Ad Blue Market Analysis

Global AdBlue Market Overview

AdBlue market size was valued at USD 165.20 Billion in 2023. The AdBlue industry is projected to grow from USD 143.59 Billion in 2024 to USD 47.24 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.9% during the forecast period (2024 - 2032). An increase in demand for commercial vehicles, increasing demand for eco-friendly practices, and increasing demand for AdBlue for using agricultural machinery such as tractors, pumps, and harvesters are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

AdBlue Market Trends

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  Increasing demand for diamonds is driving the market growth

  
  

The market CAGR for Ad Blue is being driven by the growing demand for increasing demand for diamonds from industrial and luxury customers. Some of the most significant technologies impacting the market's growth include laser technology for cutting and polishing diamonds, which has decreased costs, 3D printing for manufacturing custom-made diamonds, and artificial intelligence (AI) for the recognition and categorization of diamonds. These technologies are expected to continue driving down the cost of diamonds, thereby widening the availability of high-quality diamonds to consumers across the globe. The advent of new technologies, such as photonic scanning and lasers, has led to the development of new diamond processing technologies. These advancements are helping to improve the quality and efficiency of diamond production. This technological advancement is also benefiting the diamond market in terms of growth.

Additionally, the usage of AdBlue in the construction sector is increasing gradually due to the rise in demand for engine coolants used in construction equipment. Construction equipment includes excavators, dragline excavators, bulldozers, graders, and loaders. Economic growth, infrastructure investment, and technological advancements are boosting the industry. The construction industry plays a critical role in the GCC country's economy. According to the Khaleej Times, approximately US$198.8 billion of projects were completed in the GCC in 2019. Qatar is investing heavily in developing infrastructure and construction projects. Some of the ongoing construction projects in Qatar include the FIFA World Cup 2022 stadiums, the Extension of the New Doha Port Pro, the Extension of Hamad International Airport, and Expressways, which help the market growth during the forecast period.

The growing demand for AdBlue in the automotive industry drives market growth. Diesel exhaust fluid is used in all types of vehicles, such as heavy, light, and passenger vehicles. Diesel Exhaust Fluid (DEF) is designed to reduce NOx emissions in diesel vehicles. The Saudi Arabian government (SAG) focuses on developing a domestic automotive industry and has encouraged vehicle manufacturers to establish local operations there. According to the data published by OICA, Saudi Arabia's new vehicle sales reached 452,544 in 2020, and UAE's recent vehicle sales reached 158,711 in 2020.

In addition, the growing demand for AdBlue in agricultural machinery such as tractors, pumps, and harvesters is propelling market expansion. Phosphate and nitrogen importers are the main sources of urea dependency in nations like India. This dependency will lead to an increase in urea demand, which will boost the growth of the AdBlue market revenue.

AdBlue Market Segment Insights

AdBlue Type Insights

The  AdBlue market segmentation, based on type, includes packaging and equipment. The packaging segment dominated the market, accounting for 35% of market revenue (10.45 Billion). In developing economies, category growth is driven by significant expansion and product innovation. However, equipment is the fastest-growing category due to the growing usage of heavy equipment.

AdBlue Application Insights

The  AdBlue market segmentation, based on application, includes commercial vehicles, non-road mobile machines, cars & passenger vehicles, and railways. The cars & passenger vehicles category generated the most income (70.4%) due to several rules and regulations implemented by governments worldwide to reduce emissions from passenger vehicles, paving the path for the growth of the diesel exhaust fluid industry in the passenger car sector. However, commercial vehicle is the fastest-growing category owing to the growing demand for AdBlue for commercial vehicles.

AdBlue Method Insights

The  AdBlue market segmentation, based on method, includes pre-combustion and post-combustion. The post-combustion segment dominated the market, accounting for major market revenue over the forecast period. In developing economies, category growth is driven by the increasing use of SCR. The SCR catalytic converter converts harmful nitrogen oxides into harmless nitrogen and water. It’s also utilized in big vehicles like Lorries, taxis, and trains, which is propelling the sector forward. However, pre-combustion is the fastest-growing category due to the several regulations implemented to reduce greenhouse gas emissions from vehicles, especially diesel.

