Press release
Synthetic filter media most lucrative segment in the global automotive filters market
Synthetic filter media most lucrative segment in the global automotive filters marketThe synthetic filter media was pegged at just over 1.1 billion units in the year 2016 and this is anticipated to reach nearly 1.7 billion units at the end of the forecast period, registering a CAGR of 4.6%. Even though it is anticipated to retain its dominance in the global automotive filters market, the synthetic filter media segment will stand to lose 140 BPS by 2025. Synthetic filter media finds increased application on account of its lower replacement rate and high dust holding capacity. Synthetic filter media is projected to create a total incremental opportunity of about US$ 3.6 Bn and should account for almost 60% of the global automotive filters market incremental opportunity during the forecast period.
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In volume terms, IAM sales channel to be 1.8X that of OES by the end of 2025
The IAM sales channel segment already comprised more than 55% revenue share of the global automotive filters market in the year 2012. This is estimated to rise to about 58% by the end of the eight year study with a gain of 170 BPS. From a market value of slightly under US$ 6.5 Bn in 2017, IAM is projected to be worth more than US$ 10.1 Bn by the end of 2025, recording the highest CAGR of 5.8%. A total incremental dollar opportunity of approximately US$ 3.7 Bn can be safely expected in the IAM sales channel between 2017 and 2025. Key stakeholders in the global automotive filters market are advised to tap this highly lucrative sales channel. The rising preference for IAM sales channel can be explained because of its lower price when compared to other sales channels along with its widespread network.
IAM segment expected to dominate the Asia Pacific automotive filters market during the forecast period
The IAM sales channel segment held over 50% value share of the Asia Pacific automotive filters market in 2012. This segment is anticipated to witness a massive rise of 450 BPS by 2025 end and account for about 58% market share towards the end of the forecast period. The IAM sales channel segment is projected to register the highest value CAGR of 10.3% in the Asia Pacific automotive filters market. Being the most attractive segment in the Asia Pacific regional market, the IAM sales channel segment is expected to witness significant growth during the forecast period.
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Booming economic growth and global biggies make Asia Pacific too big to ignore
Rising purchasing power, improved infrastructure, and discerning customer tastes and preferences are driving the APAC automobile market and this directly stimulates the APAC automotive filters market. Global OEM’s are setting up manufacturing units in this key strategic region because of its huge population and need for personal mobility. In addition, regional governmental authorities have done away with scrap incentive schemes that all but force customers to purchase new automobiles. Major component manufacturers are also shifting their production units from developed to developing countries to take advantage of cheaper labor and economies of scale, therefore reducing the cost of production and increasing their profit margins. China, Thailand, and India are the production hubs for a number of multinational automobile companies such as Honda, Toyota, General Motors, and Nissan.
Rampant piracy a massive challenge in the APAC automotive filters market
The Federal Bureau of Investigation (FBI) has called counterfeiting ‘the crime of the 21st century’. The region most affected with counterfeit products is Asia Pacific and this is mainly due to the price sensitivity of most customers. Counterfeit parts can be nearly 40% cheaper than their original brethren and this will negatively impact the growth of the APAC automotive filters market. As per the ACMA President, a lack of mandatory safety regulations for the checking of automotive components is aiding the growth of the thriving gray market.
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