The Oil Filter Elements market has witnessed significant growth due to the rising sales of automobiles across the globe. Oil filter elements are a critical part of automobiles that help in filtering out contaminants and impurities from engine oil. It ensures smooth functioning of engine by trapping dirt, sediments and sludge before they can reach vital engine components. Growing automobile production and vehicle parc have significantly increased the demand for oil filters and their elements in recent years.
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 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 growing demand for oil filters can be attributed to rising sales of automobiles around the world. All major automakers are focusing on expanding their sales networks as well as launching new models which is propelling the demand for oil filter elements. With growing global automobile industry, companies are increasingly focusing on establishing production and distribution facilities across different regions to cater to the rising local demand.
Market drivers
Rising vehicle parc is a major factor driving the oil filter elements market. According to projections, the total number of passenger and commercial vehicles globally is estimated to surpass 2 billion units by 2035. As vehicles age, the replacement rate of components like oil filters increases steadily. Furthermore, stringent emission standards in countries worldwide have necessitated frequent replacement and maintenance of oil filters for smooth engine performance. Thus, growing vehicle population acts as a key growth driver for oil filter elements.
Current Geopolitical Situation Impacting Oil Filter Elements Market Growth
The oil filter elements market is facing several challenges due to the ongoing geopolitical conflicts and economic uncertainties. The Russia-Ukraine war has disrupted the global supply chain and trade routes, significantly impacting the automotive industry. Both Russia and Ukraine are key suppliers of raw materials like pig iron, steel and palladium used in manufacturing oil filter elements. With sanctions on Russia and damage caused in Ukraine, the raw material supply has been constrained, putting pressure on production and costs.
Rising fuel prices and inflation rates are also dampening consumer demands for vehicles across major markets. As oil filter elements are consumable auto components, reduction in new vehicle sales indirectly impacts replacement demand for oil filter elements. The market players need to closely monitor the geopolitical developments and diversify their sourcing strategies to minimize disruptions. Investing in alternative material sources and developing efficient manufacturing/distribution networks will help make their supply chains more resilient in the long run.
North America Holds Largest Share in Oil Filter Elements Market
North America currently dominates the global oil filter elements market in terms of value, accounting for over 30% share. USA is the largest automotive market as well as oil producer in the world. It has an extensive network of vehicles that require frequent oil filter replacements. The region also has a strong presence of leading automakers like Ford, General Motors and heavy equipment manufacturers like Caterpillar who source oil filter elements from local providers. Moreover, automotive aftermarket in North America is highly organized which drives volume sales of replacement filter elements. The market is expected to witness steady growth in the forecast period with new vehicle sales recovering and rising car parc.
Asia Pacific Emerging as Fastest Growing Region in Oil Filter Elements Market
The Asia Pacific region is poised to be the fastest growing market for oil filter elements during the forecast period. It is experiencing rapid motorization with sales of passenger and commercial vehicles rising consistently year-on-year in countries such as China, India and ASEAN nations. This growing vehicle parc translates to increased demand for replacement of consumable auto parts including oil filter elements. Additionally, the region is a prominent manufacturing hub for automotive OEMs and components suppliers. Localization of production is helping reduce costs and better address the replacement needs. The market growth in Asia Pacific will also be supported by infrastructural growth, rising construction and mining activities which boost sales of engines and heavy equipment.
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