| Study Period | 2019 - 2030 |
| Market Volume (2025) | 7.95 Million tons |
| Market Volume (2030) | 10.68 Million tons |
| CAGR | 6.07 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Dimethyl Ether Market Analysis
The Dimethyl Ether Market size is estimated at 7.95 Million tons in 2025, and is expected to reach 10.68 Million tons by 2030, at a CAGR of 6.07% during the forecast period (2025-2030).
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 fuel demand from automobile and industrial applications are driving the market growth.
- Complexity in manufacturing processes and high production costs can act as a restraint for the market.
- Emerging opportunities in bio-based Dimethyl Ether and growing research for use of DME as an alternative fuel 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
- Dimethyl ether (DME) enhances the combustion efficiency of Liquefied Petroleum Gas (LPG) while simultaneously reducing emissions. Celebrated for its eco-friendly combustion, DME garners favor from both residential and industrial users. The market's momentum is fueled by rigorous emission regulations and a global shift toward cleaner energy alternatives.
- Blending DME with LPG not only reduces sulfur oxide (SOx) and nitrogen oxide (NOx) emissions but also ensures compliance with international environmental standards. This is especially crucial for regions with stringent air quality regulations.
- DME enhances the calorific value and combustion efficiency of LPG, resulting in better performance for cooking, heating, and industrial processes. This advantage is particularly pronounced in regions with high LPG consumption.
- DME's versatility in production, sourced from natural gas, coal, or bio-based materials, offers a cost-effective enhancement to LPG formulations, especially in areas rich in these feedstocks.
- Shell has recently unveiled a proprietary technology that boosts the stability and efficiency of DME-LPG blends, leading to reduced production costs and enhanced fuel quality.
- Numerous countries are rolling out subsidies and incentives to promote DME-blended LPG, with a special focus on rural and underserved communities.
- As an example, China's government is championing DME-blended LPG for urban households, aiming to curb indoor air pollution and lessen dependence on fossil fuels.
- Beyond residential and commercial use, the industrial sector is increasingly turning to DME-blended LPG, leveraging its superior combustion properties in boilers, furnaces, and other high-temperature applications.
- Therefore, the factors above are expected to impact the market significantly in the coming years.
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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.
- China stands as the foremost consumer of Dimethyl Ether (DME), primarily utilizing it as a fuel for cooking and heating. The DME market is predominantly driven by escalating consumer preferences and heightened environmental concerns, pushing the demand for cleaner and higher-quality fuels. Due to economic incentives and backing from the government, China has adopted a strategy of blending DME, sourced from coal, with imported LPG.
- Research from Zhejiang University, China, led by Professors Feng-Shou Xiao and Liang Wang, has made strides in carbon recycling. They developed a durable copper nanoparticle catalyst that efficiently converts CO2 to DME. This advancement addresses previous challenges in the field. DME achieved high selectivity in its production from CO2 has been tricky.
- Companies involved in the manufacturing, distribution, and marketing of DME as a novel fuel are required to adhere to Chinese environmental, health, and safety regulations.
- For instance, according to the China Chemical Industry Productivity Center's standards for dimethyl ether (DME), up to 20% DME content in liquefied petroleum gas (LPG) is allowed for civilian use.
- Furthermore, owing to its unique physicochemical properties, DME serves as an apt substitute or blending agent for liquefied petroleum gas (LPG) and diesel substitution in India.
- In June 2024, Indian officials of Niti Aayog announced plans to produce dimethyl ether (DME) for blending with LPG, targeting a 20% blend to curb LPG imports.
- In Pune, the state-run refiner IOC and the National Chemical Laboratory (NCL) are piloting DME production from methanol, sourced primarily from fossil fuels and select biomass. Their goal is to establish a plant with an initial output of 200-300 tons annually, scaling up to 500 tons.
- In April 2024, CSIR-IICT (Indian Institute of Chemical Technology) and BHEL Corporate R&D announced a collaboration to pioneer a technology that captures carbon dioxide (CO2) and directly converts it into Dimethyl Ether (DME).
- This eco-friendly fuel can be mixed with Liquefied Petroleum Gas (LPG). By turning CO2 into a feedstock for DME, the partnership aims to cut down greenhouse gas emissions while generating a clean, renewable energy source.
- Thus, the demand for DME in the region is expected to increase during the forecast period due to the factors mentioned above.
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Dimethyl Ether Industry Overview
The dimethyl ether market is partially fragmented, 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 Technology Corporation, Dongguan JOVO Chemical Co. Ltd, Sichuan Lutianhua Co. Ltd, Mitsubishi Gas Chemical Company Inc., and Nouryon, among others.
Dimethyl Ether Market Leaders
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Nouryon
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Korea Gas Technology Corporation
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Dongguan JOVO Chemical Co. Ltd
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Sichuan Lutianhua Co. Ltd
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Mitsubishi Gas Chemical Company Inc.
- *Disclaimer: Major Players sorted in no particular order
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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 is mainly used in LPG blending and as an alternative energy fuel without sulfur content. Also, it is used as an aerosol propellant across different industries, such as cosmetics, pharmaceuticals, etc., and as a refrigerant.
The dimethyl ether market is segmented by source, application, and geography. By source, the market is segmented into natural gas, coal, and bio-based products. By application, the market is segmented into propellants, LPG blending, fuel, and other applications (chemical feedstock, solvent, and refrigerant). 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).
| Source | Natural Gas | ||
| Coal | |||
| Bio-based Products | |||
| Application | Propellants | ||
| LPG Blending | |||
| Fuel | |||
| Other Applications | |||
| Geography | Asia-Pacific | China | |
| India | |||
| Japan | |||
| South Korea | |||
| Malaysia | |||
| Thailand | |||
| Indonesia | |||
| Vietnam | |||
| Rest of Asia-Pacific | |||
| North America | United States | ||
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Nordic Countries | |||
| Turkey | |||
| Russia | |||
| Rest of Europe | |||
| South America | Brazil | ||
| Argentina | |||
| Colombia | |||
| Rest of South America | |||
| Middle-East & Africa | Saudi Arabia | ||
| South Africa | |||
| Nigeria | |||
| Qatar | |||
| Egypt | |||
| United Arab Emirates | |||
| Rest of Middle-East & Africa | |||
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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 7.95 million tons in 2025 and grow at a CAGR of 6.07% to reach 10.68 million tons by 2030.
What is the current Dimethyl Ether Market size?
In 2025, the Dimethyl Ether Market size is expected to reach 7.95 million tons.
Who are the key players in Dimethyl Ether Market?
Nouryon, Korea Gas Technology Corporation, Dongguan JOVO Chemical Co. Ltd, Sichuan Lutianhua Co. Ltd and Mitsubishi Gas Chemical Company Inc. are the major companies operating in the Dimethyl Ether Market.
Which is the fastest growing region in Dimethyl Ether Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Dimethyl Ether Market?
In 2025, 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 2024?
In 2024, the Dimethyl Ether Market size was estimated at 7.47 million tons. The report covers the Dimethyl Ether Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Dimethyl Ether Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Dimethyl Ether Industry Report
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