Diesel Exhaust Fluid Market Analysis

In-depth Analysis of Diesel Exhaust Fluid Market Industry Landscape

Diesel-powered on-road engines are integral to the transportation sector, but their widespread use has raised environmental concerns and impacted human health. The global consumption of diesel has surged eightfold since the 1970s, driven by the rapid growth of road freight activity and the dieselization of light-weight vehicle fleets. According to the International Energy Agency (IEA), diesel constitutes over 40% of global on-road energy consumption and serves as the primary fuel for more than 90% of heavy-duty trucks and over 75% of buses. A significant issue arises from the prevalence of older diesel engines, as identified by the International Agency for Research on Cancer (IARC), classifying diesel exhaust as a Class 1 carcinogen for humans.

Addressing the environmental and health impacts of diesel exhaust emissions has prompted technological advancements and the implementation of vital policy solutions. Key technologies include diesel particulate filter systems, selective catalytic reduction (SCR) systems, natural gas three-way catalysts, and NOx absorbers. The SCR system, particularly notable, reduces oxides of nitrogen (NOx) emissions and improves fuel economy. This system utilizes a chemical reductant, commonly known as diesel exhaust fluid (DEF) in the US and Canada, AUS 32 in India, and AdBlue in Europe. The adoption of these technologies is anticipated to drive the global market's growth in the forecast period.

Transportation tailpipe emissions have adversely affected the health of over 1 trillion people globally, with on-road diesel vehicles and heavy-duty vehicles (HDVs) being major contributors to exhaust emissions and greenhouse gases (GHGs). Heavy-duty vehicles alone account for more than 86% of on-road diesel NOx emissions and 78% of on-road diesel black carbon emissions. The Heavy-Duty Vehicles Initiative (HDVI) under the Climate and Clean Air Coalition (CCAC) focuses on providing clean fuel while adhering to vehicle regulations and policies. This initiative aims to improve emissions and fuel quality for heavy vehicles worldwide.

Policies and regulations have played a crucial role in reducing diesel energy consumption and sulfur content. The Euro standards, established by the European Parliament, have been instrumental in controlling emissions from new vehicles. The Euro 4 standard, introduced in 2005, applied to vehicles weighing over 3.5 tons, including trucks and buses. These standards have evolved, with the current Euro 6 standard applicable to all vehicles, including cars, industrial, and agricultural vehicles. Euro VI regulations necessitate a significant reduction in nitrogen oxide (NOx) emissions, enforcing a reduction limit of 77%. To achieve this, the selective catalytic reduction (SCR) technology has been introduced, employing AdBlue as the reductant agent. AdBlue acts as a reducing agent within the SCR system, converting harmful nitrous oxide into harmless nitrogen and water, contributing to the overall effort to reduce greenhouse gas emissions.