Why is Use of AdBlue Shooting Up in Asia-Pacific?

The increasing implementation of stringent regulations by the governments of many countries, especially in Asia, Europe, and North America, for mitigating vehicular emissions and improving fuel efficiency is fueling the demand for diesel exhaust fluid (AdBlue). For instance, the U.S. upgraded its emission regulations from the United States Environmental Protection Agency (USEPA) Tier 2 to USEPA Tier 3 in 2017. This was done to achieve a huge reduction in the emission of greenhouse gases from vehicles. Likewise, Euro 6 standards were enacted in Europe recently and the region is in the process of enacting more stringent amendments in the forthcoming years for reducing greenhouse gas emissions.

Additionally, the extensive usage of medium- and heavy-duty commercial vehicles such as construction and mining vehicles and trucks, on account of the rising industrialization rate, increasing construction activities, and improving logistics infrastructure, is also propelling the requirement for AdBlue across the world. Moreover, these vehicles are being used for delivering goods in remote and far-flung areas. According to various reports, the sales of trucks will rise to nearly 4 million by 2023, which will, in turn, push up the requirement for diesel exhaust fluid.

Many developing countries such as Brazil, Russia, India, and China are witnessing a massive rise in infrastructural development and construction activities, which are fueling the expansion of the transportation and logistics industries. This is subsequently augmenting the usage of heavy-duty vehicles such as trailers and trucks, in which AdBlue is heavily used for reducing emissions. Furthermore, several governments are enacting regulations in order to reduce the generation of emissions from passenger cars. This is why the soaring sales of passenger cars in many countries are also positively impacting the worldwide demand for AdBlue, which is, in turn, fueling the expansion of the global diesel exhaust fluid market.

Asia-Pacific (APAC) is expected to be the fastest growing diesel exhaust fluid market during the forecast period. The potential growth is attributed to the high demand for transportation, to facilitate the movement of goods. This has promoted the sales of heavy- and medium-duty vehicles, which has also resulted in high levels of air pollution. Owing to the increasing level of vehicular pollution, several countries, including China and India, have either implemented or are in the process of implementing stringent emission norms, which will impel fleet operators to install emission control systems, which, in turn will boost the demand for diesel exhaust fluid in the APAC region.

Historically, the demand for diesel exhaust fluid was driven by medium- and heavy-duty commercial vehicles, such as trucks, and construction and mining vehicles. However, the rising stringency for vehicular emission and fuel efficiency in North American, European, and Asian nations is resulting in a rising demand for AdBlue in passenger cars as well. Several regulations have been imposed by the government of various countries to reduce the emission from passenger cars, which has paved the way for the diesel exhaust fluid market advance in the passenger cars segment.

This is credited to the large-scale use of this fluid by various heavy-duty vehicles such as trucks, in which storage tanks and drums are used for storing the fluid. Additionally, with the burgeoning need for product transportation, the number of heavy-duty trucks is soaring, which is driving the requirement for bulk storage solutions. Geographically, the demand for diesel exhaust fluid is expected to rise at the fastest pace in the Asia-Pacific (APAC) region in the upcoming years, owing to the surging requirement for transportation for facilitating the movement of goods in the region.

Hence, it can be said with surety that the demand for AdBlue will soar in the coming years, on account of the surging usage of medium- and heavy-duty vehicles such as trucks and trailers and the increasing implementation of stringent emission regulations by the governments of several countries around the world.