The global diesel exhaust fluid (AdBlue) market was valued at $12,191.5 million in 2017, and it is projected to reach $20,518.0 million by 2023, at a CAGR of 8.8% during the forecast period (2018–2023). The bulk storage category held the largest volume share in the market, by storage solutions, during the historical period (2013–2017).
The diesel exhaust fluid market is expected to witness the fastest growth in the dispenser storage category during the forecast period (2018–2023). This would be mainly driven by the fact that such systems consist of dispensing devices connected to a drum or other types of stationary storage tanks, from which end users can directly fill their vehicles’ AdBlue tanks as per their requirement.
Usage of AdBlue in Passenger Cars in Trending in the Market
In the past, medium- and heavy-duty commercial vehicles, such as trucks and construction- and mining- vehicles, majorly drove the diesel exhaust fluid market. This is mainly attributed to the fact that these vehicles use diesel as their primary fuel, thereby leading to massive amounts of vehicular pollution. Contrarily, the demand for the additive in passenger cars remained low, as there were limited regulations on the emission of harmful gases from such vehicles. Recently, the concerns regarding environmental pollution have risen across the world, which has created a substantial demand for diesel exhaust fluid for passenger cars as well.
Stringent Environmental Regulations is Driving the Market
Governments across the world have started taking efforts to reduce air pollution, which is harmful to human life. Countries are implementing stringent environmental regulations, which restrict the emission of harmful gases from personal and commercial vehicles. For instance, in 2017, the U.S. upgraded its emission standards from United States Environmental Protection Agency (USEPA) Tier 2 to USEPA Tier 3. The move was aimed at achieving a significant reduction in the level of greenhouse gas emissions from automobiles. Similarly, Europe follows the Euro 6 emission standards, and it is in the process of implementing stricter amendments in the coming years, which would help the diesel exhaust fluid market grow in the region.
Segmentation Analysis of Diesel Exhaust Fluid (AdBlue) Market
The bulk storage category dominated the diesel exhaust fluid market, with over 60.0% market share, in terms of volume, in 2017. This is mainly attributed to the consumption of AdBlue by trucks and other heavy-duty vehicles, which use storage tanks and drums to store diesel exhaust fluid. In addition, with the rising requirement for product transportation, the fleet of heavy-duty trucks is surging, which is boosting the demand for bulk storage solutions.
The non-Vehicular category is predicted to witness faster growth, in terms of volume, during the forecast period, as AdBlue is finding wide application in the agricultural sector, where it is used in diesel-operated irrigation pumps, as well as in telecommunication network towers, which work on diesel gensets.
Geographical Analysis of Diesel Exhaust Fluid Market
Combined, North America and Europe are expected to account over 60.0% market share, in terms of value, by 2023. This is mainly credited to the strict environmental regulations in the regions, which make it mandatory for vehicles and other machines running on diesel to use AdBlue.
Other regions, which include APAC and LATAM, also hold considerable shares in the diesel exhaust fluid market, on account of the increasing demand for the transportation of goods. Moreover, owing to the high levels of vehicular pollution, several nations such as China, India, and, Brazil in these regions have either imposed or are in the process of imposing stringent emission norms. By implementing strict emission norms, fleet operators would be forced to install emission-control systems, which will boost the demand for diesel exhaust fluid.
Competitive Landscape of Diesel Exhaust Fluid Market
The global diesel exhaust fluid market, which is moderately consolidated, has BASF SE, Yara International ASA, Cummins Filtration Inc., GreenChem Holding B.V., China Petroleum & Chemical Corporation, and Kelas Environmental Protection Technology Co. Ltd. as the key players.
In May 2018, Yara International ASA acquired the Vale Cubatao Fertilizantes complex from Vale S.A. for a total transaction value of $255 million. The acquisition will help Yara International ASA tap the growing market for nitrogen-based products in Brazil.
Some other key companies are Nissan Chemical Corporation, CF Industries Holdings Inc., Mitsui Chemicals Inc., and TOTAL S.A.