Home / Press Release / Dimethyl Ether Market to Grow at an Estimated CAGR of 10% During the Forecast Period 2022-2030

Dimethyl Ether Market to Grow at an Estimated CAGR of 10% During the Forecast Period 2022-2030

The global dimethyl ether market is predicted to grow at a CAGR of 10% during the forecast period of 2022 to 2030. Dimethyl ether is sometimes called methoxymethane, wood ether, dimethyl oxide, or methyl ether. DME is methyl ether. It's an odourless, narcotic, nontoxic, easily flammable gas that may be handled like a liquid at room temperature with light pressure. It has LPG-like properties (LPG). Dimethyl ether can be made from petroleum waste, coal bed methane, natural gas, and coal. Coal also produces dimethyl ether. Fossil fuel-based dimethyl ether is made from dead plants and animals, while bio-based dimethyl ether uses biomass, trash, and agricultural products. Before making DME, these ingredients are converted into syngas.

Growing demand for dimethyl ether in LPG blending, transportation fuel, power plant fuel, chemical feedstock, and other applications favours players in the worldwide dimethyl ether market. Growing end-use industry understanding of dimethyl ether's advantages is driving the global market. Increasing dimethyl ether use and the number of LPG plants should benefit the market. This will assist meet the growing population's energy needs. The market is expected to grow due to the expanding car sector and manufacturers' transition toward clean energy fuels. The market for dimethyl ether is expected to benefit from a trend toward safer, higher-quality products, which reflects increased customer tastes and environmental concerns.

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Decarbonizing the transportation industry is a must to combat global pollution and its health effects. To have credible, cost-effective, long-term ultra-low-carbon or carbon-negative fuels that can be created from various waste streams. Dimethyl ether gasoline is a low-cost, low-carbon, no-soot alternative to diesel. DME is an effective hydrogen transporter with a cheap cost, making it easier to supply this eco-friendly fuel to the fast-growing hydrogen fuel cell vehicle industry. When combined with propane, the product reduces the clean-burning fuel's carbon intensity.

DME's high cetane number and efficient ignition make it suitable for diesel engines. DME's high ignition efficiency explains why. Viscosity and lubricity are lower than diesel fuel. In gasoline-powered automobiles, it's kept liquid at low pressure, like LPG. This reduces engine modifications. Despite this, the engine needs a few tweaks, including the injection pump and an LPG-style pressure tank. Gas line elastomers must be appropriate. DME's combustion prevents soot, allowing it to be pumped into diesel engines with little changes. DME's high cetane number of 55 to 60 makes it a diesel fuel. The DME engine and automobile are finished, and its reliability was tested over 100,000 kilometres. Japan produces the ISUZU ERGAmio, ISU Elf, Mitsubishi Fuso Canter, and NISSAN DIESEL Condor.

Rising auto demand drives the dimethyl ether market. As a result, many corporations and manufacturers use higher-grade fuel in their vehicles. This creates fresh expansion potential. Hybrid cars increasingly use dimethyl ether. This will boost dimethyl ether consumption worldwide. As automakers around the world hunt for crossover car alternatives, diesel and bio-diesel demand has skyrocketed. As more national governments support projects to meet energy needs with renewable sources, dimethyl ether demand is likely to rise. Major participants in the worldwide dimethyl ether market should earn greatly from biofuels.

International Organization for Standardization will publish DME rules. In China, companies involved in LPG manufacturing, mixing, and marketing are conducting scientific investigations with valve, seal, and cylinder manufacturers to establish a single standard. The next stage toward market expansion and the development of globally recognised safety and handling practices is the enactment of official regulations regulating cylinders, storage, and product percentages in mixes. An important step.

Dimethyl ether (DME), also called methoxy methane, is used in compression-ignition diesel engines. It has a high cetane value and no hazardous byproducts. Automobile demand is the main driver of dimethyl ether market growth. As a result, many corporations and manufacturers use higher-grade fuel in their vehicles. This creates development and expansion prospects. Dimethyl ether is increasingly used in hybrid cars. This should boost the global dimethyl ether market. As automakers around the world hunt for crossover car alternatives, diesel and bio-diesel demand has skyrocketed. As the government supports programmes to meet energy needs with renewable sources, demand for dimethyl ether, a biofuel ingredient, is likely to rise. Major participants in the worldwide dimethyl ether market should earn greatly from biofuels.

Asia and the Pacific have cheap raw materials, hence they dominate the worldwide dimethyl ether industry. China is the most profitable market for dimethyl ether. This region is expected to create large profits over the next few years due to the increased usage of dimethyl ether in LPG blending, aerosol propellant, and transportation fuel, among other applications. Dimethyl ether can be utilised as a fuel, and market expansion is expected in the next years. Due to environmental constraints on the transportation and electricity industries, the dimethyl ether industry has substantial growth potential. China is the first country to commercialise dimethyl ether-mixed LPG. Most dimethyl ether consumption in China is domestic.

