Bio-based and Synthetic Dimethyl Ether (DME) Market Size By Raw Material (Fossil Fuel Based, Bio-based), By Application (LPG Blending, Aerosol Propellants, Transportation Fuel, Industrial), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025
Published Date: Sep 2019 | Report ID: GMI852 | Authors: Kiran Pulidindi, Hemant Pandey
Bio-based & Synthetic Dimethyl Ether Market size estimated at USD 5.9 billion in 2018 and will witness a CAGR of more than 8.5% between 2019 and 2025.
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Shifting focus towards cleaner sources for energy generation is anticipated to be the major contributor to bio-based & synthetic dimethyl ether market size by 2025. Government and regional regulatory bodies are encouraging DME use for domestic purpose to reduce harmful emissions from the environment. Rising product demand for LPG blending in Asia Pacific is anticipated to boost the overall business size in the forecast timeframe. For instance, India is expected to account for approximately 25% of the rise in global energy demand by 2040. Methanol and DME is expected to play a significant role to achieve the energy demand in the coming years. According to Methanol Institute, China produced 3.8 million tons DME in 2015, which was valued the highest across the globe. DME demand in China is driven for its application in LPG blending as it results in low soot and NOx emissions in the environment which will help improve the overall quality of the environment.
DME is environment friendly and cost-effective and therefore it is considered to be an effective substitute for diesel. It has similar properties with diesel and releases low soot and thereby reduces the harmful implications for human health and environment by reducing hazardous pollutants. Growing concerns pertaining to environmental sustainability, led the transport sector companies to launch vehicles compatible with DME. For instance, Oberon Fuels, FVV along with Ford have come together for a USD 3.8 billion project for 3 years to research, test and analyze the DME potential in heavy duty truck engines and passenger cars. The aim of the project is to ultimately produce passenger cars powered with DME fuel.
Stringent regulations against DME to ensure limited use owing to its highly flammable characteristics may impede the market growth in the forecast timeframe. It contains gas under pressure which may explode if heated, resulting in hazardous implications on human health including drowsiness & dizziness, suffocation, etc. However, growing demand for green and sustainable source of energy generation will generate ample opportunities for the bio-based & synthetic dimethyl ether market size in the forecast timeframe.
|Base Year:||2018||Market Size in 2018:||5.9 Billion (USD)|
|Historical Data for:||2014 to 2018||Forecast Period:||2019 to 2025|
|Forecast Period 2019 to 2025 CAGR:||8.5%||2025 Value Projection:||10.8 Billion (USD)|
|Pages:||202||Tables, Charts & Figures:||244|
|Geographies covered (22):||U.S., Canada, Germany, UK, France, Spain, Italy, Russia, China, India, Japan, Australia, Indonesia, Malaysia, Brazil, Mexico, Trinidad & Tobago, South Africa, Saudi Arabia, UAE, Iran, Qatar|
|Segments covered:||Raw Material, Application and Region|
|Companies covered (10):||Akzo Nobel NV, China Energy Ltd, Korea Gas Corporation, Royal Dutch Shell PLC, Mitsubishi Corporation, Shenhua Ningxia Coal Industry Group Co., Oberon Fuels, Inc., Fuel DME Production Co. Ltd, Grillo-Werke AG, Guangdong JOVO Group Co. Ltd,|
By Raw Material
Fossil-fuel based DME constituted approximately 98% of the overall industry share in 2018, projecting gains of more than 8% in the forecast time spell. This segment includes DME production using natural gas and coal. Abundant availability of these resources is the primary reason contributing to the segment growth. Growing product use for LPG blending and transportation fuel in Asia Pacific will help attain promising gains to the market growth in the coming years. According to the World Energy Council, total recoverable coal reserves in China are 80.2 thousand Mtoe (Million Tons of Oil Equivalent), which will help in reducing imports and meet the rising DME demand in the region at cost-effective prices. Also, rising regulations against high emission fuels in the transportation sector is also contributing to the overall DME demand as it has higher cetane number which provides a better ignition value to ultimately reduce pollutants from the environment. These trends are expected to generate plentiful growth avenues for the market size in the projected time spell.
Based on applications, bio-based & synthetic dimethyl ether (DME) market demand for aerosol propellants is expected to witness gains of more than 7.5% in the coming years. It is used as an aerosol propellant across various industries such as pharmaceuticals, cosmetics, paints & coatings, etc. It offers low odor, low cost, improved purity & stability, low toxicity, wide boiling points range, wide vapor pressure range, eco-friendly nature, etc. Furthermore, it is used in fragrances, hair spray and several other products in the cosmetics and personal care industry.
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Asia Pacific attained the largest market share which accounted for more than 85% of the total business size in 2018. This is attributed to the increasing adoption of cleaner source of energy generation by the regional government. In 2016, India witnessed an increase of 8.6% in its LPG demand in 2016. Also, the country imported 8.88 million tons of LPG to meet its domestic needs in the same year. These trends are on rise with the government’s consistent plans to replace kerosene/firewood with cleaner energy source. A series of initiatives undertaken by the regional government to drive LPG penetration amidst the growing urbanization in the region. For example, the Indian government unveiled a welfare scheme to provide LPG connections at concessional rates to women living below the poverty line. These factors present brighter demand aspects for DME which will help make promising gains to the overall market size by 2025.
Competitive Market Share
Bio-based & synthetic dimethyl ether market size is highly competitive with key players constituting approximately half the industry share. Some of the major contributors in the market are China Energy Ltd., Shenhua Ningxia Coal Group, Korea Gas Corporation, Toyo, Mitsubishi Corporation, etc. Most of these companies are proposing strategies to boost DME production to meet its rising demand from various end-users. For instance, Mitsubishi Corporation in association with its subsidiaries announced to set up methanol and dimethyl ether plant in Trinidad and Tobago in 2015. The plant required USD 1 billion investment with a capacity to produce 100,000 tons/annum of methanol and 20,000 tons/annum of dimethyl ether This move was intended to meet the demand for the generation of clean energy fuel in the country.
Bio-based & synthetic dimethyl ether (DME) market is segmented based on raw material into fossil fuel and bio-based. Bio-based DME is processed via methanol dehydration whereas fossil fuel-based DME is manufactured from dead remnants of plants & animals. Rising need to use cleaner energy generation source is likely to contribute significantly to the overall business size in the forecast period. Product is blended with LPG for its applications in domestic cooking & heating owing to lesser emissions and economic aids. Growing environmental alarms and the need to replace the conventional LPG with blended LPG with DME will make noteworthy contributions towards the overall business size by 2025. Furthermore, it is also used as an aerosol propellant, transportation fuel, and for industrial purposes. In the transportation sector, it is used as an alternative fuel to diesel as it is a cleaner source of energy to help save the environment from harmful pollutants.
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