Diesel Exhaust Fluid Market: Global Industry Analysis and Forecast (2021-2029) Trends, Statistics, Dynamics, Segment Analysis

Diesel Exhaust Fluid Market size was valued at USD 32.5 Bn. in 2021 and the total revenue is expected to grow at 7.9% of CAGR through 2022 to 2029, reaching USD 59.71Bn
Market Overview:
To reduce the concentration of NOx in diesel engine exhaust emissions, diesel exhaust fluid (DEF) is used as a consumable in cars equipped with a selective catalytic reduction (SCR) after-treatment system. The SCR system might be harmed and have problems operating if the incorrect solution is used. The region's market is expanding due to the high demand for both large and light commercial vehicles as well as the standardization of diesel exhaust fluid and storage tanks.

Air Liquide (Airgas), Royal Dutch Shell PLC, BASF SE, Yara International, Nissan Chemical Industries, Ltd., Cf International Holdings, Inc., Brenntag AG, Graco Inc., Cummins Inc., and China Petrochemical Corporation (Sinopec) are some of the major companies that compete in the global automotive Diesel Exhaust Fluid Market (DEF).

Over the next few years, the market growth is expected to be driven by the growing usage of diesel exhaust fluid in commercial vehicles and across a variety of end-use sectors, including automotive, marine, and aerospace. In the future years, market growth is expected to be hampered by urea price volatility and rising electric car adoption.

Along with higher pollution standards, the rise in sales of electric vehicles has also signaled the end of vehicles powered by diesel engines. By 2030, NITI Aayog wants EV sales to be 70% of all commercial vehicles, 30% of private vehicles, 40% of buses, and 80% of two- and three-wheelers. Diesel automobiles' attraction has been further reduced by the recent decline in gasoline and diesel costs, as well as the government's reduction of diesel-related subsidies. all micro-level details are covered in the report.

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Diesel Exhaust Fluid Market (DEF) Dynamics:
Diesel Exhaust Fluid Market (DEF) (DEF) is a necessity in BSVI

All manufacturers of commercial vehicles are working to re-configure their engines to conform to the strict pollution control rules that will be in place starting in April 2020. The main issue is the tightening of NOx emission standards for diesel-powered cars, which is one of the main causes of the increase in air pollution. In comparison to BSIV, NOx emissions in BSVI will be reduced by 89%. The usage of DEF, a vital component of SCR that works its magic in automobiles to transform NOx into safe water and gas in the exhaust after the treatment system, will result in this significant decrease (EATS). In BSVI cars fueled by diesel, EATS is an auxiliary part. In contrast to BSIV, all of the diesel vehicles and buses in BSVI will feature SCR, necessitating the usage of DEF, often known as AdBlue or Urea in the general public. Although the fluid is called by several names across the world, its composition and certification are the same. due to these factor driving market growth in the future.

Is India witnessing the beginning of the end for diesel vehicles?

Diesel-powered four-wheelers used to be the main mode of transportation on Indian roadways. Additionally, they have long been Indian customers' first choice. However, the future of diesel-powered automobiles is dark due to a drive towards electric vehicles and higher pollution standards. Many automakers reduced their selection of diesel-powered vehicles when the new BS-VI pollution standards took effect in 2020. Maruti, the largest automaker in India, has fully stopped producing diesel vehicles. The smaller-capacity diesel engines have ceased production by Tata Motors. Honda India has announced that it will probably stop selling vehicles with diesel engines. Honda now provides diesel versions of its City, Amaze, and Jazz Premium Hatchback models. Nissan, Renault, Volkswagen, Skoda, and other automakers have similarly decreased their diesel ranges.

In the passenger car market, diesel-powered vehicles controlled a market share of over 50% in 2012–2013, although this percentage has steadily declined over time. According to information from the Federation of Automobile Dealers Associations, it was 18% in FY22. Particularly after the BS-VI emission limits were implemented in 2020, the decline has been significant. From 33% in 2019, the market share in the PV category virtually dropped in the quarter. More details are covered in the report.



