July 18, 2024

The Diesel Exhaust Fluid Market is driven by Stringent Emission Norms Worldwide

Diesel exhaust fluid (DEF), also known as AdBlue, is an aqueous urea solution that is injected into Diesel engine exhaust in order to reduce emissions of nitrogen oxides (NOx). DEF helps reduce NOx emissions from diesel cars and heavy vehicles by converting it into harmless nitrogen and water vapor through a catalytic reaction. As a precursor to SCR (Selective Catalytic Reduction) technology, DEF plays a vital role in meeting strict emission standards across regions. With regulations tightening on emission levels from diesel trucks and commercial vehicles globally, the demand for DEF as an after-treatment fluid is surging.

The global Diesel Exhaust Fluid Market is estimated to be valued at US$ 11.60 Mn 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 key trends:

One of the key trends in the DEF market is the growing preference for aqueous urea over other NOx removal agents. Aqueous urea, usually in the form of an aqueous mixture of 32.5% urea and 67.5% deionized water that is commonly known as DEF or AdBlue, has become the industry standard globally as a reductant used for selective catalytic reduction (SCR) systems. Urea provides good availability, is cost-effective, and forms non-toxic byproducts during the process of converting NOx into nitrogen and water vapor. With its wide acceptance by automakers and emissions regulators worldwide, the aqueous urea segment will continue growing at a higher pace over the forecast period. Another emerging trend is the increasing shift towards more compact and cost-effective DEF delivery and dosing systems as manufacturers aim to minimize component costs related to after-treatment technologies.

Porter’s Analysis
Threat of new entrants: Low. High capital requirements and established distribution channels create barriers for new players.
Bargaining power of buyers: High. Diesel exhaust fluid is a commodity product with close substitutes. Buyers can negotiate on price easily.
Bargaining power of suppliers: Moderate. Supply chain is concentrated but manufacturers depend on few raw material suppliers for urea.
Threat of new substitutes: Low. No close substitutes exist for diesel exhaust fluid in meeting emission regulations.
Competitive rivalry: High. Intense competition among existing players to gain market share. Pricing wars and new product development are common.

Key Takeaways
The global Diesel Exhaust Fluid market is expected to witness high growth.

Regional analysis: North America dominates the market currently owing to stringent emission norms in the US and Canada. Asia Pacific is expected to be the fastest growing market with countries like China and India driving demand.

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. These key players are focusing on capacity expansion and new product launches to gain a competitive edge in the market.


1.Source: Coherent Market Insights, Public sources, Desk research

2.We have leveraged AI tools to mine information and compile it