by Diesel exhaust fluid (DEF), also known as aqueous urea solution, is a non-toxic liquid additive used in selective catalytic reduction (SCR) systems to reduce nitrogen oxide (NOx) emissions from diesel engines. DEF has several advantages over other alternatives as it effectively breaks down nitric oxide and nitric dioxide emissions from diesel engines into elements like nitrogen and water vapor when injected into the exhaust stream. The global Diesel Exhaust Fluid Market is estimated to be valued at US$ 11.60 Bn in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing stringent emission norms enforced by governments across the globe has emerged as a key growth driver for the diesel exhaust fluid market. Stringent emission standards such as Euro 6, BS 6 and China 6 have made the use of urea-based SCR technology mandatory for diesel engines. Non-compliance with emission norms results in heavy penalties on auto manufacturers. This has compelled auto makers to adopt advanced emission control technologies such as DEF which break down NOx into less harmful gases. As regulations get more stringent over the coming years, demand for DEF is expected to increase significantly. Governments are promoting the use of cleaner diesel technologies to curb air pollution which will also support market growth over the forecast period.
SWOT Analysis
Strength: Diesel exhaust fluid market has strong demand from automotive industry as it helps in reducing emission from diesel vehicles. It also helps in meeting stringent emission standards.
Weakness: Higher costs associated with maintaining diesel exhaust fluid supply and infrastructure can restraint market growth. Regular replenishing is also required.
Opportunity: Stringent emission norms worldwide and ban on old diesel vehicles in many regions presents growth opportunities. Expanding vehicle parc also supports demand.
Threats: Developments in emission control technologies can threaten diesel exhaust fluid demand. Adoption of alternative fuel vehicles is also a threat.
Key Takeaways
The global diesel exhaust fluid market is expected to witness high growth. The market is forecast to reach a value of US$ 11.60 Mn by 2024 from US$ 6.44 Mn in 2018, registering a CAGR of 7.6% during the forecast period.
Regional analysis: North America dominates the global market currently due to strict emission norms in the US and Canada. Many states and provinces have implemented diesel emission standards mandating use of diesel exhaust fluid. The region is expected to continue its dominance with over 40% share through 2030 supported by steady growth in vehicle fleet. Asia Pacific is envisioned to emerge as the fastest growing regional market owing to rising vehicle ownership and government focus on curbing pollution. Countries like China and India will drive much of the gains in the region.
Key players: Key players operating in the diesel exhaust fluid market are Yara International, BASF SE, CF Industries Holdings Inc., Agrium Inc., Cummins Inc., Shell ROTELLA (Royal Dutch Shell Inc.), Mitsui Chemicals Inc. and KOST USA. The market remains consolidated with top players accounting for majority share. Players are focused on capacity expansions and partnerships with OEMs and distributors to strengthen distribution channel and market presence.
