South Africa AdBlue Oil Market Research Report forecast to 2027
South Africa’s AdBlue oil market was valued at USD 194.6 million in 2020 and is expected to register a CAGR of 4.91% to reach USD 281.3 million by the end of 2028. In terms of volume, the market accounted for 356.1 kilotons in 2020 and the demand is projected to reach 483.5 kilotons by the end of 2028. AdBlue, also known as Diesel Exhaust Fluid (DEF), is a blend or an aqueous solution of 32.5% urea and 67.5% of deionized water. It primarily uses a consumable fluid in diesel and gasoline fuel-based vehicles through selective catalytic reduction (SCR) technology. The product effectively reduces the emission of oxides of nitrogen by chemically reacting with the exhaust gases.
The prominent factor driving the South Africa demand for AdBlue oil is the increasing penetration of passenger cars and commercial vehicles in the African market, wherein South Africa is a lucrative region. In addition to this, the gradual adoption of the global emission norms is likely to boost the consumption of AdBlue oil in the country. Moreover, changing lifestyle and gradually increasing disposable income of the people in this country are favoring the market growth. However, sluggish economic growth of South Africa on the backdrop of the looming macroeconomic factors is expected to hamper the market growth. Furthermore, fluctuating prices of urea, one of the major raw materials of AdBlue affects the market growth. Nevertheless, the growing use of emission reduction product in agricultural machinery and construction equipment is expected to mitigate the market restraints in the coming years.
South Africa AdBlue oil market has been segmented by application. Based on the application, the market has been segmented into automotive, construction machinery, farm machinery, electronic generators, railway engines, and others. Automotive is the largest consumer of AdBlue, which accounted for 62.27% share of the market in 2020. This segment is estimated to register the highest CAGR of 5.24% to reach USD 179.7 million by the end of 2028. This growth is mainly attributed to the increasing demand for passenger and commercial vehicles, along with stringent emission norms.
Key end consumers of AdBlue oil include the automotive, construction, and agriculture industries. These industries account for around 80% of the South Africa AdBlue oil market. The demand from the automotive and construction industry has experienced a significant decline primarily due to the shutting down of factories and businesses worldwide, resulting in insufficient availability of raw materials, thereby affecting production on a global scale.
The key competitors operating in the global South Africa AdBlue Oil Market are Yara, BASF SE, Engen Petroleum Ltd., and Viscol. Co.Za.