The global dimethyl ether market size is expected to grow at a significant CAGR during the forecast period from 2021 to 2028. Increasing demand for dimethyl ether for LPG blends, ample availability of raw materials, and widespread use of dimethyl ether are key factors that help the market growth. Dimethyl ether (DME) is a low boiling non-sulfur chemical that can be used as an alternative source to fossil fuels. As a result, this is widely used in various applications including aerosols, propellants, chemical raw materials, transportation gasoline, and refrigerants. Mixing liquefied petroleum gas (LPG) has become an important application in home cooking activities as it promotes a cleaner source of energy. Furthermore, due of its good ignition in compression engines, DME is gaining traction as a diesel alternative transportation fuel. It is less polluting, has propane-like qualities and could eventually replace diesel in heavy-duty applications.
Market Trends, Drivers, Restraints, and Opportunities:
- Global demand for mixed DME and LPG alternatives for various applications is a key factor boosting the market.
- Rapid expansion of the automotive industry and strong demand for heavy-duty truck and vehicle sales are likely to boost the demand for dimethyl ether.
- Rising demand for green energy and alternative sources of energy to fossil fuel is another key driver of the market.
- High price fluctuation of the raw materials and lack of international standardization for sustainable environment policies are expected to hamper the market expansion in the coming years.
- The transportation and electricity sector presents a variety of chances for reducing environmental pollution along with inadequate DME production capacity in several nations are offering major market development opportunity.
Scope of the report:
The report on the global dimethyl ether market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Attributes | Details |
Report Title | Dimethyl Ether Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year | 2020 |
Historic Data | 2018–2019 |
Forecast Period | 2021–2028 |
Segmentation | Sources (Natural Gas, Coal, Fossil-based, and Bio-based) and Applications (Transportation Fuel, Aerosol Propellant, LPG Blending, and Others) |
Regional Scope | Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
Report Coverage | Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast |
Key Players Covered in the Report | Gas Technologies LLC; Korea Gas Corporation; Zagros Petrochemical Company; Grillo-Werke AG; China Energy Limited; Akzo Nobel N.V.; Royal Dutch Shell PLC; Jiutai Energy Group; Aestar Co. Ltd.; and Ferrostaal GmbH. |
Dimethyl Ether Market Segment Insights:
Fossil-based segment is projected to hold significant market share
In the terms of sources, the market is categorized as natural gas, coal, fossil-based, and bio-based. The fossil-based segment is projected to hold a consideration revenue share of the market in the coming years due to its existing reserves of recoverable coal and natural gas that can be used to produce DME. The easy availability of natural gas as a consequence of technical advancements attributed to large R&D spending in the oil & gas industry further aids in the expansion of the fossil fuel-based dimethyl ether market.
LPG blending segment held substantial market share in 2020
Based on applications, the dimethyl ether market is fragmented into transportation fuel, aerosol propellant, LPG blending, and others. The LPG blending segment held substantial market share in 2020 and is expected to generate high revenue during forecast period. The growing need to reduce harmful emissions is one of the key drivers of profitability in the dimethyl ether LPG blend market globally. The use of LPG for heating and cooking homes is a major source of harmful pollutants in the environment. This can be reduced by mixing LPG and DME at a volume concentration of 15-20%, which is a viable way to upgrade LPG used for home use.
Europe to dominate the global market
In terms of regions, the market is classified as Europe, North America, Asia Pacific, Latin America, and Middle East & Africa. Europe is expected to dominate the dimethyl ether market during the targeted period. The regional market growth is attributed to rising need to replace traditional fuels such as diesel primarily due to strict regulations on high emission fuels in the region. For example, the European Commission had issued emission regulations towards the use of cleaner fuels to achieve sustainable mobility as part of the EU framework for approval of lightweight and heavy vehicles.
Segments
Segments Covered in the Report
The global dimethyl ether market has been segmented on the basis of
Sources
- Natural Gas
- Coal
- Fossil-based
- Bio-based
Applications
- Transportation fuel
- Aerosol propellant
- LPG blending
- Others
Regions
- Europe
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
Key players
- Gas Technologies LLC
- Korea Gas Corporation
- Zagros Petrochemical Company
- Grillo-Werke AG
- China Energy Limited
- Akzo Nobel N.V
- Royal Dutch Shell PLC
- Jiutai Energy Group.
- Aestar Co. Ltd.
- Ferrostaal GmbH
Competitive Landscape
Some of the major players in the global dimethyl ether market are Gas Technologies LLC; Korea Gas Corporation; Zagros Petrochemical Company; Grillo-Werke AG; China Energy Limited; Akzo Nobel N.V.; Royal Dutch Shell PLC; Jiutai Energy Group; Aestar Co. Ltd.; and Ferrostaal GmbH. Key market competitors are concentrating their efforts on developing their new product lines and capacities.