The Diesel Exhaust Fluid (DEF) market is experiencing significant growth owing to stringent vehicular emission norms implemented worldwide. DEF, also known as AdBlue, is a non-toxic water-based solution that contains high concentrations of urea. It is supplied to selective catalytic reduction (SCR) systems in diesel vehicles to control emissions. DEF reduces the nitrogen oxide (NOx) emissions produced from the exhaust of diesel engines, particularly from diesel engines fitted with SCR systems in line with Euro 4, Euro 5, and Euro 6 emission standards.
The diesel exhaust fluid market is estimated to be valued at USD 39.59 Bn in 2024 and is expected to reach USD 67.55 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 7.93% from 2024 to 2031.
The current geopolitical situations have impacted the growth of the Diesel Exhaust Fluid Market significantly. With the ongoing Russia-Ukraine war and economic sanctions on Russia, the supply of urea has been disrupted globally. Urea is a key raw material used in the production of Diesel Exhaust Fluid (DEF). Russia is one of the largest exporters of urea in the world. Due to sanctions on Russia, exports of urea from the country have reduced substantially. This has led to a sharp rise in urea prices internationally. The price of urea rose by over 120% since the beginning of the war.
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