Globally, the market for diesel exhaust fluid is expected to grow at a compound annual growth rate (CAGR) of 9.19 percent until 2023, according to analysts.
Diesel exhaust fluid (DEF) is a solution that consists of 32.5-percent urea and 67.5-percent de-ionized water. In this type of solution, selective catalytic reduction (SCR) is the major technology that is used to reduce the emission from exhaust system. The urea solution is consumed through the SCR technology, which is sprayed into the exhaust system. The solution is burned at high temperature to reduce the harmful nitrogen oxides produced by diesel engine.
North America accounted for the largest market share of 56.49 percent in 2016 and is projected to grow at a CAGR of 8.83 percent until 2023. The U.S. is expected to dominate the DEF market in North America. It has been estimated that U.S. contributes to almost 70 percent of the ammonia that is used for the production of urea.
In the U.S., about half of the urea is produced as solid fertilizer, and about 25 percent is consumed for the production of nitrogen based solutions. The increase in the production of urea in the U.S. is expected to drive the market in the future. The increase in use of selective catalytic reduction technology is expected to drive the market in future.
SCR technology is mainly used to reduce nitrogen oxide emission up to 90 percent, at the same time reducing carbon dioxide (CO) emission by 50 percent to 60 percent. SCR systems are also attached with the diesel particulate filter to reduce greater emission that can harm the environment. The increased use of SCR for the reduction of emission, allows more light duty vehicles to meet the requirement of EPA emission regulations.
The other factors that are responsible for the growth of the market during the forecast period are stringent government regulations for the use of DEF and an increase in production of trucks and other vehicles.
The key players in today’s market include Cummins Filtration (U.S.), Nissan Chemical Industries (Japan), Yara International (Norway), Shaw Development LLC (U.S.), CF Industries Holdings (U.S.), McPherson Companies (U.S.), BASF SE (Germany), Blue Sky Diesel Exhaust Fluid (U.S.), Brenntag AG (Germany), Carson (U.S.) and Mitsui Chemicals Inc. (Japan).
Key Findings include the following:
• The global DEF market is expected to reach about $22 billion by 2023.
• Regionally, North America is expected to have the largest market by 2023.
• In Europe, Germany accounted for the largest market share of 45.43 percent in 2016, with a market value of $796.1 million and is projected to grow at the highest CAGR of 10.16 percent during the forecast period. France was the second-largest market in 2016 and is projected to grow at a CAGR of 9.78 percent.
• On the basis of storage solution, bulk storage dominated the global DEF industry market with a share of 39.74 percent in 2016.
• On basis of vehicle type, Commercial vehicles dominated the global DEF industry market with a share of 76.16 percent in 2016.