Macroeconomic and industry conditions: A year of adjustment

In 2025, global economic growth stabilized at a moderate level, while the economic policy environment shifted considerably as protectionist tendencies intensified and trade relationships were reordered. Global GDP growth is estimated at approximately 3.2% on a purchasing power parity basis^1,2. Regional growth rates, however, varied considerably.

Declining inflation worldwide³ allowed the major central banks — the Fed⁴ and the ECB⁵ — to continue the rate-cutting cycle they had begun in 2024. This eased investment conditions, although restrictive fiscal policy in many countries, driven by the rollback of debt brake exemptions and subsidy programs, had a dampening effect.

The Eurozone posted slightly improved but still below-average growth of around 1.3%⁶. German industry in particular struggled with high energy costs and transformation pressure — a marginal growth rate of 0.3% narrowly avoided a prolonged recession. Positive momentum came primarily from Southern European countries and the services sector, while political uncertainty in core countries weighed on investment appetite.

The U.S. economy once again demonstrated above-average momentum, achieving GDP growth of approximately 2%. While private consumption remained stable, announcements of new trade tariffs and a realignment of industrial policy ("America First 2.0") created market volatility toward year-end — though they provided a short-term boost to domestic production.

Despite government stimulus packages, growth in China cooled to approximately 5%. The real estate market crisis was stabilized only with considerable difficulty. Growing Western export restrictions in the high-tech sector and weak domestic demand weighed further on the world's second-largest economy.⁷

Africa posted growth of an estimated 3.7%, slightly above the global average.⁸

India remained the global frontrunner among major economies, growing at approximately 6.7%, driven by massive infrastructure investment and an expanding middle class.

Global trade continued to be shaped by increasing fragmentation into regional trading blocs. Industrial production stabilized, with a clear focus emerging on green technologies and AI hardware. Commodity prices showed a split picture in 2025: energy prices (oil and gas) remained moderate despite geopolitical tensions in the Middle East, supported by higher supply, while industrial metal prices (copper, lithium) rose again in the second half of the year on the back of global electrification efforts.⁹

Looking back, 2025 was a year of adjustment for the global economy. Global GDP growth came in at a moderate ~3.2%. The interest rate pivot prevented the deep recession many had feared, but rising protectionism and the geopolitical rivalry between the U.S. and China continue to pose lasting challenges for global supply chains.

The global passenger car market posted modest growth in 2025, driven by pent-up demand, stable consumer sentiment in the U.S., and persistently strong demand in China and India. Despite geopolitical uncertainties and slowing economic growth, electric mobility and digitalization remained the primary forces shaping the automotive market. Globally, electrified vehicles (BEV + PHEV) accounted for approximately 25% of new registrations, with an upward trend.¹

• Europe (EU, EFTA, UK): New passenger car registrations reached just under 13.3 million units (+2% vs. 2024). Germany +1%, France -5%, Italy -2%, Spain +13%, United Kingdom +3%. Eastern Europe outperformed with +7%.²
• USA: Light vehicle registrations rose +2.4% to 16.2 million units,³ supported by declining inflation and stable real wages. Brazil (+1.6%) and Mexico (+2%)⁴ posted comparable growth.
• China: Growth of +4% to 23.9 million passenger cars, driven by strong EV sales (+16%), supported by extended purchase incentives. Chinese production volumes rose to a record 29.9 million vehicles (+10% vs. 2024).⁵

2025 proved significantly more challenging for the European commercial vehicle market (EU, EFTA & UK) than the prior year. The light commercial vehicle market saw new registrations decline by 9%, with the four largest markets — the United Kingdom (-11%), France (-6%), Germany (-5%), and Italy (-5%) — all contributing to the downturn. Spain was the notable exception, posting growth of 12%.¹

The heavy truck market also contracted: new registrations for trucks over 16 tons fell 6% to 298,000 units. Medium-duty commercial vehicles (3.5 to 16 tons), by contrast, held steady (+1% to 73,494 units). The German market for heavy commercial vehicles over 16 tons was 12% weaker than the prior year² — a level comparable to the pandemic year of 2020.

On the European side, however, a countering trend emerged in electric mobility: plug-in capable vans reached a market share of 11.2% (prior year: 6.1%), while plug-in capable trucks over 3.5 tons reached 4.2% (prior year: 2.3%). The Netherlands, Germany, and France were the primary drivers of this development, together accounting for roughly two-thirds of the EU market for electric trucks.³

In the U.S., commercial vehicles (over 16 tons) declined 13% year over year. In Brazil, the commercial vehicle market shrank by 11%, while China posted a strong gain of 27% in heavy commercial vehicles. India grew +8% to 357,740 vehicles (over 6 tons).⁴

Air purification markets remained segmented but continued to grow in overall volume. The global market is estimated at $18.1 billion for 2025, with analysts forecasting a compound annual growth rate (CAGR) of 6.4% through 2033¹.

During the reporting year, ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) published an updated standard for commercial and residential buildings. ANSI/ASHRAE 62.1-2025 redefines the standard for ventilation and acceptable indoor air quality in commercial buildings. It refines and expands requirements for humidity control, introduces new requirements for emergency ventilation controls, and provides new calculation methods.²

China's economy remained stable in 2025 with growth of 5%.³ Investment in "megaprojects" by display manufacturers — whose cleanrooms frequently use air filtration solutions — slowed as technology advances reduced the need for additional capacity and production facilities in that segment.⁴ At the same time, trade conflicts drove production expansion in segments such as electric vehicles, semiconductors, batteries, and solar energy, resulting in global overcapacity and intensifying competition.

The four strategic themes shaping this market — climate resilience, contaminant control, sustainable water use, and equitable water access — gained further prominence in 2025.

Global investment in water and wastewater management continues to grow. The total water and wastewater treatment market is estimated at approximately $372 billion for 2025 and is projected to reach nearly $714 billion by 2034, representing an annual growth rate of 7.5%.¹ The OECD and World Bank put global investment needs through 2030 at $6.7 trillion, a figure that could rise to as much as $22 trillion by 2050.²

A central regulatory topic during the reporting year was PFAS, the so-called "forever chemicals." In May 2025, the U.S. Environmental Protection Agency (EPA) pushed back the implementation deadlines for national PFAS drinking water limits for PFOS and PFOA by two years to 2031. Other U.S. regulatory measures restricting PFAS use, however, remain in effect.³

In the membrane market, growth momentum has continued to consolidate. The global membrane filtration market is estimated at $19.2 billion for 2025, with a projected CAGR of 6.7% through 2035.⁴ Reverse osmosis (RO/high-pressure) accounts for approximately 32 to 33% of market volume, while micro- and ultrafiltration (MF/UF/low-pressure) together represent around 45%. The specific market for water treatment membranes reached $9.7 billion in 2025 and is projected to exceed $20.6 billion by 2034, corresponding to a CAGR of 8.75%.⁵ The Middle East and Africa region continues to be among the fastest-growing markets for membranes, driven by seawater desalination and government water infrastructure programs.⁶