Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
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.
The global dimethyl ether market is projected to surpass US$ 15.0 billion by the end of 2027, in terms of revenue, growing at CAGR of 9.5% during the forecast period (2020 to 2027).
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. Also, China imports LPG in large volumes to meet the unmet huge 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 2019, reporting 84% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global Dimethyl Ether Market, Revenue Share (%), By Region, 2019

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.
Di-methyl Ether Market Report Coverage
Report Coverage |
Details |
Base Year: |
2019 |
Market Size in 2019: |
US$ 8.0 Bn |
Historical Data for: |
2017 to 2019 |
Forecast Period: |
2020 to 2027 |
Forecast Period 2020 to 2027 CAGR: |
9.5% |
2027 Value Projection: |
US$ 15.0 Bn |
Geographies covered: |
- North America: U.S., Canada
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, Rest of Asia Pacific
- Rest of the World
|
Segments covered: |
- By Product Type: Fossil Fuel Based, Bio Based
- By Application: LPG blending, Aerosol propellants, Transportation fuel, Industrial, Others
|
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
|
Growth Drivers: |
- High demand for di-methyl ether-blended LPG from the Asia Pacific region
- Various manufacturers are adopting dimethyl ether as an alternative fuel to LPG
- Rising demand for clean fuel due to rising environmental pollution
|
Restraints & Challenges: |
- Lack of distribution networks is hampering the supply chain
|
Market Opportunities
Augmenting demand for dimethyl ether across various developing region is projected to offer several potential opportunities in the near future. Growing in the end-user industries such as power generation, LPG blending, and aerosol propellant across developing regions such as China and India is expected to foster the market growth. Thus, rapid growth in the aforementioned industries across the developing region will favor market growth.
Increasing application across chemical feedstock, refrigerant, and welding & brazing operations is projected to bring profitable opportunities. Moreover, strong growth in the transportation sector coupled with the increasing commencement of various DME plants to fill the gap between demand and supply is further projected to propel the market growth of the dimethyl ether over the forecast period
Figure 2. Global Dimethyl Ether Market – Opportunity Analysis

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 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 3. Global Dimethyl Ether Market, Revenue Share (%), By Application, in 2019

On the basis of application, LPG blending dominated the global dimethyl ether market in 2019 with around 62% of market share in terms of revenue, followed by aerosol propellants and transportation fuel, respectively.
Global Dimethyl Ether Market - Impact of Coronavirus (Covid-19) Pandemic
Transportation sector is facing a likelihood of a deep recession caused by the effect of lockdowns across the globe to slow the spread of Covid-19. The demand for Dimethyl Ether depend on various end-use industries such as oil & gas, transportation and automotive industries. This is expected to hamper the growth of dimethyl ether market in next few years till end of the 2021.
Competitive Section
Key players are operating in the global dimethyl ether market are 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