Dimethyl Ether Market: Growing Demand for Oil & Gas from Emerging Economies Fuels the Market Growth During 2024-2030 – Global Industry Analysis and Forecast | MMR

The Dimethyl Ether Market size was valued at USD 7.3 Billion in 2023 and the total Dimethyl Ether Market revenue is expected to grow at a CAGR of 8.65% from 2024 to 2030, reaching nearly USD 13.05 Billion.
Dimethyl Ether Market Overview:
Maximize Market Research, estimate that the global dimethyl ether market volume is 10.63 million metric ton in 2023, registering a CAGR of 6.17% in between 2024 and 2030. Dimethyl Ether (DME) is a colorless gas with a sweet smell that can be used as a fuel for a variety of applications. DME is a clean-burning fuel that produces no sulfur or particulate emissions, making it an environmentally friendly alternative to traditional diesel fuel. It is also non-toxic, non-carcinogenic, and has a low toxicity level. DME can be produced from a variety of sources, including natural gas, coal, and biomass. It is most produced from natural gas using a process called the methanol-to-olefin (MTO) process, which involves the conversion of natural gas to methanol, and then the conversion of methanol to DME. DME can also be produced from biomass using a process called biomass gasification.



China Energy is believed to be China's largest producer of DM based on current production capacity. Using a patented proprietary DME production technology, DME production capacity is currently 900,000 metric tonnes per annum (MTPA).

The company named AB Volvo has recently developed the fuel engine in which the DME is used, and it is aligned with the European Union. A number of different technologies are used for DME production including the fuel injection system. It requires a huge amount of investment that can hamper the growth of the DME market. Dimethyl Ether is also used in applications including welding and brazing operations, chemical feedstock, and many others. Also, a continuous increase in diesel consumption will also affect the dimethyl ether market.
Dimethyl Ether Market Dynamics:
Increasing application of dimethyl ether in LPG blending drives market growth towards the north

Dimethyl ether is created synthetically by turning hydrocarbons into synthesis gas (syngas) via the gasification process. It is broadly utilized as a transportation fuel, power plant fuel, and propane in liquefied petroleum gas (LPG), as well as a raw material in the production of numerous chemical products. The dimethyl ether market has been segmented into LPG blending, aerosol propellants, power plant fuel, chemical feedstock, transportation fuel, and others such as refrigerants and production processes that require heat. Currently, LPG blending is the most common use of DME. DME is being combined with LPG as a substitute fuel additive to improve combustion and reduce harmful emissions while lowering reliance on LPG. Nations such as India, China, and Indonesia are actively promoting the use of ME as an alternative fuel, as these nations are heavily reliant on imports to satisfy their domestic LPG consumption.

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Many countries in the Middle East are looking to diversify their economies away from oil and gas

Many countries in the Middle East are looking to diversify their economies away from oil and gas for various reasons. Oil and gas prices are especially volatile, and the economies of these countries can be severely impacted by fluctuations in worldwide prices. When prices are high, these countries experience a surge in revenue, but when prices drop, they can face major economic challenges. The finite nature of oil and gas resources means that they will finally run out. As a result, various countries in the Middle East are looking to diversify their economies to prepare for a future without these resources. There is a growing awareness of the need to reduce dependence on fossil fuels owing to their impact on the environment. One promising area for diversification is the Dimethyl Ether Market, which offers an alternative energy source with lower carbon emissions. Investing in the Dimethyl Ether Market can help these countries reduce their carbon footprint and move towards more sustainable economic models.

Potential revenue opportunities for Asia-Pacific manufacturers

Asia Pacific dominates the worldwide dimethyl ether market owing to the availability of raw materials at reasonable rates. China is the most profitable country in the dimethyl ether market. The growing use of dimethyl ether in a variety of applications such as transportation fuel, aerosol propellant, LPG blending, and others is expected to help this region produce considerable revenues over the next few years. Dimethyl ether is an excellent alternative employed as an energy fuel, and it is predicted to generate profitable growth prospects for the market in the upcoming years. The dimethyl ether market is projected to have considerable growth prospects because of rigorous environmental rules placed on the transportation and power industries. China is the first nation to commercialize dimethyl ether blended LPG. Households account for most of China's dimethyl ether market.

