The aggregate revenues of India Diesel Exhaust Fluid (Adblue)market reached USD 955 million in 2017, and the figure is projected to touch the level of USD 1,234.4 million by 2027. The market is estimated to grow at 2.8% during 2020-2025. Enhanced infrastructure, accelerated industrialization and improved demand for heavy-duty vehicles are the factors that drive AdBlue market growth. Besides, its low cost of manufacturing and increasing demand to run agricultural equipment such as tractors, pumps and harvesters contribute to its market growth. As AdBlue’s use minimizes emissions of harmful gases, such benefit widens its market opportunities given stringent regulations related to emissions.
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Bulk Storage Tanks segment is the major contributor to the market followed by Container Segment. In Bulk storage tanks segment, Adblue is widely used by businesses that essentially deploy diesel vehicle fleets as an integral part of their operations. One example of this is the transport industry where companies need AdBlue storage on-site to fill in HGVs and LCVs. Nevertheless, with every new version of stringent emission standards, SCR technology with Adblue is being more used by industries such as construction and agriculture, leading to less emission of harmful gases.
The primary function of diesel exhaust fluid is to segregate nitrogen oxide (NOx) into nitrogen and water. NOx emissions are the most toxic gases causing severe air pollution and are often held responsible for acid rain and a thriving greenhouse effect. On the other hand, nitrogen and water are entirely harmless and can be safely released into the atmosphere. The superior design of engines with SCR systems allows less wear and tear on the engine over its lifespan. It reduces the need for maintenance and possibility of breakdown. It improves fuel-efficiency and smoothens engine performance.
The Selective Catalytic Reduction (SCR) technology enables the reduction of nitrogen oxide (NOx) emissions from the tailpipe of diesel-powered vehicles. It is widely used in diesel passenger vehicles by commercial vehicle fleet owners and transporters to maintain low emission levels. Its usage can be quickly promoted by educating customers for its adoption.
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Commercial vehicles in the mid and lower segments use the EGR technology, while premium commercial vehicles and passenger vehicles deploy SCR. In the Indian context, it is clear that EGR might be an obvious choice in meeting BS-VI regulations, due to its simplicity, cost- effectiveness and easy integration.
The spearheading and known players in this market are Castrol India Limited, Yara Fertilisers India Pvt. Ltd., Nandan Petrochem Ltd, Power Blue International, New Blue India Company, Shine India Technology & Co, Palsani Green Power Llp, Inabgo, and others.
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