Diesel Exhaust Fluid (AdBlue) Market by Storage Solutions (Bulk Storage [Bulk-Shipment Truckloads, Indoor/Outdoor Storage Tanks], Dispensers, Portable Containers), by Applications (Vehicular [Heavy-Duty Vehicles, Medium-Duty Vehicles, Light-Duty Vehicles, Off-Highway, Passenger Cars], Non-Vehicular), by Geography (U.S., Canada , Germany, U.K., France, Italy, Spain, China, Japan, South Korea, Australia, Brazil, Mexico, Saudi Arabia, U.A.E., South Africa) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

Market Overview

The global diesel exhaust fluid market was valued at $12,191.5 million in 2017 and is projected to reach $20,518.0 million by 2023, witnessing a CAGR of 8.8% during the forecast period. Stringent environmental regulations, rising demand for heavy-duty vehicles, and growing focus on sustainable agricultural practices are the key factors which are expected to promote the growth of diesel exhaust fluid market during the forecast period.

GLOBAL DIESEL EXHAUST FLUID MARKET, BY STORAGE SOLUTIONS, MILLION GALLONS (2013-2023)

Diesel exhaust fluid or AdBlue is an aqueous solution which is produced by using urea and deionized water with volume percentages of 32.5% and 67.5%, respectively. It is a fluid that is used in the treatment of harmful nitrogen oxide (NOX) emission from diesel engines by breaking down nitrogen oxide into nitrogen and water through selective catalytic reduction (SCR) process.

Based on storage solutions, the diesel exhaust fluid market is categorized into bulk storage, dispensers, and portable containers. Globally, bulk storage was the dominant category in the diesel exhaust fluid market, with more than 45.0% contribution in terms of value in 2017. Bulk storage solutions such as bulk-shipment truckloads and indoor/outdoor storage tanks are widely used in heavy- and medium-duty vehicles for storing AdBlue.

Based on applications, the diesel exhaust fluid market is bifurcated into vehicular and non-vehicular. Vehicular applications accounted for more than 95.0% value share in 2017. This is attributed to the strict environmental regulations in Europe and North America which mandate the vehicle owners to reduce the emission of harmful gases. Europe, in particular, follows Euro 6 emission standards and is in the process to implement stricter emission standards. The new emission norms would prompt vehicle owners to bring down the emission by using anti-pollutant agents such as AdBlue. This will boost the diesel exhaust fluid market in the coming years.

Geographically, Europe is expected to remain as the most lucrative region in the diesel exhaust fluid market during the forecast period. This is due to strict environmental norms in many European countries which make it mandatory to use diesel exhaust fluid in diesel powered vehicles such as heavy- and medium-duty vehicles. With the rising sales of vehicles in the European countries particularly in the Central and Eastern European countries, the diesel exhaust fluid market in the region is expected to grow at a significant pace during the forecast period.

Market Dynamics

Drivers

The major growth identified in the diesel exhaust fluid market is the rising demand for heavy-duty vehicles. Owing to the rapid industrialization and improved infrastructure in far flung areas, the demand for heavy-duty vehicles such as trucks and trailers is rising at a significant pace. Globally, it is estimated that the sales of trucks are set to reach around 4.0 million units by 2023. This will have positive impact on the diesel exhaust fluid market as large number of newly developed trucks will use this fluid for bringing down the vehicular emissions.

Moreover, in the European and North American countries, there has been increased emphasis on the adoption of cleaner fuel needed to run the agricultural pumps and vehicles. AdBlue finds its application in diesel pumps and agricultural vehicles for reducing the emission of harmful gases. With the rising population coupled with growing exports market for agricultural products, the diesel exhaust fluid market will also rise in the coming years.

Restraints

The growth of diesel exhaust fluid market is restricted by unwillingness of people to install entire system including diesel exhaust fluid tank and SCR unit as they perceive it as cost addition to the vehicle. In the absence of strict emission regulatory norms, especially in developing or underdeveloped countries, many vehicle owners are reluctant to opt the emission reduction technologies thereby restricting the growth of the diesel exhaust fluid market.

Opportunities

Over the recent years, developing nations such as China, India, Brazil, and Russia have emerged as a one of the most lucrative automobile markets in the world. For instance, in 2017, around 90 million passenger cars were sold in the world, more than a quarter were sold in China alone. Also, developing countries are adopting stringent emission norms which will encourage the consumption of AdBlue used for reducing emissions. Owing to the aforementioned factors, emerging nations are expected to offer huge growth opportunities for the diesel exhaust fluid market.

Diesel Exhaust Fluid Market Competitive Landscape

Some of the major players operating in the global 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 Industries Ltd., TOTAL S.A., and Mitsui Chemicals Inc.