Dimethyl Ether Market Restraints:

Regulations and standards may hamper the growth of the Dimethyl Ether Market. The International Organization for Standardization is expected to issue international guidelines on the use of DME. Scientific research is being undertaken by companies engaged in the manufacturing, mixing, and distribution of the product in China, in collaboration with manufacturers of valves, seals, and cylinders, to move closer to a single standard for LPG and blends. Formal legislation regulating the cylinder, storage, and percentages of this product that can be used in those blends is a required next step toward market growth and the development of globally recognized safety and handling procedures.

Furthermore, the DME distribution infrastructure in the US is still relatively limited, especially when compared to more established fuels like gasoline or diesel. This can make it difficult for customers to access DME and can limit the potential applications for the fuel. One of the main reasons for the limited DME distribution infrastructure in the US is that the fuel is still in the early stages of commercialization. While DME has been used as a fuel in other parts of the world for many years, its use in the US is still relatively new, and there are few established supply chains or distribution networks.
Dimethyl Ether Market Segmentation Insight:
By Type, the methanol segment hold largest dimethyl ether market share of 55% in 2023. This high demand reflects the simplicity with which ME can be manufactured utilizing methanol as a raw material. Furthermore, producing ME from methanol is a low-cost and simple method. The use of coal as a raw material in the production of DME causes pollution, and as a result, the growth of the segment is being affected. The production of ME from natural gas is an expensive process.



By End Use Industry, LPG Blending segment held the largest 50% global Dimethyl Ether Dimethyl Ether Market share in 2023. DME provides various paths to renewable and zero-emission fuels for a variety of uses, thanks to its quiet, sootless combustion, ultra-low emissions, high cetane, low-cost LPG- compatible equipment and logistics, and high energy density. DME is an organic compound commonly used as an aerosol propellant and a reagent in the manufacture of common compounds such as dimethyl sulfate, acetic acid, ammonium nitrate, ammonium phosphate, and ammonia production which is further used as nitrogen fertilizer in the fertilizer industry.

Natural gas, biomass, waste from pulp and paper plants, forest products, agricultural by-products, construction waste, and devoted fuel crops like switch grass are only a few of ME's plentiful sources, it may also be derived directly from synthesis gas produced by coal or biomass gasification, or natural gas reforming, Among the various processes for chemical conversion of natural gas, direct synthesis is the most efficient. As a green refrigerant, dimethyl ether can be used. Indeed, it has a significantly smaller global warming risk than chlorofluorocarbons and has no ozone depletion potential.

The future of the dimethyl ether market looks promising with opportunities in the aerosol propellant, LPG blending, and transportation fuel applications. The dimethyl ether market is expected to grow with a CAGR of 8.97% from 2024 to 2030. The major growth drivers for this market are increasing use of dimethyl ether in LPG blending, multiple raw material alternatives in a wide range of applications and growing environmental concern.
Dimethyl Ether Market Geographical Insight:
Asia-Pacific is the largest Dimethyl Ether Market, registering a significant share of 70.31%% of the total market in the year 2021. A few key companies operating in the DME market are based in China and these companies collectively account for a massive of the global market. China accounts maximum demand for DME, for LPG blending. Jiutai Energy Group (China) and China Energy Limited (Singapore) are the leading players in the Asia-Pacific market. The market patterns of DME and its various raw materials used for manufacturing are continuously witnessing an upward trend which is mainly due to the increase in the usage of DME in various applications such as LPG blending, aerosol propellant, transportation fuel and other applications. China is the leading country in Asia-Pacific and across the globe in terms of volume and value. Jiutai Energy Group (China) and China Energy Limited (Singapore) are the leading players in the Asia-Pacific Dimethyl Ether Market.

