Consumer Water Purification & Air Cleaning Systems

• Publication date: March 2011

US demand to rise 4.8% annually through 2014 Demand for consumer water purification and air cleaning systems in the US is expected to increase 4.8 percent annually to $1.7 billion in 2014. Growth will be stimulated by a projected recovery in residential construction spending and personal consumption expenditures. Gains will also be spurred by heightened consumer demand for products that improve one’s health and well-being, compou...

US demand to rise 4.8% annually through 2014

Demand for consumer water purification and air cleaning systems in the US is expected to increase 4.8 percent annually to $1.7 billion in 2014. Growth will be stimulated by a projected recovery in residential construction spending and personal consumption expenditures. Gains will also be spurred by heightened consumer demand for products that improve one’s health and well-being, compounded by a growing awareness of contaminants in air and water and their potential negative health effects. The development of more advanced systems, and the incorporation of features that make the systems easier to use, will also contribute to value gains. Aftermarket sales of replacement filters and membranes are forecast to increase 4.4 percent per year to $2.4 billion in 2014. Sales of these replacement components will be driven by increasing system penetration rates and will be further enhanced by the increasingly common incorporation of performance indicators that notify users when a filter or membrane needs to be replaced.

Electrostatic systems to pace air cleaning segment

Air cleaning systems that use conventional filtration technology made up 47 percent of value of air cleaning demand in 2009. Systems using this technology are popular among consumers because of their low purchase price and their ability to significantly reduce the level of common allergens in indoor air. Through 2014, sales of electrostatic air cleaning systems are expected to post the fastest annual growth rate, benefitting from their ability to clean the air more thoroughly and with lower operating costs than many competitive air cleaners.

Reverse osmosis, distillation systems to be fastest growing water purifiers

In value terms, conventional filtration media-based water purification systems made up the largest share of water system demand in 2009, with 76 percent. However, reverse osmosis and distillation systems will experience faster growth through 2014, although from much smaller bases, as consumers increasingly prefer more thorough purification capabilities. In general, sales of water purification systems will be driven by the significant media coverage of contaminants in drinking water. Additionally, consumers continue to turn to water purification systems as a lower-cost and more environmentally conscious alternative to bottled water.

Point-of-use water purification systems to expand dominant position

Sales of whole-house air cleaning systems declined in volume terms between 2004 and 2009 due to a contraction in residential building construction spending. Through 2014, volume sales are expected to improve, slightly outpacing portable air cleaning systems. Volume sales of point-of-entry water purification systems were similarly hampered in the previous five-year period. However, point-of-use systems are projected to achieve faster growth through 2014.

Study coverage

Details on these and other key findings are available in a new industry study, which presents historical demand data (1999, 2004 and 2009) plus forecasts for 2014 and 2019 by material, product, market, application and US region. The study also considers market environment factors, evaluates company market shares and profiles 31 industry competitors such as Clorox, Culligan International, General Electric, Procter & Gamble, 3M and Whirlpool.

Global Water Distribution And Treatment Industry

TABLE OF CONTENTS

INTRODUCTION ix

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Trends 4
Consumer Spending Trends 8
Demographic Trends 10
Residential Building Construction 13
Housing Completions 15
Housing Stock 19
Improvements & Repairs 22
Pricing Trends 23
Environmental & Regulatory Considerations 26
Water 27
Air 31
World Outlook 33
North America 34
Western Europe 35
Asia/Pacific 35
Other Regions 37

III. TECHNOLOGIES 38

General 38
Water 40
Conventional Filtration 46
Adsorptive 48
Mechanical 51
Reverse Osmosis 52
Technology 55
Configurations 57
Distillation 58
Technology 60
Configurations 61
Other Technologies 62
Ultraviolet Disinfection 64
Ozone Treatment 67
All Other 68
Air 69
Conventional Filtration 75
Electrostatic 78
Ionization 81
Other Technologies 83
Ultraviolet Treatment 84
Ozone Treatment 85

IV. PRODUCTS 87

General 87
Water Purification Systems 89
Point-of-Entry 94
Systems 97
Suppliers 98
Point-of-Use 99
Under-the-Sink Units 105
Systems 107
Suppliers 108
Counter-Top Units 109
Systems 112
Suppliers 113
Faucet-Mounted Units 114
Systems 116
Suppliers 117
Flow-Through Units 117
Systems 119
Suppliers 121
Others 121
Systems 123
Suppliers 124
Market Share 126
By Volume 126
By Value 129
Air Cleaning Systems 130
Whole-House Systems 133
Systems 136
Suppliers 137
Portable Systems 138
Systems 140
Suppliers 142
Market Share 143
Aftermarket Filters & Membranes 145
Replacement Water Filters 148
Replacement Air Filters 151
Replacement Membranes 154

V. REGIONAL MARKETS 157

General 157
Regional Demographic & Economic Trends 157
Population Patterns 158
Economic Outlook 160
Construction Activity 161
Housing Trends 163
Regional Demand for Purification Systems 165
Northeast 169
New England 172
Middle Atlantic 173
Midwest 174
East North Central 177
West North Central 178
South 179
South Atlantic 182
East South Central 184
West South Central 186
West 187
Mountain 190
Pacific 192

