The increasingly stringent emission regulations are leading to the increased penetration of diesel vehicles with selective catalytic reduction (SCR) technology. Additionally, factors such as increasing average age of vehicles and miles driven are driving the growth of the diesel exhaust fluid aftermarket.

According to the MarketsandMarkets analysis, the Diesel Exhaust Fluid Market is projected to grow at a CAGR of 13.06% from 2017 to 2022, to reach USD 21.50 billion by 2022.

The emission regulations in the U.S. and Europe are considered most stringent in the world, in terms of emission limits. Hence, there has been significant development of emission control technologies for vehicles in these countries. In Europe, under the Euro III norms, the NOx emission level was set at 5.0 g/kWh, which then declined by around 92% to reach 0.4 g/kWh under Euro VI norms. Owing to strict targets set under Euro VI norms, OEMs and Tier-1 manufacturers are employing SCR technology in diesel vehicles. This technology helps in reducing NOx from exhaust gases and keeps the environment safe from harmful pollutants. In the U.S. and Canada, SCR has been employed in medium- and heavy-duty vehicles from 2007. In 2010, the Environmental Protection Agency (EPA) laid down regulations, which led to the increased application of SCR in the trucks segment. The heavy trucks segment is the main contributor to the diesel exhaust fluid aftermarket. However, pickup trucks, sport utility vehicles (SUV), and diesel passenger cars are expected to drive the diesel exhaust fluid aftermarket.

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In the off-highway diesel exhaust fluid market based on power output, the market for 80-100 HP power output construction equipment is anticipated to grow at the highest CAGR during the forecast period. The sales of construction equipment in the 80-100 HP power output segment is the highest. Asia-Oceania is estimated to be the fastest growing diesel exhaust fluid aftermarket owing to factors such as increasing vehicle sales in the region. According to MarketsandMarkets analysis, the total vehicle parc in China, India, and Japan is projected to reach 212.5 million units, 40.7 million units, and 79.5 million units, respectively by 2022. Additionally, the increasing implementation of emission standards in these countries is expected to boost the penetration of SCR in diesel vehicles. Thus, these countries are expected to boost the diesel exhaust fluid aftermarket in the region.

The passenger car segment of the diesel exhaust fluid OE market is estimated to grow at the highest CAGR during the forecast period. The growth can be attributed to increasingly stringent emission laws such as Euro 6 that have reduced the permissible NOx limit to the extent that passenger cars also need to be fitted with SCR. In the diesel exhaust fluid aftermarket, the pumps supply mode segment is projected to witness significant growth during the forecast period due to various initiatives by government bodies to improve the infrastructure of DEF pumps and ensure the availability of DEF for long haul vehicles.

Target Audience:

Diesel exhaust fluid suppliers
Raw material (urea & nitrogen) suppliers
Automotive OEMs
Distributors and suppliers of diesel exhaust fluid
Industry associations and experts
SCR catalyst and 80-100 HP segment to drive the growth of Diesel Exhaust Fluid Market

SCR catalyst

The SCR catalyst segment is estimated to be the largest segment of the diesel exhaust fluid market (OE) during the forecast period, owing to the high price of the SCR catalyst as compared to other components used in selective catalytic reduction systems. An SCR catalyst has an average per unit price of USD 150- 175, while other components are much cheaper. Thus, the SCR catalyst component OE market is the largest in the study.

80-100 HP

The 80-100 HP segment is expected to be the largest segment of the diesel exhaust fluid market in construction equipment, as 80-100 HP construction equipment are the most widely used equipment type. Approximately 55%-60% of the construction equipment sold worldwide has a power output between 80- 100 HP. Furthermore, the penetration of SCR systems in 80-100 HP and >400 HP power output construction equipment is high, due to the high NOx emitted by them as compared to other equipment types.

The key factor restraining the growth of the diesel exhaust fluid market is the increased demand for electric vehicles. Electric vehicle technology is becoming affordable with time with government subsidies. Thus, this factor may result in the decline of the SCR market in the global automotive market. The advent of quick-charging batteries has further fueled the demand for these vehicles. Presently, the impact of electric vehicles on the Diesel Exhaust Fluid Market is negligible; however, electric vehicles are expected to create a moderate impact on the catalytic converter market over the next 10 years.