Along with higher pollution standards, the rise in sales of electric vehicles has also signaled the end of vehicles powered by diesel engines. By 2030, NITI Aayog wants EV sales to be 70% of all commercial vehicles, 30% of private vehicles, 40% of buses, and 80% of two- and three-wheelers. Diesel automobiles' attraction has been further reduced by the recent decline in gasoline and diesel costs, as well as the government's reduction of diesel-related subsidies. More details are covered in the report.
Challenging effects of exhaust emission standards and norms
According to the engine range, the most recent Tier 4 emission laws in the US have replaced the Tier 4 transitional, Tier 3, and Tier 2 requirements. Diesel engines must now adhere to the restrictions set out in the EPA Nonroad Compression Ignition Exhaust Emission Standards for numerous upstream oil and gas activities. Compared to Tier 3 and Tier 2, the reduction of nitrous oxides (NOx) and particulate matter (PM) has been the primary emphasis of current Tier 4 emission limits. The U.S. EPA has decided to limit the sulfur content of the diesel fuel used by these engines to 15 parts per million (ppm) with the most current Tier 4 emission requirements, a 97% reduction from the original requirement of 500 ppm.

With these restrictions, the European Commission, like the EPA, decided to concentrate on lowering emissions of carbon monoxide (CO), hydrocarbons (HC), nitrogen oxides (NOx), and particulate matter. The most recent and stringent stage of these restrictions is Stage V. The key points of Stage V emissions in relation to upstream oil and gas applications and more detail of each country-wise regulation and their effect on the market are covered in the report.

Not fixed prices are big challenge for players

Since urea and de-ionized water make up DEF, the price of urea has some influence on the price of DEF. Agriculture is the main use that affects the price of urea on a worldwide scale. The agriculture sector has an impact on urea pricing. Since it is depending on supply and demand from the agricultural sector, the price of urea is far more unpredictable than the price of diesel.

Crops are sown at the start of the year in several northern hemisphere nations. As a result, urea is expensive. Prices for urea decrease after the crops are prepared for winter harvest. According to the graph below, urea prices rise at the start of every year as a result of planters' increased demand from the agricultural sector. The price of urea was at its lowest in 2020 more than ten years ago, according to Yara International (Norway). Since urea is the primary component of DEF, changes in urea prices have an impact on DEF costs and hence present a challenge for the global market for diesel exhaust fluid
Diesel Exhaust Fluid Market (DEF) Segment Analysis:
Based on Vehicle Type, the Diesel Exhaust Fluid Market (DEF) is segmented into Passenger Cars, LCVs, and HCVs.HCVs segment held maximum market share in 2021. Globally, demand for the HCV vehicle segment has grown in industrialized and developing countries due to either improved product offerings or higher economic activity. Businesses must abide by the laws and standards of the country in which they conduct business. Regulation compliance will result in a rise in demand for DEF products. more than 500,000 diesel vehicles in Europe are currently using the technology, and the fleet is expanding by roughly 25,000 trucks each month.

According to MMR, manufacturers of passenger cars and light trucks supplying the United States, including Audi, BMW, Hyundai, Jeep, Kia, MiniCooper, and Volkswagen, are using DEF& SCR technology. In the latter part of 2020, Mercedes-Benz will release three new SCR-equipped diesel SUVs in the US. Additionally utilized in Singapore and Japan, DEF and SCR will soon be employed in China.

Freightliner, Kenworth, Mack, Peterbilt, and Volvo are among the manufacturers who are using SCR in the commercial transportation sector. Detroit Diesel and Cummins are two of the top engine manufacturers that use SCR and the Diesel Exhaust Fluid Market (DEF). More details are covered in the report.

