Expansion of the automotive industry, along with the availability of car oil filters through IAMs, will continue pushing the global car oil filter market size to reach $3 billion by 2031.
The latest data released by Fact.MR shows that the market is forecast to top $2 billion in 2021.
Stringent regulations pertaining to reducing carbon emissions are driving the sales in the market. Car oil filters improve oil quality by effectively separating contaminants from the oil, thereby keeping the oil safe and clean. This potentially reduces carbon gas emissions, further propelling passenger cars' sales.
Growing concerns regarding engine damage caused by impurities in car oil are also boosting sales in the market. Due to the ongoing developments in vehicle quality, manufacturers are compelled to launch low-price oil filters to facilitate a longer oil change period. Further, manufacturers focus on premium quality components to improve the product life cycle and durability.
As per the study, demand in the luxury car segment is expected to grow remarkably in the forthcoming years. High-quality components are vital in producing luxury cars, which is encouraging product developments in the market. This indicates lucrative prospects for entrants, leading players, and OEMs in the automotive industry, the report said.
North America will continue witnessing high demand for car oil filters due to a robust automotive industry and aftermarket. The Asia Pacific will follow suit, as demand for luxury and passenger vehicles continues to rise in China, Japan, and India.
Fact.MR analyst said the automotive component manufacturers are replacing metal components with plastic components in oil filters to reduce the overall weight of the vehicle. This is expected to increase the sales. In addition to this, the introduction of novel filtration techniques will usher product developments, which is anticipated to boost the market in the forthcoming years.
As per the report said, based on product type, sales in the anti-drain seal segment are projected to increase at 4% CAGR through 2031. The IAM segment is expected to enjoy the highest revenue over the forecast period in terms of sales channels. Besides, the demand in the luxury cars segment is forecast to grow at a 3.1% CAGR, nearly 4x more than the premium cars segment.
Sales in the synthetic car oil filters segment are projected to increase at 3.4% CAGR over the assessment period. Germany is expected to dominate Europe, accounting for more than 30% of the market share by 2031. On the other hand, China is projected to account for the lion's share in the Asia Pacific market, with sales in the region expected to grow at 3.5% CAGR.
Growth Drivers
Increasing adoption of alternative components such as alloys and plastics will continue boosting the market's growth. In addition, growing sales of passenger cars across China, South Korea, and Japan will increase the demand for car oil filters over the forecast period. However, the growing preference and demand for electric vehicles might limit the adoption of car oil filters, the report indicated.
Leading players operating in the global car oil filter market focus on research and development to improve their product portfolios by launching novel products. Besides this, players are investing in mergers, acquisitions, and collaborations to expand their global presence and gain a competitive edge.
Some of the major car oil filter market players include MAHLE, Robert Bosch, Denso, Mann Hummel and Sogefi.
Market Analysis
The automotive filters market is expected to expand as the global usage of two-wheelers and passenger cars increases. Vehicle emissions rules have been tightened, which has resulted in an increase in sales over time. Since 2019, a general slowdown in the global automobile industry, along with the breakout of COVID-19, has severely hampered growth expectations. On the other hand, the automobile sector is positioned to accelerate following the economic slump, thanks to recent improvements and significant investments in the filtration industry. Encouraging government initiatives to boost the automobile sector will help the filter business grow, Fact.MR said.
Market Scope
The rapid increase in vehicle sales indicates a promising future for the global automotive industry, which will benefit automotive oil filter makers during the projection period. The expansion of the automotive oil filter market is being fueled by dramatic changes in the automotive landscape, principally defined by growing customer expectations and new regulations. In addition, to keep up with the rising efficiency demands, high-performance engines in new age automobiles require synthetic oil. Therefore, synthetic oil filters are in high demand due to their cutting-edge filtration capabilities.
Market Insights
Rising economic growth in emerging markets has resulted in countries investing heavily in self-sufficiency in all areas, particularly the automotive industry, which is one of the most visible indicators of a country's economic prosperity. However, consumers may be concerned about the gasoline quality utilised in their vehicles as their need for personal mobility grows. Furthermore, the car fuel filter market is expected to profit from increased government regulations pertaining to tougher emission criteria, the market research and consulting agency added.
Courtesy: Fact.MR. NB: Photo is representational; courtesy: Denso.