Dimethyl Ether Market Size
| Study Period | 2019 - 2029 |
| Market Volume (2024) | 8.07 Million tons |
| Market Volume (2029) | 12.29 Million tons |
| CAGR (2024 - 2029) | > 8.00 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
Dimethyl Ether Market Analysis
The Dimethyl Ether Market size is estimated at 8.07 Million tons in 2024, and is expected to reach 12.29 Million tons by 2029, growing at a CAGR of greater than 8% during the forecast period (2024-2029).
COVID-19 negatively impacted the market, and considering the pandemic scenario, the demand for DME-based LPG fuel from the automotive segment decreased as people were not traveling frequently. However, after the easing of lockdowns, the industry picked up, and the fuel demand has increased worldwide.
- Over the short term, the growing demand for LPG blending applications and increasing interest in non-electric and electric vehicles are driving the market growth.
- High costs for altering current infrastructure to use DME and increasing EV use can act as a restraint for the market.
- Growing research for using DME as an alternative fuel and an under-established market will likely create opportunities for the market in the coming years.
- Asia-Pacific is likely to dominate the market studied during the forecast period with robust demand for fuel, LPG, and others.
Dimethyl Ether Market Trends
LPG Blending Segment to Dominate the Market
- Liquefied petroleum gas (LPG) is one of the significant applications of dimethyl ether (DME), which can be blended with traditional LPG at a pre-specified ratio for many applications.
- DME is blended with LPG as an alternative fuel additive for enhancing combustion, reducing hazardous emissions, and reducing dependency on LPG. Currently, around 15-25% of DME is utilized in DME-LPG blends, with higher ratio blends being researched, as a better blend may require equipment changes for usage.
- DME is used for LPG blending that is in Propane autogas in vehicles. According to the Propane Education and Research Council, there are nearly 260,000 on-road LPG vehicles with certified fuel systems in the United States. Many are used in fleet applications, such as school buses, shuttles, and police vehicles.
- Similarly, according to the European Alternative Fuels Observatory (EAFO), the number of liquefied petroleum gas (LPG) vehicles in Hungary will be 23,194 in 2022. However, the number is lowest when compared to 24,141 in 2021.
- Countries like China, India, and Indonesia are aggressively pushing for the use of DME as an alternate fuel, as these countries are highly dependent on imports to meet their local LPG demand.
- According to the National Bureau of Statistics of China, the liquefied petroleum gas (LPG) production output in China was 4.43 million metric tons in December 2023 and registered growth when compared to 4.15 million metric tons in November 2023.
- Therefore, the factors above are expected to impact the market significantly in the coming years.
Asia-Pacific to Dominate the Market
- Asia-Pacific holds the largest consumption share of dimethyl ether (DME) from various end-use applications such as LPG blending, propellants, fuels, and others. In Asia-Pacific, China has a significant share of demand, followed by Japan, South Korea, and India, among others.
- China is the first country to start using DME-blended LPG on a commercial scale. The majority of China's DME demand is from households (for LPG blended cooking gas supply). In China, 20% of DME blended LPG products are used for this purpose.
- According to the Petroleum Planning and Analysis Cell, as of October 2023, PSU OMCs (IOCL, BPCL, and HPCL) together have 31.54 crore active LPG customers in the domestic category whom 25,425 LPG distributors are serving.
- According to the METI (Japan), the production volume of liquified petroleum gas (LPG) in Japan accounted for 3.07 million metric tons in 2022.
- Indonesia is another Asian country aggressively pushing for DME blended LPG for its energy needs. Companies, such as Air Products and Chemicals and PT Bukit Asam, are moving forward with significant projects in the country to produce DME from coal for LPG blending applications.
- Thus, the demand for DME in the region is expected to increase during the forecast period due to the factors mentioned above.
Dimethyl Ether Industry Overview
The dimethyl ether market is partially consolidated, with the top five players accounting for a significant share. Some of the key players in the market include (not in any particular order) KOREA GAS CORPORATION, ZPCIR, Jiutai Energy Group, Mitsubishi Corporation, and Nouryon.
Dimethyl Ether Market Leaders
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KOREA GAS CORPORATION
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Nouryon
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Mitsubishi Corporation.
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ZPCIR
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Jiutai Energy Group
*Disclaimer: Major Players sorted in no particular order
Dimethyl Ether Market News
- April 2022: Nouryon has disclosed a 30 percent price hike for dimethyl ether (DME) to address overall inflation linked to raw materials, energy, freight, and labor costs and has been, effective from May 1, 2022, is applicable to all markets and applications served by the company.
