April 23, 2024

Automotive Segment Is The Largest Segment Driving The Growth Of Diesel Exhaust Fluid Market

The global Diesel Exhaust Fluid Market is estimated to be valued at US$ 11.60 Mn or billion in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Diesel exhaust fluid is a non-toxic solution usually containing 67.5% high purity deionized water and 32.5% urea to reduce NOx emissions in diesel engines equipped with selective catalytic reduction technology. It is sprayed into the hot exhaust gas of diesel vehicles to break down polluting nitrogen oxides into nitrogen gas and water vapor before exiting through the tailpipe.

Market key trends:
One of the key trends driving the growth of diesel exhaust fluid market is stringent emission regulations globally to control pollution from diesel vehicles. Governments of various countries have implemented regulations like Euro 6 that mandate installation of selective catalytic reduction systems and use of diesel exhaust fluid in diesel cars, trucks and heavy duty vehicles to meet stringent NOx emission standards. This is increasing the demand for diesel exhaust fluid as a consumable across commercial and passenger transportation sectors.

SWOT Analysis
Strength: The diesel exhaust fluid market is witnessing an increasing demand for urea-based diesel exhaust fluid owing to the stringent emission regulations across the globe. In addition, the growing vehicle parc across both developed and developing nations is fueling the market growth.

Weakness: Significant production and logistics costs associated with diesel exhaust fluid limits the profit margins for manufacturers and suppliers. Also, fluctuating prices of natural gas and ammonia raw materials add to the production costs.

Opportunity: Stringent emission policies and regulations particularly in North America and Europe regarding vehicular emissions is creating opportunities for diesel exhaust fluid manufacturers. Further, the adoption of advanced vehicle technologies such as selective catalytic reduction systems also augments the market demand.

Threats: High dependency on China for raw material supplies poses threats regarding supply chain disruptions. Moreover, development of alternative emission control solutions could hamper the growth of the diesel exhaust fluid market over the long term.

Key Takeaways
The global diesel exhaust fluid market is expected to witness high growth, exhibiting CAGR of 7.6% over the forecast period, due to increasing vehicle parc across regions. The global market size of diesel exhaust fluid for 2023 is estimated to reach US$ 11.60 Mn.

Regional analysis
North America dominated the global diesel exhaust fluid market in 2022 and is expected to continue its dominance during the forecast period. This can be attributed to the stringent emission norms in the US and Canada. Meanwhile, Asia Pacific is anticipated to witness the highest growth during the forecast period owing to the expanding vehicle fleet in China and India.

Key players
Key players operating in the diesel exhaust fluid market are Yara International, BASF SE, CF Industries Holdings Inc., Agrium Inc., Cummins Inc., Shell ROTELLA (Royal Dutch Shell Inc.), Mitsui Chemicals Inc. and KOST USA. Cummins Inc leads the market and aims to expand its production capacity to meet the rising demand from the transportation sector across regions.