High competition from local players compel global participants to target niche applications
BEIJING, March 10, 2016 /PRNewswire/ — Severe spells of haze-smog and concerns that the particulate matter in China is well above the approved limit of 35 micrograms per cubic meter have prompted the Government to issue new air quality standards. These standards are aimed at protecting and improving the environment as well as quantitatively analysing atmospheric environmental pollution. The stringent standards and legislations will have a direct impact on the revenue growth of the heating ventilation, air conditioning (HVAC) air filters market, especially in the high-end segment.
New analysis from Frost & Sullivan, Chinese HVAC Filter Market , finds that the market earned revenue of $840.0 million in 2014 and estimates this to reach $1.62 billion in 2022, at a compound annual growth rate of 8.5 percent. In this research, Frost & Sullivan’s analysts thoroughly examine the market segments of standard filters, high efficiency particulate air filters (HEPA), and gas phase filters.
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Due to the continued transfer of worldwide manufacturing to China, the industrial sector is also one of the biggest polluters as well as adopters of air filters. The most lucrative markets are electronics, especially semiconductors and flat panel display (FDP), and pharmaceutical manufacturing. Meanwhile, the standard and gas phase segments will get a boost from the sizeable growth in the commercial and residential buildings segment.
“As a result of the vast market demand, the competitive landscape in China has been changing, with local manufactures gaining market share over international participants,” said Frost & Sullivan Energy & Environment Research Analyst Gautham Gnanajothi. “As the air filter market in China is price driven, the global majors have been forced to develop new pricing strategies.”
The impact of this price pressure is felt mostly in the affordable low- and medium-efficiency filters segment, where price is a key purchasing criterion. In the high-efficiency filter segment, the price is based on the media used. Some manufacturers, mostly local, source the filter media locally, which enables them to offer economical products.
Further, the variation in price depends on the region and the intensity of competition there. For instance, the price decline over the past couple of years has been steep in South China and East China, as there are more numbers of manufacturers and therefore, competition, in those regions.
“To stave off the competition from local participants and gain an edge in the market, it is critical to target niche applications such as nuclear or biological clean rooms, which have stringent requirements,” noted Gnanajothi. “In due course, the competition from local participants will reduce, mainly for high-end filters, as certification requirements, national standards, legislation and regulations are becoming stringent.”
Manufacturers need to constantly take initiatives to educate end users on the benefits of their innovative technologies. These efforts and frequent innovations will go a long way in sustaining the rapid growth of the HVAC filter market.
Chinese HVAC Filter Market is part of the Building Management Technologies (http://ww2.frost.com/research/industry/environment-building-technologies/building-management-technologies) Growth Partnership Service program. Frost & Sullivan’s related studies include: Transformational Trends in the Global Building Energy Management Solutions Industry, European HEMS and BEMS Market, Global Smart Gas Meters Market, Global Demand Response Trends, and Beijing Data Center Services Market Analysis. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.