AdBlue Market

Adblue Market Growth Outlook (2023 to 2033)

The global Adblue market is valued at US$ 30.1 billion in 2023 and is forecasted to expand at a CAGR of 4% and reach a size of US$ 44.5 billion by the end of 2033.

Deionized water and urea are the main ingredients in Adblue, a highly pure liquid mixture. Urea and deionized water make up 32.5% and 67.5%, respectively, of AdBlue. AdBlue, often known as diesel exhaust fluid (DEF), is a non-flammable, colourless, odourless, and non-toxic fluid. Nitrogen oxide (NOx) is produced by car engines and forms tiny particles, which, when mixed with other air pollutants, can affect sensitive lung tissue in both people and animals.

AdBlue plays a key role in reducing NOx levels by transforming nitrogen oxide into a less dangerous mixture of water vapour and nitrogen. Moreover, the solution has a light ammonia smell similar to that of household cleaning supplies. AdBlue is also commonly used to reduce harmful gas emissions from automobiles.

The majority of engine manufacturers have implemented selective catalytic reduction (SCR) technology in diesel cars since DEF is necessary for SCR to function. AdBlue is stored in an independent tank in vehicles using SCR technology.

Packaging, equipment, cans, tanks, and drums are some of the types of vessels to store and transfer AdBlue solutions. Liquids, particularly AdBlue diesel are often stored and transported in large or reusable containers such as drums.

Fuel delivered in containers is intended to be conveniently transported by truck, train, or ship. Moreover, DEF fuel is stored and dispersed utilizing this type of supply method at various selling points, including truck stops, gas stations, and maintenance facilities. Also, several companies use drums to extend shelf life and stop contamination and evaporation, which helps to guarantee the quality and purity of AdBlue fluid.

Demand for AdBlue is increasing due to its growing use to meet emission regulatory standards, diesel engine exhaust treatment fluid in end-use sectors including marine, automotive, and aerospace, and severe limits on greenhouse gas (GHG) emissions.

• The World Economic Forum (WEF) estimates that 54% of the world's energy resources are used by the industrial sector, which is responsible for one-fifth of the carbon emissions worldwide.
• Federal government agencies are primarily focusing on reducing emissions of NOx and ozone precursors from industrial and other sectors. The United States Environmental Protection Agency (EPA) has put into place regulations following the Clean Air Act that set emissions limits for NOx and other pollutants from heavily loaded diesel engines.

For businesses including power plants, manufacturing, and chemicals, EPA has also put rules in place, such as the National Ambient Air Quality Standards (NAAQS) and Cross-State Air Pollution Rule (CSAPR).

Diesel exhaust fluid is being widely adopted by major industries to increase the lifespan of industrial diesel engines or vehicle diesel engines while lowering carbon footprint and assisting businesses in achieving sustainability goals.

The diesel exhaust fluid (AdBlue) market is benefitting in terms of revenue due to these regulatory factors.

Report Attributes	Details
AdBlue Market Size (2023E)	US$ 30.1 Billion
Forecasted Market Value (2033F)	US$ 44.5 Billion
Global Market Growth Rate (2023 to 2033)	4% CAGR
Dominant Regional Market	North America
Key Companies Profiled	Shell Bosch Nissan Chemicals Mitsui Chemicals Daimler AG BASF Fiat Group Automobiles Kruse Automotives Komatsu Alchem AG Yara Hartland Fuel Products Balcrank Graco TOTAL S.A. CHINA PETROCHEMICAL CORPORATION CF INDUSTRIES HOLDINGS INC. CUMMINS INC.

How are Manufacturers of AdBlue Solutions Expected to Generate More Revenue?

“AdBlue Solutions Highly Utilized in Construction Machines”

AdBlue is increasingly being used in the construction industry as a result of the rising need for engine coolants for construction machinery. Excavators, bulldozers, graders, dragline excavators, and loaders are a few examples of construction machinery.

The construction sector has seen substantial growth during the last few years. This can be attributed to the rising investments in infrastructure projects, economic boom, and technological advancements.

The construction equipment field saw the introduction of diesel exhaust fluid (DEF) in 2010. The SCR technology has begun to be used in off-highway diesel equipment in North America, which has led to a rise in DEF consumption. Thus, the rising demand from the construction sector is booming the growth of the AdBlue market.

“Widespread Use of AdBlue Solutions in Automobile Sector”

The rapidly increasing automotive industry, the increasing sales of vehicles, and increasing concern about vehicle maintenance, all are positively having an impact on demand for DEF systems in the aftermarket. The implementation of strict emission standards in many countries is another factor that is anticipated to increase demand for selective catalytic reduction (SCR) technologies internationally.

NOx limitations are drastically reduced under Euro VI rules. Hence, SCR is being used as an after-treatment method by Tier-1 and OEMs. Demand for AdBlue in the aftermarket is influenced by all of these variables.

What Obstacles are Faced by AdBlue Suppliers?

