by 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 Overview:
Diesel Exhaust Fluid or DEF is an aqueous urea solution made from deionized water and automotive-grade urea. DEF serves as a reducing agent used in Selective Catalytic Reduction (SCR) systems installed in diesel engines to reduce emissions of nitrogen oxides from the exhaust. DEF breaks down into ammonia and carbon dioxide to reduce NOx gases into nitrogen and water vapor before being released out of the tailpipe. With stringent emission norms worldwide, the mandatory installation of SCR systems in heavy-duty vehicles, buses, trucks, marine, locomotives, etc. is fueling the demand for DEF in the auto industry.
Market key trends:
One of the key trends in the diesel exhaust fluid market is growing vehicle production across the globe. As per International Organization of Motor Vehicle Manufacturers, the global passenger car production increased by 4.6% year-on-year to reach over 77.7 million units in 2021. This rise in vehicle production is increasing the installation of SCR systems which utilize DEF for reducing NOx emissions. Additionally, increasing global diesel engine vehicle fleet is also driving the consumption of DEF for aftertreatment of tailpipe emissions. Strict emission regulations set by EPA and European Commission are compelling vehicle manufacturers to opt for advanced emission control technologies using DEF.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the capital requirement to enter into Diesel Exhaust Fluid market is moderately high. Also, the established players have strong brand position and economies of scale which acts as a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate to high as there are many established manufacturers providing Diesel Exhaust Fluid. Buyers can negotiate on price and demand other value-added offerings from manufacturers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers for raw materials required for manufacturing Diesel Exhaust Fluid like urea, ammonia etc.
Threat of new substitutes: The threat of new substitutes is low as there are limited substitutes available for Diesel Exhaust Fluid.
Competitive rivalry: The competitive rivalry in the market is high owing to presence of global and regional players offering a wide range of products.
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 demand for emission control of diesel vehicles.
Regional analysis: North America region currently dominates the Diesel Exhaust Fluid market. The rising sales of heavy and commercial vehicles in countries like US and Canada is driving the growth of DEF market in this region. Asia Pacific region is expected to show fastest growth over the forecast period due to increasing vehicle parc and stringent emission norms in major economies like China and India.
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. Key players are focusing on new product launches, expansions and collaborations to expand their geographic footprint and customer base in the Diesel Exhaust Fluid market.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
