Global Diesel Exhaust Fluid Market Size, Share, and COVID-19 Impact Analysis, By Technology (Selective Catalytic Reduction (SCR), DEF Tank, Injector, Sensor & Others), By Vehicle Type (Passenger Car, Commercial Vehicles, Off-road Vehicles), By Supply Mode (Cans & Bottles, IBC, Bulk & Pumps), By End-Use (OEM, Aftermarket) and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa) Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS

The global diesel exhaust fluid market was valued at USD 35.3 Bn in 2021. The market is projected to grow USD 53.5 Bn in 2030, at a CAGR of 6.5%. DEF is a mixture of 32.5 percent urea and 67.5 percent deionized water that is odorless, colorless, and non-flammable. The standardized AUS 32 form is used as a consumable in selective catalytic reduction (SCR) to reduce the concentration of nitrogen oxides (NOx) in diesel exhaust emissions from diesel engines. Inside the exhaust pipe, DEF vaporizes and decomposes into ammonia and carbon dioxide, which react with oxygen and harmful nitrogen oxides in the vehicle's selective catalytic reduction (SCR) catalyst. As a result, nitrogen, water vapor, and carbon dioxide are produced. Because DEF's shelf life is closely proportional to its storage temperature, specific storage containers constructed of polyethylene plastic or stainless steel are employed to maintain its purity.

The International Organization for Standardization has standardized the diesel exhaust fluid as an aqueous urea solution (ISO). In order to reduce harmful pollutants released from the exhausts of diesel-powered automobiles, this consumable fluid is used in conjunction with Selective Catalytic Reduction, or SCR, technology. While the engine is running, a separate fuel tank that is attached to the exhaust pipe stores the diesel engine exhaust fluid and activates it instantly.

COVID-19 ANALYSIS

The COVID-19 pandemic and the ensuing drop in vehicle sales, average vehicle miles driven, and manufacture of automobiles. Vehicle sales and manufacture are not anticipated to fully resume even when lockdowns are fully lifted because of difficulties with the supply chain, workforce availability, and government precautionary recommendations. In this case, the market for diesel exhaust fluid is anticipated to be moderately affected by the COVID-19 outbreak. The epidemic has had a substantial impact on major automotive manufacturing nations like China, Japan, Germany, and the UK. In these nations, both car sales and annual mileage have drastically decreased by 2020. Given the circumstances, it is predicted that the Y-o-Y growth rate of the diesel exhaust fluid market would have decreased in 2020. The need for DEF is anticipated to increase due to the anticipated recovery of the automotive sector, which would therefore fuel the market for diesel exhaust fluid.

LATEST TREND

Growing Adoption of Diesel Exhaust Fluid Associated with Emission Reduction

The ozone layer is impacted by greenhouse gases (GHGs) trapped in the atmosphere, which causes gradual heating. Carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases are the main GHGs (hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride, and nitrogen trifluoride). CO2 is released when fossil fuels like coal, natural gas, and oil are burned, especially in the transportation industry. Numerous organizations have imposed standards on exhaust emission as a result of the excessive GHG output. According to data published by the European Union (EU), the transportation segment that involves roads consumes the most energy, or 82 percent, while the segments that involve aircraft, rail, pipeline transport, and general transportation each use 18 percent.

Drivers

Increasing Average Age of Vehicles Favoring the Market Growth

The average age of vehicles is rising, infrastructure is getting better, there are more cars on the road, people drive more miles per year, and people are becoming more concerned about vehicle maintenance, all of which have an impact on the demand for DEF in the aftermarket. Between 2005 and 2019, the average age of a car in North America rose from 10.1 to 11.8 years. This is because to advancements in technology, safer road infrastructure, and safety measures. The number of automobiles on the road is rising as a result of the rising average age of vehicles.

RESTRAINTS

Decreasing Penetration of Diesel Vehicle Compared to Petrol Vehicles

Vehicle manufacturers moving away from diesel technology in response to stricter NOX emission limits and real-driving emissions testing are two major reasons limiting the demand for diesel vehicles. Recent years have seen a decline in the sales of diesel vehicles due to incidents like the 2015 emissions scandal, which altered consumer preferences following the defeat device scandal and manufacturers like Volvo and Nissan pledged to phase out this fuel type. Diesel vehicles have significant effects on the price of meeting CO2 emission targets and the volume of fleet-wide NOX emissions, which further drives up the cost of the vehicles. As a result, rising diesel vehicle costs are a concern for those looking to purchase a vehicle.

