Home Water Filtration Systems Market

Market Overview

The global home water filtration systems market size was valued at USD 5.12 billion in 2022. It is estimated to reach USD 10.23 billion by 2031, growing at a CAGR of 8.29% during the forecast period (2023–2031). The rise in awareness regarding the potential side effects of consuming untreated water has greatly supported the growth of filtration systems across the globe. Further, governments' efforts to create public awareness of water-borne illnesses and access to filtered water systems for daily use have propelled the demand for water filtration systems. The smart water filter from TAPP Water is another major instance where remote monitoring has been prominent in the residential water filtration market.

Water filters use filtration methods such as ion exchange, reverse osmosis, and activated carbon to remove unwanted contaminants, impurities, taste, odor, hardness, pathogens, and pesticides from potable water to make it fit human consumption. For filtration, a basic water filtering system must have four essential parts. A filter media, a fluid with suspended solids, a force typically produced by the pressure differential between two places, and a mechanism (the filter) that holds the medium, the fluid to be filtered, and permits the driving force are required. The result of the filtering process is cake. The system contains specific characteristics for removing, washing and drying the manufactured cake.

Market Dynamics

Home Water Filtration Systems Market Drivers

Rising Awareness of Water-borne Diseases

The improper and inadequate management of water exposes individuals to various health risks. The improper management of urban, industrial, and agricultural wastewater causes contamination of drinking water. Over 830,000 people die each year due to diarrhea after drinking unsafe water. Utilizing untreated water for washing can lead to skin and infectious eye diseases such as trachoma, which can cause visual impairment or blindness at times.

Water-borne diseases are riskier and pose high threat levels to children due to their weak immunity. With children being highly prone to these risks, access to improved and hygienic water sources is proven to reduce health risks and enhance the well-being of individuals. 

Significance of RO Filtration Systems

Over the past decade, reverse osmosis has been accepted as one of the most prominent forms of filtration technologies for water treatment systems. It removes dissolved inorganic solids, including magnesium and calcium ions, from potable water, by forcing it into a semipermeable membrane under pressure to remove contaminants. The systems are increasingly preferred in households of developing economies due to their pollutant removal effectiveness. However, reduced mineral intake and food preparation with demineralized water has been considered a major crisis among deficient people. Therefore, to reduce the risks associated with low mineral content in RO water, RO filter manufacturers have introduced a remineralization feature into the systems where a considerable quantity of minerals, such as calcium and magnesium, are reintroduced to increase the alkalinity of water. Such factors drive market growth.

Home Water Filtration Systems Market Restraint

Low Penetration and High Maintenance Costs

Despite the significant cost benefits of water filter systems over packaged water, the installation costs can be considered expensive for homeowners in the growing economies of Asia-Pacific, Africa, and Latin America. Further, the associated maintenance, repair, and replacement costs can be an add-on burden for consumers in the long run. Water filter systems intended to reduce water contaminants by physical and chemical processes require an initial investment that includes installation charges, thereby restricting market growth.

Home Water Filtration Systems Market Opportunities

Technological Advancements in Home Water Filters

The introduction of smart water filters is expected to be a game-changer during the next five years, as they are aimed at enhancing customer sophistication. Smart water filters feature aspects such as remote monitoring, filter replacement cycles, Bluetooth, and other forms of connectivity for smartphone integration through apps. With the low penetration of smart water filters, IoT-enabled water filters are expected to be the next big opportunity for established players in the market through the Bluetooth feature. It helps track water consumption and filter usage through a free, downloadable application.

Home water filters combine one or more filtering technologies and are used as point-of-use (whole house) and point-of-entry systems (countertops, pitchers, shower-mounted faucets, inline). The major end-use applications include drinking, cooking, bathing, and laundry. Water filters are widely distributed through retailers, direct sales, and online channels.

Nanotechnology-based water purification systems are emerging as a promising new trend, offering the potential to remove a wider range of contaminants and emerging pollutants.Automated variable filtration (AVF) technology is another new trend that can reduce water waste and improve filtration efficiency.

Furthermore, established brands in water filtration systems, such as GE, compete in the segment through its GE Smart Whole House Water Filtration System. The smart filter system transmits alerts to a smartphone if it has a potential leak or running faucets. With advanced microfiltering, the activated carbon technology helps in effective filtering and is equipped with built-in Bluetooth technology. It provides cartridge replacement reminders through email or the MyTAPP Bluetooth-enabled application. Such factors create opportunities for market expansion.

Regional Analysis

Based on region, the global home water filtration systems market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global home water filtration systems market shareholder and is anticipated to exhibit a CAGR of 9.29% during the forecast period. Asia-Pacific was the largest market for home water filters, with China being the market leader. The expansion is mainly supported by robust economic development and booming middle-class consumers in India and China. The Asia-Pacific region, which is expected to account for over 70% of the middle-class population by 2030, thus possesses huge potential for appliances such as water filters with rising environmental concerns. However, traditional filtration methods such as boiling and distillation tend to hamper the growth of expensive whole-house filters in the region. In addition, safe quality tap water in Singapore and the consumption of bottled water among tourists and ex-pat populations in Thailand and Malaysia can restrict the adoption rate. Therefore, vendors can prioritize direct selling channels, multi-staged reverse osmosis systems, competitive pricing, awareness, and testimonials to enhance sales.

North America is estimated to exhibit a CAGR of 7.61% over the forecast period. Millions of Americans are susceptible to dangerous drinking water that goes above the EPA's standards (EPA). People all around the country have become aware of the widespread potential risk, which has increased demand for household water filtration devices. Additionally, household chemical pesticides and fertilizers use, mining operations' compliance with regulations, and the release of cadmium and mercury from heavy industries are all anticipated to influence the adoption of home water filtration systems in Canada throughout the forecast period.

