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      Diesel Exhaust Fluid Market by Application, Component, Aftermarket, & Region

      admin by admin
      April 28, 2022
      in Press Releases
      Diesel Exhaust Fluid Market by Application, Component, Aftermarket, & Region
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      (EMAILWIRE.COM, April 28, 2022 ) The global Diesel Exhaust Fluid Market size is projected to grow from projected to reach USD 45.0 billion by 2027 from USD 22.6 billion in 2020, at a CAGR of 10.3%. The increasing number of DEF pumps and the increasing average age of vehicles and miles driven are leading to the growth of the diesel exhaust fluid market.

      The construction equipment segment by off-highway vehicle application is expected to hold the largest market share in 2020

      Tier-IV refers to air emission standards published by the U.S. Environmental Protection Agency (EPA), while Stage-IV is equivalent to standards laid down by the European Commission. These standards are applicable to engines used in off-highway vehicles. Essentially, manufacturers are mandated to reduce particulate matter and nitrogen oxide levels by 50%-90%. The EPA and California Air Resources Board (CARB) have adopted a similar set of standards and there are no unique Tier-IV emission standards for California. The regulations led by Japan closely align with the EPA and Euro standards. European regulations are parallel to that of the U.S. to prevent equipment manufacturers from manufacturing different engines for every market, as the engine business is global, the only major difference being with terminologies in use.

      Higher construction vehicle sales and high SCR penetrations in construction vehicles in developed countries are the major factors driving the growth of the construction segment. Emission regulations, specifically in urban or closed construction areas have a significant impact on the growth of the market for construction equipment.

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      North America is estimated to be the largest market in 2020

      The growth of the aftermarket in the North American region can be attributed to the standardization of diesel exhaust fluid tanks in trucks and buses manufactured in countries such as the US after 2010. Moreover, the demand for commercial vehicles, both, LCVs and HCVs are high in the North American region. The higher demand for commercial vehicles is driving the growth of the DEF as average miles drove, DEF tank size, and rate of dosage for commercial vehicles is high compared to passenger cars. In North America, the SCR technology started being used in diesel equipment for off-highway equipment, and hence the consumption of DEF in the off-highway segment has increased. DEF is used in engines with high horsepower and includes wheel loaders and skid steers. In the US and Canada, SCR was employed in medium and heavy-duty vehicles since 2007, and this technology requires DEF (32.5% urea) the reduce NOx emissions. In 2010, the Environment Protection Agency (EPA) implemented regulations, which led to the increased application of SCR in the trucks segment. Until August 2014, all new medium- and heavy-duty trucks and buses in North America had installed SCR.

      Asia-Oceania is estimated to be the second-largest market

      China has a vehicle parc of 203.5 million units in 2019, which is the largest in Asia-Oceania. China accounted for 62.58% of the vehicle parc in Asia-Oceania. China is also the largest automobile industry in the region and is a major driver of regional vehicle sales in Asia-Oceania. China adopted the China 5 emission standard in 2017 for all vehicle sales and registration. This standard is equivalent to the Euro 5 emission standard. The diesel exhaust fluid aftermarket will be influenced by the implementation of China 5 emission norms, as new diesel vehicles must adopt SCR to meet the reduced limit of NOx produced in the exhaust. The country is also planning to implement China’s 6 emission regulations in 2021. This new emission mandate is expected to further boost the DEF aftermarket in China.

      India is expected to be one of the fastest-growing economies across the globe, due to the increasing disposable income of the population in the country. The introduction of Bharat Stage 6 (BS4) emission standards for all vehicles manufactured and sold from April 2019 is expected to boost the adoption of SCR and fuel the growth of the diesel exhaust fluid aftermarket in the coming years. A majority of the commercial vehicle manufacturers have decided to adopt SCR in their vehicles to meet the low carbon emission requirements of BS6. The Indian automotive industry is experiencing a V-shaped recovery as Indian states increasingly ease lockdown measures and there is a sustainable trend in demand since the third quarter of 2020, The Indian DEF aftermarket is expected to recover fully by mid-2021. These are the major factor presently driving the demand for SCR and DEF in the region.

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      The global diesel exhaust fluid market is dominated by companies like Total (France), Royal Dutch Shell PLC (The Netherlands), Yara International (Norway), BASF SE (Germany), and China Petrochemical Corporation (Sinopec) (China).



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