The players in the global air filters market seem to have hit the jackpot with the market growth showing a steady rise in the past few years. The automobile industry is one of the major contributors to the growth of the air filters industry. Thanks to the ever-increasing increasing rate of automobile demand and production, the demand, and profits for air filters is also expected to skyrocket in the years to come. Furthermore, the increasing rate of replacement of air filters in industrial facilities is also one of the major contributors to the effective sourcing and procurement of air filters by companies. (Source: Global Air Filters Procurement Report). Here is a look at the global air filters market and related sourcing and procurement opportunities and challenges in a nutshell:
Spend potential and key markets
As mentioned earlier, the rise in the demand for automobiles has consequently contributed to a major portion of the demand for air filters. But interestingly, this does not mean that this industry will show an equal sign of growth in all parts of the world. In countries like South America, there is an increased demand for sourcing and procurement of air filters from end-user industries such as oil and gas and automobile. However, in the North American and Europe, the demand is expected to shrink owing to factors such as low aftermarket sales and a shift in end-user industries to low-cost countries of South America and APAC.
In regions such as South America and MEA, global suppliers operate through distribution channels to cater to the demand of end-user industries. Global suppliers are likely to dominate the regional supply market during the forecast period because of their long-term strategic partnerships with buyers, especially from the oil and gas industry.
There are a lot of components that go into the making of a final product. In this case, steel and plastics are the key raw materials that are being used. The bad news is that the rising steel and plastic prices are likely to impact the prices of air filters during the forecast period. Moreover, growing R&D investments for continuous product development to provide high-quality products will also act as a major contributor to the rising prices.
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Supplier selection and procurement best practices
Sourcing and procurement are critical operations for any company as they impact the overall efficiency of the business. When it comes to filters, buyers should collaborate with suppliers for efficient demand planning by reducing the ad hoc purchases. It should also be cross-checked by the buyers if the suppliers provide periodic predictive maintenance that helps in analyzing the product’s health. It helps in the reduction of losses caused due to sudden failure of filters. Furthermore, frequent maintenance aids to enhance the product lifecycle of air filters is highly essential in the case of sourcing and procurement.
Top five suppliers of air filters
- DENSO Corporation
- MAHLE GmbH
- Donaldson Company, Inc.
- Parker Hannifin Corp.
SpendEdge’s procurement report offers strategic insights on the supply market for air filters and helps category managers to gain information on the procurement trends, pricing models, supply market, and key sourcing procurement challenges affecting the global air filter market.