Diesel Exhaust Fluid Market Size, Share and Trends 2024 to 2034

Diesel Exhaust Fluid Market Size and Forecast 2024 to 2034

The global diesel exhaust fluid market size is expected to be worth USD 39.59 billion in 2024 and is anticipated to reach around USD 84.92 billion by 2034, growing at a solid CAGR of 7.93% over the forecast period 2024 to 2034. The North America diesel exhaust fluid market size reached USD 12.47 billion in 2023. The rising application of diesel exhaust fluid in construction and agricultural equipment is a key diesel exhaust fluid market driver.

Diesel Exhaust Fluid Market Key Takeaways

• North America dominated the diesel exhaust fluid market with the highest market share of 34% in 2023.
• Asia Pacific is expected to grow significantly in the market over the projected period. 
• By vehicle type, the light commercial vehicles segment generated the biggest market share of 26% in 2023.
• By vehicle type, the passenger car segment will show notable growth in the market during the projected period.
• By component, the catalysts segment recorded the largest market share of 41% in 2023.
• By application, the construction equipment segment captured the market share of 40% in 2023. 
• By application, the agricultural tractors segment will witness the fastest growth in the market over the forecast period.

U.S. Diesel Exhaust Fluid Market Size and Growth 2024 to 2034

The U.S. diesel exhaust fluid market size was exhibited at USD 8.73 billion in 2023 and is projected to be worth around USD 20.65 billion by 2034, poised to grow at a CAGR of 8.14% from 2024 to 2034.

North America dominated the diesel exhaust fluid market in 2023. The dominance of the segment can be attributed to the significant growth of the construction industry in the region coupled with the rising demand for non-residential construction projects like commercial buildings, hospitals, and colleges. Furthermore, the market in the U.S. is expanding at a substantial rate because of positive market fundamentals for real estate and a strong economy.

• In October 2023, Monomoy Capital Partners sold Shaw Development, the leading manufacturer of diesel exhaust fluid, to Madison Dearborn Partners, a successful exit from Monomoy's investment in Shaw Development.

Asia Pacific is expected to grow significantly in the diesel exhaust fluid market over the projected period. The growth of the region can be linked to the urbanization and swift industrialization occurring in nations like China and India, along with the stricter emission standards to counteract air pollution. 

List of countries by motor vehicle production

Market Overview

Diesel exhaust fluid (DEF) is a mixture of 67.5% deionized water and 32.5% urea. It is colorless, odorless, and non-flammable. DEF's quality is preserved in special storage tanks made of stainless steel or polyethylene plastic because the shelf life of the substance depends on the temperature at which it is stored. To reduce diesel exhaust emissions, selective catalytic reduction (SCR) uses AUS 32 as a consumable to lower nitrous oxide (NOx) levels in engines. 

Impact of AI on the Diesel Exhaust Fluid Market

Artificial Intelligence (AI) is substantially influencing market-driven analytics, and ML algorithms are improving the accuracy of diesel exhaust fluid dosage and enhancing the efficiency of exhaust systems. Furthermore, automation in the diesel exhaust fluid market technology has led to reduced operational costs and higher production rates. As AI and automation evolve, their integration into diesel exhaust fluid systems is anticipated to further stimulate fuel consumption and emission control.

• In March 2024, Digital Twin solution provider Intangles Lab Pvt. Ltd. unveiled its diesel particulate filter (DPF) technology. Developed by the Technology & Innovation Group at Intangles, this AI-powered feature is set to transform the commercial vehicle industry by offering advanced insights into DPF regeneration quality.

Diesel Exhaust Fluid Market Growth Factors

• Growing demand for diesel exhaust fluid in end-use sectors like automotive, marine, and aerospace is expected to propel market growth soon.
• The stringent emission regulations imposed by the government to regulate air pollution are expected to fuel the diesel exhaust fluid market growth further. 
• Increasing environmental awareness and sustainability goals across various industries can boost market growth shortly.
• An increase in demand for the product in the automobile industry can drive market growth over the forecast period.
• Rapid industrialization and logistics infrastructure innovations will likely contribute further to the diesel exhaust fluid market expansion.

Market Scope

Market Dynamics

Driver

Innovations in selective catalytic reduction technology

Innovations in SCR technology improved the performance and efficiency of the diesel exhaust fluid market by extensively gaining its usage in many sectors. Additionally, the demand for more innovative SCR systems from the automotive industry rises because products have strict emission regulations and want to enhance their fuel efficiency. The utilization of advanced SCR systems in agriculture and construction has helped fulfill environmental standards and boost the performance of diesel-based equipment.

• In May 2022, the press release says that Yanmar Power Technology Co., Ltd. (YPT) a group company of Yanmar Holdings Co., Ltd. will start offering its proprietary selective catalytic reduction exhaust gas purification system 1 with connected functionality and a dedicated management app from mid-May.

Restraint

Fluctuating cost of raw materials 

The growth of the market can be hampered by the fluctuating cost of raw materials such as urea, along with the increasing demand for electric vehicles worldwide. Also, the overall growth of the global diesel exhaust fluid market can be constrained by adulteration, which has a negative effect on the quality of diesel exhaust fluid.

