Diesel Exhaust Fluid (DEF) Market Analysis North America, APAC, South America, Europe, Middle East and Africa - US, China, Germany, Japan, South Korea - Size and Forecast 2024-2028

Diesel Exhaust Fluid Market Size 2023-2027

The Diesel Exhaust Fluid Market size is forecast to increase by USD 18.11 billion, at a CAGR of 13.14% between 2022 and 2027. Market growth hinges on diverse factors, notably the escalating production rates of vehicles, mounting health and environmental apprehensions stemming from NOx emissions, and the inherent advantages associated with diesel engine vehicles. The surge in vehicle production is a pivotal driver, reflecting market responsiveness to consumer demands and industry innovations. However, the concomitant rise in health and environmental concerns, particularly concerning NOx emissions, underscores the pressing need for sustainable and eco-friendly solutions. Despite these challenges, diesel engine vehicles continue to offer advantages like fuel efficiency and robust performance, contributing to their continued market relevance. Balancing these factors presents both opportunities and challenges, necessitating a strategic approach towards sustainable mobility solutions and emissions management in the automotive sector. 

What will be the Market Size During the Forecast Period?

Request Free Sample in PDF

Market Segmentation By Vehicle Type, Packaging, Geography

The Market is driven by various factors such as Diesel SCR vehicles that rely on Selective Catalytic Reduction (SCR) technology for emissions control. DEF pumps are essential components in this ecosystem, ensuring efficient delivery of urea, the primary ingredient in DEF. Key players in the market, including Tier-1 suppliers and OEMs, play pivotal roles in the DEF OE market and the DEF aftermarket. Fluctuations in urea prices directly impact market dynamics and the overall average age of vehicles and miles driven. DEF, an aqueous urea solution, combats harmful pollutants like nitrogen oxide (NOx) emissions produced by diesel-powered internal combustion engines. It meets stringent International Organization for Standardization (ISO) standards, ensuring its efficacy as an anti-pollution agent.

Market Vehicle Type Analysis

The market share growth by the commercial vehicles segment will be significant during the forecast period. Commercial automobiles include heavy-duty vehicles such as trucks, light commercial automobiles such as vans and small trucks, and passenger-carrying vehicles like buses, coaches, and minibusses.

Get a glance at the market contribution of the End User  segment Request Free Sample

The commercial vehicles segment was valued at USD 4.35 billion in 2017 and continued to grow until 2021. The commercial vehicles segment accounted for the largest share of the global market in 2020 because of the extensive use of diesel engines in commercial segment. Commercial automobiles, including heavy vehicles, use diesel engines rather than gasoline engines owing to the high mileage, torque, and compression exhibited by diesel engines. Most of commercial vehicles across the globe use diesel engines along with stringent guidelines by the government and EPA over the use of SCR technology in diesel engines. Awareness about environmental pollution and the need to conserve fuel in many countries has resulted in the adoption of near-zero-emissions diesel commercial vehicles. In the US, around 43% of all commercial trucks use near-zero-emissions diesel technologies, including DEF. The rising demand for commercial vehicles across the world is expected to increase the demand for DEF. Therefore, such factors will boost segment growth during the forecast period. 

Market Packaging Analysis 

Based on packaging, the market is fragmented into bulk, cans and bottles, and IBCs and drums. Bulk segment holds the largest market share. The bulk pack size is the most preferred type, especially for those customers with a big fleet. Key companies such as Yara and BASF offer DEF in bulk. If a customer wishes to obtain DEF in bulk, the companies offer different containers for bulk DEF, e.g., a storage tank. Therefore, such factors will boost segment growth during the forecast period.

Market Region Analysis

North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on the market share of various regions Request Free Sample

The primary driver behind the increased demand for DEF is the Environmental Protection Agency (EPA) based in Washington, US. In 2010, the EPA introduced Diesel Emission Standards, mandating the reduction of NOX emissions from diesel engines. This led diesel engine manufacturers to adopt Selective Catalytic Reduction (SCR) technology, which relies heavily on DEF. Yara is a major DEF producer, with a strong presence in North America through Yara North America. The company has established multiple DEF terminals in the region, including locations in Belle Plaine, California, Florida, Stockton, Tampa, Chesapeake, Houston, and New Jersey (Bayonne). Musket is another prominent DEF company with 13 DEF production terminals across the US.

North America's key countries have a significant number of vehicles on the road, with the US being a major producer of commercial vehicles, most of which use diesel engines. The appeal of diesel vehicles lies in their cost-effectiveness, efficiency, and reliability. Hence, such factors are driving the market growth in North America during the forecast period.

Market Definition 

DEF is a blended aqueous solution composed of 32.5% high-purity urea and 67.5% de-ionized water. DEF is used in the reduction of NOX emissions from diesel engines and is added to selective catalytic reduction systems in which harmful exhaust gas emissions are treated.

Market Dynamics

The market is propelled by the increasing adoption of Diesel SCR vehicles equipped with Selective Catalytic Reduction (SCR) technology, mandated to reduce Nitrogen oxide (NOx) emissions. Growing environmental concerns drive demand for DEF pumps and aqueous urea solution used as an anti-pollution agent in Diesel-powered internal combustion engines. However, challenges like fluctuations in urea prices and storage tank limitations pose hurdles. Trends include the rising focus on SCR technology, stringent International Organization for Standardization (ISO) regulations, and innovations in DEF aftermarket solutions.

