Diesel Exhaust Fluid Market Size and Share: Evaluating Global Landscape

Diesel Exhaust Fluid (DEF) or AdBlue is an aqueous urea solution that is used in Selective Catalytic Reduction (SCR) systems to convert nitrogen oxide (NOx) in diesel exhaust into nitrogen, water vapor and tiny amount of carbon dioxide. Diesel exhaust fluid helps reduce pollution from heavy duty diesel vehicles like trucks, buses and construction equipment. 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 Opportunity:

Strict emission regulations imposed by environmental agencies across the globe is projected to offer lucrative opportunities for the diesel exhaust fluid market. Governments of many countries are introducing stringent regulations to curb vehicular pollution. For instance, EU emission standards like Euro 6 and USA's Clean Air Act have made it mandatory for heavy duty diesel vehicles and engines to install SCR systems and use diesel exhaust fluid. Continuous tightening of emission norms will further drive the demand for DEF. Manufacturers may also be required to lower the content of harmful exhaust gases emitted from vehicles and machinery. This is expected to boost the consumption of DEF globally as it helps reduce nitrogen oxide emissions significantly. Expanding base of diesel commercial vehicles and construction equipment will further augment the demand for diesel exhaust fluid over the forecast period.

Porter's Analysis
Threat of new entrants: The diesel exhaust fluid market requires high capital investments for manufacturing plants and distribution channels which limits the threat of new entrants.
Bargaining power of buyers: The buyers have moderate bargaining power in this market as diesel exhaust fluid is required to meet emission standards and there are only a few manufacturers.
Bargaining power of suppliers: A few key suppliers exist for raw materials used to make diesel exhaust fluid like urea. This gives them moderate bargaining power over manufacturers.
Threat of new substitutes: There are no cost-effective substitutes for diesel exhaust fluid currently so the threat of substitutes is low.
Competitive rivalry: The key global players dominate the market but regional players also compete for market share.

SWOT Analysis
Strengths: Regulations favoring diesel exhaust fluid to reduce emissions. Established distribution channels of key players.
Weaknesses: Fluctuating prices of raw materials increases production costs. Seasonal demand affects inventory management.
Opportunities: Expanding fleet of commercial vehicles and machinery in emerging markets. Adoption of stricter emission norms will boost demand.
Threats: Slow economic growth can decrease demand from the transport industry. Alternative emission control technologies may be developed.

Key Takeaways
The global diesel exhaust fluid market is expected to witness high growth over the coming years due to more stringent emission standards worldwide.

The market in North America dominated the market in 2021 due to stringent emission regulations in countries like the US and Canada. However, the Asia Pacific region is expected to grow at the fastest pace during the forecast period driven by large vehicle parc and infrastructure expansion in countries 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. Yara International is one of the largest producers and suppliers of diesel exhaust fluid globally. BASF SE has a strong foothold in Europe and is investing to expand capacities.