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Dimethyl Ether Market Research Report Information By Raw Materials (Natural Gas, Coal, Biomass, Others), By Application (Transportation Fuel, Aerosol Propellant, LPG Blending, Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030.

ID: MRFR/CnM/0303-CR | 140 Pages | Author: Anshula Mandaokar| February 2021

Global Dimethyl Ether Market Overview

The Dimethyl Ether Market Size was valued at USD 5.05 Billion in 2022. The Dimethyl Ether industry is projected to grow from USD 6.02 Billion in 2023 to USD 12.83 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 12.35% during the forecast period (2023 - 2030). Methoxymethane is another term for dimethyl ether, sometimes referred to as DME. This gas has no flavor or color. The gas has a low boiling point and is produced from a variety of basic sources, including coal, biomass, methanol, and natural gas. Researchers from the Indian Oil Corporation (IOC R&D), Indian Institute of Technology (IIT) Delhi, and Ashok Leyland Ltd. have created a system that enables a diesel-powered automobile vehicle to function in flex-fuel mode, that is, either 100% diesel or Dimethyl Ether (DME) + Diesel mode. The initiative was funded by the Department of Science and Technology (DST), Government of India.Dimethyl Ether Market Overview

   Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Dimethyl Ether Market Trends

  • Increasing demand from the automobile sector

The majority of industrialized and emerging nations have enacted stringent laws prohibiting high-emission fuels in the car industry. The creation of fuels other than standard fuels is a result of the ever-growing environmental concern. Dimethyl ether demand is anticipated to rise in the automotive sector due to its possible usage as a propane substitute in liquid petroleum gas (LPG), a fuel used in both the automotive and home sectors. Throughout the projection period, dimethyl ether will also be used more often in gas turbines and as a fuel for diesel engines.

Dimethyl Ether Market Segment Insights

Dimethyl Ether Raw Materials Insights

The market segmentation, based on Raw Materials, includes Natural Gas, Coal, Biomass, and Others. The Natural Gas segment may dominate the market. Natural gas is an abundant and relatively low-cost feedstock for DME production, making it an attractive option for many producers. In addition, the use of natural gas as a feedstock for DME production can help to reduce greenhouse gas emissions, as DME is a cleaner-burning fuel compared to traditional fossil fuels.

Dimethyl Ether Application Insights

Based on Application, the global market segmentation includes Transportation Fuel, Aerosol Propellant, LPG Blending, and Others. The LPG Blending segment may dominate the market. LPG is a mixture of propane and butane, and it can be easily blended with DME to create a higher-quality, cleaner-burning fuel. LPG blending can also help to increase the overall energy density of the fuel, making it more efficient. In addition, blending DME with LPG can provide economic benefits for producers, as it can help to increase the overall value of the LPG and improve the profitability of the blending process.

September 2023

Rinnai, a global manufacturer and distributor of gas appliances, and Dimeta, a global joint venture whose mission is to accelerate the production and use of renewable and recycled carbon Dimethyl Ether (DME), have signed a Memorandum of Understanding (MoU) to investigate the possibility of decarbonizing the LPG market in Europe via the use of DME.

According to the organizations, renewable and recycled carbon DME is a sustainable fuel that burns cleanly and is produced from a variety of feedstocks, including waste, biomass, and biogas. Compared to gasoline and diesel, it can reduce emissions by up to 85 percent.

DME, which shares chemical similarities with bioLPG and Liquified Petroleum Gas (LPG), can be seamlessly integrated into existing LPG supply chains and incorporated with it up to 20%. This offers a viable solution to the annual emission reduction of more than 13 million tonnes of LPG used for energy in Europe.

Dimeta and Rinnai will investigate the potential applications of DME blended with LPG and utilized in pre-existing appliances, in addition to 100% DME dedicated appliances such as dryers, furnaces, and hot water production systems.

Figure 2: Dimethyl Ether Market, by Raw Materials, 2022 & 2030 (USD Billion)

Dimethyl Ether Market, by Raw Materials, 2022 & 2030

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Dimethyl Ether Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific region dominates the DME market due to the high availability of raw materials used in manufacturing, which is primarily due to the increased use of DME in various applications such as LPG blending, aerosol propellant, transportation fuel, and other applications within the region. North America, on the other hand, will continue to demonstrate profitable development over the projected period due to its uses in LPG blending, which results in reduced soot and NOx emissions in the environment.