Europe accounted for a significant total home water filtration market. Germany and UK were estimated to be the most important markets in the region, with high growth potential in Italy, France, and Spain. Over 70% of the studies in Europe have found the inclusion of microplastics in tap water as well. Chlorine is a widely used disinfectant across European nations. This, in turn, requires the installation of water filters to remove odor while drinking and cooking. In addition, Germany is rich in water resources; only 4% of the available water sources are utilized for drinking. Optimal utilization of water with wastewater treatment and reducing cross-contamination has been major objective of the government in the recent past. The Drinking Water Ordinance in Germany focuses on increased microbial safety through frequent testing. Adopting filters is essential in countries like Germany to remove chromium content in tap water, thereby driving market growth.

In Latin America, despite being a region with many freshwater resources, around 38 million people lack access to safe water, making it a major crisis. The need for safe drinking water in countries such as Colombia, Peru, and Paraguay is expected to be a significant expansion driver for the water filtration systems market in the residential sector. In addition, a sizeable population in the region, particularly in the tier-2 and tier-3 cities, is predicted to lack access to safe water in Brazil and Mexico, which are anticipated to account for a large portion of the region's growth. For instance, only 80%-85% of the rural population in Brazil has a consistent supply of drinking water, and where lack of sanitation facilities in these places adds to the health risk. Therefore, the above factors fuel the market growth during the forecast period.

The Middle East and Africa region had a meager market share during the forecast period. South Africa, Saudi Arabia, Turkey, and the UAE were the major revenue generators, whereas Nigeria, Morocco, and Egypt are potential secondary markets for enhancement opportunities in the next five years. The high level of water scarcity, the incidence of water-borne illnesses, depleting groundwater levels, and contaminated water sources in rural regions encourage the adoption of filter systems in residences, driving market growth.

Segmental Analysis

The global home water filtration systems market is segmented by product type, end-user, and distribution channel.

Based on product type, the global market is segmented into the whole house, under the sink, countertop, pitchers and dispensers, faucet, shower mounted, and inline. 

The whole house segment owns the highest market share and is anticipated to exhibit a CAGR of 8.12% during the forecast period. The whole-house water filtration system is considered the most expensive and efficient water filter system for residences. It is a one-stop solution for water filtration, as it filters and treats water coming into homes. It is often referred to as a point-of-entry (POE) system and often requires professional installation and maintenance, despite the high initial costs. However, the preference is more prominent owing to the results and advanced filtration technology. Consumers also prefer whole-house water systems for their chlorine- and odor-free water, softer skin and hair, bottle-quality drinking water, scale-free pipes and fixtures, and protection of home appliances such as refrigerators.

Countertop water filters are compact water filters that even come with a spout. The filter's portable nature helps offer flexibility and multiple functionalities within the home premises. Being a major point-of-use water treatment process, it allows easy switching between filtered and unfiltered water. The major functionality of the countertop versions is to improve water taste and odor alongside eliminating some of the major pollutants such as lead. It is the primary choice for renters and facilitates installation within minutes with professional charges.

Based on end-user, the global market is divided into drinking, cooking, bathing, and laundry and appliances. 

The drinking segment is responsible for the largest market share and is anticipated to exhibit a CAGR of 8.53% over the forecast period. Water for drinking usually originates from well or city water, which contains chlorine and bacteria and requires filtration before final consumption. Water filters for drinking have been a consistent and major demand driver for home water filter markets for decades. Skin hydration, nutrient absorption, detoxification, and digestion are some of the major health benefits driving filtered water consumption. Pure and healthy water consumption also helps boost immunity and mental health functions. With a wide scarcity of clean drinking water, the significance of drinking water filters is high in the market.

Filtered water is necessary for cooking, like for drinking, for various reasons and to prevent health hazards. Using unfiltered water for cooking affects the taste of foods and drinks consumed. While minerals and chemicals in the water might alter the flavor of the food, fluorine, and chlorine might mix and change the color of the food. This intensifies the significance of using filtered water for kitchens in homes. Water filter systems lessen the chlorine that gets into the prepared food, raising questions about the safety of using clean, treated water for cooking, especially for developing children. This fuels the demand for water filters.

Based on the distribution channel, the global market is divided into offline and online channels. 

The offline segment is responsible for the highest market share and is anticipated to exhibit a CAGR of 8.46% over the forecast period. Home water filter systems are mainly sold through retail distribution channels such as specialty stores, hypermarkets, and certain home improvement stores. The environment for distribution is changing quickly, and systems and procedures are being updated quickly. Further, the level of access to replacement parts, aftersales service, technical expertise, warranty, and repair determines the distribution mode. The varying end-user dynamics (age, income, household members) and specifications for treating the specific water quality require a demo before purchase, which further signifies the importance of offline distribution.

Online stores are stores where products are sold over the Internet. Service contracts and extended warranties are two examples of additional services that can be bundled to provide convenience and increase customer satisfaction. These services can assist in boosting growth and improving margins. Adding online portals to reserve filters, track the status of agreements and services, make service requests, and check for parts availability is increasingly witnessing adoption.

Recent Developments

• May 2022: Brita®, the industry leader in at-home water filtration products for over three decades, announced an expansion of its partnership program with municipalities across the United States.
• March 2023: Croma added a new product line to its brand. These cutting-edge QLED televisions and water purifiers are intended to transform lifestyles. The Croma water purifiers clean and secure drinking water for families through a cutting-edge water filtration system.