Figure 1:  AdBlue Market, by Method, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

AdBlue Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American AdBlue market area will dominate owing to the increased use of heavy, medium, and light-duty on-road vehicles, passenger automobiles, and non-road mobile machinery industries, including agriculture, manufacturing, forestry, and mining equipment. The usage of AdBlue in cars is also driven by the need for improved air quality for public health and the environment in this region. Moreover, the US AdBlue market held the largest market share, and the Canadian AdBlue market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  ADBLUE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's AdBlue market accounts for the second-largest market share due to stringent environmental regulations and high manufacturing costs. Further, the German AdBlue market held the largest market share, and the UK AdBlue market was the fastest-growing market in the European region.

The Asia-Pacific AdBlue market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the growing automotive industry and machinery requirements in various industries such as oil and gas, building and construction, and many more. Moreover, China’s AdBlue market held the largest market share, and the Indian AdBlue market was the fastest-growing market in the Asia-Pacific region.

AdBlue Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the AdBlue market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the AdBlue industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the  AdBlue industry to benefit clients and increase the market sector. Major players in the AdBlue market, including BASF, Shell, Bosch, Nissan Chemical, Daimler AG, Komatsu, Fiat group automobiles, and others, are attempting to increase market demand by investing in research and development operations.

OMV Petrom SA, a subsidiary of OMV AG, is an integrated energy company in Southeastern Europe. It analyzes, develops, and produces crude oil and natural gas. The company processes and refines crude oil and sells refined products. Its petroleum products include gasoline, diesel, kerosene, jet fuel, heavy fuel oil, liquefied petroleum gas, and coke. It is a reliable power supplier to over 800 companies in Romania and extends its services to Hungary and Bulgaria. The company serves transportation, agriculture, construction, public and civil authorities, aviation, natural gas, and business sectors. The group is in the oil products retail market through a network of filling stations across Romania, Moldova, Bulgaria, and Serbia. In November 2022, OMV Petrom announced the initiation of production of AdBlue in Romania following an investment of EUR 800,000 (~USD 834,000) in a new production facility south of Bucharest. In its first phase, AdBlue will be sold in OMV and Petrom filling stations, and starting next year, it will also be sold in other networks.

Brunswick Corporation, previously known as the Brunswick-Balke-Collender firm, is an American firm founded in 1845 that has been inventing, manufacturing, and distributing a wide range of products. Brunswick now employs over 13,000 people in 24 countries. Among the various boating brands owned by Brunswick are Sea Ray, Boston Whaler, Bayliner, Mercury Marine, Attwood, Lund, Crestliner, Mastervolt, MotorGuide, Harris Pontoons, Freedom Boat Club, Princecraft, Heyday, Lowe, Uttern, Quicksilver, CZone. In June 2019, A partnership agreement was inked between BRUNSWICK Company and VIR Zoom to launch a product called VIR Zoom solution. If correctly executed, this collaboration was expected to transform Life Fitness' se3 explore bikes into a virtual reality experience.

Key Companies in the AdBlue market include

• BASF SE


• CF Industries Holdings


• Cummins Filtration


• Nissan Chemical Industries


• The McPherson Companies


• Royal Dutch Shell Plc


• Total


• China Petrochemical Corporation (SINOPEC)


• AIR Liquide (AIRGAS)


• Yara International, Brenntag Ag


• ADINLUBE


• Gilbarco Veeder-Root


• DUBI CHEM MARINE International


• Blue Middle East (BME) Company

AdBlue Industry Developments

February 2022: CrossChem International’s Hong Kong subsidiary was accredited by the German Automotive Industry Association (VDA) to enable the production of AdBlue diesel exhaust fluid at its Hong Kong manufacturing facility. The total plant capacity is 1.5 million liters of AdBlue per month.

January 2022: Purchasing BP's retail network, wholesale fuel business, and logistical assets is estimated to allow TotalEnergies to grow in Mozambique. The deal included a client list of companies, a network of twenty-six gas stations, and 50% of SAMCOL, the logistics firm that previously owned to TotalEnergies and BP and managed the Beira, Matola, and Nacala gasoline import facilities. This development is expected to support the company's DEF product sales.

AdBlue Market Segmentation

AdBlue Type Outlook

• Packaging


• Equipment

AdBlue Method Outlook

• Pre Combustion


• Post Combustion

AdBlue Application Outlook

• Commercial Vehicle


• Non-Road Mobile Machines


• Cars & Passenger Vehicles


• Railways

AdBlue Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America