With the continuous tightening of exhaust emission standards, more and more people are beginning to come into contact with diesel exhaust fluid. Products and projects related to diesel exhaust fluid in the market have sprung up. Only by understanding relevant knowledge in time can we better grasp market trends.
About Diesel Exhaust Fluid
Diesel exhaust fluid, also known as exhaust gas treatment fluid, is specially used to treat vehicle exhaust. In China's air pollution, heavy-duty diesel vehicles, as a major emitter of nitrogen oxides, are one of the main sources of pollution caused by photochemical smog containing toxic ozone near the ground. If you want to control or alleviate air pollution, you must take corresponding measures against exhaust emissions. Diesel exhaust fluid has become a product that the environmental protection department mandates to add to diesel vehicles and is aimed at exhaust gas treatment, which also draws on the mature experience of the European market.
As one of the ancillary products of National VI vehicles, diesel exhaust fluid is an important link that relates to the implementation of National VI. As a special reducing agent for automotive diesel engines, diesel exhaust fluid is an odorless and non-toxic aqueous solution. Diesel exhaust fluid is stored in a special storage container on diesel vehicles. When the exhaust gas is discharged from the engine, it will reach the truck recovery converter together with the exhaust gas, and then convert the nitrogen oxide compound into harmless nitrogen and water, thereby greatly reducing the exhaust gas. Emissions are the preferred products for heavy-duty trucks and passenger cars that meet the end-of-end emission standards. Diesel exhaust fluid is a consumable product, and the average consumption is generally 3% to 5% of diesel consumption.
Vehicles can run without adding diesel exhaust fluid because diesel exhaust fluid does not affect the engine. However, after the diesel exhaust fluid is used up, if it is not added in time, on the one hand, environmental protection testing will be fined. On the other hand, the vehicle OBD onboard diagnostic system can monitor NOx emissions. When the NOx emission exceeds the limit, the fault indicator will be activated, and the torque limiter will limit the engine power by limiting the torque.
The Market Size of the Diesel Exhaust Fluid Is Increasing Year by Year
In recent years, China's diesel exhaust fluid has entered a stage of rapid development. In terms of market size, according to statistics, the market size of China's diesel exhaust fluid industry in 2019 is 3.7 billion yuan, and the market size is expected to be about 829 million US dollars in 2020.
Under the National Sixth Standard, the use of diesel exhaust fluid has further increased. Diesel exhaust fluid is used as a consumer product in the treatment of vehicle exhaust. In the National IV and National V phases, the average consumption is generally 3-5% of the diesel consumption. In the National VI phase, the exhaust emission standards are further upgraded, and the NOx of diesel vehicles can be Emissions have been reduced by 97%, and the consumption of diesel exhaust fluid will gradually increase to 7%. In the next three years, the market space of China's diesel exhaust fluid will be 10.34 million tons, 10.44 million tons, and 10.54 million tons respectively. Therefore, with the gradual increase in the sales volume of diesel vehicles complying with the National Sixth Standard, the consumption of diesel exhaust fluid per set will further increase, driving the growth of overall market demand.
The Penetration Rate of diesel exhaust fluid Has Increased with the Tightening of Industry Supervision
The development of diesel exhaust fluid in China is relatively late. After the implementation of the National III standard, domestic auto companies began to gradually develop the national IV standard diesel vehicles in 2009, opening up the market demand for diesel exhaust fluid solutions. In 2014, the National Four Standards were implemented, and the use of diesel exhaust fluid has gradually increased. However, in the early stage of product application, the supervision has not been perfected, and the use of diesel exhaust fluid has been fully regulated and effectively used. In 2017, the national five standards were implemented, and China's diesel exhaust fluid market developed rapidly. From 2017 to 2019, the compound growth rate of China's diesel exhaust fluid reached 50%. In 2019, China's diesel exhaust fluid market demand reached 1.977,000 tons. With the further tightening of domestic supervision, the penetration rate of diesel exhaust fluid will continue to increase, driving the steady growth of diesel exhaust fluid with four national standards and five standards.
The Industry Pattern Is Expected to Be Further Concentrated with the Tightening of Industry Supervision
In the early stage of industry development, due to the unregulated operation of the industry, the entry barrier for the diesel exhaust fluid market was low. The industry gathered many small-scale enterprises engaged in diesel exhaust fluid production, and products that did not meet the standards flowed into the market, making the market complex and chaotic. In 2019, China issued the "Action Plan for Tackling Diesel Truck Pollution Control" to focus on the pollution control of diesel truck exhaust in key areas such as the Beijing-Tianjin-Hebei region and the Yangtze River Delta. In the diesel exhaust fluid industry, on the one hand, it will focus on the management of operators. On the other hand, it controls operating vehicles, starting from both the supply side and the user side of diesel exhaust fluid, focusing on rectifying the product market, cracking down on illegal production and sales of diesel exhaust fluid, and using diesel exhaust fluid in violation of regulations.
Regulatory requirements have become stricter, and the operation of the diesel exhaust fluid industry continues to be regulated. The industry concentration is expected to gradually concentrate on leading companies. The introduction of the National Sixth Standard will greatly increase the use of diesel exhaust fluid. At the same time, the state will regulate the supply and use of the diesel exhaust fluid industry in a two-way manner, making the diesel exhaust fluid industry gradually move towards a standardized supply and demand market. As product requirements continue to tighten, it is still necessary to add product testing equipment to the original production and operation, and it is difficult to afford concentrated capital investment. Small-scale enterprises that cannot meet product quality standards will gradually withdraw from the market and companies with large-scale diesel exhaust fluid production capacity will reap huge dividends.
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