Based on the Supply Mode, based on segment pump held the highest market share in 2021. Compared to the traditional strategy of supplying cans and bottles Due to the economics underpinning economies of scale, the DEF pumps supply option is more expensive than the Bulk supply mode. Due to the ease of DEF replenishment, customers choose DEF dispensing devices. OMCs have responded by installing these dispensing systems at their gas stations to improve consumer convenience. 2020 saw the introduction of a variety of diesel exhaust fluid (DEF) dispensing unit products for the North American market by FMT Swiss Ag, a well-known provider of specialty fluid storage and dispensing systems.

For example, the TC1 pump system is designed for performance. This combination demand sustainable performance, good value, and substantial returns on business investment. In addition to providing effective, on-demand pumping for the end-user, the TC1 is built to withstand the harsh conditions of the Diesel Exhaust Fluid (DEF) industry. Despite being specifically designed for use with tanks and totes, this high-performance, the mid-range package includes a Blue1 SureStop pressure switch in each TC1 pump that detects when the pump is not in use. This powerful pump can handle a variety of DEF applications and has outstanding carry and lift capabilities. The TC1 is a strong and powerful system that offers great performance at a price you can appreciate. It is also simple to use and install. The TC1 is not only cost-effective, but it's a workhorse made for ultimate reliability.

While providing DEF at the pump is more practical, it is also more susceptible to inclement weather. Well below DEF's freezing threshold of 12° F (-11° C), DEF cold weather optional features protect the product and equipment down to -22° F (-30° C). Retailers may have peace of mind knowing that their DEF supply is always available thanks to optional temperature warning sensors that deliver alarms when DEF temperatures fall below a safe level. The DEF-compatible hydraulics and the extremely precise flow meter provide dependable performance under all circumstances.

Based on the Application, the Diesel Exhaust Fluid Market (DEF) is segmented into agriculture equipment and construction equipment. Construction equipment held maximum shear in 2021. The use of diesel exhaust fluid (DEF) in the construction industry is not new. Actually, approximately five years ago saw the introduction of the first big construction machinery with DEF. Selective catalytic reduction (SCR) equipped on-road vehicles have been around for a while. The amount of DEF that is now in demand and the surge in DEF-required equipment entering the market, however, are new factors to take into account. Industry forecasts from the Integer Emissions Summit and DEF Forum predict that between now and 2025, the need for DEF will more than quadruple, reaching 1.8 billion gallons. The construction and agricultural sectors' new Tier 4 Final equipment is largely responsible for that growth. SCR systems are used by manufacturers of high-horsepower diesel engines, specifically those with 75 horsepower or more, to meet with emissions regulations. SCR is an after-treatment system that uses a dosing mechanism to spray DEF into the engine exhaust. As a result, nitrogen oxide (NOx) undergoes a chemical reaction and is transformed into water and nitrogen, both of which are absolutely harmless, before being released through the equipment's exhaust pipe.DEF used in Construction and agriculture equipment are covered in the report.
Diesel Exhaust Fluid Market (DEF) Regional Insights:
The North American region dominated the market with a 45 % share in 2021. The North American region is expected to witness significant growth at a CAGR of 45% through the forecast period. Both the US and Canada have a huge number of automobiles on the road and strict emission regulations, such as the US Clean Air Act (CAA). The high demand for diesel-intensive cars and equipment is a result of Mexico's growing economic activity and better business climate. Demand for DEF in the country will be driven by respect to emission rules. Canada has comparable demand and regulatory patterns to the US, therefore it is expected to have similar DEF demand trends. In August in Dearborn, Michigan, the North American SCR Stakeholders Group convened to continue planning the creation of a distribution and retail infrastructure to guarantee DEF availability in the United States. According to a news release from SCR Stakeholders on August 11, stakeholders include representatives of nearly 200 organizations, including diesel vehicle manufacturers, current and potential DEF producers, fuel and equipment distributors and retailers, as well as the U.S. EPA and Department of Energy.

