Selective Catalytic Reduction Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Application (Diesel Powered Vehicles and Gasoline Powered Vehicles), By Type (Tracking and Optimization), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 20.95 Billion
CAGR (2026-2031)	7.75%
Fastest Growing Segment	Commercial Vehicles
Largest Market	Europe
Market Size (2031)	USD 32.79 Billion

Market Overview

The Global Selective Catalytic Reduction Market will grow from USD 20.95 Billion in 2025 to USD 32.79 Billion by 2031 at a 7.75% CAGR. Selective Catalytic Reduction (SCR) is an active emissions control technology that converts nitrogen oxides into diatomic nitrogen and water by injecting a liquid reductant agent through a special catalyst into the exhaust stream of a diesel engine. The Global Selective Catalytic Reduction Market is primarily driven by the enforcement of stringent government regulations mandating lower emission standards for internal combustion engines and the rising demand for fuel-efficient power generation solutions in industrial sectors. These regulatory frameworks compel manufacturers to integrate advanced after-treatment systems to maintain compliance while optimizing engine performance.

A significant challenge impeding market expansion is the lack of consistent infrastructure for the distribution and storage of Diesel Exhaust Fluid (DEF) in developing regions, which can complicate widespread technology adoption. However, the reliance on internal combustion engines for heavy transport remains high, sustaining the demand for SCR systems. According to the European Automobile Manufacturers’ Association, in 2024, diesel trucks accounted for 95.1% of new European Union registrations. This figure highlights the continued dependence on diesel powertrains in the commercial sector, thereby necessitating the persistent utilization of SCR technology to meet rigorous environmental standards.

Key Market Drivers

The implementation of IMO Tier III standards in the marine industry acts as a pivotal driver for the Selective Catalytic Reduction (SCR) market, compelling ship operators to retrofit existing fleets and commission new vessels with advanced emissions control capabilities. As maritime regulations governing Nitrogen Emission Control Areas (NECAs) become more stringent, the adoption of SCR technology is expanding beyond cargo carriers to specialized vessel segments to ensure compliance with nitrogen oxide limits. This regulatory pressure fosters immediate hardware investments in exhaust after-treatment systems. For instance, according to Wartsila, in September 2024, the company secured an order to upgrade the exhaust treatment systems on four Ro-Pax vessels for Color Line, integrating close-loop functionality to meet these evolving environmental mandates.

Concurrently, the growth in global production of heavy-duty commercial vehicles continues to stimulate market expansion, particularly in high-volume industrial markets where infrastructure development necessitates robust logistics fleets. Manufacturers are sustaining high output levels of heavy-duty trucks that require SCR integration to meet China VI and Euro VI equivalent standards. According to ChinaTruck.net, in October 2024, cumulative sales of heavy-duty trucks in China reached approximately 681,200 units for the first three quarters of the year, underscoring the massive scale of SCR deployment in the region. The market's breadth is further evidenced by resilience in related commercial segments; according to the European Automobile Manufacturers’ Association, in January 2025, new EU van registrations increased by 8.3% throughout 2024, highlighting the widening application scope for emissions control technologies.

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Key Market Challenges

The lack of consistent infrastructure for the distribution and storage of Diesel Exhaust Fluid (DEF) in developing regions constitutes a significant bottleneck for the Global Selective Catalytic Reduction Market. SCR technology is operationally dependent on the continuous replenishment of DEF; without a reliable supply chain, vehicles utilizing this system face the risk of engine derating or failing to meet compliance protocols. This logistical uncertainty creates hesitation among fleet operators in emerging economies, who may delay upgrading to SCR-equipped heavy-duty vehicles due to fears of fluid unavailability along critical long-haul routes.

This infrastructure gap creates friction in the adoption rates of modern commercial vehicles, directly limiting the addressable market for SCR systems. The urgency of this logistical disconnect is highlighted by the sheer volume of vehicles entering these markets that require such support. According to the Society of Indian Automobile Manufacturers, domestic commercial vehicle sales reached 951,991 units in the calendar year 2024. This substantial volume of fleet additions underscores the critical disparity between vehicle demand and the existing support network, effectively curbing the potential growth of the SCR market in these high-potential regions.

Key Market Trends

The Proliferation of SCR Systems in Non-Road Mobile Machinery is accelerating as regulatory bodies target emissions from construction and agricultural equipment with unprecedented stringency. Unlike the mature on-road sector, the off-highway segment is currently undergoing a critical phase of technological adoption to meet upcoming standards that demand near-zero nitrogen oxide outputs. Manufacturers are redesigning exhaust after-treatment architectures to accommodate these rigorous limits within the spatial constraints of heavy machinery. According to the Association of Equipment Manufacturers, January 2024, the proposed California Air Resources Board Tier 5 regulations mandate a 90% reduction in nitrogen oxide emissions for off-road engines in the 56 to 560 kW power category compared to current Tier 4 Final standards. This regulatory trajectory is forcing the universal integration of high-performance SCR units equipped with advanced onboard monitoring and diagnostics to ensure compliance during variable load operations.

