Northbrook, IL -- (SBWIRE) -- 10/18/2021 -- The global Diesel Exhaust Fluid Market size is projected to grow from projected to reach USD 45.0 billion by 2027 from USD 22.6 billion in 2020, at a CAGR of 10.3%. The increasing number of DEF pumps and the increasing average age of vehicles and miles driven are leading to the growth of the diesel exhaust fluid market.

The global diesel exhaust fluid market is dominated by companies like Total (France), Royal Dutch Shell PLC (The Netherlands), Yara International (Norway), BASF SE (Germany), and China Petrochemical Corporation (Sinopec) (China). These companies adopted expansion strategies and used mergers & acquisitions to gain traction in the diesel exhaust fluid market.

OPPORTUNITY: Rising demand for DEF in the construction equipment segment

The construction industry is booming; housing constitutes a major part of the construction industry. Asian countries and the US have seen significant improvements in economies, and with the rising population and standard of living, people are migrating to urban areas and spending on housing. According to the New Building Materials and Construction World Magazine ASEAN, a 10-country regional bloc comprising the Philippines, Indonesia, Malaysia, Thailand, Vietnam, Cambodia, Myanmar, Singapore, Laos, and Myanmar, highlights a USD 250 billion potential in construction in 2019. Thus, the ASEAN construction market is expected to grow at 7.5% in the coming years. Hence, the demand for construction equipment is increasing, leading to the rise in demand for engine coolants used in construction equipment. Diesel Exhaust Fluid (DEF) was introduced in the construction equipment segment in 2010. In North America, the SCR technology started to use in diesel equipment for off-highway equipment, and hence the consumption of DEF in the off-highway segment has increased. The increasing demand for DEF in the construction equipment segment is expected to create a growth opportunity for the diesel exhaust fluid market during the forecast period.

Request FREE Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=155714937

North America is estimated to be the largest market in 2020

The growth of the aftermarket in the North American region can be attributed to the standardization of diesel exhaust fluid tanks in trucks and buses manufactured in countries such as the US after 2010. Moreover, the demand for commercial vehicles, both, LCVs and HCVs are high in the North American region. The higher demand for commercial vehicles is driving the growth of the DEF as average miles drove, DEF tank size, and rate of dosage for commercial vehicles is high compared to passenger cars. Due to strict lockdowns and supply chain disruptions, the average miles driven have declined significantly in 2020. However, as all states eased restrictions on COVID-19, most fleet owners in the North American region have reported business rebounds at the end of 2020. This is expected to help recovery in the region in terms of the demand for the DEF in the regional market.

Asia-Oceania is estimated to be the second-largest market

China has a vehicle parc of 203.5 million units in 2019, which is the largest in Asia-Oceania. China accounted for 62.58% of the vehicle parc in Asia-Oceania. China is also the largest automobile industry in the region and is a major driver of regional vehicle sales in Asia-Oceania. China has adopted the China 5 emission standard from 2017 for all vehicle sales and registration. This standard is equivalent to the Euro 5 emission standard. The diesel exhaust fluid aftermarket will be influenced by the implementation of China 5 emission norms, as new diesel vehicles must adopt SCR to meet the reduced limit of NOx produced in the exhaust. The country is also planning to implement China 6 emission regulations in 2021. This new emission mandate is expected to further boost the DEF aftermarket in China.

India is expected to be one of the fastest-growing economies across the globe, due to the increasing disposable income of the population in the country. The introduction of Bharat Stage 6 (BS4) emission standards for all vehicles manufactured and sold from April 2019 is expected to boost the adoption of SCR and fuel the growth of the diesel exhaust fluid aftermarket in the coming years. A majority of the commercial vehicle manufacturers have decided to adopt SCR in their vehicles to meet the low carbon emission requirements of BS6. The Indian automotive industry is experiencing a V-shaped recovery as Indian states increasingly ease lockdown measures and there is a sustainable trend in demand since the third quarter of 2020, The Indian DEF aftermarket is expected to recover fully by mid-2021. These are the major factor presently driving the demand for SCR and DEF in the region.

To speak to our analyst for a discussion on the above findings, click Speak to Analyst