The SCR Stakeholders Group's work includes creating a DEF website locator that is comparable to the one used for AdBlue in Europe. According to Today's Trucking on July 18 cities, AdBlue costs in Europe have virtually doubled since mid-2019 and companies are finding it challenging to absorb pricing hikes for urea. "No wonder prices have increased when you consider that farmers are earning higher returns on urea when it is marketed as fertilizer. The need for nitrogen to treat diesel exhausts will increase the need for research to increase the effectiveness of using it as a fertilizer "IFDC Senior Engineering Specialist Ramon Lazo de la Vega said. "To improve urea use efficiency, IFDC focuses on three main areas: deep urea briquette placement, particularly in rice fields with irrigation; controlled-release fertilizers; and nitrification and urease inhibitors that reduce nitrogen losses to the air through evaporation and to groundwater through leaching.
Competitive landscape
Thanks to the segmentation of the Diesel Exhaust Fluid Market (DEF), providers are using both organic and inorganic development methods to remain competitive. A number of market vendors are profiled in the Diesel Exhaust Fluid Market (DEF) study, including among others BASF SE, CF Industries Holdings Inc., China Petrochemical Corp., Cummins Inc., L'Air Liquide SA, Nissan Chemical Corp., Nutrien Ltd., Royal Dutch Shell Plc, Total SA, and Yara International ASA.

In order to reduce the concentration of NOx in the diesel exhaust emissions from diesel engines, CF Industries Holdings Inc. produces diesel exhaust fluid, which is used as a consumable in selective catalytic reduction (SCR). The diesel exhaust fluid produced by the firm satisfies the ISO22241-1 quality standards.

Beijing Petrochemical Corporation - The business sells pallet jugs, gallon drums, and gallon totes of several varieties of diesel exhaust fluid. 275-gallon disposable totes, 330-gallon totes, bulk, 1, 2.5, and 5 gallon bottles, 55-gallon drums, and bulk are all available for purchase from Cummins Inc.
Diesel Exhaust Fluid Market (DEF) Scope: Inquire before buying



Diesel Exhaust Fluid Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 32.5 Bn.


Forecast Period 2022 to 2029 CAGR:
7.9%
Market Size in 2029:
US $ 59.71 Bn.


 Segments Covered:
by Vehicle Type
• Passenger Cars
• LCVs
• HCVs


by Supply Mode
• Cans & Bottles
• IBCs
• Bulk
• Pumps


by Application
• Construction Equipment
• Agricultural Tractors



Diesel Exhaust Fluid Market (DEF) by Region
• North America
• Europe
• The Asia Pacific
• South America
• Middle East and Africa
Diesel Exhaust Fluid Market (DEF) Key Players
• Yara
• BASF
• CF Industries
• GreenChem
• Mitsui Chemicals
• Kelas
• Borealis L.A.T
• Sichuan Meifeng
• Nissan Chemical
• ENI S.p.A.
• Total
• Cummins
• Shell

Frequently Asked Questions:

1] What segments are covered in the Global Diesel Exhaust Fluid Market (DEF) report?
Ans. The segments covered in the Diesel Exhaust Fluid Market (DEF) report are based on Product Type and End User.

2] Which region is expected to hold the highest share in the Global Diesel Exhaust Fluid Market (DEF)?
Ans. The North America region is expected to hold the highest share in the Diesel Exhaust Fluid Market (DEF).

3] What is the market size of the Global Diesel Exhaust Fluid Market (DEF) by 2029?
Ans. The market size of the Diesel Exhaust Fluid Market (DEF) by 2029 is expected to reach US$ 59.71 Bn.

4] What is the forecast period for the Global Diesel Exhaust Fluid Market (DEF)?
Ans. The forecast period for the Diesel Exhaust Fluid Market (DEF) is 2021-2029.

5] What was the market size of the Global Diesel Exhaust Fluid Market (DEF) in 2021?
Ans. The market size of the Diesel Exhaust Fluid Market (DEF) in 2021 was valued at US$ 32.5 Bn.