NEWS RELEASE                                                                                                                July 2015

Liquid and Air Filter Element Solution Provider’s Revenue Potential Will Exceed $32 Billion This Year

Sales of filter elements to separate particles from air, gases, water, oil and other liquids will exceed $28 billion in 2015. There is a potential for “Solutions Providers” to increase this market by $3.5 billion. This creates a potential for Solutions Providers of $32 billion.  This is the latest forecast in the McIlvaine Air/Gas/Water/Fluid Treatment and Control: World Markets.

Filter Element Revenues $ Millions 2013

Application Liquid Air Total  
Power   Generation 100 1,500 1,600  
Fluid   Power 2,200 400 2,600  
Mobile 5,000 3,000 8,000  
Municipal 800 40 840  
Commercial 3,000 3,000 6,000  
Oil   and Gas 300 400 700  
Industrial,   Other 5,000 4,000 9,000  
Total 16,400 12,340 28,740  
Solutions  increase 2,000 1.500 3,500  
Solutions Total 18,400 13,840 32,240  

Commercial and industrial filter users are spending more than necessary on their filtration purchases for two reasons:

  • Filters do not last as long as they should, so more new purchases are necessary.
  • The administrative and inventory management costs for purchasing small quantities of many different filter types are substantial.

Solutions Providers can help lengthen filter life and relieve the purchaser of the administration and inventory management.

Costs To End User Based On a Non-Solutions Filter Price Of 1

Filter   manufacturer
Administrative/ inventory
Solutions Provider

The filter manufacturer retains his margins but sells fewer filters because filter life is lengthened.  Distributors are virtually eliminated.  The Solutions Provider bears administrative and management costs.  The total cost to the purchaser is 9 or 10 percent less and yet the Solutions Provider obtains as much revenue as the filter producer.

Where the filter is being used in a critical process, the true filter cost can easily be twice the filter purchase cost. Lost production and equipment maintenance can be very costly. For these applications it is important that the Solutions Provider thoroughly understand the process. This knowledge can be translated into margins above 50 percent and very high returns on capital.

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