Dimethyl Ether Market: Competitive Insights

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further Dimethyl Ether Market growth. With significant market development like new product releases, contractual agreements, M&A, increased investments, and collaboration with other organizations, Dimethyl Ether Market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Dimethyl Ether industry must offer affordable products.

Rinnai, a global manufacturer and distributor of gas appliances, and Dimeta, a global joint venture dedicated to accelerating the production and use of renewable and recycled carbon Dimethyl Ether (DME), have signed a Memorandum of Understanding (MoU) to explore the potential of decarbonizing the LPG market in Europe using DME.

According to the organizations, renewable and recycled carbon DME is a sustainable fuel that burns cleanly and is produced from a variety of feedstocks, including waste, biomass, and biogas. Compared to gasoline and diesel, it can reduce emissions by up to 85 percent. DME, which shares chemical similarities with bioLPG and Liquified Petroleum Gas (LPG), can be seamlessly integrated into existing LPG supply chains and incorporated with it up to 20%. This offers a viable solution to reduce the annual emissions of more than 13 million tonnes of LPG used for energy in Europe.

Dimeta and Rinnai will investigate the potential applications of DME blended with LPG for use in existing appliances, as well as 100% DME dedicated appliances such as dryers, furnaces, and hot water production systems. This collaboration highlights the promising role of the Dimethyl Ether Market in achieving significant emission reductions and advancing sustainable energy solutions.
Dimethyl Ether Industry Ecosystem
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Global Dimethyl Ether Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 7.3 Bn.


Forecast Period 2024 to 2030 CAGR:
8.65%
Market Size in 2030:
US $ 13.05 Bn.


 Segments Covered:
by Raw Material
Coal
Methanol
Natural gas
Bio-based feedstock


by Application
Aerosol Propellant
LPG Blending
Transportation fuel
Others



Global Dimethyl Ether Market, by Region:
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Dimethyl Ether Market, Key Players:
1. CIMC ENRIC - China
2. Guangdong JOVO Group Co. Ltd. - China
3. Korea Gas Corporation - South Korea
4. Nouryon - Netherlands
5. Oberon Fuels Inc. - USA
6. OCI N.V. - Netherlands
7. PCC Group - Germany
8. Royal Dutch Shell Plc - Netherlands/UK
9. The Chemours Company - USA
10. Topsoe A/S - Denmark
11. Toyo Engineering Corporation - Japan
12. Yankuang Group Co. Ltd - China
13. Akzo Nobel NV- Netherlands
14. BP Plc - UK
15. Mitsubishi Gas Chemical Company, Inc. - Japan
16. China Energy Ltd. - China
17. Grillo-Werke AG - Germany
18. TotalEnergies SE - France
19. Linde plc - Ireland
20. China National Petroleum Corporation (CNPC) - China
FAQs:
1] What is the main application of Dimethyl Ether Market?
Ans. Dimethyl Ether finds application in various sectors, including Aerosol Propellant, LPG Blending, Transportation fuel and others.

2] What are the future prospects for the Dimethyl Ether Market?
Ans. The future prospects for the Dimethyl Ether Market are promising due to its potential as a cleaner alternative to traditional fuels, increasing investments in sustainable energy solutions, and supportive regulatory frameworks.

3] Which raw material segment is expected to hold the largest market share in the Dimethyl Ether Market by 2030?
Ans. Methanol segment is expected to hold the largest market share in the Dimethyl Ether Market by 2030.

4] What is the market size of the Dimethyl Ether Market by 2030?
Ans. The market size of the Dimethyl Ether Market is expected to reach US $ 13.05 Bn by 2030.

5] What was the market size of the Dimethyl Ether Market in 2023?
Ans. The market size of the Dimethyl Ether Market was worth US $ 7.3 Bn. in 2023.