The oil filter elements market is estimated to be valued at US$ 3.59 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Oil filter elements are used to remove contaminants from engine oil in vehicles. They are made up of materials like pleated paper, plastic, and foam. These elements trap particles like dirt, carbon, sludge and metals from the oil. This keeps the engine running smoothly and prevents excessive wear and tear. The automotive industry is a major end user of oil filter elements as they are used in all types of vehicles including passenger cars, commercial vehicles, motorsport vehicles, and heavy equipment.
Market Dynamics:
The growth of the oil filter elements market is majorly driven by increasing vehicle production globally. According to OICA (International Organization of Motor Vehicle Manufacturers), around 90 million vehicles were produced worldwide in 2021 indicating a rise of 4% from 2020 production figures. Increasing demand for newer vehicles especially in emerging economies of Asia Pacific and Latin America is boosting the aftermarket for replacement of filters. Furthermore, stricter emission norms requiring quality filters are supporting the adoption of oil filter elements in vehicles. However, increasing preference of extended oil change intervals may hamper the market growth during the forecast period.
SWOT Analysis
Strength: The oil filter elements market enjoys few inherent strengths. Oil filter elements effectively remove harmful contaminants from engine oil, helping extend engine life. Leading players offer premium quality oil filter elements that provide superior filtration. Furthermore, the aftermarket for replacement filters is large given most vehicles require filter changes every 5,000-10,000 miles.
Weakness: Oil filter elements have very low profit margins for manufacturers. Raw material costs, mainly of steel, constitute a major portion of the production costs. Also, the market is highly competitive with presence of numerous global and regional players.
Opportunity: Growing automotive production and vehicle parc globally presents an opportunity for higher demand. Stricter emission norms necessitating improved engine performance aids filter element sales. Online and multi-brand auto parts retailers expanding reach and driving replacement filter sales.
Threats: Volatility in raw material prices poses risks. Technological advances may lead to alternative filtration solutions lowering need for frequent filter replacements lowering demand. Rising environmental concerns and push for electrification can dent long-term growth in internal combustion engines.
Key Takeaways
The global Oil Filter Elements Market Share is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing vehicle parc across emerging economies of Asia Pacific and Latin America along with more stringent emission norms necessitating improved engine filtering.
Regional analysis: Asia Pacific dominates the global oil filter elements market, both in terms of production and consumption. Countries such as China, India, and Japan contribute significantly to the regional market growth. This can be attributed to rising vehicle production and large pre-existing vehicle population. Furthermore, presence of key global manufacturers aids regional market. North America and Europe are other major markets, though growth is projected to be relatively slow owing to maturity.
Key players related content: Key players operating in the oil filter elements market are MANN+HUMMEL, Mahle GmbH, Denso Corporation, Robert Bosch GmbH, Donaldson Company, Inc., Clarcor Inc. (Acquired by Parker Hannifin Corp), Sogefi SpA, Hengst SE, ACDelco (Subsidiary of General Motors), Cummins Inc., Fram Group, K&N Engineering, Inc., Freudenberg Group, WIX Filters (MANN+HUMMEL), UFI Filters. The market remains fragmented with these players accounting for majority share. Companies compete on quality, product range, and distribution network.
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