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Rising Disposable Income, Improving Lifestyle, and Worsening Air Pollution Driving Market Growth
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Heightened awareness of the importance of indoor air quality and growing concerns on the impact of impure air quality on general well-being of people have raised demand for air purifiers in the last few years. Growing affordability, rising hygiene concerns, aspiration to lead a healthy lifestyle, and rapid decline in prices of air purifiers will further boost the growth of the market. Indoor environments, such as residential homes, small-sized commercial/industrial units and automobiles are the key areas for usage and installation of air purifier. High installation, maintenance, and filter replacement cost have made air purifiers perceive as a luxury item, prohibiting mass reach of the product in the price-sensitive Indian markets. The air purifier market is highly fragmented due to multiple new entrants and new business models. In future, consolidation will organize the market. Philips, Sharp, Eureka Forbes, Daikin, Panasonic, and Blueair are the key companies, with many new participants entering the market each year. Keeping costs competitive will be crucial for suppliers to expand their market potential and increase product adoption. Technology offerings, product pricing, and after-sales service will be the key differentiators for the participants in the future. Localization is in the cards as companies seek better control of the supply chain to manage product cost and, thereby, increase sales. The market is flooded with low, mid- to superior-quality products offering varied technologies in the prices ranging from $40 to $1,500 per unit. The price decline is expected to be steeper in the coming years as technology development in air purifiers continues to be a focus area for suppliers. Among the air purifying technologies currently available, HEPA-based air purifiers occupy more than 95% of the total air purifier sales. Lack of standards regarding filtration process has further complicated the market as low-quality products may erode consumer confidence in the technology before the market may properly evolve. Retail stores are the major channel for sales of air purifiers currently; although sales through eCommerce platform are limited, consumers are still increasingly visiting online sites to enquire and compare prices and features of air purifier brands before making the decision. Growth in sales of air purifiers is inevitable as an increasing number of households enter the affordable income category and seek better living conditions. As deteriorating air quality increasingly becomes a major concern to health, technologies that can filter multiple pollutants and are intelligent and cost-effective will gain traction across end-user segments.
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