Opportunity

Rise of renewable diesel fuels

The advent of renewable diesel fuels presents a crucial opportunity to integrate the diesel exhaust fluid market into a wide platform. Renewable diesel products are cleaner options than traditional diesel and can be created from bio-based feedstocks, which in turn reduces carbon emissions compared to their conventional counterparts. Furthermore, the increase in renewable diesel development builds a complementary relationship with diesel exhaust fluid and impacts.

• In September 2024, Global Partners will launch Connecticut’s first renewable diesel. Renewable diesel is made from fats, oils, and waste products from the food and restaurant industries and delivers the same performance as petroleum diesel, with up to 78% lower emissions, according to the EPA.

Vehicle Type Insights

The light commercial vehicles segment held a significant share of the diesel exhaust fluid market in 2023. The dominance of the segment can be attributed to the increasing use of diesel exhaust fluid in light commercial vehicles to meet strict emissions regulations and improve environmental performance. Additionally, the segment's dominance indicated its crucial role in the diesel exhaust fluid market and influenced the overall demand for this product in the transportation sector.

The passenger car segment will show notable growth in the diesel exhaust fluid market during the projected period. The growth of the segment is driven mainly by the rising popularity of diesel-engine cars. Diesel exhaust fluid is a most common feature in passenger cars. It can be used in combination with selective catalytic reduction technology to clear exhaust gas before it's emitted into the atmosphere. The DEF is utilized in a variety of passenger vehicles, such as pickups, SUVs, and cars.

Component Insights

The catalysts segment led the global diesel exhaust fluid market in 2023. This is because the catalyst component of the product is important for the efficient operation of selective catalytic reduction systems in diesel engines. DEF is mainly composed of deionized water and urea which acts as a reductant in the SCR process. Moreover, catalytic reaction is essential for decreasing NOx emissions and fulfilling stringent environmental regulations.

• In July 2024, Volvo Trucks North America released an engine that complies with the California Air Resources Board (CARB). Omnibus regulation requirements for low nitrogen oxide (NOx) and particulate matter (PM) emissions standards. The regulation calls for a 75% reduction in NOx emissions and a 50% reduction in PM from heavy-duty on-road engines for model years 2024 through 2026, compared to current U.S. EPA standards.

Application Insights

The construction equipment segment dominated the global diesel exhaust fluid market. The dominance of the segment can be credited to the increased utilization of Construction equipment like bulldozers, excavators, and loaders in the construction industry as they operate smoothly under demanding conditions. Furthermore, diesel exhaust fluid is crucial for construction equipment to match with modern emissions regulations and support environmental sustainability.

The agricultural tractors segment will witness the fastest growth in the diesel exhaust fluid market over the forecast period. This is due to DEF helping tractors fulfill the EPA’s Tier 4 Final emissions standards by ensuring a substantial decrease in air pollution. This application can enhance engine efficiency and longevity by stimulating combustion and decreasing toxic emissions. Also, regular refilling of DEF and Proper storage are necessary for regulating tractor performance and sustainability during tedious agricultural operations.

• In February 2024, John Deere announced the launch of three new models in the 9RX tractor range, as well as its new S7 combine. The new 9RX models are equipped with the 18-litre JD18X engine, which provides up to 913 maximum horsepower at low specific fuel consumption and up to 4,234 Nm of torque with the top model. Notably, it achieves full Stage 5 compliance without the need for diesel exhaust fluid /AdBlue.

Diesel Exhaust Fluid Market Companies

• Total Energies
• Shell
• BASF SE
• Sinopec
• Cummins Filtration
• CF Industries Holdings, Inc.
• Dyno Nobel
• Agrium Inc.
• Honeywell International Inc.
• Faurecia SE

Recent Developments

• In May 2024, Rislone introduced a new product called diesel exhaust fluid Crystal Clean to upgrade diesel exhaust fluid systems and enhance SCR emissions by cleaning deposits while improving engine performance.
• In November 2023, the government of Delhi in India announced that only CNG-powered and Bharat stage VI diesel vehicles, as well as electric buses, will be allowed to operate within the regional public transport setup.
• In January 2022, the German Association of the Automotive Industry (VDA) awarded accreditation to Cross Chem International's Hong Kong branch, authorizing it to start manufacturing AdBlue Diesel Exhaust Fluid. This certification confirms that the product meets top-tier standards and will support the company's growth in the diesel exhaust fluid sector.
• In January 2022, BP is set to sell its retail network and logistics assets to Total Energies. This deal also includes a chain of twenty-six service stations, a commercial customer portfolio, and SAMCOL, which is 50% owned by both Total Energies and BP, and it manages Nacala, Beira, and Matola petroleum import terminals.

Segments Covered in the Report

By Vehicle Type

• Passenger Cars
• Lcvs
• Hcvs

By Component

• Catalysts
• Tanks
• Injectors
• Sensors
• Others

By Application

• Construction Equipment
• Agricultural Tractors
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa