A) Market Overview:
Diesel exhaust fluid is a key component used in selective catalytic reduction (SCR) systems to reduce harmful nitrogen oxide emissions from diesel engines. DEF is made up of urea and deionized water and is injected into the exhaust gasses. It helps convert nitrogen oxides into harmless nitrogen and water, reducing the environmental impact of diesel vehicles. The increasing adoption of SCR technology in commercial vehicles to meet stringent emission regulations is driving the demand for DEF.
The global diesel exhaust fluid (DEF) market is estimated to be valued at US$11.60 million in 2021 and is expected to exhibit a CAGR of 7.67% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
B) Market Dynamics:
The two main drivers for the growth of the global Diesel Exhaust Fluid Market Demand are the increasing stringency of emission regulations and the rising demand for commercial vehicles. Governments across the world are implementing stricter emission standards to reduce air pollution and combat climate change. For instance, the emission standards set by the Environmental Protection Agency (EPA) in the United States require heavy-duty diesel vehicles to meet stringent nitrogen oxide emission limits. This has led to the widespread adoption of SCR technology, driving the demand for DEF.
Furthermore, the growing demand for commercial vehicles, especially in emerging economies, is driving market growth. The expansion of e-commerce and logistics industries, along with increasing investment in infrastructure development, has fueled the demand for commercial vehicles. As these vehicles need to comply with emission regulations, the demand for DEF has witnessed significant growth.
C) Market Key Trends:
One key trend in the Diesel Exhaust Fluid Market is the increasing adoption of DEF by off-road vehicles. The construction and agricultural sectors, which extensively use off-road vehicles, are increasingly adopting SCR technology to comply with emission standards. This has led to a higher demand for DEF in these sectors. For example, agricultural equipment manufacturers are integrating SCR systems into their products to reduce emissions and ensure compliance with emission regulations.
D) SWOT Analysis:
Strength:
Growing adoption of SCR technology
Increasing demand from the commercial vehicle segment
Weakness:
High cost of DEF
Lack of awareness about DEF among consumers
Opportunity:
Expansion of SCR technology in emerging markets
Integration of DEF distribution with fuel stations
Threats:
Substitute technologies for emissions control
The potential impact of COVID-19 on the automotive industry
E) Key Takeaways:
The global diesel exhaust fluid market is expected to witness high growth, exhibiting a CAGR of 7.67% over the forecast period, due to increasing stringency of emission regulations and rising demand for commercial vehicles.
North America is expected to dominate the market, driven by the presence of strict emission standards and a well-established automotive industry.
Key players operating in the global diesel exhaust fluid market include Yara International, BASF SE, CF Industries Holdings Inc., Agrium Inc., Cummins Inc., Shell ROTELLA (Royal Dutch Shell Inc.), Mitsui Chemicals Inc., and KOST USA. These players are focusing on product innovation, partnerships, and expansion strategies to gain a competitive edge in the market.
In conclusion, the global diesel exhaust fluid market is projected to grow significantly in the coming years due to the increasing need for emission control and compliance with stringent regulations. The rising adoption of SCR technology and the expanding commercial vehicle segment is expected to drive the demand for DEF. However, challenges such as high costs and lack of awareness among consumers need to be addressed to further propel market growth.
The demand within the global market for diesel exhaust fluid has been rising on account of several initiatives taken by the automotive sector to reduce harmful emissions from automobiles, finds Transparency Market Research (TMR).
The market players in the global diesel exhaust fluid market have been concentrating on improving the quality and performance of their product to gain a competitive edge over vendors.
The large market players in the global diesel exhaust fluid market are expected to acquire the small, redundant, and defunct vendors to expand their geographical reach.A vital strategy that is expected to be a key highlight of the competitive landscape of the global market for diesel exhaust fluid market is the establishment of strategic alliances between small and medium-sized vendors.
Hence, strategic partnerships, mergers, and acquisitions are projected to be the watchword of the global market for diesel exhaust fluid.The global market for diesel fluid exhaust is expected to expand at a healthy CAGR of 7.1% over the period between 2017 and 2022.
Furthermore, the total revenues accumulated by the global diesel exhaust fluid market in 2017 stood at US$10.4 bn in 2017, and this figure is projected to elevate to US$14.4 bn by 2022-end.
On the basis of pack type, the demand for bottled fluids has been rising across the globe; based on geography, the demand for diesel exhaust fluids is the highest in Europe.
