Diesel Exhaust Fluid Market has shown a commendable growth since 2010 when EPA (Environmental Protection agency) made it mandatory to use Diesel Exhaust Fluid in medium and heavy-duty vehicles. Present Scenario and the implementation of BS VI/ Euro VI has made it mandatory to use the Diesel Exhaust Fluid in all types of Diesel vehicles.
Diesel exhaust fluid market report can be segmented into passenger cars, Commercial vehicles, and Off highway vehicles. The Diesel Exhaust Fluid aids in reduction of harmful emissions of nitrogen oxides which causes cardo vascular diseases. Moreover, to overcome the diseases and also improve the mileage of vehicles the diesel exhaust fluid came into play.
COVID-19 has impacted the growth in automotive segment. There was deep curve in the percentage of the vehicles sold during this period of lockdown. The trend is projected to change with the full functioning of manufacturing units across the. The dependency on the diesel vehicles from OEM has started losing interest. Companies like Volvo and Volks Wagon have stopped the manufacturing of the Diesel vehicles as the norms of NOX (nitrogen Oxide) are getting stringent. This has also started impacting the costing of the vehicles in Passenger car segment. Moreover, this has a positive impact as well. Diesel exhaust fluid helps improve the mileage of the vehicles as well as the age of vehicles. As the life is increasing the population of vehicles have started increasing. This can be advantageous for the Diesel Exhaust Fluid growth as the sale of these vehicles has started to increase.
Diesel Exhaust Fluid mainly consist of Urea (32.5%) and 67.5% de-ionized water. The price of diesel exhaust fuel hugely depends on the price of urea and other contents. The prices of urea fluctuates depending on the agricultural sector that is drops in winters hikes when there is plantation the price of diesel exhaust fuel fluctuates accordingly. This also acts as one of the majors restrains in the market in terms of pricing of raw materials
As the commercial vehicles sales have started increasing and so is the demand for Diesel Exhaust Fluid in the recent years. The more the sales of Euro VI vehicles more the utilization of the Diesel Exhaust Fluid. The Diesel Exhaust Fluid are delivered in the form of Cans, Buckets, Barrels and Pumps, depending upon amount of Diesel Exhaust Fluid used. However, large fleets prefer the Diesel Exhaust Fluid uses diesel exhaust fluids directly from the plants owing to their large intake of the fluids for their functioning which eventually reduces the cost.
Demand for the engine coolant is rising for the construction equipment. With the increasing in construction expenditure the demand for diesel exhaust fuel in the construction sector is also projected to exhibit tremendous growth during the forecast period. These are widely used as engine coolant in the construction industry.
North America has started implementing the technology since 2010 and have is has a huge market share. The growing adopting rate of diesel exhaust fluid in the region especially in U.S. is a major factor attributing to the demand. Asia Pacific is another major region mainly attributed by China and India. The growing automobile sales in the region is anticipated to the pivotal factor augmenting the product demand. Other major countries include. US, Japan, Germany, South Korea and India.
The key players operating in the diesel exhaust fluid industry are Total, BASF SE, China petrochemical corporation, Yara international and Royal Dutch shell. Moreover, these companies have started the acquisition and mergers to improve the sale and reach. In 2016 Shell acquired BG group for $70 Billion. BG group headquartered in Australia is one of major players in the field of automotive segments and has done a great research on diesel exhaust fluid market.
Furthermore, to improve their market reach Yara international has opened its Logistics focused European Business center in Lithuania. The intention of this acquisition was to enhance their sales and reach in the respective markets. Also, Total has recently acquired Houghton International in September 2020. This acquisition is in line with their strategy to expand their market reach.
The diesel exhaust fluid market can be segmented as follows:
Market, by Types of Vehicles
Market, by Sectors
Market, by mode of supplies
Market, by Region