Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Market Insight- Global Automotive Cabin AC Filter Market 2017-2027
Automotive cabin AC filter is a component that filters out dangerous floating particles namely exhaust particles, dust, and foul smell from entering the automobile cabin environment via ventilation and heat system. The primary objective of the filter is to maintain quality of air within the cabin of the vehicle. Moreover, it minimizes wear and tear of the vehicle’s heating, ventilation, and air conditioning systems. On the basis of filter type, the market is segmented into particulate, electrostatic, and charcoal. On the basis of vehicle type, it is segmented into passenger cars, LCV, and HCV. Furthermore, on the basis of sales channel, it is segmented into OEM and aftermarket.
The global automotive cabin AC filters market is estimated to account for US$ 2,660.2 Mn in terms of value and 419,999 Thousand Units in terms of volume by the end of 2019
Market Dynamics- Drivers
- Rising global vehicle production is expected to drive the global automotive cabin AC filter market growth during the forecast period
Automotive sales have increased significantly in the recent past, which has accelerated the demand for cabin AC filters. According to the International Organization of Motor Vehicle Manufacturers (OICA), automobile production is growing at a rate of around 4% annually since 2010. According to the same source, in 2011, the global automobile production pegged at 79 million units comprising of both passenger and commercial vehicles, growing steadily to 89 million units in 2015. Increasing demand for vehicles has encouraged automakers to improve production output to accommodate growth, thereby driving the demand for cabin AC filter. Therefore, these factors are expected to boost the market growth in the near future.
- Growing adoption of cabin AC filters to strain out pollutants is expected to propel growth of the global automotive cabin AC filter market over the forecast period
The HAVC system installed in vehicles does not strain out the air present on the outside of the vehicle, which is frequently polluted with impurities aging ranging from chemical to biological such as dust, pollen, microorganisms, suspended chemical and exhaust particles, and other airborne particles. These particles are directly traveled inside the cabin of the vehicle. Furthermore, HAVC systems are operated in a closed environment, these pollutants remain trapped inside the vehicle, which increases the concentration of potentially hazardous contaminants in the cabin. Therefore, introduction of cabin AC filters in automobiles has been a key addition, become a mandatory feature in all modern vehicles. This, in turn, is expected to boost the market growth over the forecast period.
Asia Pacific region dominated the global automotive cabin AC filters market in 2019, accounting for 37.2 % share in terms of value, followed by Europe and North America, respectively
Source: Coherent Market Insights
Market Dynamics- Restraints
- Low awareness regarding cabin AC filter among consumers is expected to restrain the global automotive cabin AC filter market growth over the forecast period
Cabin AC filter is an integral part of HVAC system though many consumers are still unaware of its function in the system. Therefore, most consumers are not aware of the replacement cycle of the filter, which in turn, is expected to hinder the global automotive cabin AC filter market growth in the near future. Service center owners have started alerting vehicle owners about the functions of various automotive peripherals and the importance of their timely replacement, in order to ensure smooth running.
- Inadequate supply-demand ration and inventory pile-up of raw materials are expected to hinder growth of the global automotive cabin AC filter market during the forecast period
There is a frequent imbalance in supply-demand ration, which results unnecessary waiting time for consumers. Moreover, pile of inventory raw materials is expected to result in price fluctuations, thereby hindering the demand for cabin AC filters. Hence these factors are expected restrain growth of the global cabin AC filter market over the forecast period.
- Refurbishing of older vehicles with cabin AC filter is expected to offer lucrative growth opportunity for market players
Although vehicles produced post 1990 are fitted with cabin AC filter, older vehicles are still equipped with conventional HVAC system. However, consumers are increasingly become aware of negative effects of air pollution of human body. Thus, such cars are being refurbished with cabin AC filters, with demand for customized cabin AC filters in their respective HVAC systems. This, in turn, is expected to pose lucrative growth opportunities for market players during the forecast period.
- Increasing demand for vehicles in emerging economies is expected to pose significant growth opportunities for market players in the near future
Growing urbanization, increasing disposable income, and improving living standard have accelerated demand for vehicles emerging economies such as South Africa, China, Japan, and India. According to the Society of Indian Automobile Manufacturers (SIAM), in 2018, total automobiles sales accounted for 24,981,312 units, which increased to 26,267,783 units in 2019. Growing vehicle sales is boosting the demand for cabin AC filters, thereby providing lucrative growth opportunity for market players during the forecast period.
Source: Coherent Market Insights
In global cabin AC filters market, by vehicle type segment, passenger vehicle sub segment dominated the global cabin AC filters market in 2018, accounting for 76.6 % share in terms of value, followed by light commercial vehicle and heavy commercial vehicle segment.
Source: Coherent Market Insights
- Mergers and acquisitions among key market players is a major trend in the market
Key players in the global automotive cabin AC filter market are focused on strategic activities such as mergers and acquisitions, in order to enhance their market presence and gain competitive edge in the global market. For instance, in August 2016, Donaldson Company, Inc. acquired Partmo S.A., an automotive filter manufacturer and founded its subsidiary Filtros Partmo, S.A.S. to expand its sales in the Latin America region. Furthermore, in September 2012, Ahlstrom Corporation acquired Munktell Filter AB, a filtration material company, in order to enhance its business expansion. This trend is expected to continue during the forecast period.
- Integration and customization of cabin AC filters is expected to be the major trend in the market
The most commonly used cabin AC filter is particulate type AC filter that is comprised of fine mesh to trap large particles. Charcoal type of cabin AC filter has a layer of fine activated charcoal to neutralize bad odor and improve air quality. Moreover, the electrostatic filter, wherein the filter media is charged with negative and positive ions to attract charged microparticles. Generally, premium vehicles are equipped with more than one type of filter to maintain the air quality in the cabin. The particulate filter is usually located at the air intake, while charcoal filter is situated near the vehicle’s glove box. Such filters are being increasingly replaced by a filter made by combining the different filter media into on that one contains both charcoal and particulate filter. This ensures easy replacement and lesser time required for maintenance.
Key players operating in the global automotive cabin AC filter market are Mann+Hummel GmbH, Airmatic Filterbau GmbH, Sogefi SpA, ACDelco, Donaldson Company, Inc., EuroGIELLE S.r.l., Robert Bosch GmbH, K&N Engineering, Inc., Ahlstrom Corporation, Freudenberg & Co. KG, ALCO Filters Ltd., MAHLE GmbH, and Hengst SE & Co. KG.
- Key players in the market are focused on product launch, in order to gain competitive edge in the market. For instance, in October 2019, Sogefi SpA showcased its new filtration systems namely Fuel Filter made from recycled airbags and Independent Aftermarket (IAM) - as the new cabin air filter range: Cabin3Tech+ at Equip Auto, Paris, France.
- Major market players are involved in product launch, in order to expand their product portfolio. For instance, in June 2019, K&N Engineering Inc. launched new cabin filter VF2067 that is specified for Maserati cars.