The global 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, also known as AdBlue, is a liquidinjected into diesel engine exhaust streams to reduce emissions. It decomposes into ammonia and cyanuric acid which neutralizes nitrogen oxides in selective catalytic reduction (SCR) systems. Diesel exhaust fluid improves air quality and reduces pollutants in diesel engine emissions.
Market key trends:
One of the key trends in the diesel exhaust fluid market is the stringent emission regulations imposed by governments worldwide to curb vehicular pollution. For instance, the U.S. Environmental Protection Agency (EPA) has introduced new emission regulations, LEV III, for passenger vehicles and light-duty trucks and SUVs produced after 2024. This will boost the demand for SCR systems and diesel exhaust fluid in automobiles equipped with diesel engines to comply with emission standards. The popularity of tier 4 engines and Bharat Stage 6 compliance in countries like India will further fuel the consumption of diesel exhaust fluid during the forecast period. One of the key trends in the diesel exhaust fluid market is the stringent emission norms for diesel vehicles. Governments across the world are implementing stringent emission standards to control vehicular pollution and reduce the emissions of nitrogen oxides from diesel engines. For instance, the EU introduced the Euro 6 emission standard in 2014 that mandated the use of selective catalytic reduction (SCR) systems in diesel vehicles to reduce NOx levels by 80% compared to Euro 5 limits. Such stringent emission regulations are driving the demand for diesel exhaust fluid which is essential for the functionality of SCR systems.
SWOT Analysis
Strength: Diesel exhaust fluid has emerged as an effective solution to lower NOx emissions from diesel engines and help automakers comply with emission norms. It enables affordable and effective reduction of air pollutants.
Weakness: Higher operating costs for vehicle owners and fleet operators since diesel exhaust fluid needs to be replenished periodically.
Opportunity: Scope for development and commercialization of refill options and infrastructure for diesel exhaust fluid to enhance convenience of access and use.
Threats: Development of alternative emission control technologies like electric vehicles can reduce dependency on diesel engines and diesel exhaust fluid over the long run. Price fluctuations in key raw materials can impact production costs.
Key Takeaways
The Global Diesel Exhaust Fluid Market Size was valued at US$ 13.45 Mn in 2023 and is expected to reach US$ 22.87 Mn by 2030, growing at a CAGR of 7.6% during the forecast period. The growing demand for selective catalytic reduction (SCR) systems in heavy-duty vehicles and trucks is a major factor driving the demand for diesel exhaust fluid.
Regional analysis: North America dominated the global market in 2023 and is expected to witness significant growth over the forecast period owing to stringent emission regulations for diesel vehicles and expanding fleet of commercial vehicles. The US Environmental Protection Agency has mandated 95% reduction in NOx emissions from on-road diesel engines through regulation of diesel exhaust fluid based technology.
Key players operating in the diesel exhaust fluid market are 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 partnerships to cater to the growing demand for diesel exhaust fluid worldwide.
*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, chemicals and materials, defense and aerospace, consumer goods, etc.