PUBLISHER: The Insight Partners | PRODUCT CODE: 1362426
PUBLISHER: The Insight Partners | PRODUCT CODE: 1362426
The dimethyl ether market size was valued at US$ 6.21 billion in 2022 and is expected to reach US$ 12.80 billion by 2030; it is estimated to register a CAGR of 9.5% from 2022 to 2030.
Dimethyl ether is a colorless gaseous ether with an ethereal odor. Dimethyl ether is produced through synthesis processes involving feedstock conversion to syngas (a mixture of hydrogen and carbon monoxide), followed by syngas conversion to dimethyl ether. DME is used as an aerosol propellant, as a replacement for chlorofluorocarbons and hydrochlorofluorocarbons. DME is medium to high-pressure propellant, making it suitable for aerosol products requiring rapid dispensing and desired spray characteristics. DME is also compatible with a broad range of applications in cosmetics, personal care, pharmaceuticals, and consumer goods. DME offers high solvent power and can be mixed with alcohol and aqueous solution. Manufacturers prefer DME as an environment-friendly and sustainable option for propellant applications due to its reduced carbon footprint.
In terms of application, the dimethyl ether market is bifurcated into aerosol propellants, LPG blending, transportation fuel, power generation fuel, chemical feedstock, and others. The transportation fuel segment is expected to register highest CAGR in the dimethyl ether market from 2022 to 2030. The demand for clean transportation fuels is rising in regions strongly committed to sustainable transportation, such as Europe and Asia Pacific. DME's advantages in terms of lower emissions, reduced reliance on petroleum-derived fuels, and compatibility with current infrastructure align with these objectives. As a result, the dimethyl ether market is poised to capitalize on this demand growth, positioning itself as a cleaner, more sustainable transportation fuel. By addressing the environmental challenges associated with traditional fuels, DME can play a pivotal role in shaping a greener and more sustainable transportation sector globally. Thus, increasing demand from end-use industries is expected to bolster the dimethyl ether market growth. All these factors are driving the dimethyl ether market growth in the transportation fuel sector.
Asia Pacific is estimated to register the fastest CAGR in the global dimethyl ether market from 2022 to 2030. The adoption of DME in the region is significantly influenced by regulatory frameworks, decarbonization of the transportation sector, and environmental regulations. For instance, in 2022, the Oil Minister of India encouraged the blending of DME with liquified petroleum gas due to rising demand for fuel used for domestic applications. The rising demand for a renewable substitute for LPG has prompted manufacturers to boost renewable DME production. The concerns about climate change, the need for clean transportation fuel, and the requirement for alternative fuel are a few factors expected to drive the demand for dimethyl ether (DME) in during the forecast period. As Asia Pacific continues to adoption of products like sustainable products, the demand for dimethyl ether is expected to rise, further driving the dimethyl ether market growth. The rising utilization of palm residues to produce DME can help Indonesia achieve its General National Energy Plan target of 23% renewable energy by 2025. China, India, and Japan are the largest consumers of DME in the region, owing to the increasing utilization of DME in LPG blending, chemical feedstock, and aerosol propellant. Further, the rising utilization of DME for LPG substitution and feedstock in the chemical industry is anticipated to boost the dimethyl ether market growth.
A few players operating in the global dimethyl ether market include Nouryon Chemicals Holding BV, Shell Plc, Mitsubishi Gas Chemical Co Inc, The Chemours Co, Aerosolex, Oberon Fuels Inc, Merck KGaA, Jiangsu July Chemical Co Ltd, Sichuan Lutianhua Co Ltd, and Grillo-Werke AG. Players operating in the global dimethyl ether market focus on providing high-quality products to fulfill customer demand. Also, they are focusing on launching new and high-quality products for their customers. For instance, in February 2023, NextChem and its subsidiary MyRechemical (Maire Tecnimont Group) signed an agreement with Dimeta B.V. to explore new opportunities to develop plants for the production of renewable and recycled carbon dimethyl ether (DME) from waste.
The overall global dimethyl ether market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers-along with external consultants such as valuation experts, research analysts, and key opinion leaders-specializing in the dimethyl ether market.