(MENAFN- P&S Intelligence) The increasing awareness regarding environmental pollution and rising number of government initiatives to curtail it are expected to drive the diesel exhaust fluid (AdBlue) market size from $12,191.5 million in 2017 to $20,518.0 million by 2023. The market is projected to progress at a CAGR of 8.8% during the forecast period. The soaring levels of vehicular pollution have led to the widescale adoption of diesel exhaust fluid, or DEF, in several countries, such as the U.S., Canada, Spain, France, China, Australia, Brazil, and India.
Governments across the globe are implementing several legislations to restrict the emission of toxic gases from commercial and personal vehicles. For instance, in April 2020, the Indian government made it mandatory for automobile manufacturers to produce vehicles that comply with the Bharat Stage VI (BS-VI) norms. The norms aim to reduce hydrocarbon + nitrogen oxides (HC+NOx) emissions by 43%, NOx levels by 68%, and particulate matter levels by 82% from diesel engines, which would ultimately propel the diesel exhaust fluid market in the country.
In the past, DEF was used only in medium- and heavy-duty commercial vehicles, such as construction and mining vehicles and trucks. The rising adoption of heavy-duty vehicles due to the rapid industrialization and advancing logistics industry has been supporting the market growth. However, with the implantation of strict government norms for emissions and fuel efficiency in European, Asian, and North American countries, the usage of AdBlue in passenger cars has increased as well.
The categories under the storage solution segment of the diesel exhaust fluid market include bulk storage, dispensers, and portable containers. Under this segment, the bulk storage category held the largest market share in 2017 due to the consumption of large volumes of AdBlue by trucks and other heavy-duty vehicles, for which drums and storage tanks are used to store the fluid. Moreover, the escalating need for product transportation is resulting in the expansion of the fleet of heavy-duty trucks, thereby driving the demand for bulk storage solutions.
During the historical period (2013–2017), Europe accounted for the largest revenue share in the diesel exhaust fluid market, and it is projected to maintain its position in the coming years. This would be due to the increasing focus of Germany and France on sustainable development. Besides, the implementation of strict regulatory legislations in European nations is augmenting the demand for DEF, as these norms make it mandatory for automobiles and other machines running on diesel to use AdBlue.
During the forecast period, the Asia-Pacific (APAC) diesel exhaust fluid market is projected to witness the fastest growth due to the rising awareness about environmental degradation, which is leading the regional countries to strengthen their emission norms. In the regional market, China is expected to demand high volumes of AdBlue during the forecast period because of the increasing production of commercial vehicles, such as trailers and trucks. China is witnessing a huge demand for commercial vehicles because of the rising need for timely and efficient transportation of manufactured goods to the ports and marketplaces.
In recent years, companies operating in the diesel exhaust fluid market have adopted strategic measures including facility expansions and mergers and acquisitions to consolidate the competition. For example, BASF SE and Yara International ASA opened a new ammonia plant, with a capacity of 750,000 metric tons annually, in Freeport, Texas, in April 2018. Additionally, Yara International ASA acquired the Vale Cubatao Fertilizantes complex in May 2018 to tap the emerging Brazilian market for nitrogen-based products.
Thus, the stringent government laws on vehicular pollution are propelling the demand for diesel exhaust fluid.
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