HVAC Filters Market Size, Share & Trends Analysis Report By Material (Fiberglass, Synthetic Polymer, Carbon, Metal), By Technology (Electrostatic Precipitator, HEPA, Activated Carbon, UV Filtration, Ionic Filtration), By End-User (Residential, Non-residential, Industrial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

HVAC filters are an essential home component; the HVAC filters are a part of the HVAC system that removes air impurities. It is important to change or remove these filters after it has been used for a long time. There are multiple types of HVAC filters available in the market.

The global hvac filters market size was valued at USD 3.45 billion in 2021. It is projected to reach USD 5.13 billion by 2030, growing at a CAGR of 4.5% during the forecast period (2022-2030).

Market Dynamics

Rapidly Expanding Pharmaceutical Industry and Rising R&D Activities 

The pharmaceutical industry uses HVAC systems for storing of medicinal drugs and syrups, such as Benadryl, Cheracol Plus, Dimetane, Donnatal, Geritol, Novahistine, Robitussin, Sominex, Triaminic, Tylenol, and Vicks. Thus, the rapidly expanding pharmaceutical industry across the globe provides an impetus to the market growth. As per the statistics of the Observatory of Economic Complexity (OEC), the sales of special pharmaceuticals were valued at USD 12.2 billion in 2017.

The rising R&D activities for the development of new medicines and products are subsequently increasing the demand for HVAC systems, thereby accelerating the growth of the HVAC filters market. As per the data provided by the European Federation of Pharmaceutical Industries and Associations, the R&D activities in Brazil, India, and China grew by 11.5%, 11%, and 9.4%, respectively. India is one of the largest providers of generic drugs across the globe, and the rapid expansion of the pharmaceutical sector drives the market growth. In 2017, the Indian pharmaceutical industry witnessed about 46 merger and acquisition deals worth USD 1.47 billion. As per the IBEF, in October 2018, the Uttar Pradesh State (India) government announced to launch six pharma parks in the state worth about USD 712–855 million. In a nutshell, needless to say, the Hospital sector is one of the significant consumers of HVAC filters.

Stringent regulations controlling the air quality is likely to move the HVAC filters market in a positive direction

The research and development endeavors, along with government initiatives for clean air to increase the utilization of the products, have further promoted substantial investments in technology innovation. There is Increased pressure to enhance the air quality, decrease contamination, and meet with the required specifications of the customers. However, from that, the stringent controlling standards by the EU, FDA, and EPA in order to mitigate pollution and infection are likely to favor HVAC filters market growth.

Regional Analysis

Increasing FDI Inflow in Asia-Pacific

Asia-Pacific is not only the biggest but also one of the most diverse regions in terms of land area and population. The region’s economic outlook continues to be strong and dynamic. It comprises economies that are emerging as key manufacturing hubs, with the abundant availability of natural resources and inexpensive labor attracting investments. As per the UN Economic and Social Commission for Asia-Pacific (UNESCAP), the region attracted around 45% of the global foreign direct investment (FDI) and accounted for about 52% of global FDI outflows in 2018; it is also expected to witness 5.1% growth during the rest of 2020.

Flourishing Construction Sector in India and China

India and China are the two growth engines for the regional market. Construction is expected to be one of the most dynamic sectors in the coming years, playing a crucial role in the prosperity of society globally. As per the data available by Oxford Economics, the global construction sector is likely to grow by USD 8 Trillion, and this growth is expected to be driven by China, the U.S, and India. Furthermore, It is estimated that the construction market of India is slated to increase twice as fast as China. As per data provided by the Global Construction Perspectives and Oxford Economics, the global construction sector will grow by 85% to reach USD 15.5 trillion worldwide by 2030. China and India are likely to be the engines of growth in the construction sector. New residential buildings increase the demand for green buildings and low carbon footprint materials of construction.

Increasing government subsidies in countries such as India and China have led to resurgent investments in the construction sector to meet the growing population’s demand for housing and infrastructure, making room for the demand of HVAC systems; thus, enabling the hike in HVAC filters market.

