Acumen research and consulting estimates that the global diesel exhaust fluid market is anticipated to reach market size of around US$ 28,000 Mn by 2027 and is anticipated to grow at a CAGR of around 8% in terms of revenue during the forecast period 2020 – 2027. Diesel exhalation fluid (DEF) is a fluid used to reduce a diesel engine's air pollution. The names AUS 32 or ARLA 32 are also known and sold as AdBlue. The DEF or AdBlue is a solution of aqueous urea, made of 32.5% urea and 67.5% deionized water. Most engine manufacturers have introduced an advanced selective catalytic reduction (SCR) system for diesel vehicles, requiring DEF to work, in order to meet the high levels of NOx emissions for commercial truck engines and off-road motorcycles. In vehicles with SCR technology, AdBlue is filled in separate tanks. DEF is injected into the SECR, a system which heats up in the exhaust fluid and breaks down to ammonia and CO2, and is then converted into ammonia. When the engine exhaust flow's NOx reacts with ammonia within the catalyst, harmful NOx molecules are converted into harmless water and nitrogen from the vehicle tail-pipe.

Market Insights

Stringent nitrogen oxides, including the implementation of catalytic converters, are some of the key drivers that are expected to fuel demand for diesel exhaust fluids and to drive global market growth over the expected period. Moreover, adopting SNCR and SCR technologies to reduce emissions of nitrogen oxide from vehicles influences positively the demand for the target product. The latest tendency observed in the present clients is to reduce the emissions of harmful chemicals as Cox, NOx, highly flammable particles, and other equipment, with the goal of implementing legislation and rules to control the flow of such harmful chemicals by different governments and authorities. The NOx Act is being introduced internationally by Environmental Protection Agencies (EPAs) in 2010. The changing preference for fossil-fuel engines, including hybrid and electric vehicles, is however expected to hinder market growth.

Stringent emission norms and increase in average miles driven to foster the global market growth.

The increase of diesel vehicles with SCR is responsible for the increasing limitation on the emissions and fuel efficiency of vehicles in North America , Europe and Asia. Pollution controls in the United States and Europe in terms of emission limits are considered the most strict in the world. Across these countries, pollution control equipment has now improved dramatically for cars. In Europe, for example, the NOx emission was set at 5,0 g/kWh in compliance with the Euro III standard, and then dropped by about 92 percent to 0,4 g/kWh in compliance with euro VI. OEMs and Tier-1 manufacturers use SCR in diesel vehicles, owing to such strict targets laid down under Euro VI standards. SCR aims to reduce NOx from pollution and avoids toxic contaminants in the atmosphere. Factors such as an average rising age, better infrastructure and the increasing number of cars on the track, an average mill powered, the replacement period of DEF and an growing increase in car maintenance are also affecting the demand in the DEF aftermarket.

Thanks to the stringent emission regulations and requirements by policymakers to use diesel exhaust fluid for hybrid cars in certain European nations, Europe is expected to dominate the global economy. Asia Pacific is estimated as the largest share of global market income, followed by North American markets. The Stringent emission rules and regulations is expected to expand more deeply with stringent pollution standards and regulations like BS 4 and China 5, respectively, which are implemented in India and China. Moreover the market of the countries in the region is anticipated to be fueling rising urbanization, increasing disposable incomes, changing consumer lifestyles and expanding economies. North America is responsible for significant sales shares in the global market, and its growth trend is projected over the forecast period to remain. In the hopes of reducing emissions of nitrogen oxides, the United States Environmental Protection Agency (EPA) has set minimum fluid length of 4,000 miles.

Key Players

Major players included in this report are BASF SE, Yara, Mitsui Chemicals Inc., BP p.l.c, Viscol.co.za, Engen Petroleum Ltd, Borealis AG, Nissan Chemical Corporation, GreenChem, NOVAX Material & Technology Inc, Royal Dutch Shell PLC, Adeco doo, and others.

The global diesel exhaust fluid market is segmented as below:

Market Segmentation

Diesel Exhaust Fluid Market By Storage Solution

Bulk Storage Tanks

Portable Containers

Dispensers

Others (Drums and Bottles)

Diesel Exhaust Fluid Market By Vehicle Type

Passenger Vehicle

Commercial Vehicle

Diesel Exhaust Fluid Market By End Markets

OEM

Aftermarket

Diesel Exhaust Fluid Market By Geography

North America

• U.S.
• Canada

Europe

• UK
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa

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