Market trends, circular economy and challenges of automotive filters

Market trends

• The Asia-Pacific market is growing rapidly:

Emerging markets such as China and India have become key areas for filter enterprises to focus on due to the increase in car ownership and the expansion of after-sales demand (such as the expansion of factories in China by Codelbao and Sofima).

• The competition in the aftermarket is fierce:

E-commerce platforms (such as Amazon and JD.com) have driven the growth of online sales of filters, while third-party brands have seized the market share of original factory parts through high cost performance.

Sustainability and circular economy

• Recyclable filter design:

Some enterprises have launched modular filters that support the replacement of filter elements instead of discarding them as a whole (such as Bosch's Eco-Filter series), reducing plastic waste.

• Research and development of bio-based materials:

The number of test projects using plant fibers or degradable materials to manufacture filter housings has increased to meet the carbon neutrality goals of automakers.

Supply chain challenges

• Fluctuations in raw material prices:

Filter paper (wood pulp/synthetic fiber) and rubber seals are affected by the global supply chain. Price fluctuations have led to an increase in the production cost of filters, and enterprises are accelerating local procurement.

• Capacity adjustment after the epidemic:

Some manufacturers have moved their production lines to Southeast Asia to avoid geopolitical risks and tariff pressures.