The global Diesel Exhaust Fluid Market is estimated to be valued at US$ 13.45 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 non-toxic aqueous urea solution which is injected into the exhaust stream of diesel vehicles with selective catalytic reduction (SCR) systems. When properly formulated and injected into diesel engines, DEF reacts with NOx emissions and converts them into harmless nitrogen, water vapor and small amounts of carbon dioxide. Diesel exhaust fluid helps diesel vehicles meet nitrogen oxide emission standards. It is essentially a non-toxic urea solution as important as diesel to keep SCR-equipped diesel vehicles functioning properly.

Market key trends:

One of the major trends in the diesel exhaust fluid market is the stringent emission regulations for diesel vehicles across regions to curb vehicular pollution. The Environmental Protection Agency (EPA) and various state governments have mandated the use of selective catalytic reduction system with DEF in heavy-duty diesel vehicles to meet emission standards. This is driving the demand for DEF in the automotive industry. Another key trend is the growing automotive industry, especially for commercial vehicles worldwide which is increasing the fleet of diesel vehicles equipped with SCR systems, thereby propelling the consumption of DEF over the forecast period.

Porter’s Analysis

Threat of new entrants: Low barriers to entry in the Diesel Exhaust Fluid market with low capital requirements. However, established brands dominate the market.

Bargaining power of buyers: High due to the availability of substitute products. Buyers can negotiate on price and demand other concessions.

Bargaining power of suppliers: Moderate to high due to the dominance of few manufacturers who are suppliers. Suppliers possess bargaining power based on their brand name and market share.

Threat of new substitutes: Moderate threat from the development of alternate technologies aiming to reduce emissions. However, Diesel Exhaust Fluid meets the current emission regulations.

Competitive rivalry: High competition among existing players to increase their market share. Players compete on pricing, quality, brands and distribution networks.

Key Takeaways

The Global Diesel Exhaust Fluid Market Size is expected to witness high growth, exhibiting CAGR of 7.6% over the forecast period, due to increasing environmental regulations regarding vehicular emissions. Stringent emission norms by regulatory bodies across regions drive the demand for Diesel Exhaust Fluid.

Regional analysis: North America dominates the global Diesel Exhaust Fluid market owing to stringent vehicular emission standards implemented by the US EPA. Europe is another major market due to pollution control measures by European Union. Asia Pacific is expected to be the fastest growing market for Diesel Exhaust Fluid led by 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 partnerships, joint ventures and mergers to expand their production facilities and distribution networks globally.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it