The global dimethyl ether market size isexpected to reach USD 8,755.17 million by 2028, exhibiting a CAGR of 10.5%between 2021 to 2028. The shift from conventional diesel fuel to Dimethyl Ether(DME) gasoline due to its low cost and the zero-soot option will enable speedyexpansion of the market during the forecast period, states Fortune BusinessInsights, in a report, titled “Dimethyl Ether Market, 2021-2028.” Themarket size stood at USD 4,001.89 million in 2020.
The increasing pollution and healthissues associated with carbon have resulted in huge demand for carbon-negativefuels. DME is a cost-effective hydrogen transporter, allowing the supply of greenenergy to the rapidly expanding hydrogen fuel cell vehicle industry. Theeco-friendly benefits of this chemical will boost its demand in the forthcomingyears. The high ignition efficiency and certain number of DMEs will boost itsadoption in the transportation industry. Compared to diesel fuel, the lowerviscosity and lubricity of this chemical will accelerate its growth in theforthcoming years.
DME Production Plan of Indonesia toEncourage Market Growth
The Indonesian Ministry of Energy andMineral Resources and state-owned energy company Pertamina announced theirplans to increase DME's commercial production. Indonesia has been researchingthe prospect of blending domestically-manufactured DME with LPG for commercialand domestic usage to eliminate the necessity for imported LPG. The country hasevaluated through several projects and hence announced its plans to amplify theproduction of coal-to-DME through extensive blending. Furthermore, Pertamina, aleading company partnered with Bukit Asam and Air Products to producehigh-value products, including dimethyl ether in large capacities. The jointventure will focus on developing a coal gasification project, which willinvolve synthetic natural gas (SNG) and DME for commercial and domesticconsumption. The collaboration will include the market study of this chemicalfor domestic and commercial applications, discovering its employment as aheating fuel for domestic purposes.
Strict Regulations to Inhibit MarketGrowth
The International Organization for Standardizationhas implemented several guidelines for the consumption of DME, which, in turn,can restrict the growth of the market during the forecast period. Companies areengaging in the manufacturing, mixing, and distributing of this bulk chemicalin China without following the regulatory protocols. The collaboration of DMEproducers with manufacturers of valves, seals, and cylinders with a singlestandard for LPG and DME blends can dampen the dimethyl ether market growth.The cylinder, storage, and percentages of DME used in those blends requirestrict regulations for safety and handling procedures, which can restrict thedimethyl ether market share.
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LPG Blending to Hold the Largest Share
Based on application, the market isdivided into LPG blending, aerosol propellant, transportation fuel, and others.LPG blending is expected to account for the lion’s share during the forecastperiod. Low-emission and sustainability of LPG blending will boost thesegment’s growth. This chemical can be produced through biomass, wastefrom pulp and paper plants, forest products, agricultural by-products,construction waste, and fuel crops. DME can also be derived directly fromsynthesis gas such as coal or biomass gasification, or natural gas reforming.
Geographically, the market isclassified into North America, Asia Pacific, Europe, and the Middle East, andAfrica.
Flourishing Shipping Industry toPromote Growth in North America
- The booming agriculture, shipping, and construction industries will spur demand for dimethyl ether in North America.
- High consumption and production of DME in China, Japan, Korea, Indonesia, and India will push the growth of the Asia Pacific market.
- Europe is predicted to experience a substantial growth rate during the forecast period owing to the rapid advancements in the automotive sector.
Robust Research and DevelopmentActivities by Prominent Companies to Intensify Market
The dimethyl ether industry isdominated by Jiutai Energy Group (China), Haldor Topsoe, Oberon fuels(U.S.), Royal Dutch Shell Plc. (The Netherlands), The Chemours Company (U.S.),Mitsubishi Corporation (Japan), Toyo Engineering Corporation. Companies arefocused on expanding their production capacities to strengthen their positionin the market. Companies are also increasing their raw material manufacturingand delivery operations to maintain product consistency and improve regionalreach. The prominent companies are innovating their manufacturing technologiesto save costs and enhance the production rate.
The Report Lists the Main Companies inthe Global Market:
- Jiutai Energy Group (China)
- Haldor Topsoe
- Oberon fuels (U.S.)
- Royal Dutch Shell Plc. (The Netherlands)
- The Chemours Company (U.S.),
- Mitsubishi Corporation (Japan)
- Toyo Engineering Corporation
- Other Key Players
