1. Development status of filter manufacturing industry

1. Industry overview

A filter refers to an accessory that filters impurities or gases through filter paper or other materials. Generally refers to the car filter, which is an accessory of the engine. According to different filtering functions, it is divided into: oil filter, fuel filter (gasoline filter, diesel filter, oil-water separator, hydraulic filter), air filter, air conditioning filter, etc. The engine has three types of filters: air, oil, and fuel, generally called "three filters", plus an air conditioning filter, commonly known as four filters.

my country's filter industry has maintained a relatively fast growth rate. In 2020, affected by the new crown pneumonia epidemic, the growth rate of the industry will slow down. In 2021, the total industrial output value of my country's filter industry will be about 32 billion yuan, a year-on-year increase of 15%; sales revenue will be 31.5 billion yuan, a year-on-year increase of 16%. In 2022, the total industrial output value of my country's filter industry will reach 37 billion yuan, a year-on-year increase of 15.6%; the sales revenue will be 36.5 billion yuan, a year-on-year increase of 15.9%.

2. Industry characteristics

(1) The product structure is unreasonable

At present, there is a certain irrationality in the product structure of my country's filter manufacturing industry. On the one hand, the product range is not complete enough, and some high-end products still rely on imports, such as common rail system filters for diesel engines and air conditioning filters for automobiles. On the other hand, the product quality is not stable enough, and some products have quality defects, such as broken filter paper, poor sealing performance, and low filtration efficiency. These problems have affected the market competitiveness and development potential of my country's filter manufacturing industry.

(2) Continuous improvement of technical level

In recent years, with the continuous development of my country's filter manufacturing industry, the technical level has also been greatly improved. On the one hand, it is to introduce and digest foreign advanced technologies, such as adopting new filter paper materials, improving filter structure design, and improving filter performance parameters. On the other hand, it is to increase the intensity of independent innovation, such as developing new filter products, applying for patented technology, and participating in the formulation of industry standards. These measures are conducive to improving the technical level and core competitiveness of my country's filter manufacturing industry.

(3) Environmental protection requirements are getting higher and higher

With the development of my country's economy and society and the improvement of people's living standards, the awareness of environmental protection is becoming stronger and stronger. As an important part of the engine, the filter directly affects the emission performance and fuel economy of the engine. Therefore, the filter manufacturing industry is also facing higher and higher environmental protection requirements, such as reducing the resistance loss of the filter, improving the filtration efficiency of the filter, extending the service life of the filter, and reducing the waste of the filter wait. These requirements put forward a higher level of technology and management for the filter manufacturing industry.

2. Competitive landscape of filter manufacturing industry

1. International competitive landscape

At present, the international companies mainly engaged in filter manufacturing include MANN+HUMMEL GROUP, MAHLE GROUP, Cummins Filtration Systems, Donaldson Corporation, Sogefi Group, and Denso Corporation. These companies have strong competitive advantages in terms of technological innovation, product quality, and market share, and occupy the supporting market for high-end car filters in the world.

These multinational companies also have a relatively extensive investment layout in the Chinese market. Through the establishment of joint ventures or sole proprietorships, they produce and sell various filter products in China, forming fierce competition with domestic independent brand companies.

2. Domestic competition pattern

At present, in the domestic filter manufacturing industry, state-owned, private, joint venture, and wholly foreign-owned economic components coexist, most of which are small and medium-sized enterprises established by private investment. As of the end of 2022, there are about 600 companies engaged in the manufacture of internal combustion engine filters for automobiles and construction machinery nationwide, including about 250 companies above designated size.

From the perspective of domestic industry market share, self-owned brand enterprises have certain advantages, but multinational companies occupy an important market position and almost monopolize the matching market for high-end vehicle filters. In 2022, the supporting market of my country's own brand filters will account for about 65%, and the after-sales market will account for about 35%. However, multinational companies account for about 40% of my country's filter supporting market, and about 10% of the after-sales market.