Diesel Exhaust Fluid Market

Global Diesel Exhaust Fluid Market Size (2024 to 2032)

The global diesel exhaust fluid market was valued at USD 36.40 billion in 2023 and is anticipated to reach USD 38.99 billion in 2024 from USD 67.48 billion by 2032, growing at a CAGR of 7.10% from 2024 to 2032.

Market Overview

Diesel Exhaust Fluid (DEF) is a fluid used to reduce air pollution caused by a diesel engine. To meet the stringent NOx emission standards for commercial truck and off-road engines, most engine manufacturers have installed Selective Catalytic Reduction (SCR) technology built into diesel vehicles, which requires the operation of DEF.

Diesel Exhaust Fluid is an anti-pollution agent that limits and reduces harmful emissions of nitrogen oxides (NOx) from a diesel internal combustion engine. The fluid is composed of two chemicals combined in fixed volumetric ratios, namely 67.5% demineralized water and 32.5% high-quality urea to form an aqueous solution. Diesel exhaust fluid is standardized as an aqueous solution of urea or AUS32 by the International Organization for Standardization 22241 (ISO). This consumable fluid is used in conjunction with Selective Catalytic Reduction or SCR technology used in diesel vehicles to reduce harmful pollutants emitted from exhausts. Diesel Exhaust Fluid has several trademark registrations by different makers and associations, such as AdBlue, given by the German Association of the Automotive Industry.

Market Drivers

The main factors driving the global diesel exhaust fluids market growth are the increasing use of selective catalyst reduction technology, strict government regulations, and increased vehicle production. The governments of different countries have imposed various rules and regulations to encourage the use of this fluid, which is acting as an engine of market growth. For instance, the American Petroleum Institute started a Diesel Exhaust Fluid Certification Program, intended to ensure and screen the attributes of diesel exhaust liquid in engine vehicles and diesel motors.

Market Restraints

Fluctuations in the prices of urea and diesel and the increasing penetration of electric vehicles are the main limitations identified in the market for diesel exhaust fluids. The penetration and adoption of electric vehicles are increasing at a rapid rate in developed countries such as Germany, Norway, and others, which is holding back the demand for liquid in the market.

Impact of COVID-19 on the Diesel Exhaust Fluid Market

The worldwide pandemic brought about by the novel coronavirus infection comes at a time when both the global economy and the automotive business were seeking recuperation. The automotive industry has witnessed a huge hit with the temporary closure of manufacturing units and sales channels, along with the disruption in the supply chain as a part of strict lockdown conditions around the world. This detrimental effect on the automobile sector has a direct impact on the diesel exhaust fluid market, resulting in declined revenue. However, the market is estimated to progress in the coming years with the rising demand for private transport to avoid contact with COVID-19.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Diesel Exhaust Fluid Market By Application

Commercial vehicles have the largest market share due to the increase in commercial vehicle activities. The Diesel Exhaust Fluids segment is supposed to post a CAGR of more than 8.0% during the outlook period. Diesel exhaust fluid (DEF) can be pivotal in restricting air pollution caused by diesel engines.

REGIONAL ANALYSIS

The North American market accounted for a substantial portion of the worldwide diesel exhaust fluid business in 2018 and is likely to garner a healthy CAGR of around 8.0% over the estimated period. Europe is the main contributor to the diesel exhaust fluids market, which is likely to post strong growth over the conjecture period. As per the European Association of Automobile Manufacturers, more than 60% of passenger cars run on diesel on European roads. This is attributed to growing consumer demand for better fuel efficiency, which has encouraged car buyers to invest in diesel-powered vehicles, resulting in market growth due to augmenting demand. Additionally, with regulatory pressure to improve air quality, manufacturers are also working to improve the quality of vehicle emissions. However, the Asia Pacific market for DEF is projected to develop with the highest CAGR of about 9.0%, which is credited to the robust demand for the product that is growing rapidly in the automotive industry in this regional market. The Asia Pacific market had a noteworthy share of over 35% in 2018 and is supposed to show a healthy CAGR over the envisioned period. This is primarily attributed to the increasing stringency of vehicle emissions regulations by local governments in major economies, namely China, India, and Indonesia. Additionally, the strong growth of the automotive industry in this region is anticipated to fuel demand for various emission control technologies to meet global and national emission standards.

KEY MARKET PLAYERS

BASF SE (Germany), Yara (Norway), Mitsui Chemicals Inc (Japan), BP p.l.c (UK), Viscol. co.za (Republic of South Africa), Engen Petroleum Ltd (South Africa), Borealis AG (Austria), Nissan Chemical Corporation (Japan), GreenChem (Netherlands), NOVAX Material & Technology Inc (China), Royal Dutch Shell PLC (The Netherlands), Adeco doo (Siberia). Some of the market players dominate the global diesel exhaust fluid market.

RECENT HAPPENINGS IN THE GLOBAL DIESEL EXHAUST FLUID MARKET

• Yara International introduced the world's biggest DEF (Diesel Exhaust Fluid) plant in Brunsbüttel, Germany, under the AdBlue brand. DEF is a liquid used to eliminate unsafe NOx emanations from diesel motors and Yara is the world's biggest maker of DEF.
• With the advent of the Bharat Stage 6 (BS6) standards, the automotive industry in India is gradually shifting to international industry standards, with an emphasis on cleaner vehicles and stricter emissions standards. The new BS6 regulations are anticipated to curb NOx emissions by up to 70%, including hydrocarbon and particulate emissions.

DETAILED SEGMENTATION OF THE GLOBAL DIESEL EXHAUST FLUID MARKET INCLUDED IN THIS REPORT

This research report on the global automotive safety technology market is segmented and sub-segmented based on Application And Region.

By Application

• Automotive
  • Passenger cars
  • Light Commercial vehicles
  • Heavy Commercial vehicles
  • Special purpose vehicles
• Non-Automotive

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa