Diesel Exhaust Fluid Market To Generate $62,462 Million Revenue by 2030

The global diesel exhaust fluid market size is expected to advance at a CAGR of 7.60% during 2022–2030, to reach $62,462 million by 2030.

Diesel engine exhaust fluid helps reduce the harmful nitrogen oxide emissions from diesel combustion engines, thus working as an anti-pollution agent. Many countries are mandating its usage in diesel-powered vehicles. As a result, many OEMs are offering pre-installed selective catalytic reduction systems in their diesel models, especially buses and trucks.

AdBlue Consumption Expected To Burgeon in Asia-Pacific

The Asia-Pacific region is set to be the fastest-growing AdBlue market over the next few years. The potential growth is attributed to the high demand for goods transportation, in part, because of the growth of the construction sector. Moreover, with the increasing population, the rise of e-commerce, and the rising standard of living, people are relocating to urban areas and spending more for modern comforts.

This has promoted the sales of heavy- and medium-duty vehicles for logistical services, which has, as a downside, resulted in high levels of air pollution. Owing to this, several countries, including China and India, have implemented stringent emission norms, which will impel fleet operators to install emission control systems, which, in turn, will boost the demand for diesel exhaust fluid in the APAC region.

According to the NITI Aayog, the number of trucks running on Indian roads and highways is estimated to more than quadruple, from 4 million in 2022 to almost 17 million by 2050. The subsequent increase in the risk of air pollution would drive fleet owners, impelled by the emission regulations, to install SCR systems in their trucks.

Increasing Demand for Heavy-Duty Vehicles Key Driver of DEF Demand

Heavy-duty vehicles play a crucial role in modern-day logistics and supply chains, by ensuring the transportation of goods from manufacturing centers or ports to the marketplace. Owing to the rapid industrialization and improving infrastructure, which allows for the delivery of goods to far-flung areas, the demand for heavy-duty trucks and trailers is rising at a significant pace. This will offer immense opportunities for the growth of diesel exhaust fluid suppliers, as a large number of newly developed trucks will be compatible with the SCR technology, which will boost the consumption of AdBlue during the forecast period.

Increasing Average Age of Automobiles and Driven Miles

The demand for DEF is also driven by the improving infrastructure, increasing average age of vehicles, rising number of vehicles on the roads, surging average miles driven by automobiles, and rising focus on the maintenance of automobiles. For instance, in North America, the average age of passenger cars rose to 11.8 years in 2019 from 10.1 years in 2005. This has been due to the improvements in the road infrastructure, adoption of stronger safety features, and developments in automotive technologies.

Due to this, the number of vehicles on the road continues to boom. Additionally, the stringent emission regulations boost the demand for SCR systems globally. For example, the Euro VI norms have reduced the permissible NOx emission limits dramatically. As a result, OEMs and tier-1 automotive suppliers are employing SCR as an emission treatment technology.

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 Corporation, TOTAL S.A., Mitsui Chemicals Inc., and Shell PLC.