Methanol contributed the largest revenue share in 2021 among the raw material segment.  During the forecast period, the methanol sector is expected to dominate the dimethyl ether market. This huge demand is due to how easy it is to make DME from methanol. DME synthesis from methanol is straightforward and cost-effective. Pollution from producing DME with coal as a basic source hinders the market growth. Natural gas DME production is capital-intensive.

Due to the availability of recoverable coal and natural gas reserves, the fossil fuel-based segment is expected to develop at a CAGR of 11% from 2022 to 2030. This segment had 90% of 2021's revenue. Dimethyl ether is also used as an aerosol propellant, LPG mix, transportation fuel, and blowing agent in insulating panels and refrigerants, welding and cutting fuel, and solvent extraction agent. The simple availability of natural gas due to technological developments and oil and gas industry R&D spending will help the market for fossil fuel-based dimethyl ether grow by 2030.

LPG blending contributed almost 50% of market revenue in 2021. Growing awareness of the need to reduce harmful emissions is increasing dimethyl ether sales in LPG blending, especially in China. LPG use for heating and cooking contributes to environmental pollution. Blending LPG with DME at a 15% to 20% volume concentration can reduce the amount of carbon monoxide produced.

Transportation fuel is expected to grow at a 13.5% CAGR until 2030. This segment had 35% of 2021's revenue. DME is more environmentally friendly and cost-effective than standard fuels because its cetane number and ignition point are comparable. Soot, particulate matter, and other pollutants in the environment, largely from diesel vehicles, are increasing greenhouse gas emissions; regional regulatory bodies are promoting DME as an alternative fuel. Increasing LPG imports in several nations are fuelling demand for DME. DME's numerous uses and production methods also boost its market. Due to Asia and the Pacific's abundance of coal, most DME is coal-based. China becomes the most important DME market because of this.

Asia-Pacific will represent 92% of DME's revenue in 2021. Dimethyl ether (DME) and its basic ingredients have a rising market trend. This is because DME is used more in LPG blending, aerosol propellant, transportation fuel, and other applications. China dominates Asia-Pacific and the world in volume and value, but Japan has several manufacturing plants. China is the first country to commercialise dimethyl ether-mixed LPG. Most dimethyl ether consumption in China is domestic. As part of "Aditi UrjaSanch," India's Minister of Science, Technology, and Earth Sciences introduced a specialised burner unit for using dimethyl ether mixed LPG as a home cooking fuel in October 2020. New burners will use LPG mixed with 30% dimethyl ether. In 2021-22, 10 million more LPG consumers will be added to the Pradhan Mantri Ujjwala Yojana plan. This plan gives below-poverty-line women free LPG cooking gas hookups, which would increase LPG consumption. The country wants to reduce its reliance on LPG by using more dimethyl ether. This is expected to strengthen the dimethyl ether sector.

North America, Indonesia, and Uzbekistan also have production units, and significant capacity expansions are planned or underway. North American transportation, agriculture, and construction are suited for this technology. DME can be generated by a variety of procedures, all of which can result in a highly competitive and cost-effective product. When made from biogas using the Oberon technique, the product is certified as a green fuel by the EPA. So, it qualifies for RINs. ASTM International and ISO have provided specifications. Sweden produces the world's first bio DME.

The European market is mature and is expected to have the lowest CAGR of 8% from 2022 to 2030. Europe's strict limits on high-emission fuels need finding alternatives to diesel. As part of the EU framework for light- and heavy-duty vehicle approval, the European Commission set emission limitations. These regulations are part of EU car approval. In Europe, regulatory bodies support cleaner fuels to achieve sustainable mobility. Latin America and the Middle East and Africa are expected to grow during the projection period. The expansion is due to government attempts to increase the use of environmentally friendly fuel in household and chemical settings.

Few companies control a large percentage of the global market. Jiutai Energy Group (China), HaldorTopsoe, Oberon fuels (U.S.), CF Industries Holdings, Royal Dutch Shell Plc (The Netherlands), The Chemours Company (U.S.), Mitsubishi Corporation (Japan), and Toyo Engineering Corporation. Grillo-Werke AG, Korea Gas Corporation, 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 are some significant dimethyl ether producers. Market participants are expanding product lines and boosting manufacturing. Oberon Fuels commenced commercial production of renewable DME in 2021. Major industry participants have integrated raw material manufacturing and transportation to maintain product uniformity and expand regional reach. This provides cost savings, which increases their profit margin.

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