The oil filter elements market consists of oil filter elements that are utilized in vehicles such as passenger cars, commercial vehicles, and off-road vehicles for filtering oil contamination and dirt to prevent damages to engine components. Oil filter elements separates foreign particles from the oil and prevents wear & tear of engine parts, which increases the engine life. The increasing vehicle production globally, stringent emission regulations, and rising demand for fuel-efficient vehicles are major factors propelling the demand for oil filter elements.
The Global oil filter elements market is estimated to be valued at US$4.14 Mn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period of 2024 to 2030.
Key Takeaways
Key players operating in the Oil Filter Elements are Iluka Resources Limited, Tronox Holdings PLC, East Minerals, IREL (India) Limited, Rio Tinto, V.V. Mineral, TOR Minerals, Kerala Minerals & Metals Ltd., Yucheng Jinhe Industrial Co. Ltd., Sierra Rutile Limited, Abbott Blackstone, Murray Basin Titanium Pty. Ltd., and CRISTAL. The key players are focusing on expanding their production capacities and product portfolios to consolidate their market presence. For instance, in January 2022, East Minerals announced the completion of expansion of its dry mineral separation plant in Virginia, US, that increased its capacity by 50%.
The key opportunities in The Oil Filter Element Market include growing demand for filter change indicators, advanced filter media, and efficiency improvement of filter elements. The filter change indicators provide real-time monitoring of filter clogging, which enables timely replacement and prevents engine damages. The advanced filter media made of composites and nanotechnology offers improved filtering efficiency.
The global players are focusing on geographic and capacity expansion strategies to increase their market share. For example, in March 2022, Parker Hannifin acquired Lord Corporation, a US-based technology company, for $3.68 billion to expand its product portfolio and manufacturing footprint in adhesives technologies. In January 2021, Mahle GmbH opened a new production plant in Mexico to increase availability of oil and fuel filters in North America.
Market Drivers
The growing vehicle fleet worldwide especially in emerging countries is a major factor driving the oil filter elements market. Rapid urbanization, rising disposable income, and increasing per capita vehicle ownership are fueling the demand for vehicles. According to International Organization of Motor Vehicle Manufacturers, the total number of passenger cars produced globally reached over 73 million units in 2021 registering a rise of 4% as compared to 2020. This rising vehicle production is augmenting the consumption of oil filter elements.
Stringent emission regulations mandated by governments of various countries are also propelling the market growth. The tightening emission standards are necessitating frequent oil changes and filter replacements in vehicles for reducing vehicular pollution. For instance, the Euro 6 emission norms in Europe require oil changes at 10,000-15,000 km intervals for diesel vehicles and 15,000-20,000 km for petrol vehicles. Such norms are generating significant aftermarket demand for replacement of filter elements.
Market Restraints
The fluctuating raw material prices can negatively impact the market revenues of oil filter element manufacturers. The key raw materials used in production of filter elements include filters, filter media, steel, plastic resins, and alloy additives whose prices undergo volatility based on market demand-supply forces. Any steep rise in raw material prices compels the manufacturers to hike product prices, which can decrease their sales volumes. Additionally, availability issues amid pandemic outbreaks can disrupt manufacturing activities and supply chains of oil filter elements companies.
Segment Analysis
The oil filter elements market can be segmented by vehicle type, Filter Type, and region. The passenger vehicles segment holds a dominant share owing to the large fleet size of passenger cars. Within this, the gasoline engine vehicle sub-segment dominates due to higher adoption compared to diesel engine vehicles.
Global Analysis
North America holds a significant share in the global oil filter elements market due to large fleet of vehicles and need for frequent oil filter replacement. The region is expected to witness high growth rate during the forecast period supported by continuous adoption of advanced filters. Europe holds the second position due to stringent emission norms. Asia Pacific is projected to be the fastest growing market for oil filter elements during the forecast period. Developing nations like China and India create huge demand potential, being major automotive manufacturing hubs.
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