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Commercial Vehicle SCR Market Size
The global commercial vehicle SCR market size was valued at USD 7.9 billion in 2024 and is projected to grow at a CAGR of 5.9% between 2025 and 2034. Stringent emissions regulations are a key growth driver for the market. SCR is used in vehicle emissions control to reduce nitrogen oxide (NOx) emissions from diesel engines.
Governments worldwide are enforcing stricter standards to reduce harmful emissions, such as nitrogen oxides (NOx), from diesel-powered commercial vehicles. Regulations like Euro VI in Europe, Bharat Stage VI in India, and EPA Tier 4 in the U.S. mandate advanced emission control systems, boosting SCR adoption. These regulations aim to improve air quality, reduce carbon footprints, and combat climate change. As technology effectively reduces NOx emissions while maintaining fuel efficiency, it has become essential for compliance. This regulatory push is fostering steady demand for SCR systems in new vehicles and retrofitting older fleets.
Report Attributes | Details |
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Base Year: | 2024 |
Market Size in 2024: | USD 7.9 Billion |
Forecast Period: | 2025 – 2034 |
Forecast Period 2025 – 2034 CAGR: | 5.9% |
2025 – 2034 Value Projection: | USD 14.1 Billion |
Historical Data for: | 2021 – 2024 |
No. of Pages: | 180 |
Tables, Charts & Figures: | 200 |
Segments covered: | Vehicle, Component, Application, Sales Channel |
Growth Drivers: |
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Pitfalls & Challenges: |
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According to OICA, in 2023, close to 26 million commercial vehicles were produced, rising more than 10% from figures of 23 million in 2022. Thus, coupled with rising regulations and production of demand for commercial vehicles, the market for commercial vehicles SCR is expected to grow parallel. The rising demand for fuel efficiency is another significant driver of the market. These systems not only reduce emissions but also optimize engine performance, enabling better fuel efficiency.
With increasing fuel prices and operational costs, fleet operators prioritize technologies that reduce fuel consumption. These systems allow engines to operate at higher combustion temperatures, enhancing efficiency while meeting emission norms. This dual benefit of compliance and cost savings drives the adoption of SCR systems across commercial vehicle fleets globally?.
Commercial Vehicle SCR Market Trends
An ongoing trend in the commercial vehicle SCR industry is the integration of advanced sensor technologies for real-time monitoring and optimization. Modern SCR systems are incorporating sensors for precise dosing of Diesel Exhaust Fluid (DEF), improving emission reduction efficiency and reducing waste. Additionally, manufacturers are adopting lightweight materials for SCR components to enhance fuel efficiency and vehicle performance.
The rise of electronic control modules (ECMs) ensures better diagnostics and compliance tracking, aiding fleet operators. With growing environmental concerns, there is a shift towards SCR systems compatible with hybrid and alternative-fuel commercial vehicles. These advancements aim to meet regulatory demands while minimizing operational costs for fleet operators. ?
For instance, in September 2024, US-DEF announced that it is a proudly American-made DEF brand designed for retail and wholesale markets, adhering to strict API and ISO 22241 quality standards. It features patriotic packaging, customer loyalty initiatives, and competitive pricing, targeting truck stops, gas stations, and retail outlets nationwide.
Launching first in North Texas by Veterans’ Day 2024, it will expand nationwide by Q1 2025, offering 2.5-gallon jugs, 55-gallon drums, and 330-gallon totes. US-DEF reduces NOx emissions via SCR technology, meeting EPA guidelines for diesel vehicles and equipment. The family-run Texas corporation aims to build partnerships with wholesalers and buyers nationwide.
One challenge in the commercial vehicle SCR market is the availability and distribution of DEF. Although DEF is essential for meeting emissions regulations, its availability can be inconsistent, especially in remote areas or regions with underdeveloped infrastructure. Fleet operators often face difficulties in sourcing DEF at truck stops, gas stations, and other retail locations. This leads to potential delays in vehicle operations, particularly for long-haul drivers. Ensuring a widespread and reliable DEF supply is crucial for maintaining compliance and operational efficiency. ?
Commercial Vehicle SCR Market Analysis
Based on the application, the market is segmented into on-highway vehicles and off-highway vehicles. In 2024, the off-highway segment accounted for over 60% of the market share and is expected to exceed USD 7 billion by 2034. The off-highway segment is dominating the market due to the increasing adoption of emission-reducing technologies in construction, agricultural, and mining equipment. Off-highway vehicles often operate in industries that are highly regulated for emissions, and SCR technology helps these vehicles meet stringent environmental standards.
The need for better fuel efficiency and reduced operational costs in these sectors further drives the adoption of these systems. Additionally, off-highway equipment often operates in harsh environments where maintaining compliance with emissions regulations is critical to avoid penalties. The growing demand for cleaner technologies in the industrial sector has accelerated the use of SCR systems in off-highway vehicles. This trend is expected to continue as more countries enforce stricter emission norms for non-road machinery.