“Rising Demand for Electronic Vehicles and Fluctuations in Urea Prices”

Despite rapid advancements in the automobile industry, some factors may affect the market for AdBlue such as the rising trend of electric vehicles due to the growing environmental consciousness among the population, along with the worry about fluctuating price of oil, increasing demand for vehicles that operate on alternative sources of energy, and challenges seen in processing urea.

Urea, a vital component of fertilizers, is used to make AdBlue. Political unrest in the major producing countries and the weather can both have an impact on the supply of urea and price volatility.

“Lower Production Due to Lack of Awareness”

In comparison to other automotive compounds, AdBlue's production capacity is still rather constrained. This is because the AdBlue Solution is relatively new and the demand is still growing. AdBlue and its advantages are still not widely known to the general public. This may have a major impact on the supply chain and pricing of the product.

“Availability of Alternative Solutions”

There are more solutions available on the market that can be utilized to lower emissions. This comprises exhaust gas recirculation systems and diesel particulate filters. In terms of both price and performance, AdBlue must contend with these goods.

AdBlue must be transported and handled properly to prevent damage as it is a highly corrosive chemical. This may increase the price and present challenges for suppliers of AdBlue solutions.

Country-wise Analysis

Which Factors are Generating Opportunities in the United States AdBlue Market?

“Strict Regulations to Reduce Greenhouse Gas Emissions”

Sales of AdBlue solutions in the United States are expected to increase at a rapid pace during the forecast period. This can be attributed to the growing need for selective catalytic reduction technology to comply with the United States Environmental Protection Agency (EPA) emission requirements.

The United States EPA has issued regulations in December 2021 to reduce emissions of greenhouse gases and other pollutants that have an impact on air quality. The emissions of greenhouse gases and other pollutants that have an impact on air quality will significantly decrease as a result of these upgraded requirements.

As more car owners are moving to fuel-efficient models the market in the country is expected to grow healthily. Furthermore, the California Air Resources Board's (CARB) strict rules to minimize NOx emissions are anticipated to fuel sales growth.

Which Asia Pacific Country is Performing Well in the AdBlue Business?

“Increasing Use of AdBlue Dispensers in India”

The Asia Pacific market is anticipated to expand steadily during the forecast period due to the considerable usage of diesel exhaust fluid to comply with BS-6 criteria. India is a significant market for AdBlue, and for environmental protection, leading market companies are launching AdBlue dispensers.

AdBlue dispensers for the trucker community were released in several locales on January 20, 2023, by Gulf Oil Lubricants India Ltd., a well-known lubricant production and marketing firm with its headquarters in India. Also, the increasing demand for DEF fuel additives from the domestic trucking industry is increasing sales growth.

What is the Demand Outlook for AdBlue Products in the United Kingdom?

“Rapidly Rising Demand from Industrial Sector”

The United Kingdom is expected to be a profitable marketplace in the European region. This is because industrial material handling equipment is using more diesel exhaust fluids. To comply with environmental laws, warehouses and businesses in the United Kingdom are implementing stage-5 standard engines, which are propelling demand for AdBlue products.

• For instance, eight to 18-tonne capacity lift trucks with Stage V engines have been introduced by Hyster, a well-known manufacturer of material handling equipment, to assist firms to comply with emissions rules while enhancing productivity and lowering Total Cost of Ownership (TCO).

Diesel exhaust fluid (DEF) also aids in lowering nitrogen oxide emissions. Additionally, AdBlue use is rapidly rising to meet emissions requirements.

Category-wise Analysis

Why is the Use of AdBlue Fluids Increasing in Commercial Vehicles?

“Strict Regulations on Automobile Gas Emissions”

AdBlue solutions are used in commercial vehicles, cars & passenger vehicles, non-road mobile machines, trains, and others. Due to more stringent gas emission requirements, heavier commercial vehicles such as trucks and buses are adopting diesel exhaust fluid (DEF) technologies.

Commercial vehicle pollution rules implemented by respective governments of several countries across the globe are boosting sales of AdBlue products.

The employment of DEF and SCR technologies in heavy commercial vehicles can also have advantages, such as improved gas mileage and reduced operating costs for fleet owners while still meeting emission standards. As a result, over the forecast period, heavy commercial vehicle adoption of DEF and SCR technology is anticipated to fuel sales growth.

Competitive Landscape

According to Fact.MR, a market research and competitive intelligence provider, Shell, Bosch, Nissan Chemicals, Mitsui Chemicals, Daimler AG, and BASF are some of the key players in the AdBlue market. Several leading companies in the AdBlue market are investing in R&D activities to produce AdBlue solutions that are more effective and efficient than alternative products, this tactic may help them to earn more.

• 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 businesses, a network of twenty-six gas stations, and 50% of SAMCOL, the logistics firm that previously owned to TotalEnergies and BP and manages the Beira, Matola, and Nacala gasoline import facilities. This development is expected to support the company's DEF product sales.

Key Segments of AdBlue Industry Research

• By Type :

  • Packaging
  • Equipment
  • Cans
  • Tanks
  • Drums

• By Application :

  • Commercial Vehicles
  • Cars & Passenger Vehicles
  • Non-road Mobile Machines
  • Trains

• By Usage Method :

  • Pre-combustion
  • Post-combustion

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA