Dimethyl Ether Market Size

Dimethyl Ether Market size was $5.20 billion in 2020 and will grow at a CAGR of 9.7% while reaching 9,454 Kilo Tons from 2021 to 2027 owing to the rising demand for cleaner transportation fuel.

Dimethyl ether is a clean energy source, which can be manufactured from fossil fuels such as petroleum residue, coal bed methane, natural gas, and coal. Fossil fuel-based dimethyl ether is obtained from the dead remains of plants and animals, whereas bio-based dimethyl ether is manufactured using renewable materials including biomass, waste & agricultural products, which are produced as synthetic gas, also known as syngas, to be transformed to DME.

DME has major applications in LPG blending as it is widely used in domestic heating & cooking, thus encouraging a cleaner source of energy generation. Increasing DME applications in LPG blending, primarily in India and China, have been driving the dimethyl ether market share during the forecast period. To reduce harmful emissions from the environment, governments and regional regulatory organizations are encouraging the use of renewable energy sources for domestic purposes.

Additionally, dimethyl ether demand in China is driven due to its applications in LPG blending as it results in low soot and NOx emissions in the environment, which will improve the overall quality of the environment. The global LPG Association is making progress toward a single standard for LPG and DME blends, in terms of handling and allowable percentage of DME.

Furthermore, DME is gaining momentum as an alternative transportation fuel for diesel owing to its better ignition in compressed engines. It is cleaner, possesses propane-like properties, and has the potential to replace diesel in heavy-duty applications. Strong growth in the sales of heavy trucks and vehicles will accelerate the overall dimethyl ether market growth during the forecast period.