Everything you wanted to know about Air Filter Sales in EuropeEverything you wanted to know about Air Filter Sales in Europe

Christine Thieringer

Share of World Filter Market

Total Market Size 2010: $ 1.8 Billion

AgendaAgenda

• The market partners • How they go to market• The products• The product mix• Focus on Manufacturing Processes and

Equipment

AgendaAgenda

• The market partners • How they go to market• The products• The product mix• Focus on Manufacturing Processes and

Equipment

Market Partners USAMarket Partners USA • Approx. 20 fabricators in 4 different markets: - commercial- wholesale- retail / residential - direct sales B2B

• 3 fabricators sell into all 4 segments.

• 2 companies sell only in retail or residential.

Characteristics of US FabricatorsCharacteristics of US Fabricators

• Only 1 Media manufacturer is fully vertically integrated: media – product – distribution

• Manufacturers of filter pockets and finished products to complete their offering:product – distribution

• Converters buying filter pockets / semi-finished rolls for building-up of products:converting – distribution

Market Partners Europe

Market Partners Europe

• More than 100 filter fabricators in Europe, Russia, Turkey.

• Eastern Europe:40 companies

• Western / Central Europe:40 companies

• Northern Europe:20 companies

• Southern Europe:10 companies

Market Partners Europe Market Partners Europe

Characteristics of European Fabricators

Characteristics of European Fabricators

• Media manufacturers are fully vertically integrated:media – product – distribution

• Manufacturers of filter pockets and finished products to complete their offering:product – distribution

• Converters buying filter pockets / semi-finished rolls for building-up of products: converting - distribution

AgendaAgenda

• The market partners

• How they go to market• The products• The product mix• Focus on Manufacturing Processes and

Equipment

Key Market Differences

• Europe: no residential filter market existing• Europe: filters are considered as a technical product• Europe: Wholesale distributors do not participate in

the market • Europe: maintenance /service companies serve

after-market directly:fabricator service company end customer

US Channels to Market

• Products are similar with different performance requirements.

• Some fabricators focus on one channel, others participate in all three.

European Channels to Market

• Primary channel is B2B

• 2nd channel are commercial / authorized distributors

• 3rd channel are maintenance companies

Questions about the US Market

• Have the Retail and Wholesale segments eroded the technical focus of air filtration in the US?

• Have these same segments led to the commoditization of the commercial market?

AgendaAgenda

• The market partners • How they go to market

• The products• The product mix• Focus on Manufacturing Processes and

Equipment

The ProductsThe ProductsMedia pads and rolls Panel filters

Pocket filtersCompact filters

Key Differences in the MarketsKey Differences in the Markets

• Europe: Pocket filter are number one seller • Europe: Pre-Filters are often pockets filters

instead of pleated panel filters (MERV 6 – 10)• Europe does not view the pleated filter as a

quality product • Europe: Filter rating and performance

reporting requirements have greatly influenced the market (EN 779)

• Europe: Synthetic vs Glassfiber 50 : 50

Fiberglass versus SyntheticFiberglass versus Synthetic

Comparing ClassificationsComparing Classifications

Pressure Drop vs. Dust FedPressure Drop vs. Dust Fed

MERV 14 products

• F5 and F6 become M5 and M6• Must state initial efficiency with average

efficiency and measure discharge efficiency using IPA soak.

• The minimum efficiency is defined as the lowest efficiency among the initial efficiency, the discharged efficiency and the lowest efficiency throughout the loading procedure of the test.

Changes to European Standard EN-779Changes to European Standard EN-779

• In the current European test standard the discharged efficiency has no impact on filter classification

….that will change!

Impact of EN-779 Changes on the European Filter Market

Impact of EN-779 Changes on the European Filter Market

AgendaAgenda

• The market partners • How they go to market• The products

• The product mix• Focus on Manufacturing Processes and

Equipment

Quantifying the DifferenceQuantifying the Difference

Pocket Filter is no. 1 sellerPocket Filter has by far lower market share

Source: Freedonia / McIlvaine

Market driven ChangesMarket driven Changes

• Europe: Pocket Filters dominate the high end market for HVAC Ashrae rated products

• Europe: 7% annual growth rate over the past 10 years for pocket filters

• Europe: Rapidly moving away from charged media.

AgendaAgenda

• The market partners • How they go to market• The products• The product mix

• Focus on Manufacturing Processes and Equipment

Market driven ChangesMarket driven Changes

• Europe: Pocket Filters dominate the high end market for HVAC Ashrae rated products

• Europe: 7% annual growth rate over the past 10 years for pocket filters

• Europe: Rapidly moving away from charged media.

AgendaAgenda

• The market partners • How they go to market• The products• The product mix

• Focus on Manufacturing Processes and Equipment

European Pocket Design - Welded Pocket -

European Pocket Design - Welded Pocket -

Top Spacer Design

European Pocket Design - Welded Pocket -

European Pocket Design - Welded Pocket -

Diamond Spacer Design

European Pocket Design - US Welding Equipment - European Pocket Design

- US Welding Equipment -

Diamond Spacer and Top Spacer DesignMachine Capacity 5 – 6 m/min

European Pocket Design - Stitched Pocket -

European Pocket Design - Stitched Pocket -

Tapered or constant stitch loosening for free programmablepocket shape (straight, tapered, radius)

European Pocket Design - Stitching Equipment -

European Pocket Design - Stitching Equipment -

Filter Pockets with tapered or straight stitch loosing and tapered or straigth or

free programmable outside contour machine speed up to 24 m/min

European Pocket Design - Stitching Equipment -

European Pocket Design - Stitching Equipment -

Automatic Double Bottom Seam Station with Stacker

ConclusionsConclusions

• Europe: Pocket Filter Applications range from 35 to 95 % efficiency including pre-filtering

• Europe: Pleated filters are not considered a high quality product

• Europe: Pockets Filters have grown over the last decade leading to product design and performance improvements

• Europe: Requirement for enhanced manufacturing technologies and higher automation