by The Diesel Exhaust Fluid Market is estimated to be valued at US$ 13.45 Mn 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 Overview:
Diesel exhaust fluid or DEF is a liquid reducing agent used in combination with selective catalytic reduction (SCR) technology for reducing emissions of nitrogen oxides (NOx) from diesel engines. DEF contains urea which breaks down into ammonia and reacts with NOx in a specialized SCR catalyst. When sprayed into the exhaust stream of vehicles equipped with SCR systems, the ammonia converts NOx into harmless nitrogen and water vapor. Major end uses of DEF include automotive, agriculture, construction and mining.
Market Dynamics:
One of the key drivers for the Diesel Exhaust Fluid Market is stringent emission regulations for diesel commercial vehicles. Emission standards have been getting stricter across regions to curb air pollution. For instance, European countries follow Euro emission standards which have progressed from Euro 1 to Euro 6 over the years, mandating lower NOx and particulate matter emissions. The US EPA also requires On-Road heavy-duty diesel engines manufactured on or after January 1, 2010 to meet the US 2010 emissions standard. Compliance with these norms necessitates the deployment of SCR systems which utilize DEF. Another driver is the rising sales of diesel commercial vehicles equipped with SCR technology. Expanding international trade and growing construction and mining industries are fueling the demand for diesel trucks, buses, construction equipment and agricultural machinery globally which in turn supports DEF consumption.
Segment Analysis
The diesel exhaust fluid market is segmented into automotive OEM and aftermarket. The automotive OEM segment dominates the market and accounts for nearly 70% share due to the stringent emission norms that mandate the usage of SCR technology in automobiles. All heavy commercial vehicles and some passenger cars are fitted with SCR systems at the time of vehicle manufacture.
PEST Analysis
Political: Stringent emission norms by regulatory bodies like EPA in North America have increased the adoption of SCR systems in automobiles, thereby boosting the demand for DEF.
Economic: Growing transportation industry along with rising vehicle ownership in developing nations is positively impacting the diesel exhaust fluid market.
Social: Increasing public awareness regarding vehicular emissions and smog has led automakers to adopt green technologies like SCR.
Technological: Advanced SCR systems using DEF are able to reduce NOx emissions significantly. Automakers are focusing on optimizing these systems for better performance.
Key Takeaways
The Global Diesel Exhaust Fluid Market Size is expected to witness high growth, exhibiting CAGR of 7.6% over the forecast period, due to increasing need for emission control systems in automobiles. The market size for DEF is projected to reach US$ 23.03 Bn by 2030 from US$ 13.45 Mn in 2023.
Regional analysis
Asia Pacific accounts for around 40% share of the global DEF market and is recognized as the fastest growing as well as the most lucrative region. Stringent emission norms by countries like China and India to curb rising pollution is driving the adoption of SCR systems in commercial vehicles.
Key players operating in the diesel exhaust fluid market include Yara International, BASF SE, CF Industries Holdings Inc., Agrium Inc., Cummins Inc., Shell ROTELLA (Royal Dutch Shell Inc.), Mitsui Chemicals Inc. and KOST USA. These players are focusing on capacity expansion and new product launches to consolidate their position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
