Dimethyl Ether (DME) Market size to be worth over $9.87 billion by 2027

According to a new research report by Global Market Insights Inc., the Dimethyl Ether (DME) Market size is forecast to exceed USD 9.87 billion by 2027.
 

DME is a colorless, non-toxic, and highly flammable substance used in various end-user industries including power generation, cosmetics and automotive, among others. DME is majorly produced by converting natural gas, organic waste, or biomass into synthesis gas (syngas). DME is one of the most promising alternative transportation fuels among various renewable, ultra-clean, and low-carbon fuels across the world.
 

Rising applications in the automotive industry with the growing sales of vehicles across the globe will boost the dimethyl ether market growth. Additionally, dimethyl ether is gaining popularity in the cosmetic industry as an aerosol propellant owing to its low cost, low odor, high stability & purity, extensive range of boiling points, low toxicity, and a wide vapor pressure range.
 

Dimethyl ether as a diesel alternative provides several benefits including low exhaust emissions, low engine noise, high fuel economy, better thermal efficiency, better ignition characteristics than diesel, etc. Owing to these factors, it is likely to replace diesel as a transportation fuel in the coming years. These additional benefits and rising stringent regulations imposed on high emission vehicles by the EU regulatory bodies will boost the dimethyl ether market share.
 

The surging demand for dimethyl ether in LPG blending is one of the major factors driving the overall industry growth. The robust increase in oil and propane & butane prices has led to the prevailing demand for such alternative fuels as they possess equivalent properties and are cost-efficient. The ability to deliver cleaner energy fuel for domestic applications including heating and cooking in remote areas will boost the market growth from LPG blending.
 

Browse key industry insights spread across 180 pages with 137 market data tables & 21 figures & charts from the report, “Dimethyl Ether Market, By Product (Fossil Fuel-based, Bio-based), By Application (LPG Blending, Aerosol Propellant, Transportation Fuel, Industrial), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021-2027”, in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/dimethyl-ether-dme-market
 

The bio-based DME segment will grow significantly during the assessment period

The bio-based segment accounted for over 5.2% of the volume share in 2020 and is anticipated to grow at a CAGR of 13.3% through 2027. Bio-based DME can be widely derived from many sources including renewable materials such as biomass, agricultural products, and waste. Renewable energy sources play a vital role in reducing greenhouse gas emissions in the longer run.
 

Bio-based DME finds wide applications as aerosol propellants across several end-user industries including personal care, medical, etc., due to which the segment will expand remarkably. Furthermore, the product has widespread industrial applications in pharmaceuticals, home care, etc.
 

Rising application of dimethyl ether as a transportation fuel

The transportation fuel segment accounted for 12.1% of market volume share in 2020 and is projected to reach around 15.2% by 2027 due to a rising need to replace high-emission fuels such as diesel in the transportation industry to reduce overall pollutants from the environment. Several regulations have been formulated by the European Commission and other regional regulatory bodies against transportation fuels that emit pollutants beyond the permitted level.
 

For instance, the European Commission legislation has set mandatory goals for emission reduction by setting up carbon dioxide (CO₂) limits. Such regulations are further likely to boost the demand for dimethyl ether as a transportation fuel across the globe.
 

Asia Pacific to exhibit steady growth during the forecast period

In 2020, the Asia Pacific dimethyl ether market held a significant market share of around 83% in terms of revenue and is expected to maintain its dominance during the forecast period driven by surging demand for dimethyl ether in LPG blending. China is the largest consumer of DME with the highest production capacity around the globe.
 

According to the statistics presented by the World LPG Association (WLPGA), China is one of the largest consumers of LPG across the globe. In China, production of LPG increased from 42.10 million tons in 2019 to 44.48 million tons in 2020. The rising production and consumption of LPG across the region are likely to propel the market for dimethyl ether.
 

Some of the top players in the dimethyl ether industry include Grillo-Werke AG, Korea Gas Corporation, Royal Dutch Shell PLC, Shenhua Ningxia Coal Industry Group Co., Oberon Fuels, Inc., Fuel DME Production Co., Ltd., Mitsubishi Corporation, China Energy Ltd., Guangdong JOVO Group Co., Akzo Nobel NV, Ltd., and The Chemours Company, among others.