Diesel Exhaust Fluid Market – Segmentation & Growth Analysis

Diesel Exhaust Fluid Market

The global Diesel Exhaust Fluid Market size is projected to grow from projected to reach USD 50.0 billion by 2027 from USD 34.4 billion in 2022, at a CAGR of 7.8%.

Based on components, the SCR catalyst OE market is estimated to account for the largest share of the diesel exhaust fluid OE market in 2022. The life of an SCR catalyst component depends on factors, such as temperature, fuel quality, and lube oil quality. The average life of an SCR catalyst is 4-5 years.

Based on supply mode, the bulk segment is estimated to lead the diesel exhaust fluid aftermarket, in terms of volume. This segment is projected to grow from 3,387.2 million gallons in 2022 to 4,665.0 million gallons by 2027, at a CAGR of 6.6% during the forecast period. The bulk supply mode is commonly used for the distribution of diesel exhaust fluid to fleet owners

Based on Vehicle Type, the HCV segment is estimated to lead the diesel exhaust fluid OE market, by volume, and is anticipated to grow from 33.2 million gallons in 2022 to 36.5 million gallons by 2027, at a CAGR of 1.9% during the forecast period. Recent and upcoming emission regulations in countries such as India and China are expected to boost the demand for DEF.

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Based on application, the off-highway DEF OE market is estimated to be 15,700.2 thousand gallons in 2022 and is projected to reach 18,684.7 thousand gallons by 2027 at a CAGR of 3.5%. Lower horsepower engines have been following the low NOx emission limit for a long time, whereas the same has been introduced for high horsepower engines in Tier-IV final emission regulations. Hence, the demand for DEF is largest in engines with 201-400 HP power output.

DEF Aftermarket is estimated to grow, by volume, from 6,742.0 million gallons in 2022 to 8.845.4 million gallons by 2027, at a CAGR of 5.6% from 2022 to 2027. The North American and Asia Oceania regions have witnessed high demand for HCV and LCV segment diesel vehicles and equipment. These diesel-intensive products will drive the demand for DEF in global automotive Aftermarkets.

Based on Region, The North American diesel exhaust fluid aftermarket is estimated to grow from USD 15,006.6 million in 2022 to USD 22,067.4 million by 2027, at a CAGR of 8.0% during the forecast period. The diesel exhaust fluid aftermarket in Asia Oceania is projected to grow from USD 11,840.4 million in 2022 to USD 17,240.8 million by 2027, at a CAGR of 7.8% during the forecast period. Countries in Asia such as India, Japan and South Korea have started to implement stricter emission standards which will increase the penetration of Selective Catalytic Reactor (SCR) application and hence drive the DEF demand.

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Recent Developments:

  • In January 2022, TotalEnergies is expanding in Mozambique with the acquisition of BP’s retail network, wholesale fuel business and logistics assets. The transaction covers a network of 26 service stations, a portfolio of business customers and 50% in SAMCOL, the logistics company previously jointly owned by TotalEnergies and BP, which operates the Matola, Beira and Nacala fuel import terminals. This expansion will help in sales of the DEF product for the company.
  • In August 2021, BASF and SINOPEC will further expand their Verbund site operated by BASF-YPC Co., Ltd., a 50-50 joint venture of both companies in Nanjing, China. It includes the capacity expansion of several downstream chemical plants, including a new tert-butyl acrylate plant to support the growing Chinese market. This expansion will help SINOPEC to increase the distribution of DEF products.
  • In September 2019, The Saudi Arabian Oil Company (Saudi Aramco) and Shell Saudi Arabia (Refining) Limited (Shell) announced that Saudi Aramco acquired Shell’s 50% share of the SASREF Joint Venture in Jubail Industrial City, in the Kingdom of Saudi Arabia, for USD 631 million.
  • In September 2019, Cummins Inc. introduced innovations which are expected to achieve low Nitrogen Oxide (NOx) emissions in future and enable achieving a reduction in the carbon footprint, at the IAA Commercial Vehicles Show. This innovative system enables further reduction in NOx and PM emissions, while simultaneously improving fuel efficiency.
  • In June 2019, Brenntag expanded its lubricants business in the US by acquiring the regional distributor, B&M Oil, headquartered in Tulsa, Oklahoma, US. The company is engaged in the sale, marketing, and distribution of lubricants to automotive, industrial, commercial, construction, and agricultural consumers throughout the state of Oklahoma.
  • In January 2019, Brenntag entered into an agreement to acquire the lubricants division of Reeder Distributors, Inc. which is a regional, integrated lubricant distributor headquartered in Fort Worth, Texas, US