Clean Diesel Market — Global Industry Insights, Trends, Outlook and Opportunity Analysis, 2017–2025

Clean diesels are a new group of diesels made up of a three part structure which combines cleaner low Sulphur diesel fuel, unconventional engines and effective emissions control technology. Clean diesels are used on a large scale for transport. They are also used to power various equipment in the mining, construction, and agriculture sectors. Clean diesels are cleaner, more fuel efficient and offer more torque than other fuels. The clean diesel market however faces major competition from its gasoline, hybrid, and electrical counterparts.

 Low diesel prices, government subsidies, stricter environmental regulations are major drivers for the clean diesel market. Clean diesels though are known to produce nitrous oxide. The use of advanced emission control technologies are helping the clean diesel market cope with this problem. One of the most notable downsides however to diesel engines is that they tend to cost more than gasoline engines.

Clean diesel Taxonomy

On basis of the Three Part System Components:

  • Fuel
    • Ultra low Sulphur diesel (ULSD)
      • Grade No. 1-D S15
      • Grade No. 2-D S15
  • Engine
    • Electronic controls
    • Common rail fuel injection
      • Electro hydraulic solenoids
      • Piezo crystal electric actuators
      • Hydraulically amplified common rail
      • CRI4
    • Variable injection timing
    • Improved combustion chamber configuration
    • Turbocharging
  • Effective Emission control
    • Diesel oxidation catalyst
    • Exhaust gas recirculation
    • Diesel particulate Filters
    • Selective catalyst reduction

On the basis of end user

  • Agriculture
  • Transportation
  • Construction
  • Power generation
  • Mining
  • Public Safety
  • Others

Common Rail systems supply high injection pressures available at an accumulator directly to the injector thus providing better control, emission reduction, and better efficiency. There are two ULSD standards available, Grade No. 1-D S15 which is a highly unstable fuel with an inferior gelling temperature than regular ULSD and Grade No. 2-D S15 which is regular ULSD.  Companies such as Clean diesel Technologies (CDTI) develop catalyst technologies and emissions control systems to meet the requirements of increasingly stringent environmental regulations and decrease emissions. 

  • The state-subsidized incorporation of vehicles by means of tax concessions led to a significant increase in the proportion of diesel engines in privately owned vehicles in Europe. Approximately 50 % cars in Europe run on ULSD. Europe has been the frontrunner on regulations for low-sulfur, “clean” transportation fuels. The use of ULSD since a long time combined with the presence of major car manufactures in Europe will lead to the technological advancement of the clean diesel market.
  • Clean diesel fuel containing 97 percent less sulfur has been used for both on-highway and off-highway diesel engines in the US since 2006. Even though the amount of commercial diesel vehicles used in the US is low. Industries such as mining, agriculture, and construction depend on diesel for their operations. Hence incorporating efficient use of clean diesel could help boost the clean diesel market in North America.
  • Diesel usage is prevalent particularly in the growing economies of Asia such as China, India and Southeast Asia. Hong Kong was the first city in Asia to introduce clean diesel to its local market in July 2000. Countries such as Japan, Taiwan, China, and India have all begun the use of ULSD. As Asia comprises of a number of developing nations the clean diesel market has the maximum potential to grow in Asia.
  • In the Middle East, Saudi Arabia and Kuwait are frontrunners in the clean diesel project. To fulfil the obligatory sulfur specifications for diesel, Saudi Arabia is spending billions of dollars to construct multiple clean diesel projects. As the Middle East is a major exporter of petroleum products it can be a major clean diesel producer with the help of technology and capital.
  • In Africa fewer countries have adopted low-sulfur fuel regulations. South Africa plans to initiate Clean Fuels Program 2 (CF2) is expected to be fully commissioned by 2020 to develop diesel containing 10 ppm or less of sulfur. The clean diesel market in Africa is still developing.
  • As Latin American countries rely heavily on oil export revenues, the drop in fuel prices has affected them greatly. As a result of which they do not have enough capital for expansions and upgrades to produce clean diesel.

The three-part clean diesel system enables emission reductions of over 95 percent. Lower cost of diesel coupled with its 20 to 40 percent higher fuel efficiency than gasoline make clean diesel vehicles make more economical. The recent Volkswagen emissions scandal that came to light in 2015 has had a negative impact on the clean diesel market with a decrease in diesel vehicle sales. Some major clean diesel players include CDTI, Volkswagen, BMW, Ford, Chevrolet, GMC, Nissan, Tetraneft corporation, Spinelli International Company, Digable traders, Camarona.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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