The 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 is a liquid solution used in selective catalytic reduction (SCR) systems to reduce emissions of nitrogen oxides (NOx) from diesel engines. It is made of 67.5% ultra-pure deionized water and 32.5% anhydrous urea, which chemically react in the SCR system converting nitrogen oxides into inert nitrogen, water vapor, and trace amounts of carbon dioxide. Diesel exhaust fluid helps reduce NOx emissions by up to 90%, meet increasingly strict emissions regulations, and keep engines running efficiently.

Market key trends:

Diesel exhaust fluid market growth is driven by stringent emission regulations imposed by governments across the globe to curb air pollution and emissions from vehicles. For instance, Euro 6 emission standards introduced in 2014 and its subsequent phases have mandated significant reduction of NOx and particulate matter from vehicles in Europe. Similarly, EPA has introduced stringent Tier 3 vehicle and fuel regulations in U.S. that came into effect in 2017 to reduce NOx and other emissions from light and heavy-duty vehicles. Manufacturers are developing advanced SCR after-treatment systems that require diesel exhaust fluid to meet these strict emission norms, thereby driving its demand substantially over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the capital requirement for setting up a Diesel Exhaust Fluid production facility is high due to necessary machineries and technology. However, the established distribution channel poses a challenge for the new players.

Bargaining power of buyers: The bargaining power of buyers is high as the Diesel Exhaust Fluid is a commodity product with limited product differentiation. Buyers can easily switch between brands based on pricing.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material suppliers like urea, ammonium nitrate have established themselves in the market. However, suppliers still have limited bargaining power due to availability of substitutes.

Threat of new substitutes: The threat of new substitutes is low as there are limited alternatives available for Diesel Exhaust Fluid. Stringent emission norms further limit the scope of substitutions.

Competitive rivalry: The competition in the market is high owing to large number of players.

SWOT Analysis

Strength: Diesel Exhaust Fluid has emerged as an effective solution for reduction of nitrogen oxide emissions from diesel engines. Stringent emission regulations boost the demand for the product.

Weakness: Volatility in prices of raw materials like urea poses challenges. Heavy dependence on diesel-powered commercial vehicles can impact sales during an economic slowdown.

Opportunity: Growing diesel vehicle fleet and stricter emission norms especially in developing nations present opportunities for market expansion. Alternative applications in industries also offer scope.

Threats: Shift towards electric vehicles poses a long-term threat. Economic fluctuations may dampen sales of commercial vehicles.

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 vehicular emissions and stringent emission norms. The market size is projected to reach US$ 24.5 million by 2030 from US$ 13.45 million in 2023.

North America dominates the global market and is expected to maintain its lead over the forecast period. This can be attributed to robust infrastructure and presence of leading commercial vehicle manufacturers in the US and Canada. The Asia Pacific region is anticipated to exhibit the fastest growth owing to rising vehicle sales and improving economic conditions in major 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. Players are investing in expanding production facilities and distribution networks to strengthen their foothold. Partnerships with fleet operators are also gaining prominence.

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https://www.ukwebwire.com/diesel-exhaust-fluid-market-size-share-growth-outlook-2023/