The Emergence of Hydrogen-Based Selective Catalytic Reduction Research represents a concurrent paradigm shift as the industry explores zero-carbon combustion alternatives. While hydrogen internal combustion engines eliminate carbon dioxide, they still generate thermal nitrogen oxides during high-temperature operation, necessitating specialized SCR solutions capable of functioning efficiently under unique exhaust compositions. Research is heavily focused on optimizing catalyst formulations, particularly zeolite-based materials, to enhance conversion rates without the carbon fouling issues associated with fossil fuels. According to UC Riverside, October 2024, scientists utilizing Y zeolites in platinum-based catalytic converters successfully increased the conversion of nitrogen oxides into harmless nitrogen by four to five times at 250 degrees Celsius compared to standard converters. This breakthrough underscores the critical role of evolved SCR technology in enabling the commercial viability of hydrogen propulsion systems for heavy-duty applications.

Segmental Insights

The commercial vehicles segment represents the most rapidly expanding category in the global Selective Catalytic Reduction market. This growth is primarily driven by stringent nitrogen oxide limits established by regulatory authorities such as the United States Environmental Protection Agency and the European Union. Manufacturers must install these systems in trucks and buses to satisfy rigorous compliance standards like Euro VI. As the transportation sector faces increasing pressure to lower pollution levels, the widespread adoption of emission control technology in commercial fleets remains a fundamental factor supporting market development.

Regional Insights

Europe maintains a commanding position in the Global Selective Catalytic Reduction Market, primarily due to the rigorous environmental mandates enforced by the European Commission. The widespread implementation of Euro 6 emission standards has made SCR technology essential for the automotive sector to drastically minimize nitrogen oxide output from diesel engines. Additionally, the Industrial Emissions Directive mandates strict compliance from heavy industries, such as power generation and manufacturing, requiring the adoption of Best Available Techniques. This comprehensive regulatory framework ensures a sustained demand for effective emission control solutions, solidifying the region's leadership.

Recent Developments

• In July 2025, Johnson Matthey announced the opening of its first hydrogen internal combustion engine (H2-ICE) testing facility at its site in Gothenburg, Sweden. The upgraded center was established to test the performance of catalysts and wider aftertreatment systems for hydrogen-powered heavy-duty vehicles, supporting the transition to zero-emission transport. Capable of handling engines up to 600 kW and hydrogen pressures up to 500 bar, the facility enabled the company to evaluate emission control strategies for hydrogen combustion, including the abatement of nitrogen oxides generated during the combustion process.
• In September 2024, Cummins Inc. unveiled its new "Twin Module" aftertreatment system, which features a redesigned Selective Catalytic Reduction (SCR) assembly, to meet the U.S. Environmental Protection Agency's 2027 emission standards. The system was engineered with a parallel exhaust flow design to minimize backpressure and heat loss, and it incorporated a new electric heating system powered by a 48-volt alternator to maintain optimal catalyst temperatures during cold starts and low-load operations. This architecture allowed for significantly lower nitrogen oxide emissions without compromising engine performance or fuel economy, while maintaining a compact footprint for easier vehicle integration.
• In March 2024, MAN Energy Solutions delivered its largest-ever Selective Catalytic Reduction (SCR) catalytic converter to MITSUI E&S for use with an ammonia-powered marine engine. The "Cluster 5 Double Layer" system, which measures 3.9 meters in diameter and weighs 28 metric tons, was designed to be ammonia-ready and capable of reducing nitrogen oxide emissions by up to 90 percent. This delivery marked a significant milestone as the world's first SCR explicitly designed for an ammonia engine, supporting compliance with IMO Tier III regulations and enhancing fuel efficiency through integrated control strategies.
• In February 2024, the international technology group ANDRITZ received an order from TPC Group to supply a Selective Catalytic Reduction (SCR) system for a power boiler located in Houston, Texas. This project aimed to support the petrochemical manufacturer's strategic investment in increasing production capacity while adhering to stringent local, state, and federal nitrogen oxide (NOx) emission standards. The scope of the order included the design, supply, erection, and commissioning of the comprehensive SCR system, which was engineered to achieve high NOx removal efficiencies using optimized catalyst technology.

Key Market Players

• Johnson Matthey Group
• Faurecia SE
• Cummins Inc.
• OPmobility SE
• Röchling Group
• Tenneco Inc.
• Robert Bosch GmbH.
• Bosal Emission Control Systems
• MANN+HUMMEL GmbH
• BENTELER International

By Application	By Type	By Vehicle Type	By Region
Diesel Powered Vehicles and Gasoline Powered Vehicles	Tracking and Optimization	Passenger Cars Commercial Vehicles	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Selective Catalytic Reduction Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Selective Catalytic Reduction Market, By Application:

• Diesel Powered Vehicles and Gasoline Powered Vehicles

• Selective Catalytic Reduction Market, By Type:

• Tracking and Optimization

• Selective Catalytic Reduction Market, By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

• Selective Catalytic Reduction Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE