What is DEF, and Why Does Your Diesel Need it?

November 2022

Diesel engine exhaust fluid is used as an anti-pollution solution to stop and minimize dangerous nitrogen oxide emissions from internal combustion engines fuelled by diesel. Diesel-powered vehicles use Selective Catalytic Reduction, or SCR, technology in conjunction with this consumable fluid to reduce dangerous pollutants from exhausts. Diesel engine exhaust fluid is stored in a separate fuel tank connected to the exhaust pipe and activates quickly while the engine runs.

Apprehending the Industry

Environmental sustainability is one of the top concerns given to various automakers and fossil fuel energy companies by the NOx emissions act enforced in 2010 by the Environmental Protection Agencies. These companies are tasked with reducing the emission of harmful chemicals like NOx, COx, and unburned particles from vehicles and other machinery exhaust. The growing demand for diesel engine exhaust treatment fluid in end-use industries like marine, automotive, and aerospace is one of the significant reasons propelling the growth of the global diesel engine exhaust treatment fluid market. The market is also growing because of strict regulations on greenhouse gas emissions and rising demand from the vehicle industry.

The recovery of the automobile industry is expected to raise the need for DEF, which will boost the diesel engine exhaust fluid market. Even if the lockdown is lifted, challenges with the workforce, the supply chain, and government preventive requirements would likely hinder a complete restart of vehicle sales and manufacturing. In this instance, it is projected that the COVID-19 outbreak will have a modest impact on the market for diesel exhaust fluid. The epidemic has hurt major nations that produce vehicles, including China, Japan, Germany, and the United Kingdom.

The diesel exhaust fluid market size is projected to be worth USD 35,316.55 million by 2030, registering a CAGR of 8.57% during the forecast period (2021–2030). The market was valued at USD 15,757.27 million in 2020.

Global Challenges

The cost of DEF is determined by the price of urea because it is a component of both DEF and diesel exhaust fluid. The market for DEF may change somewhat due to changes in urea prices. The agriculture sector is the main factor influencing urea pricing. Agriculture has a significant impact on urea prices. Because urea prices are determined by the supply and demand in the agricultural market, they are very unpredictable. One of the main obstacles the GCC DEF market faces is this.

On the other hand, another restraining factor in the diesel exhaust fluid industry scope is the growing adaption of electric vehicles.

Electric car use is rising, which reduces environmental pollution, global warming, and dependence on petroleum. The government of India and China have created programs to raise public knowledge about environmental pollution, its health effects, and potential cures in response to the rise in pulmonary ailments brought on by dirty air. The government has launched several programs to promote the use and creation of electric vehicles. India Diesel Exhaust Fluid (AdBlue) is another fuel electric car manufacturers choose to use in their vehicles since it has benefits like cheap maintenance, increased efficiency, fast running speed, and quick response.

However, it is anticipated that the growing demand for electric vehicles in India may limit the expansion of the market for diesel exhaust fluid (AdBlue), as it will reduce demand for diesel and, therefore, AdBlue.


During the forecast timeframe, the demand for DEF AdBlue is driven by the rise in the popularity of commercial vehicles.

The producers of the automotive sector are developing advanced DEF fluids. Investments in research and development are supporting the expansion of the market to improve the capabilities of DEF (AdBlue).

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