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Dimethyl Ether Key Market Players & Competitive Insights

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Dimethyl Ether industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Dimethyl Ether industry to benefit customers and expand the market sector. Major market players, including Jiutai Energy Group, Mitsubishi Corporation, Royal Dutch Shell, Nouryon, Air Products, and Chemicals Inc, and others, are attempting to increase market demand by funding R&D initiatives.

Mitsubishi Corporation is a Japanese multinational corporation that operates across a wide range of industries, including energy, metals, machinery, chemicals, and living essentials. The company was founded in 1950 and is headquartered in Tokyo, Japan. Mitsubishi Corporation has a global network of over 200 offices and subsidiaries in more than 90 countries. The company's business operations are organized into three main groups: Global Environmental & Infrastructure Business Group, Industrial Finance, Logistics & Development Group, and Energy Business Group.

Royal Dutch Shell, commonly known as Shell, is a British-Dutch multinational oil and gas company. The company is organized into four main business segments: Upstream, Downstream, Integrated Gas, and New Energies. The Upstream segment is involved in exploration and production activities, including conventional and unconventional oil and gas resources. The Downstream segment includes activities such as refining, marketing, and trading of oil and gas products, as well as the manufacture and marketing of chemicals. The Integrated Gas segment is involved in the production and marketing of liquefied natural gas (LNG) and other gas-related activities. The New Energies segment is focused on developing and investing in low-carbon energy sources, such as wind and solar power.

Key Companies in the Dimethyl Ether market include

Dimethyl Ether Industry Developments

January 2022: Air Products and Chemicals Inc with Indonesian coal miner Bukit Asam and energy company Pertamina, started constructing a new plant that converts coal into dimethyl ether (DME) with an investment of USD 2.3 billion.

January 2021: Mitsubishi Corporation announced that Caribbean Gas Chemical Limited (CGCL), a joint venture between Mitsubishi group companies including Mitsubishi Gas Chemical Company (MGC), Mitsubishi Corporation (MC), and Mitsubishi Heavy Industries Engineering (MHIENG), and the National Gas Company of Trinidad, started commercial production of dimethyl ether (DME) from December 2020 with an annual production capacity of 20 kilotons of DME.

Dimethyl Ether Market Segmentation

Dimethyl Ether Raw Materials Outlook

  • Natural Gas

  • Coal

  • Biomass

  • Others

Dimethyl Ether Application Outlook

  • Transportation Fuel

  • Aerosol Propellant

  • LPG Blending

  • Others

Dimethyl Ether Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Attribute/Metric Details
Market Size 2022 USD 5.05 Billion
Market Size 2023 USD 6.02 Billion
Market Size 2030 USD 12.83 Billion
Compound Annual Growth Rate (CAGR) 12.35% (2023-2030)
Base Year 2022
Market Forecast Period 2023-2030
Historical Data 2018 & 2022
Market Forecast Units Value (USD Million)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Raw Materials, Application, and Region
Geographies Covered North America, Europe, Asia Pacific, and Rest of the World
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Zagros Petrochemical Company, Oberon Fuels, Jiutai Energy Group, Grillo Werke, Ferrostal, Mitsubishi Corporation, China Energy Limited, Royal Dutch Shell, Nouryon, Air Products, and Chemicals Inc
Key Market Opportunities ·         Many organizations and car manufacturers, nowadays, tend to use enhanced quality fuel on their cars.
Key Market Dynamics ·         The ever-rising demand for the automobile in the current scenario.

Frequently Asked Questions (FAQ) :

The  Dimethyl Ether Market size was valued at USD 5.05 Billion in 2022.

The global market is projected to grow at a CAGR of 12.35% during the forecast period, 2023-2030.

Asia Pacific had the largest share of the global Dimethyl Ether (DME) market.

The key players in the market are Zagros Petrochemical Company, Oberon Fuels, Jiutai Energy Group, Grillo Werke, Ferrostal, Mitsubishi Corporation, China Energy Limited, Royal Dutch Shell, Nouryon, Air Products, and Chemicals Inc.

The Natural Gas category dominated the market in 2022.

LPG Blending had the largest share in the global market for Dimethyl Ether.

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