Dimethyl Ether Market Analysis

The fossil fuel-based segment held a revenue share of around 90% in 2020 and is projected to grow at a CAGR of 9% from 2021 to 2027 due to the significant availability of recoverable coal & natural gas reserves, which can be utilized to produce DME. Additionally, DME is used in widespread applications such as aerosol propellants, LPG blending, transportation fuel, and other industrial applications including blowing agents in insulation panels & refrigerants, fuel in welding & cutting, and as a solvent extracting agent.

Additionally, the easy availability of natural gas as a result of technological developments, which are attributable to significant R&D expenditure in the oil & gas industry will assist the fossil fuel-based dimethyl ether market to achieve promising gains by 2027.

LPG blending segment accounted for over 50% of revenue share in 2020 and is anticipated to generate a revenue of over $5,053 million by 2027. The rising need to reduce harmful emissions is one of the key factors driving the dimethyl ether market sales in LPG blending, especially in China. LPG usage in residential heating and cooking has been a major source of hazardous pollutants in the environment. This can be reduced by blending LPG with DME, which is added to a volume concentration of 15 - 20% and is a realistic way to add value to LPG used for domestic purposes.

The transportation fuel segment is projected to grow at the highest CAGR of around 13.6% through 2027. DME is eco-friendly and cost-effective compared to conventional transportation fuels owing to its comparable cetane number and ignition point. The prevalence of soot, particulate matters, and other pollutants in the atmosphere, primarily due to diesel vehicles, is building up greenhouse gases emissions and hence regional regulatory bodies are encouraging the usage of DME as an alternative transportation fuel.

Europe dimethyl ether market was valued at USD 125 million in 2020 and expected to grow at a CAGR of 11.6% from 2021 to 2027. The need to replace conventional fuels, such as diesel, is primarily due to stringent regulations imposed on high-emission fuels in Europe. For instance, the European Commission has adopted emission regulations as a part of the EU framework for the approval of light- and heavy-duty vehicles. To achieve sustainable mobility in Europe, regulatory agencies are supporting the use of cleaner transportation fuels.