Selective Catalytic Reduction (SCR) System Global Market Report 2025

The selective catalytic reduction (SCR) system market size has grown strongly in recent years. It will grow from $5.72 billion in 2024 to $6.26 billion in 2025 at a compound annual growth rate (CAGR) of 9.4%. The growth during the historic period can be attributed to rising demand for cleaner transportation, increasing reliance on coal-based power generation, growing focus on sustainable industrial operations, expanding industrialization leading to higher pollution levels, and increasing adoption in marine and shipping industries.

The selective catalytic reduction (SCR) system market size is expected to see strong growth in the next few years. It will grow to $8.86 billion in 2029 at a compound annual growth rate (CAGR) of 9%. The growth during the forecast period can be attributed to stricter government regulations on vehicular emissions, higher demand for heavy-duty commercial vehicles, growing consumer preference for eco-friendly transportation solutions, increased enforcement of Euro VI and equivalent emission standards, and heightened focus on reducing nitrogen oxide emissions. Key trends in the forecast period include advancements in emission control technologies, enhanced integration of digital monitoring systems, innovation in catalyst formulations, use of artificial intelligence for performance optimization, and development of advanced thermal management systems for improved efficiency.

The growing concerns about air pollution are expected to drive the expansion of the selective catalytic reduction (SCR) system market. Air pollution refers to the presence of harmful substances, including gases, particles, and biological molecules, in the atmosphere, which can adversely affect human health, ecosystems, and the environment. The increasing pollution is largely due to rising industrialization and vehicle emissions, which release significant amounts of pollutants such as nitrogen oxides, sulfur dioxide, and particulate matter, harming both human health and the environment. The Selective Catalytic Reduction (SCR) system helps address these concerns by reducing nitrogen oxide (NOₓ) emissions from vehicles and industrial engines, converting them into harmless nitrogen and water, thus supporting cleaner air and helping to meet strict environmental regulations. For example, according to the European Environment Agency (EEA), in December 2024, EU deaths from PM2.5 decreased by 45% in 2022, moving closer to the 55% reduction target set for 2030 in the Zero Pollution Action Plan. Therefore, the growing concerns about air pollution are driving the growth of the SCR system market.

Leading companies in the selective catalytic reduction (SCR) system market are focusing on innovations in emission control technologies to improve efficiency, reduce NOₓ emissions, and comply with stringent environmental regulations. Emission control technologies are designed to minimize harmful pollutants from engines and industrial processes. For instance, in June 2025, Yanmar Marine International, a European manufacturing company, introduced an advanced SCR system for its 6LY400-440 engine series, which reduces NOₓ emissions by up to 90% and exceeds the IMO Tier III standards for marine engines operating in Emission Control Areas (ECAs). The system integrates with Yanmar’s 6LY common rail engines and uses sensors and an ECU to inject Diesel Exhaust Fluid (DEF or AdBlue), converting NOₓ into nitrogen and water. Compact and lightweight at just 86 kg, the system is suitable for commercial vessels over 130 kW and leisure vessels over 24 meters, facilitating easier retrofits. While not yet certified for U.S. waters, the technology highlights Yanmar’s commitment to sustainable marine solutions while maintaining engine performance.

In April 2024, Ogepar, a Europe-based diversified financial holding company, acquired Hug Engineering AG from Forvia for an undisclosed amount. This acquisition allows Ogepar to expand its presence in the exhaust after-treatment systems (EATS) market and strengthen its sustainability-focused portfolio by incorporating Hug’s expertise in emission reduction technologies. Hug Engineering, based in Switzerland, specializes in providing services for Selective Catalytic Reduction (SCR) systems.

Major players in the selective catalytic reduction (SCR) system market are BASF SE, Denso Corporation, Continental AG, Cummins Inc., Tenneco Inc., Johnson Matthey Plc, YARA INTERNATIONAL ASA, DuPont de Nemours Inc., OPmobility, Wärtsilä Oyj Abp, GEA Group Aktiengesellschaft, Donaldson Company Inc., Röchling SE & Co. KG, Bosch Gmbh, Babcock & Wilcox Enterprises Inc., Scheuch Management Holding GmbH, EMINOX PRIVATE LIMITED, Albonair GmbH, DCL International Inc., VOSS USA Inc.

Asia-Pacific was the largest region in the selective catalytic reduction (SCR) system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in selective catalytic reduction (SCR) systems report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the machinery sector by increasing costs for steel, hydraulic systems, and precision bearings critical components often imported from tariff-affected regions. Manufacturers of construction, agricultural, and industrial machinery now face squeezed margins, as many long-term contracts prevent immediate price adjustments. The uncertainty has also delayed investment in automation and smart machinery technologies, slowing productivity gains. To adapt, firms are accelerating local supplier development, redesigning products to use alternative materials, and leveraging predictive maintenance to extend equipment lifespans amid higher replacement costs.

The selective catalytic reduction (SCR) system market research report is one of a series of new reports that provides selective catalytic reduction (SCR) system market statistics, including selective catalytic reduction (SCR) system industry global market size, regional shares, competitors with the selective catalytic reduction (SCR) system market share, selective catalytic reduction (SCR) system market segments, market trends, and opportunities, and any further data you may need to thrive in the selective catalytic reduction (SCR) system industry. This selective catalytic reduction (SCR) system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The selective catalytic reduction (SCR) system is an advanced emission control technology designed to reduce harmful nitrogen oxides (NOx) from exhaust gases. It operates by injecting a urea-based solution, commonly called Diesel Exhaust Fluid (DEF), into the exhaust stream, which reacts with a catalyst to convert NOx into harmless nitrogen and water vapor. SCR systems are widely implemented in vehicles, power plants, and industrial applications to comply with strict environmental regulations and improve air quality.

The main types of selective catalytic reduction (SCR) systems include urea-based SCR, ammonia-based SCR, and others. Urea-based SCR systems use Diesel Exhaust Fluid (DEF), a solution of urea and deionized water, injected into the exhaust stream of diesel engines. Key components include the catalytic converter, urea tank, pump, control unit, and injector, used across various vehicle types such as passenger cars, commercial vehicles, and off-highway vehicles. These systems are employed in applications including automotive, marine, industrial, power generation, and other sectors.

The countries covered in the selective catalytic reduction (SCR) system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The selective catalytic reduction (SCR) system market consists of revenues earned by entities by providing services such as system installation, maintenance, retrofitting, and technical support. The market value includes the value of related goods sold by the service provider or included within the service offering. The selective catalytic reduction (SCR) system market also consists of sales of products including catalysts, urea or diesel exhaust fluid (DEF), injectors, dosing systems, control units, sensors, exhaust pipes, and complete SCR kits. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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