Diesel Exhaust Fluid Market Size and Share Analysis by Vehicle Type (Passenger Cars, LCVs, HCVs), Component (SCR Catalysts, DEF Tanks, DEF Injectors, DEF Supply Modules, DEF Sensors, NOx Sensors), Supply Mode (Cans & Bottles, IBCs, Bulk, Pumps), End Use (OE, Aftermarket) – Global Industry Growth and Demand Forecast to 2030

Market Overview

The global diesel exhaust fluid market size stood at $34,763 million in 2022, and it is expected to advance at a compound annual growth rate of 7.60% during 2022–2030, to reach $62,462 million by 2030.

The key factor driving the growth of the market is the strict pollution laws, which are leading to the expanding penetration of selective catalytic reduction (SCR) in diesel vehicles. DEF works as an anti-pollution chemical, reducing the hazardous nitrogen oxide emissions from internal combustion engines.

HCVs Category Is Dominating Market

The heavy commercial vehicles category held the largest AdBlue market share, of more than 50%, in 2022, and it is forecast to remain the largest throughout the projection period. The growth is primarily because of the increasing demand for HCVs in developing countries across the globe. This is, in turn, driving the consumption of diesel fuel, which is a major reason for GHG emissions. Hence, governments have imposed stringent emission limits, because of which the usage of DEF is increasing in order to control NOx emissions.

From 2010 onward, every heavy-duty diesel truck in the U.S. is mandated to have an auxiliary tank for diesel exhaust fluid, because the chemical splits the toxic emissions into the non-hazardous nitrogen and water, thus helping reduce emissions by more than 85%.

DEF Pump Category Is Expected To Grow Rapidly

The pump category is expected to grow at the highest CAGR during the forecast period. The pump supply mode is cheaper than conventional cans and bottles, but more expensive than the bulk supply mode, due to the advantages associated with economies of scale. However, customers, especially in North America and Europe, still prefer pumps as they offer refilling convenience for fleet and other kinds of vehicle owners. The usage of pumps in the overall DEF supply rose to 40% in 2019 from 14% in 2011. This is why fuel stations are installing such machines to attract more customers.

Bulk Category Is Expected To Experience Significant Growth

The bulk storage category is also expected to grow significantly in the next few years, in terms of volume. The growth is primarily attributed to the increasing consumption of AdBlue by trucks and other heavy-duty vehicles, the owners of which use storage tanks and drums to supply it. In addition, with the rising requirement for product transportation, the fleet of heavy-duty trucks is expected to grow, which will boost the demand for bulk storage solutions.

North America Leads Market

The North American region held the largest market share, of 44%, in 2022, and it is expected to be the largest region during the forecast period. The North American economies, which are among the most advanced in the world, are now focusing on sustainable development and environmental protection. The large industrial bases and the need to facilitate the transportation of manufactured goods to the marketplace have encouraged the demand for heavy- and medium-duty vehicles in North American nations.

Moreover, the emission norms in Canada are among the strictest on earth. Hence, the need for controlling vehicular pollution, particularly from heavy-duty vehicles, has boosted the consumption of diesel exhaust fluid in the country. Moreover, with the positive prospect of the growing trade to and from the region, the demand for logistical vehicles in North America will continue to rise, which, in turn, will drive the consumption of AdBlue.

Focus on Sustainable Agricultural Practices

In recent years, there has been an increase in the focus on sustainable agricultural practices. In European and North American countries, there has been an increase in the emphasis on cleaner fuel to run agricultural pumps and off-road equipment, such as tractors and combine harvesters. Just like on-roads vehicles, DEF is used in agricultural equipment to reduce the emission of harmful gases.

Hence, with the rising population, coupled with the growing export markets for agricultural products originating in European and North American nations, the demand for diesel vehicles will rise in the coming years, which will encourage the growth of the DEF market in the coming years.

Emerging Economies To offer Potential Growth Opportunities

In recent years, developing nations, such as China, India, Brazil, and Russia, have witnessed a rapid surge in economic activities, which has offered a significant boost to their transportation and logistics industry. Moreover, due to the rising income levels, these countries have emerged as lucrative automobile markets. Additionally, they are adopting stringent emission norms, which will encourage the consumption of diesel exhaust fluid.

Owing to the aforementioned factors, emerging economies are expected to offer huge growth opportunities to the diesel exhaust fluid market. Moreover, in recent years, there has been a gradual shift from gasoline cars to diesel models in India, as the latter fuel is cheaper and offers higher mileage. Hence, in the coming years, the passenger car segment could also offer opportunities to DEF and SCR system suppliers.

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Stringent Environmental Regulations

Globally, vehicular pollution is rising and causing increasing harm to human life. In a bid to tackle the growing issue of vehicular pollution, many countries are implementing laws that restrict the emission of harmful gases from personal and commercial vehicles.

For instance, in December 2021, the Environmental Protection Agency (EPA) finalized the federal greenhouse gas (GHG) emissions rules for passenger cars and light trucks for model years 2023 through 2026. Through this standard, Americans could get benefits such as reduced pollution, lower spending at gas stations, and improved health. The standards essentially aim to eliminate more than 3 billion tons of GHG emissions and unlock $190 billion worth of benefits for the U.S. economy by 2050.

The introduction of new emission norms essentially means an increase in the obligations of commercial and personal vehicle owners to bring down the emissions from their vehicles. This will motivate people to adopt SCR, thereby boosting AdBlue consumption in the coming years.

Key Players in Diesel Exhaust Fluid Market Are:

• Yara International ASA
• BASF SE
• GreenChem Holding B.V.
• Cummins Filtration Inc.
• Kelas Environmental Protection Technology Co. Ltd.
• China Petroleum & Chemical Corporation
• CF Industries Holdings Inc.
• Nissan Chemical Corporation
• TOTAL S.A.
• Mitsui Chemicals Inc.
• Shell PLC

Diesel Exhaust Fluid Market Size Breakdown by Segment

This report offers deep insights into the market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based on Vehicle Type

• Passenger Cars
• LCVs
• HCVs

Based on Component

• SCR Catalysts
• DEF Tanks
• DEF Injectors
• DEF Supply Modules
• DEF Sensors
• NOx Sensors

Based on Supply Mode

• Cans & Bottles
• IBCs
• Bulk
• Pumps

Based on End Use

• OE
• Aftermarket

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.