SEGMENTATION INSIGHTS

The global Diesel Exhaust Fluid market is segmented by Technology (Selective Catalytic Reduction (SCR), DEF Tank, Injector, Sensor & Others), By Vehicle Type (Passenger Car, Commercial Vehicles, Off-road Vehicles), By Supply Mode (Cans & Bottles, IBC, Bulk & Pumps), By End-Use (OEM, Aftermarket) and Region. Based on the technology, the market is selective catalytic reduction (SCR), def tank, injector, sensor & others. Based on vehicle type, the market is passenger car, commercial vehicles & off-road vehicles. Based on supply mode, the market is categorized into cans & bottles, ibc, bulk & pumps. Based on end-use, the market is categorized into oem, aftermarket. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.

By Technology

Based on technology, is categorized into selective catalytic reduction (scr), def tank, injector, sensor & others. The def tank segment is expected to dominate the market share of global diesel exhaust fluid market owing to the usage of highly accurate reading devices across different end-uses. Customers prefer DEF dispensing systems because they make DEF replenishment convenient for fleet and other vehicle owners. From 14% in 2011 to 40% in 2019, DEF pumps made up a larger portion of the overall vehicle DEF supply method. In order to increase client traffic at their gas stations, fuel-supplying businesses have invested in installing such dispensing systems.

By Vehicle Type

Based on vehicle type, the market is categorized into passenger car, commercial vehicles, off-road vehicles. The passenger car range segment is expected to dominate the market share of global diesel exhaust fluid market owing to the demand for passenger cars will rise as developing economies flourish all over the world. Increased commercial activity in the area is what is driving this demand. Passenger cars use diesel fuel and are required to adhere to pollution standards as a result of country-specific regulations. As a result of its role in emissions reduction, DEF will see a substantial rise in demand worldwide, particularly in developing areas. DEF demand is anticipated to increase as a result of recent and forthcoming emission laws in nations like China and India.

By End-Use

Based on end-use, the market is categorized into oem and aftermarket. The aftermarket segment is expected to dominate the market share of global diesel exhaust fluid market owing to the large distribution network and reduce the cost of production significantly.

REGIONAL INSIGHTS

The global diesel exhaust fluid market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. North America region is expected to dominate the market share of global diesel exhaust fluid market owing to the improvement in the business climate brought about by the economic situation has increased demand for machinery and cars with diesel engines. The country's emission standards will require improved solutions to enhance air quality as the demand for diesel rises. The country's need for DEF will rise as a result. Similar to the US, Canada has a significant market for diesel-powered automobiles. In the years to come, the nation's need for LCVs and HCVs will increase more rapidly. Due to this strong demand, there will also be an increase in diesel fuel consumption. Additionally, Canada has tougher air quality rules, which will increase demand for DEF to meet these requirements.

However, Asia Pacific region is expected to witness highest growth rate during the forecast period of global diesel exhaust fluid market due to the product is in high demand in the area's constantly expanding automotive market. The primary driver anticipated to fuel the market's growth is the rising demand for AdBlue in end-use sectors including marine, automotive, and aerospace. Increasing restrictions governing greenhouse gas (GHG) emission and rising demand for the product in the automotive industry are some factors contributing to the growth of the diesel exhaust fluid market.

INDUSTRY PLAYERS

· TotalEnergies

· Shell PLC

· BASF SE

· Brenntag AG

· China Petrochemical Corporation

· CF Industries Holdings, Inc

· Cummins Filtration

· Dyno Nobel

· KOST USA, Inc.

· STOCKMEIER Group

· Old World Industries, LLC

· The Potash Corporation of Saskatchewan

· Yara International ASA

· Blue Sky Diesel Exhaust Fluid

KEY INDUSTRY DEVELOPMENTS:

January 2022- TotalEnergies has announced to expand in Mozambique with the acquisition of BP’s retail network, wholesale fuel business and logistics assets. The transaction covers a network of 26 service stations, a portfolio of business customers and 50% in SAMCOL, the logistics company previously jointly owned by TotalEnergies and BP, which operates the Matola, Beira and Nacala fuel import terminals.

August 2021-BASF and SINOPEC will further expand their Verbund site operated by BASF-YPC Co., Ltd., a 50-50 joint venture of both companies in Nanjing, China which includes the capacity expansion of several downstream chemical plants that will help SINOPEC to increase distribution of DEF products.

SEGMENTATION:

By Technology

• Selective Catalytic Reduction (SCR)
• DEF Tank
• Injector
• Sensor
• Others

By Vehicle Type

• Passenger Car
• Commercial Vehicles
• Off-road Vehicles

By Supply Mode

• Cans & Bottles
• IBC
• Bulk & Pumps

By End-Use

• OEM
• Aftermarket

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy
• Asia-Pacific- China, Japan, India
• Latin America- Brazil, Argentina, Colombia
• The Middle East and Africa- United Arab Emirates, Saudi Arabia