Diesel Exhaust Fluid Market, By Component (SCR Catalyst, DEF Tank, DEF Injector, DEF Supply Module, DEF Sensor, and Others), By Supply Modes (Cans & Bottles, Intermediate Bulk Containers (IBC), Bulk, and Others), By Vehicle Type (Passenger, Commercial, Light Commercial Vehicles, and Heavy Commercial Vehicles), By End-use (OEM and Aftermarket), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

Published In : Apr 2024

Code : CMI1263

Pages :118

Formats :

Excel and PDF

Industry : Energy

Challenges: Stringent emission regulations

Stringent emission regulations globally have increased the demand for diesel exhaust fluid. Additionally, , the low consumer awareness about the product and its functioning poses a major challenge. Availability and maintenance of diesel exhaust fluid throughout the vehicle's usage life also remains a concern. High production and transportation costs associated with diesel exhaust fluid make it expensive for consumers. These factors can negatively impact market growth.

Opportunities: Increasing adoption of diesel-powered vehicles and rising pollution levels

The rising levels of vehicle pollution globally pose a major challenge to the environment. Diesel vehicles in particular contribute significantly to toxic emissions like nitrogen oxide. However, this also opens up a big opportunity for the diesel exhaust fluid market. Diesel exhaust fluid, also known as AdBlue, is a liquid reagent that is added to selective catalytic reduction systems in diesel vehicles and machinery to convert nitrogen oxide emissions into harmless nitrogen and water vapor. As more countries implement stringent emission regulations on commercial vehicles and trucks to curb air pollution in urban centers, the demand for AdBlue will see a corresponding rise. Already, many nations in Europe and regions like California have implemented Euro 6 or equivalent emission standards that make AdBlue mandatory for modern diesel engines to function. With growing evidence that toxic vehicle emissions pose serious health risks, other populous developing countries in Asia and Latin America will also look to tighten their diesel vehicle pollution norms in the coming years. The International Council on Clean Transportation estimates that between 2020-2025, over 80 million heavy and light commercial diesel vehicles will need to upgrade to newer models equipped with AdBlue technology in major global vehicle markets in order to meet increasingly strict emission standards. This translates to a ready customer base and growing need for diesel exhaust fluid to service those newer, cleaner diesel fleets.