Diesel Exhaust Fluid (DEF) contains urea, which breaks down into ammonia and cynic acid. Ammonia releases nitrogen and hydrogen when heated over catalysts in diesel particulate filters. This process converts nitrogen oxides (NOx) in diesel exhaust into harmless nitrogen and water vapor, reducing emissions. As emission regulations become stricter, demand for DEF is rising with widespread adoption of SCR technology.

One of the key trends in the diesel exhaust fluid market is the stringent emission regulations across regions. The European Union introduced Euro 6 emission standards for diesel vehicles in 2015 which stipulated usage of selective catalytic reduction systems requiring DEF. Similar regulations have been adopted in North America and Asia Pacific as well, driving demand.DEF reduces nitrogen oxides in diesel exhaust by over 80% through catalytic reaction. As regulatory bodies clamp down heavily on vehicle emissions, use of the fluid will continue to increase significantly through the forecast period.

The global diesel exhaust fluid market is segmented by type and vehicle type. Based on type, urea-based diesel exhaust fluid dominates the market and is expected to continue its dominance during the forecast period. Urea-based diesel exhaust fluid provides effective reduction of NOx emissions from diesel engines equipped with selective catalytic reduction (SCR) systems.

The Global Diesel Exhaust Fluid Market Size is expected to witness high growth, exhibiting CAGR of 7.6% over the forecast period, due to increasing stringent emission norms for commercial vehicles and diesel passenger cars.

North America dominates the global diesel exhaust fluid market currently, owing to stringent emission standards for diesel vehicles in the US and Canada. Asia Pacific is expected to witness the highest growth rate over the forecast period with growing sales of diesel commercial vehicles.

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