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The commercial vehicle urea tank market is estimated for steady growth by USD 129.57 million, at a CAGR of 4.88% from 2023 to 2028. Market growth is driven by several key factors, including the expanding adoption of Selective Catalytic Reduction (SCR) systems in commercial vehicles, the rising prevalence of diesel engines in this sector, and the increasing implementation of strict emission standards in emerging economies. These elements collectively influence the evolution of the automotive industry by enhancing fuel efficiency, reducing emissions, and ensuring compliance with regulatory requirements. The integration of SCR technology enables vehicles to effectively control nitrogen oxide emissions, thereby aligning with stringent environmental regulations. Moreover, the growing preference for diesel engines in commercial vehicles reflects advancements in engine technology and the demand for robust performance. As emerging markets implement stricter emission norms to mitigate environmental impact, there is a heightened focus on adopting technologies that promote cleaner and more sustainable transportation solutions. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
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The LCV segment is dominating the market. Light commercial vehicles (LCVs) are expected to be a key growth area, driven by stricter regulations for diesel LCVs requiring SCR systems for NOx control. However, several factors are limiting the growth of the LCV urea tank market. Most gasoline LCVs utilize exhaust gas recirculation (EGR) for NOx control, a simpler method compared to SCR systems requiring urea tanks.
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The LCV segment held the largest market share in 2018, valued at USD 342.62 million. Additionally, LCVs are primarily used for transporting goods and people between cities. Integrating a bulky urea tank into the SCR system would significantly reduce cargo space, a major drawback for LCV operators. These limitations are expected to hinder the widespread adoption of urea tanks in LCVs, thereby impacting the market's growth potential.
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APAC is estimated to contribute 60% to the growth of the global market during the forecast period. Increasing use of SCR systems in commercial vehicles across APAC. Stricter air pollution regulations prompting frequent updates to emission standards. Need for compliant vehicles: Manufacturers equipping commercial vehicles with advanced emission control systems like SCR with urea tanks to ensure adherence to evolving regulations. Stringency of individual country regulations within APAC further influencing market growth. Overall, these factors are expected to propel significant market growth in the APAC region for SCR systems
The market is deeply influenced by vehicular emissions, where substances like exhaust and NOx contribute to air pollution. Urea and diesel SCR systems play crucial roles in reducing NOx emissions, alongside ammonia, nitrogen gas, and water vapor, released as byproducts. Challenges such as adulteration and fluctuating urea prices affect the market, countered by incentives and subsidies promoting adoption. Considerations like upfront, maintenance, and operating costs, alongside DEF infrastructure development, impact budget decisions. The market's trajectory hinges on supply and demand dynamics, supported by a skilled workforce. Comprehensive data analysis aids in understanding market trends, driving competition and innovation to address environmental concerns and regulatory standards.
Rising penetration of diesel engines in commercial vehicles, particularly in APAC and the European Union is the key factor driving the arket. Diesel engines generate high torque at low RPMs, ideal for heavy-duty applications. Preference for fuel-efficient vehicles drives demand for diesel Light Commercial Vehicles (LCVs) due to their superior load-carrying capacity and fuel economy. Increased use of diesel engines directly translates to a larger market for SCR systems, a key component in their emission control.
Further, stricter emission regulations necessitate SCR systems with urea tanks on diesel commercial vehicles. Rising sales of diesel commercial vehicles will further amplify the demand for SCR systems and associated components. Overall, the dominance of diesel engines in commercial vehicles, particularly in APAC, creates a strong growth engine for the SCR system market.
Alternative Emission Control is the primary trend shaping the market. Manufacturers prioritize R&D for methods that minimize or eliminate harmful emissions like NOx and hydrocarbons post-combustion. Existing solutions like EGR and SCR tackle NOx and hydrocarbons, while particulate filters minimize soot outflow.
Thuss, such established technologies ensure compliance with emission standards. However, the trade-off is reduced vehicle performance due to air-fuel mixture regulation. The industry actively seeks novel emission control methods beyond conventional technologies.
Reduced availability of low-sulfur fuel in emerging countries is a challenge that affects market growth. They are a part of the SCR system used in commercial vehicles for limiting the formation of NOx. SCR systems are used in commercial vehicles to maintain compliance with emission norms pertaining to limiting NOx levels. However, SCR systems can only be effective in limiting the emission of NOx if the vehicle uses low-sulfur fuels.
Furthermore, Euro V and Euro VI emission norms specify that these norms can be followed only if the country uses low-sulfur fuels having sulfur of about 50ppm or below. This will require extensive changes in the oil refining industry of a particular country for refining the oil to reduce the content of sulfur. Thus, such factors may impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is driven by the global vehicle industry's focus on reducing emissions, with Diesel Exhaust Fluid (DEF) playing a pivotal role. DEF, comprising ammonia and nitrogen gas dissolved in water vapor, is injected into the exhaust stream of diesel SCR systems to reduce harmful nitrogen oxide emissions. However, challenges such as skilled workforce shortages, fluctuating urea prices, and DEF infrastructure limitations hinder market growth. Innovations in sensor technologies, lightweight and sustainable materials, and connectivity are addressing these challenges. Moreover, government incentives and subsidies are incentivizing adoption. Despite operational and maintenance costs, the market's trajectory remains promising due to increasing environmental sustainability regulations and the competitive landscape driving innovation and efficiency.
Further, the market is shaped by various factors such as DEF filling, essential for reducing emissions, especially in diesel vehicles. With the rise of electric vehicles, the demand for DEF may shift, impacting supply chains and automotive components. Challenges like adulteration, global emission standards, and lockdowns affect market dynamics, while innovations in lightweight materials address carbon footprint. operational costs, operating costs, upfront costs, and maintenance costs influence budget considerations, affecting supply and demand. The market's trajectory depends on the summation of data from multiple sources, competition driving innovation, and regulatory compliance. The blue cap signifies DEF filling points, illustrating the market's emphasis on environmental sustainability and compliance with emission standards amidst evolving industry dynamics.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.88% |
Market growth 2024-2028 |
USD 129.57 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.55 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 60% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACGB France, Amphenol Corp., Centro Inc., Cummins Inc., Elkamet Kunststofftechnik GmbH, Gemini Group Inc., KaiLong, Kingspan Group Plc, KUS Technology Corp., Myers Industries Inc., Robert Bosch GmbH, Rochling SE and Co. KG, Salzburger Aluminium AG, Scania AB, Shaw Development LLC, The ITB Group Ltd., Yara International ASA, Zhejiang Fomay Industrial Machinery Co. Ltd., DGL Group LTD., and Solar Plastics LLC |
Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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