in fuel powered and electric vehicles.
The industrial segment is estimated to grow at a CAGR of over 9.4% from 2016 to 2024. It will account for almost 27% of the overall industrial shares. This segment is sub-divided into dust baghouse filters, CCF, dust collectors, high-efficiency particulate air (HEPA) filters, and mist collectors.
HEPA filtration technology requires maintenance of high initial power output. Moreover, machine’s efficiency, low emissions, machine reliability & availability, greater longevity, and zero production downtime play an integral role. HEPA filters are best suited for machines that require high collection efficiency in submicron particulate matter. These filters are mostly incorporated in radioactive, biological, and chemical applications.
Mist collectors are anticipated to witness surging demand across industries such as metal processing and food & beverage (f&b). Dust collectors require minimal maintenance and remove dust effectively. Use of these devices across industries ensures greater worker health & safety. This in turn leads to improved productivity and low absenteeism.
Technologies in the Asia-Pacific air filtration market include baghouse filters, electrostatic precipitators, fabric filters, flue gas desulphurization systems, nitrogen control systems, scrubbers and mercury control systems. Electrostatic precipitators and fabric filters have dominated the industry so far. However, baghouse filters would expand robustly; owing to high demand in coal-fired plants, mining, and cement industries.
Geographically, the Asia-Pacific air filtration industry includes Australia, China, India, Indonesia, Japan, Korea, Malaysia, and South Thailand. China will continue to dominate the industry in the coming years. It is expected to grow at a CAGR of 9% over the forecast period. Industrialization coupled with the popularity of mid-size cars will add to market demand. The growth of this region can be attributed to the presence of a prospering automotive sector. In addition to this, the development of aftermarkets in countries like India and China will add to industrial performance.
The release of pollutants metal, coal, cement industries, and gas-fueled power plants will drive the Asia Pacific market. Stringent emission & “no mercury” norms will also boost industrial growth. Furthermore, fluctuating climatic conditions and legislative initiatives to curb greenhouse gas emissions in emerging countries, such as India, Vietnam, and Thailand will play a crucial role.
Most companies operating in the Asia-Pacific air filtration industry focus on mergers & acquisitions to expand and gain a competitive edge in the consolidated market. Prominent participants include Cummins, MANN+HUMMEL group, Windsor Wire LLC, and Mahle.
MANN+HUMMEL acquired Swedish-based Voke Air from Riverside Company, in February, 2014. The company (MANN+HUMMEL) acquired Affinia Group in the August of 2015.
Windsor Wire LLC acquired Babcox & Wilcox’s cage manufacturing operation for industrial environmental equipment, in 2016. The acquisition improved the manufacturing and distribution process of the Windsor Wire LLC.
Research Support Specialist, USA