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 (U.S., Canada, Germany, UK, France, Spain, Italy, China, India, Japan, Australia, Indonesia, Malaysia, Brazil, Mexico, South Africa, GCC), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2024
Published Date: December 2016 | 125 Pages | Report ID: GMI852 Report Format: PDF
Dimethyl Ether Market size was USD 5.16 billion in 2015 and is projected witness 9.9% CAGR by 2024.
U.S. Dimethyl Ether Market size, by application, 2013-2024 (USD Million)
The product is a substitute to traditional fuels and holds enormous potential across widespread applications. The most important product use is blending liquefied petroleum gas (LPG). The composition of LPG and DME shares various similarities, which makes it possible to balance the two in equal proportions without any change in the resultant fuel. This unique characteristic makes blended LPG suited for wide variety use in equipment and machinery. Furthermore, synthetic LPG and DME’s similarity along with production ease from manifold feedstocks are providing numerous opportunities for the ultra-clean fuel’s introduction in new industry globally as an LPG substitute. For instance, at present more than 65% DME produced globally is blended with LPG.
Blended LPG with DME has a vital role in China, as it the largest LPG supplier and consumer globally. China is also enhancing dimethyl ether production capacity for using methanol as feedstock. This is to be merged with LPG for domestic use, and as a diesel substitute in transportation owing to propel industry growth over the forecast timeframe. When dehydrated, methanol can be turned into DME which can be used as a diesel substitute in ships and heavy duty trucks. In addition, methanol enhances combustion efficiency and decreases vehicle exhaust emissions such as carbon monoxide.
DME is blended with LPG and used for domestic cooking and heating. Increasing product use for domestic applications is growing gradually as DME blending becomes more widespread within the fast-growing LPG industry. Rising cleaner, safer, and environmentally friendly fuel demand for cooking and heating will further complement industry growth by 2024. Also, rising oil prices and corresponding increase in propane and butane price has driven LPG alternatives demand, with alike properties along with being economically viable. Increasing LPG substitutes demand is forecast to propel dimethyl ether market size over the projected timeframe. In 2012, International Organization for Standardization (ISO) related standards regarding DME use owing to boost industry growth.
The product is a fuel with no lubricity, traditional fuel injection and fuel delivery systems are not compatible with DME. Therefore, diesel engine operation on the product requires a fuel-tolerant injection system, or find a way to provide the necessary lubricity. These factors are anticipated to hamper industry growth from 2016 to 2024. However, introduction of bio based dimethyl ether has created new growth opportunities for the industry participants.
Dimethyl Ether Market, By Raw Material
Fossil fuel based dimethyl ether is produced particularly from natural gas and coal. Abundant natural gas availability along with increasing diesel prices is forecast to be key factor propelling dimethyl ether market size. It also offers potentially low cost than diesel vehicle at high volume. However, stringent government regulations towards clean energy may negatively impact on dimethyl ether market growth over the forecast period.
Bio based dimethyl ether market size is projected to expand at a greater rate more than 11% CAGR in terms of revenue. Bio based dimethyl ether, is an energy containing molecule that is condensation of two bio methanol molecules. It consists of carbon monoxide and hydrogen molecules consequent from methanol processing. Also, methanol can be produced from pyrolysis gases generated from waste or garbage and paper mill residue. Due to these raw materials utilized for bio based DME production, its use does not release mercury, sulfur oxides, or nitrous oxides, which makes the product environment friendly. Furthermore, increasing product application as aerosol propellant in domestic personal care industry is likely to complement industry growth from 2016 to 2024.
Dimethyl Ether Market, By Application
Aerosol propellants applications were valued above USD 1 billion in 2015. They offer low relative cost, stability & purity, low odor, extensive range of boiling points, wide vapor pressures range, low toxicity, versatility & efficiency, flammability and environmental friendly characteristics owing to boost industry growth over the projected timeframe.
Transportation fuel is anticipated to witness highest gains at over 14% CAGR by 2024. Due to its decent ignition quality, along with high cetane number, it can be used in diesel engines as an alternative for traditional diesel fuel. Increasing stringent regulations accompanied with rising awareness to minimize air pollutants by adoption non-petroleum based alternative fuels will complement dimethyl ether market size by 2024. However, compared to diesel fuel it has a lower viscosity and poor lubricity which may obstruct industry growth over the forecast timeframe.
Dimethyl Ether Market, By Region
U.S. dimethyl ether market size marked revenue close to USD 300 million in 2015. Regional market is anticipated to be driven by increasing bio based dimethyl ether acceptance on account of its low emission characteristics. In addition, Europe is forecast to experience gains at over 10% CAGR from 2016 to 2024. Increasing automakers initiative such as R&D towards low emitting vehicles will drive industry growth. For instance, Ford Motors announced R&D investment of approximately USD 3.5 million towards latest internal combustion engines with environmental benefits similar to an electric vehicle.
Asia Pacific, led mainly by India and China dimethyl ether market size, dominated the global share in 2015. The region is largest product producer and consumer, particularly for the domestic purposes. In addition, increasing production activities in Japan with extensive capacities will positively influence on industry growth by 2024.
Competitive Market share
Global dimethyl ether market share is moderately competitive. Key industry participants include Akzo Nobel NV, China Energy Ltd., Korea Gas Corporation, and Royal Dutch Shell PLC. Other notable players are Mitsubishi Corporation, Shenhua Ningxia Coal Industry Group Co., Ltd., Oberon Fuels, Inc., Fuel DME Production Co., Ltd., Grillo-Werke AG, and Guangdong JOVO Group Co., Ltd.
Dimethyl Ether Industry Background
DME is also known as methoxymethane. It is a colorless gas extensively used as aerosol propellant in chemical industries. It is a gas with properties similar to those of propane under ambient conditions. Also, it can be warehoused as a liquid under moderate pressure, eliminating high pressure containers need used in CNG or LNG storage, which makes it a synthetically formed desirable alternative to diesel used in designed compression ignition diesel engines. Also, its clean-burning, non-toxic, potentially renewable fuel characteristics makes it desirable for replacing traditional transportation fuel such as diesel.
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