Enjoy complimentary customisation on priority with our Enterprise License!
The Global Diesel Exhaust Fluid Market size is estimated to grow at a CAGR of 13.14% between 2023 and 2027. The market size is forecast to increase by USD 18,114.37 million.
The growth of the market depends on several factors, including increasing production of vehicles, rising health and environmental concerns due to NOx emissions, and the advantages of diesel engine vehicles.
This diesel exhaust fluid market research report extensively covers market segmentation by vehicle type (commercial vehicles, non-road vehicles, passenger vehicles, and trains), packaging (bulk, cans and bottles, and IBCs and drums), and geography (North America, APAC, South America, Europe, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
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.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing production of vehicles is a key driver boosting the market growth. The global diesel exhaust fluid (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. The economic recovery in the US and Europe will further increase the demand for vehicles, 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 DEF market, as the growth of the automotive industry directly correlates with the demand for DEF.
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 diesel exhaust fluid market, they prove highly beneficial for addressing the NOX emission problem in diesel engines.
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 vehicles, including China, India, Germany, the UK, and France, are witnessing stringent regulations and bans on diesel vehicles due to the increasing environmental pollution caused by hazardous exhaust gas emissions.
Governments in these countries are actively promoting and encouraging the adoption of electric vehicles, posing challenges for diesel engines and impacting the growth of the diesel exhaust fluid 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 vehicles. This decreasing demand for diesel engine vehicles will hinder the growth of the diesel exhaust fluid market.
The market share growth by the commercial vehicles segment will be significant during the forecast period. Commercial vehicles include heavy-duty vehicles such as trucks, light commercial vehicles 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 5,970.13 million in 2017 and continued to grow until 2021. The commercial vehicles segment accounted for the largest share of the global diesel exhaust fluid market in 2020 because of the extensive use of diesel engines in commercial vehicles. Commercial vehicles, 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.
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 vendors such as Yara and BASF offer DEF in bulk. If a customer wishes to obtain DEF in bulk, the vendors offer different containers for bulk DEF, e.g., a storage tank.
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 vendor 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.
The regional diesel exhaust fluid market was negatively impacted by the COVID-19 pandemic in 2020-2021, particularly in the US. Manufacturing shutdowns reduced vehicle and machinery production, affecting DEF demand. However, as facilities resumed operations with safety measures, the DEF market is expected to grow in 2021. Government stimulus packages, like the US's USD 900 billion package, will support economic recovery and drive the DEF market. With COVID-19 vaccines and social distancing measures, the regional DEF market is predicted to flourish during the forecast period.
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.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Diesel Exhaust Fluid Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.14% |
Market growth 2023-2027 |
USD 18,114.37 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.66 |
Regional analysis |
North America, APAC, South America, Europe, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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. |
Market dynamics |
Parent market analysis, 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 forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Packaging
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.