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Dimethyl Ether Market Size - By Raw Material (Fossil Fuel-based, Bio-based), Application (LPG Blending, Aerosol Propellant, Transportation Fuel, Industrial), Regional Outlook, Application Growth Potential, Competitive Market Share & Forecast, 2021 - 2027

  • Report ID: GMI852
  • Published Date: Oct 2021
  • Report Format: PDF

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.

Dimethyl Ether Market Outlook

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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.

Dimethyl Ether Market Analysis

Dimethyl Ether Market by raw material

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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.

Dimethyl Ether Market by application

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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.

Dimethyl Ether Market by region

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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.

Dimethyl Ether Market Share

Some of the major players operating 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.
  • The Chemours Company

among others. Key players operating in the market are focusing on expanding their offerings and production capacities. For instance, in June 2021, Oberon Fuels started the commercial production of renewable DME in the U.S. and it remains the world's only commercial production firm of this molecule.

The dimethyl ether market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in kilo tons and revenue in USD million from 2021 to 2027 for the following segments:

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By Raw Material

  • Fossil Fuel Based
  • Bio-based

By Application

  • LPG blending
  • Aerosol propellant
  • Transportation fuel
  • Industrial
  • Others

The above information is provided on a regional and country basis for the following:

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Russia
    • Sweden
  • Asia Pacific
    • China
    • India
    • Japan
    • Indonesia
    • Australia
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa


Authors: Kiran Pulidindi, Hiralkumar Patel

Frequently Asked Questions (FAQ) :

Dimethyl ether market size was valued at over USD 5.20 million in 2020 and will observe a CAGR of around 9.7% between 2021 and 2027 with increasing applications in LPG blending across China and India.

Fossil fuel-based dimethyl ether contributed around 90% share towards the global market in 2020 and will expand at 9% CAGR up to 2027 owing to availability of natural gas and recoverable coal reserves.

LPG blending is likely to account for around USD 5 billion in dimethyl ether market by 2027, partly due to the demand for the reduction of harmful emissions.

Europe dimethyl ether market is expected to witness a CAGR of around 11.6% through 2027 due to the adoption of emission regulations for light- and heavy-duty vehicles.

China Energy Ltd., Fuel DME Production Co., Ltd., Shenhua Ningxia Coal Industry Group Co., Grillo-Werke AG, Royal Dutch Shell PLC, Mitsubishi Corporation and Akzo Nobel NV are some of the leading companies boosting dimethyl ether market.

Dimethyl Ether Market Scope

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 11
  • Tables & Figures: 158
  • Countries covered: 19
  • Pages: 180
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