Dimethyl ether is a colorless and odorless gas with a low boiling point. It is produced from various raw materials such as methanol, coal, biomass, and natural gas. It has no sulfur content which makes it ideal energy fuel and is widely used across the various industry such as petrochemical and chemical as a solvent.
Global di methyl ether market was valued at US$ 8190.50 Million in 2021 in terms of revenue, exhibiting a CAGR of 8.8 % during the forecast period (2022 to 2030).
Drivers
High demand for di-methyl ether-blended LPG from the Asia Pacific region is primarily fueling the market growth of the dimethyl ether. According to the Coherent Market Insights analysis among the Asia Pacific countries, China alone accounts for over 80% of the demand for DME for LPG blending purposes. Moreover, China imports LPG in large volumes to meet the unmet demand from the domestic as well as industrial sectors.
Various manufacturers are investing in the R&D to utilize the DME as an alternative fuel to LPG as LPG is highly expensive. So to save the cost and make proper utilization of the DME various manufacturer are investing in R&D. This is expected to fuel the market growth of the dimethyl ether.
Regionally, Asia-pacific dominated the global dimethyl ether market in 2021, reporting 84% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global Di Methyl Ether Market Value Share (%), By Region, 2021
Market Restraints
Less viscosity and lubricity of dimethyl ether is restricting its use across diesel in automobiles. Poor lubricating property and low viscosity lead to wear and tear in the automotive system. Hence, dimethyl ether as diesel is not compatible with the automotive system. This is expected to hamper the market growth of dimethyl ether.
Lack of distribution networks is hampering the supply chain to meet the rising demand for the product. Thus, due to the lack of proper distribution networks, the product remains unavailable for a large number of users. This is projected to hinder the market growth of the dimethyl ether.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 8190.50 Mn |
| Historical Data for: | 2017-2020 | Estimated Year: | 2022 |
| Forecast Period 2022 to 2030 CAGR: | 8.8 % | Forecast Period: | 2022-2030 |
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| Companies covered: |
China Energy Ltd., Fuel DME Production Co., Ltd., Korea Gas Corporation, Royal Dutch Shell PLC, Akzo Nobel NV, Oberon Fuels, Inc., Grillo-Werke AG, Shenhua Ningxia Coal Industry Group Co., Ltd., E. I. du Pont de Nemours & Co, and Mitsubishi Corporation |
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Market Trends
An increasing number of players in the DME market to expand business presence is a major trend in the market. For instance, in December 2018, PCC SE has built a production plant for ultra-pure, aerosol grade dimethyl ether (DME) through OOO DME Aerosol, Pervomaysky (Russia), a joint venture with JSC Shchekinoazot. The aim of PCC SE is to enter the market for DME which is used in the cosmetics industry as a propellant for hair styling products.
Go green is a growing trend in the market. Rising demand for clean fuel due to rising environmental pollution is expected to create enormous demand for dimethyl ether. Increasing oil depletion and growing greenhouse gases emission are other major factors projected to augment the market growth. Moreover, rapid growth in the urban population along with the rapid consumption of ether around the globe is further projected to boost the market growth of the dimethyl ether over the forecast period.
Figure 2. Global Di Methyl Ether Market Value Share (%), By Application, 2021
On the basis of application, LPG blending dominated the global dimethyl ether market in 2021 with around 62% of market share in terms of revenue, followed by aerosol propellants and transportation fuel, respectively.
Recent Developments
Competitive Section
Major players operating in the global di methyl ether market include China Energy Ltd., Fuel DME Production Co., Ltd., Korea Gas Corporation, Royal Dutch Shell PLC, Akzo Nobel NV, Oberon Fuels, Inc., Grillo-Werke AG, Shenhua Ningxia Coal Industry Group Co., Ltd., E. I. du Pont de Nemours & Co, and Mitsubishi Corporation
Dimethyl ether is a type of gas which is colorless and odorless in nature. This gas is produced from raw materials such as coal, methanol, natural gas, and biomass. Various factors like lower boiling point and zero sulfur content have led to the rise in surge of dimethyl ether as solvent in chemical and petrochemical industries globally.
Market Dynamics
The global dimethyl ether market has witnessed significant growth in recent past years, owing to the rise in usage of clean, non-petroleum based, and high-performance ignition fuels as an alternative to LPG across the globe. Asia Pacific is expected to be the fastest-growing region in the dimethyl ether market, owing to increasing growth of transportation industry in the region. This is expected to propel the growth of the dimethyl ether market in this region.
Major players in the global dimethyl ether market are increasing their investment on innovative product launchings, research & development and marketing & promotional activities to capitalize on emerging trends in various end-use industries such as transportation, industries, oil & gas, automobile and others. This scenario is expected to fuel the market during the forecast period.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section
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