Latin America’s Thriving Tourism and Hospitality Sector

Recent advancements in technology have led to an increase in the demand for HVAC and refrigeration systems in Latin America. There has been a rapid growth in the preference for sophisticated refrigerators and HVAC systems in this region. The rise in HVAC refrigerators’ demand will eventually upsurge the demand for HVAC filters, owing to the proper maintenance of the equipment. Over the past five years, the hospitality industry has showcased great dynamism in Latin America. Although tourism growth in Central and South America has seen a hike due to the region’s diversity and natural resources, most of its popularity can be attributed to the government’s commitment to promoting the hospitality and tourism sector. Last year, the World Economic Forum, in its Travel and Tourism Competitiveness Index report, listed six Latin American countries among the top 50 most competitive globally. Costa Rica, Argentina, Chile, Brazil, and Panama have become surprisingly competitive in this sector. Chile experienced a 6.3% increase in European tourists and a 33.8% rise in Chinese tourist’s arrival in 2017. This surging rise in tourist footfall in Latin America has led to an increase in the construction of hotels and redevelopment of other tourist attractions, which is projected to accelerate the demand for HVAC systems in this region, and eventually the market for HVAC filters.

Segmental Analysis

HEPA filters are highly recommended as it provides and offers the highest protection level when it comes to airborne particles. The HEPA filters are capable of capturing small microns. It has a MERV rating, which ranges from 17 and 20. This suggests that the filter can trap tobacco smoke and bacteria. High-efficiency particulate air filters are best for people who have allergies and are prone to respiratory difficulties. These filters are effective in screening contaminants up to 99.97% and this is precisely why its is one of the most recommended type of filters by the US Department of Energy.   Respiratory diseases pose a deadly threat on human health worldwide. According to the World Health Organization, approximately 65 million people are diagnosed with moderate to severe chronic obstructive pulmonary disease (COPD). Out of which around 3 million die each year thereby making it the third leading cause of death globally. Another report from WHO declares that around 334 million people suffer from asthma which is indubitably the most common chronic disease of childhood affecting as much as 14% of children around the globe. Considering the alarming rate of rising respiratory problems, it is recommended to use HEPA type of filters in the  HVAC electronics.

Food and Beverage Industry contributes immensely to the growth of HVAC filters

Food and beverage is a massive industry in Europe, which is one of the most significant contributors to the region’s economy. As per FoodDrinkEurope, total external trade accounted for USD 121 billion, of which Europe held 18%. This has been backed by resurgent investments worth about USD 3.2 billion in research and development. Furthermore, the F&B industry's annual turnover was around USD 1.23 trillion in 2017, and it contributed around 2.1% to the total gross value added to the economy. The food and beverage sectors uses the HVAC filters for maintaining the HVAC cooling and refrigerators that are used to store food and beverages thereby promoting the demand for HVAC filters.

Impact of covid-19

The COVID-19 pandemic has brought unprecedented times globally across various industry verticals. The CMMS market has observed a steep downturn on account of the temporary halt of business operations to support stringent regulations. Interestingly, the market has noted an uptick in the healthcare sector due to the increasing need for workload optimization, maintenance planning, and equipment maintenance in combating the pandemic.

The CMMS market is expected to witness a slump during 2020, with disrupted manufacturing, transportation and logistics, retail, and supply chain sectors curtailing growth. New investment areas, including the integration of advanced technologies such as IoT and IIoT, are expected to remain suspended till 2021.The market is expected to gain traction by late 2021 or early 2022 with the return of normalization.

• India’s industrial output shrank by 16.7% (National Statistical Office (NSO))
• Italy observed an 11% decline in industrial output (European Union)
• The U.K.’s manufacturing sector has marked a 6% decline in growth (European Union)

Lower industry output inevitably disturbs the CMMS market. The pandemic’s drastic impact on many business verticals has encouraged organizations to switch from an availability-driven strategy to a cost-driven strategy. This change is expected to pave the way for CMMS adoption for workload optimization, enhanced maintenance, and continuity of training and consultation services among limited industries.

In light of the evolving scenario, companies are introducing products that can tackle changing business needs. In 2020, Spacewell, a leading global CMMS provider, launched new digital solutions to help workplace managers with new and updated digital tools to monitor workforce and inventory and schedules, allocate workloads, and ensure compliance and mitigate short-term disruption. These people-centric tools will also help firms drive performance improvements and improve workplace well-being in the long term post-COVID-19.

Recent Developments

There have been a lot f acquisitions and mergers happening through out th globe. Camfil AB signed an agreement with Salvador Escoda to offer quality Camfil products in Salvador Escoda’s supply stores. Salvador Escoda being one of the largest distributors of filters in Spain will anable Camfil AB to place its market foot in Spanish market and also expand on its product portfolio and help deliver its product on time. .

Furthermore, In August 2019, Mann+Hummel acquired Hardy Filtration which is a Canada-based manufacturer of air filters, dust bags and paint booth filters. Post the acquisition, Mann+Hummel is in position to further expand its product portfolio in HVAC systesm product line as well as stretched its company’s manufacturing facility in Canada.