VI. INDUSTRY STRUCTURE 194

General 194
Industry Composition 195
Market Share 198
Systems 199
Replacement Parts 201
Competitive Strategies 204
Research & Development 206
Marketing 208
Distribution 212
Acquisitions & Divestitures 213
Cooperative Agreements 215
Company Profiles 218
Aquion Water Treatment Products LLC 219
Austin Air Systems Limited 222
Axel Johnson Incorporated 224
Berkshire Hathaway Incorporated 226
Blueair AB 228
Brita Products, see Clorox
Carrier, see United Technologies
CLARCOR Incorporated 231
ClearWater Tech, see Aquion Water Treatment Products
Clorox Company 234
Culligan International Company 236
EcoWater Systems, see Berkshire Hathaway
Essick Air Products Incorporated 238
Flanders Corporation 239
General Electric Company 241
Hamilton Beach Brands, see NACCO Industries
Helen of Troy Limited 247
Honeywell International Incorporated 249
Hunter Fan Company 252
Hydrotech, see Veolia Environnement
Incen AG 254
Ingersoll-Rand plc 256
IQAir North America, see Incen
ITT Corporation 258
Jarden Corporation 260
Kaz, see Helen of Troy
Kinetico, see Axel Johnson
LG Electronics Incorporated 262
Marmon Holdings, see Berkshire Hathaway
NACCO Industries Incorporated 264
Panasonic Corporation 266
Pentair Incorporated 268
Polar Bear Water Group 1978 Limited 272
Procter & Gamble Company 274
PUR Water Purification Products, see Procter & Gamble
RainSoft, see Aquion Water Treatment Products
Regal Ware Incorporated 276
Research Products Corporation 277
SANYO Electric, see Panasonic
StrionAir, see United Technologies
3M Company 279
Tomkins plc 282
Trane, see Ingersoll-Rand
Trion, see Tomkins
United Technologies Corporation 284
Veolia Environnement SA 287
Whirlpool Corporation 289
Additional Companies 291

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Personal Consumption Expenditures 10
3 Population & Households 13
4 Residential Building Construction Expenditures 15
5 Housing Completions 19
6 Housing Stock by Type 21
7 Residential Improvement & Repair Expenditures 23
8 Pricing in Consumer Water Purification & Air Cleaning
Systems 26

SECTION III -- TECHNOLOGIES

1 Consumer Water Purification & Air Cleaning System Demand 40
2 Consumer Water Purification System Demand by Technology 44
3 Conventional Water Filtration System Demand 48
4 Reverse Osmosis Water Purification System Demand 55
5 Distillation Water Purification System Demand 60
6 Other Water Purification System Demand 64
7 Consumer Air Cleaning System Demand by Technology 73
8 Conventional Air Filtration Cleaning System Demand 78
9 Electrostatic Air Cleaning System Demand 81
10 Ionization Air Cleaning System Demand 83
11 Other Air Cleaning System Demand 84

SECTION IV -- PRODUCTS

1 Consumer Water Purification & Air Cleaning System &
Replacement Part Demand 89
2 Consumer Water Purification System Demand by Type 94
3 Point-of-Entry Water Purification System Demand 97
4 Point-of-Use Water Purification System Demand 103
5 Under-the-Sink Water Purification System Demand 107
6 Counter-Top Water Purification System Demand 112
7 Faucet-Mounted Water Purification System Demand 116
8 Flow-Through Water Purification System Demand 119
9 Other Point-of-Use Water Purification System Demand 123
10 Consumer Air Cleaning System Demand by Type 133
11 Whole-House Air Cleaning System Demand 136
12 Portable Air Cleaning System Demand 140
13 Demand for Replacement Filters & Membranes for Consumer
Water Purification & Air Cleaning Systems 148
14 Replacement Water Filter Demand 151
15 Replacement Air Filter Demand 153
16 Replacement Membrane Demand 156

SECTION V -- REGIONAL MARKETS

1 Population by Region 159
2 Gross Domestic Product by Region 161
3 Construction Expenditures by Region 163
4 Regional Housing Indicators 165
5 Consumer Water Purification & Air Cleaning System Demand
by Region & Type 168
6 Northeast Water Purification & Air Cleaning System Demand 171
7 Midwest Water Purification & Air Cleaning System Demand 177
8 South Water Purification & Air Cleaning System Demand 182
9 West Water Purification & Air Cleaning System Demand 190

SECTION VI -- INDUSTRY STRUCTURE

1 Consumer Water Purification & Air Cleaning System Sales
by Company, 2009 197
2 Selected Acquisitions & Divestitures 215
3 Selected Cooperative Agreements 217

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Year of Construction of Housing Stock, 2009 22
2 World Consumer Water Purification & Air Cleaning System
Demand by Region, 2009 34

SECTION III -- TECHNOLOGIES

1 Consumer Water Purification System Demand: Volume Versus
Value, 2009 45
2 Air Cleaning System Demand: Volume Versus Value, 2009 74

SECTION IV -- PRODUCTS

1 Point-of-Use Water Purification System Demand: Volume
Versus Value, 2009 104
2 Consumer Water Purification System Market Share
by Volume, 2009 128
3 Consumer Water Purification System Market Share
by Value, 2009 130
4 Consumer Air Cleaning System Market Share, 2009 143

SECTION V -- REGIONAL MARKETS

1 Regional Demand for Consumer Water Purification
& Air Cleaning Systems, 2009 169

SECTION VI -- INDUSTRY STRUCTURE

1 Consumer Water Purification & Air Cleaning System
& Replacement Part Market Share, 2009 199
2 Consumer Water Purification & Air Cleaning System
Market Share, 2009 201
3 Consumer Water Purification & Air Cleaning Systems’
Replacement Parts Market Share, 2009 203