- 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.
Dimethyl Ether Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Growing Demand from LPG Blending Applications
4.1.2 Increasing Interest in Non-Electric and Electric Vehicles
4.1.3 Others
4.2 Restraints
4.2.1 High Costs for the Alteration of Current Infrastructure to Use DME
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Application
5.1.1 Propellants
5.1.2 LPG Blending
5.1.3 Fuel
5.1.4 Other Applications
5.2 Source
5.2.1 Natural Gas
5.2.2 Coal
5.2.3 Bio-based Products
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Malaysia
5.3.1.6 Thailand
5.3.1.7 Indonesia
5.3.1.8 Vietnam
5.3.1.9 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 France
5.3.3.4 Italy
5.3.3.5 Spain
5.3.3.6 Nordic
5.3.3.7 Turkey
5.3.3.8 Russia
5.3.3.9 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Colombia
5.3.4.4 Rest of South America
5.3.5 Middle-East & Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Nigeria
5.3.5.4 Qatar
5.3.5.5 Egypt
5.3.5.6 United Arab Emirates
5.3.5.7 Rest of Middle-East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 DME-AEROSOL
6.4.2 Grillo-Werke AG
6.4.3 Jiutai Energy Group
6.4.4 KOREA GAS CORPORATION
6.4.5 Mitsubishi Corporation
6.4.6 Nouryon
6.4.7 Oberon Fuels, Inc.
6.4.8 PCC Group
6.4.9 Shell plc
6.4.10 The Chemours Company
6.4.11 ZPCIR
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Research for Use of DME as an Alternative Fuel
7.2 Under Established Market Offers Huge Potential for DME Growth
Dimethyl Ether Industry Segmentation
Dimethyl ether (DME), or methoxy methane, is a transparent, scentless gas with a low boiling point. It is produced from diverse sources like natural gas, methanol, coal, and biomass. DME serves as an alternative energy fuel without sulfur content and finds applications across various sectors, including its use as a solvent in the chemical and petrochemical industries.
The dimethyl ether market is segmented by application, source, and geography. By application, the market is segmented into propellants, LPG blending, fuel, and other applications (transportation fuel, chemical feedstock, and refrigerant). By source, the market is segmented into natural gas, coal, and bio-based products. The report also covers the market size and forecasts for the dimethyl ether market in 27 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (tons).
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| Fuel | |
| Other Applications |
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| Natural Gas | |
| Coal | |
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Dimethyl Ether Market Research FAQs
How big is the Dimethyl Ether Market?
The Dimethyl Ether Market size is expected to reach 8.07 million tons in 2024 and grow at a CAGR of greater than 8% to reach 12.29 million tons by 2029.
What is the current Dimethyl Ether Market size?
In 2024, the Dimethyl Ether Market size is expected to reach 8.07 million tons.
Who are the key players in Dimethyl Ether Market?
KOREA GAS CORPORATION, Nouryon, Mitsubishi Corporation., ZPCIR and Jiutai Energy Group are the major companies operating in the Dimethyl Ether Market.
Which is the fastest growing region in Dimethyl Ether Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Dimethyl Ether Market?
In 2024, the Asia Pacific accounts for the largest market share in Dimethyl Ether Market.
What years does this Dimethyl Ether Market cover, and what was the market size in 2023?
In 2023, the Dimethyl Ether Market size was estimated at 7.42 million tons. The report covers the Dimethyl Ether Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Dimethyl Ether Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Dimethyl Ether (DME) Industry Report
The Dimethyl Ether (DME) market analysis provides a comprehensive industry overview, encompassing various applications such as propellants, LPG blending, and fuel. The market report segments the data by source, including natural gas, coal, and bio-based products, and covers geographical regions like Asia-Pacific, North America, Europe, South America, and the Middle-East and Africa. This industry report offers insights into the market size and forecasts for the DME market in volume for all the segments.
The global market is evaluated with a detailed market forecast outlook, providing a historical overview and future projections. The report includes market trends and market growth, identifying key market leaders and their contributions to the market share. The industry research highlights the market segmentation and market value, giving a clear picture of the market dynamics.
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Overall, the report provides an in-depth analysis of the DME market, covering all aspects of the market segmentation and market value. The market predictions and market forecast are based on thorough research and industry statistics, ensuring accurate and reliable information for stakeholders. The report PDF serves as a valuable resource for understanding the market trends and making strategic decisions.
