Filtering in Datatables

Currently, we are having issues with filters on our datagrids and the space they take in the screen.

I think the way they are used right now they take a lot of space that's not needed.

I would personally do something else.

I've got multiple options to go on this matter.

1: Filters in datagrid.

2: Show the most used options and hide the others till needed.

Which one should I use and for what reasons?

EDIT

Option 1 is where the filters are placed below the table headers inside the datagrid to save space.