Key Market Driver

Increasing production of vehicles is a key driver boosting the market growth. The global (DEF) market primarily serves the automotive industry as its main end-user. The market is witnessing rapid growth due to factors like urbanization, modernization, population growth, and rising disposable income. Developing countries in APAC, particularly China and India, are significant automobile producers, driving up the demand for automotive products.

Moreover, the economic recovery in the US and Europe will further increase the demand for automobiles, compelling automotive OEM manufacturers to expand production capacity. This will result in a higher demand for DEF. The increasing production of vehicles is a positive indicator for the global market, as the growth of the automotive industry directly correlates with the demand for DEF.

Significant Market Trends

The introduction of new technologies for the reduction of NOX emissions is an ongoing trend shaping the market growth. Globally, the reduction of NOX emissions from diesel engines has become a crucial challenge, but innovative technologies are emerging as effective solutions. BMW has implemented its BluePerformance technology, which utilizes AdBlue alongside standard diesel particle filters and NOX catalytic converters to decrease NOX emissions in powerful diesel models. In addition, researchers at Loughborough University developed the Ammonia Creation and Conversion Technology (ACCT), a waste energy-based AdBlue conversion technology that enhances NOX reduction at lower exhaust temperatures.

Moreover, Controlled Power Technologies and Technische Universitat Wien collaborated on the water-cooled SpeedStart, a 48-volt switch reluctance starter generator that enables instant regenerative braking and torque assist while reducing NOX emissions without compromising fuel economy and CO2 emissions. Though these cutting-edge technologies may present challenges to the growth of the global market, they prove highly beneficial for addressing the NOX emission problem in diesel engines. Hence, such factors are driving the market growth during the forecast period.

Major Market Challenge

A decrease in the demand for diesel engine vehicles is a key challenge hindering the market. Despite the numerous advantages of diesel engines compared to gasoline and gas engines, the market for diesel engine cars is anticipated to decline in the coming decades. Key markets for diesel automobiles, including China, India, Germany, the UK, and France, are witnessing stringent regulations and bans on diesel automobiles due to the increasing environmental pollution caused by hazardous exhaust gas emissions.

Moreover, governments in these countries are actively promoting and encouraging the adoption of electric automobiles, posing challenges for diesel engines and impacting the growth of the market. For instance, India aims to have all cars sold in the country be electric by 2030, while Norway plans to ensure that all new passenger cars and vans sold in 2025 are zero-emission automobiles. This decreasing demand for diesel engine automobiles will hinder the growth of the market during the forecast period.

Key Market Companies

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

Shell- The company offers diesel exhaust fluid such as Shell Rotella Diesel exhaust fluid.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

Air Liquide SA, BASF SE, BRENNTAG SE, Cervantes Distribution Inc., CF Industries Holdings Inc., China Petrochemical Corp., Colonial Chemical Inc., Cummins Inc., Dyno Nobel, Innoco Oil Pte. Ltd., Midtex Oil L.P., MUSKET Corp., Nissan Chemical Corp., Northdale Oil Inc., Novax Material and Technology Inc., Nutrien Ltd., S CCI India Pvt. Ltd., Shell plc, TotalEnergies SE, and Yara International ASA.

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.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments

• Vehicle Type Outlook 
  • Commercial vehicles
  • Non-road vehicles
  • Passenger vehicles
  • Trains
• Packaging Outlook
  • Bulk
  • Cans and bottles
  • IBCs and drums
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The Market is influenced by various factors, such as the prevalence of diesel SCR vehicles that require DEF for emissions control. Fluctuations in urea prices directly impact the DEF pump segment and the overall DEF OE market, affecting business activities and strategies in response to changing economic conditions. As emission norms become stricter, especially in developing economies, demand for DEF and DEF-related infrastructure like DEF pumps and bulk supply mode systems rises. The market landscape depends on various factors such as the Investment pockets, AUS 32 form, Carbon dioxide, Engine coolants, Nitrogen, Water vapor, Shelf life, Temperature, Anti-pollution agent, Nitrogen oxide (NOx) emissions, International Organization for Standardization (ISO). Companies like FMT Swiss Ag play a crucial role in the automotive DEF supply chain, ensuring compliance with air quality standards and anti-pollution regulations.

Moreover, DEF, an aqueous urea solution, reduces harmful pollutants like nitrous oxide (NOx) emitted from diesel-powered internal combustion engines. It's stored in specially designed storage tanks made of materials like polyethylene plastic or stainless steel, maintaining its odorless, colorless, and non-flammable properties. Despite challenges like fluctuating urea prices and the increasing electric vehicle penetration, the Global Market continues to grow, driven by environmental sustainability goals and the need for effective NOx emissions control in various sectors, including marine, aerospace, and automotive industries. Future estimations suggest continued investment in DEF technology to address emission concerns and ensure compliance with stringent environmental regulations.

Request Free Sample

What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, APAC, South America, Europe, and Middle East and Africa
• Thorough market research and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this report to meet your requirements. Get in touch