Diesel Exhaust Fluid Market Size, Competitive Landscape and Market Forecast - 2029

SKU: DM1835 | Last Updated On: Jun 15 2022 | Available Formats

> Global Diesel Exhaust Fluid Market Expected to reach at a high CAGR of 10.3% by 2029: DataM Intelligence

Global Diesel Exhaust Fluid Market is segmented By Storage Solution (Portable Containers, Dispensers, Bulk Storage Tanks), By End User (Aftermarket, OEM), By Vehicle Type (Passenger Vehicle, Commercial Vehicle(Light and medium Vehicles, Heavy-duty vehicles), Others (Construction, Agriculture)), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

 

Market Overview

The Global "Diesel Exhaust Fluid Market" is expected to grow at a high CAGR of 10.3% during the forecasting period (2022-2029).

Diesel Exhaust Fluid (DEF) is a consumable in selective catalytic reduction (SCR) that lowers NOx concentration in diesel exhaust emissions from diesel engines. It is a precisely joint solution of 67.5% de-ionized water and 32.5% high purity chemical grade urea. SCR is the leading technology used to meet 2010 emission regulations using a urea-based DEF and a catalytic converter to reduce nitrogen oxides (NOx) emissions significantly.

Many countries worldwide, especially those who use diesel vehicles heavily, have begun to adopt Euro 6 standards since September 2015, and all mass-produced vehicles are required to comply with these standards. SCR technology has been installed in all diesel vehicles by default to meet Euro 6 emission legislation, necessitating diesel exhaust fluids such as ENOCBlue.

The latest U.S. and European standards (US 2010 and Euro VI) require strict control of NOX, PM, CO, and HCs. The distinct test cycles used for each program are reasonably representative of real-world conditions.

Market Dynamics

Stringent emission regulations, rise in the usage of SCR technology, and increasing vehicles worldwide are the major drivers for globally growing the market. Increasing stringency of vehicular emissions, particularly in the USA, European countries and the Asia Pacific countries, are accountable for the rise in diesel vehicles with SCR and acts as a key driver for increasing diesel exhaust fuel consumption. In terms of emission limits and regulations, particularly the U.S. and Europe are considered the strictest in the world. For instance, in most countries in Europe, the NOx emission level was set at 5.0 g/kWh as per Euro III norm and later reduced to between 90 to 94% to reach 0.4 g/kWh under Euro VI norms.

Increasing the sales of battery electric vehicles is a major restraint hampering market growth worldwide. Electric vehicles run with purely electric power, and the requirement for diesel exhaust fluid is completely discarded.

Market Segmentation

The diesel exhaust fluid market is classified into passenger vehicles, commercial vehicles, and others by vehicle type. A commercial vehicle is further divided into light and medium commercial vehicles and heavy-duty commercial vehicles. The diesel exhaust fluid market by vehicle type was worth USD XX million in 2018 and is estimated to reach USD XX million by 2026, at a CAGR of XX% during the forecast period. The passenger vehicle segment is expected to grow with a high CAGR in the forecast period.

The passenger vehicle segment has been releasing higher NOx emissions when paralleled with commercial vehicle segments like HCV and LCV. But still, the NOx emissions for passenger vehicles have been declined to a low level due to the stringent emission standards across the globe. For example, Nations like India have implemented BS V & BS-VI to control emissions. Most of the economies in the world have made exhaust after treatment mandatory to decrease the levels of NOx emissions. On the other hand, more than 90% of heavy commercial vehicles are fortified with SCR before entering the market.

By the end-user, the diesel exhaust fluid market is classified into aftersales and OEM. The diesel exhaust fluid market by end-user was worth USD XX million in 2018 and is estimated to reach USD XX million by 2026, at a CAGR of XX% during the forecast period. Aftersales are expected to grow with a high CAGR in the forecast period. The replacement cycle of DEF and the increasing average lifespan of the vehicle are the key factors impacting the aftermarket segment. There is a regular necessity for diesel exhaust fluid refill and replacement for vehicles that drives the aftermarket segment worldwide. Diesel exhaust fluid has a massive demand in the aftermarket. For instance, An SUV requires 0.4 gallons of DEF per 620 miles and a medium passenger vehicle requires 0.26 gallons of DEF per 620 miles.

The diesel exhaust fluid market is segmented into portable containers, dispensers, and bulk storage tankers by storage solution.

Geographical Analysis

The North American diesel exhaust fluid market was worth USD XX million in 2018 and is estimated to reach USD XX million by 2026, at a CAGR of XX% during the forecast period. North America is dominating the global Diesel Exhaust Fluid market in 2018 and is estimated to hold the largest market size over the forecast period. Strict emission regulations and the huge availability of DEFs are the major factors for market growth. For instance, most diesel truck and tractor manufacturers are using SCR to meet the latest emission standards. DEF is already available at more than 550 Ryder service locations in the United States. Furthermore, the rice in selective catalytic reduction technology is expected to drive the market in the forecast period. The U.S. occupies a major share of the production of urea. The increase in the production of urea in the U.S. is expected to drive the diesel exhaust fluid market in the future.

The Europe diesel exhaust fluid market was worth USD XX million in 2018 and is estimated to reach USD XX million by 2026, at a CAGR of XX% during the forecast period. Europe is expected to be the one among the regions to hold a major share in the forecast period. Strict government regulations in controlling emissions and increasing the number of vehicles are the major driving factors impacting the market growth in this region. Most of the economies in the European region follow strict regulations. For instance, The Euro 6 standard was introduced in 2015, and all mass-produced cars sold from this date need to meet these emissions requirements, which are to be followed in all the European countries for the mandate. Adding to this, SCR technology has been installed in all diesel vehicles by default to meet Euro 6 emission legislation, necessitating diesel exhaust fluids such as ENOCBlue.

Competitive Analysis:

The Diesel Exhaust Fluid market is moderately competitive with new players entering the market.  Some of the major players include Brenntag AG, TOTAL S.A, Yara International, Nissan Chemical Industries, Shaw Development LLC, Mitsui Chemicals, Inc., Blue Sky Diesel Exhaust Fluid, GreenChem Holding B.V., The McPherson Companies, and BASF SE.

The key players are focusing on implementing SCR and following emission regulations in the mid-level and premium vehicles, leading to the growth of the die on implementing fluid market. For instance, Range Rover is equipped with a 3.0-liter turbo-di leading sips DEF from a 4.8-gallon tank located under the floor beneath the driver’s seat.

Companies are focusing on improving their distribution channel network to gain in the competition in the market. For instance, DeliveryONE improves ica’s leading DEF distribution netwotohest quality DEF, and comprehensive DEF equipment solutions supplies anywhere in the U.S. and Canada.

Companies are launching new products to sustain themselves in the market by implementing advanced technologies. For instance, In July 2019, ENOC Group has launched ‘ENOCBlue’ diesel exhaust fluid. The product, mandated by ESMA and regulated by Euro 4 and above, is one of the highest international standards for exhaust emissions.

Why Purchase the Report?

  • Visualize the Diesel Exhaust Fluid composition in terms of various storage solutions, end-users, and vehicle types, highlighting the key commercial assets and players.
  • Identify commercial opportunities in Diesel Exhaust Fluid market by analyzing trends and co-development deals.
  • Excel data sheet with thousands of data points of Diesel Exhaust Fluid market-level 4/5 segmentation.
  • PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
  • Product mapping in excel for the key product of all major market players

Target Audience

  • Service Providers/ Buyers
  • Industry Investors/Investment Bankers
  • Education & Research Institutes
  • Research Professionals
  • Emerging Companies
  • Manufacturers

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