Based on the sales channel, the commercial vehicle SCR market is divided into OEM and aftermarket. The OEM segment held above 75% of the market share in 2024, due to their direct influence on vehicle design and compliance with regulatory standards. As manufacturers of new vehicles, they are required to integrate these systems to meet stringent emissions regulations, such as Euro VI and EPA Tier 4. Their scale and established supply chains enable them to effectively implement and distribute SCR systems across a wide range of vehicle types.
Additionally, their ability to offer integrated solutions allows for better compatibility between SCR systems and other vehicle components. This central role in vehicle production and regulatory compliance positions OEM as key market leaders.
China commercial vehicle SCR market accounted for 60% of the revenue share in 2024 and is expected to exceed USD 2.5 billion by 2034, due to its large-scale manufacturing of heavy-duty trucks, buses, and off-highway vehicles, which are subject to stringent emissions regulations. The country's rapid industrialization and infrastructure development have led to increased demand for SCR systems to meet environmental standards like China VI.
China also has a well-established supply chain and manufacturing base for SCR components, making it a hub for both domestic production and global exports. The government's focus on reducing air pollution and improving fuel efficiency in commercial vehicles has accelerated the adoption of technology. Additionally, the rising number of fleet operators in China further drives the demand for emission control solutions. ?
Europe's commercial vehicle SCR market is driven by strict environmental regulations such as Euro VI standards, which mandate the use of SCR technology to reduce NOx emissions. The growing demand for fuel-efficient and low-emission vehicles across the transportation and logistics sectors further fuels market growth. Europe is also a hub for advanced SCR technology innovation, with key manufacturers focusing on improving system efficiency. The adoption of these systems is widespread across both on-highway and off-highway applications. Government initiatives supporting green technologies and the push for carbon neutrality is boosting the market in Europe.
In North America, the commercial vehicle SCR market is growing due to EPA Tier 4 and other stringent emissions standards that require SCR systems for heavy-duty diesel trucks and off-road machinery. The region's focus on reducing diesel emissions and improving air quality in urban areas drives the demand for SCR. With major OEMs and technology providers in place, North America is a leader in system integration. The expanding transportation sector, including freight and long-haul trucking, further increases the adoption of SCR systems. Additionally, regulatory pressures from both the U.S. and Canada are accelerating market growth.
Commercial Vehicle SCR Market Share
Tenneco, Continental, and Robert Bosch collectively held a substantial market share of over 40% in the commercial vehicle SCR industry in 2024. The companies dominate the commercial vehicle SCR market due to their extensive expertise in emission control technologies and strong global presence. These companies are key players in the production of these type of systems, providing high-quality components that help commercial vehicles meet stringent emissions standards.
Their large-scale manufacturing capabilities and well-established supply chains allow them to cater to a broad market, including OEMs and aftermarket solutions. They also invest heavily in R&D to innovate and improve the efficiency of SCR technologies, addressing both regulatory requirements and customer needs. Their global reach and established relationships with fleet operators further solidify their leadership in the market.
Commercial Vehicle SCR Market Companies
Major players operating in the commercial vehicle SCR industry are:
- Aisin Seiki
- BASF SE
- BorgWarner
- Continental
- Cummins
- Denso
- Magna
- Robert Bosch
- Tenneco
- ZF Friedrichshafen
Commercial Vehicle SCR Industry News
- In September 2024, the UK government permanently ended the SCR retrofit scheme for buses following a report revealing the technology's limited effectiveness in real-world emissions reductions. The scheme, initially launched in 2017, aimed to reduce nitrogen oxide (NOx) emissions but was found to be only 11% effective on average, with some buses showing minimal or no improvements. The report highlighted issues such as faulty systems and low catalyst operating temperatures.
- In October 2021, in the US, approximately 43% of the Class 3-8 diesel vehicles (around 11 million commercial vehicles) are equipped with SCR as a standard feature, following its mandate in 2011. In India, 52,130 commercial vehicles were sold in July 2021, with nearly all Medium and Heavy Commercial Vehicles (M&HCVs) now coming with SCR as standard equipment.
The commercial vehicle SCR market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (Units) from 2021 to 2034, for the following segments:
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Market, By Vehicle
- Heavy-duty trucks
- Light commercial vehicles
- Buses
- Others
Market, By Component
- SCR catalyst
- Urea tank
- DEF injector
- SCR control module
- Others
Market, By Application
- On-highway vehicles
- Off-highway vehicles
Market, By Sales Channel
- OEM
- Aftermarket
The above information is provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Nordics
- Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- Saudi Arabia
- South Africa
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