The market for diesel exhaust fluid is predicted to grow at a rate of 13% in the forth coming years. This is largely accredited to strict regulations regarding emissions, increased diesel based vehicles, and upscale in the productivity and longevity of the vehicle. Initially dependent on heavy and medium weight vehicles solely, the market has now penetrated into personal and commercially used vehicles too.
The diesel exhaust fluid is highly preferred due to its anti-pollution property owing to reduced nitrogen oxide emission. It breaks down the nitrogen oxide produced by the vehicles into simple and minimalistically polluting water and nitrogen based products making the fluid a highly sustainable chemical. With increased use popularity of diesel engine for commercial vehicles, accounting about 90% of the commercial transport, the market for the exhaust fluid is expected to expand its market hold. The stakehold is projected to grow due to the improvements in logistic sector and increased need to deliver goods. The production cost is relatively low. The demand for agriculture equipment say tractors, is increasing with the expansion in agro industry which indirectly fuels the market for diesel exhaust fluid too. Another attractive quality gaining traction is that it reduced the wearing out of engines, maintenance cost comes down and guarantees fuel efficiency.
Europe is the dominant contributor to the market. European countries have incorporated the diesel exhaust fluid in almost 60% of their passenger cars. The North American region is quite lucrative for the market given the mandatory use of diesel exhaust fluid in all diesel based engines. Asia Pacific will see greater growth due to the presence of increased transportation requirements, especially heavy weight vehicles. The adaption of the exhaust has resulted due to toxic levels of pollution owing to the high emission levels. Degrading air quality index has led to strict laws against heavy emission vehicular engines, paving the way for the acceleration of this sector.
The increased traction towards and significant shift towards electric vehicles might hinder the diesel exhaust fluid market subsequently. The fluctuations in the price of raw materials can hinder the price of the product, hampering the market globally.