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Published Date: 2015-03-27Number of Pages: 91

Dimethyl Ether Market - Global & China Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020

Global Dimethyl Ether Market:  Snapshot 

The dimethyl ether market is the largest in Asia-Pacific region, specifically China. The companies, China Energy Limited (Singapore) and Jiutai Energy Group (China) are dominant players in the Asia-Pacific region. The market for DME is expected to grow during the forecast period on account of its use in LPG blending. DME is extensively used by aerosol propellant. The capacity for fuel has increased in Asia Pacific and this is expected to continue to grow steadily, on account of the increasing establishment of new plants for sufficient domestic fuel supply. Asia Pacific is the most populated region worldwide and thus, the demand for fuel substitutes such as dimethyl ether is highest from this region. Countries such as Indonesia, Japan, and South Korea, are fueling the growth of the DME market, apart from China, which is the largest contributor. 

Use of DME in LPG Blending to Remain Key Driver for Market 

The various applications of DME studied in the report are: LPG blending, aerosol propellants, transportation fuel, industrial, and others which comprise chemical feedstock among others. Of these, the LPG blending segment is anticipated to lead in the market. The scarcity of LPG is a growing concern gripping countries that have inadequate gas reserves or insufficient supply to meet the high demand from growing population. DME has emerged as a boon for such countries as it reduces the dependency on LPG imports. LPG imports are reduced by blending 20% DME with LPG, which is then used for cooking, fueling the growth of the market. DME is blended in LPG and requires no change in the infrastructure and has emerged efficient, thus driving the market to a large extent. 

DME as Potential Transport Fuel to Create Growth Opportunities 

With little alterations in the fuel injection systems, DME has promising potential to be used in conventional engines as transport fuel in place of diesel. This is expected to create immense growth potential for the market and players will benefit from the opportunities offered by DME in the transport sector. The global dimethyl ether market will witness a rapid growth in the years to come on account of its clean combustion properties. The growth in the automobile industry will push the DME market in China. With easy and abundant coal reserves in China, the market will flourish in the country. The market is expected to receive boost from favorable regulations set by governments regarding emission control for environmental conservation, which will compel the use of cleaner fuels such as DME. 

Lack of Export Infrastructure to Limit Growth Opportunities for DME Market Players

One of the key challenges of this market is the lack of proper export infrastructure which is dampening the growth of the market. Despite the high demand for DME from various countries, the lack of trade norms is acting as a major hurdle for the growth of this market. Due to these two constraints, the compound is seldom exported to countries, negatively impacting the global DME market. Another hurdle in the market is the small plant capacities. This has compelled players in the DME market to operate their plants at much lower rates. The impact of this restraint is estimated to reduce in the years to come as government strives hard to overcome the challenge. This is expected to help the markets in China, Papua New Guinea, and Saudi Arabia.

 
This report covers the analysis and forecast of the Dimethyl Ether (DME) on a global and regional level. The study provides historic data of 2013 along with the forecast for 2014 to 2020 based on volume (kilo tons) and revenue (US$ Mn). 
 
The study provides a decisive view of the DME market by segmenting it based on application, raw material type and regional demand with special emphasis on China. Application segments have been analyzed based on current trends and future potential, and the market has been estimated from 2014 to 2020 in terms of volume (kilo tons) and revenue (US$ Mn). Regional segmentation includes the current and forecast demand for North America, Europe, China, Rest of Asia Pacific, and Rest of the World (RoW). Segmentation also includes demand for individual application and raw material types in all the regions.
 
The study covers the drivers and restraints governing the dynamics of the market along with their impact on demand during the forecast period. Additionally, the report includes potential opportunities in the DME market on the global and regional level.
 
We have included a detailed value chain analysis in order to provide a comprehensive view of the DME market. Analysis of Porter’s Five Forces model has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein applications have been benchmarked based on their market size, growth rate, and general attractiveness for future growth.
 
The market has been forecast based on constant currency rates. Prices of DME vary in each region and depend upon demand-supply scenario of the region. Hence, a similar volume-to-revenue ratio does not follow for each individual region. Individual pricing of DME for each application has been taken into account while estimating and forecasting market revenue on a global basis. Regional average price has been considered while breaking down the market by application segments in each region. 
 
The report provides the size of the DME market for 2013 and forecast for the next seven years up to 2020. The size of the DME market in China and across the globe is provided in terms of volume and revenue. Market volume is defined in kilo tons, while market revenue for regions is in US$ Mn. The market size and forecast for each product segment is provided in the context of global and regional markets. Numbers provided in the report are derived based on demand generated from different applications and raw material types. Market dynamics prevailing in China have been taken into account for estimating the future growth of the global market.
 
Market estimates for this study have been based on volumes, with revenues being derived through regional pricing trends. The price for commonly utilized grades of DME in each application has been considered, and customized product pricing has not been included. Demand for DME has been derived by analyzing the global and regional demand for DME in each application and by raw material type. The global and China DME market has been analyzed based on expected demand. Market data for each segment is based on volume demand and corresponding revenues. Prices considered for calculation of revenue are average regional prices obtained through primary quotes from numerous regional suppliers, distributors, and direct selling regional producers, based on manufacturer feedback and application requirement. Forecasts have been based on the expected demand from DME application segments. Existing Chinese government regulations and the expected relief pertaining to DME blended LPG regulations have been taken into account. We have used the bottom-up approach by considering individual application segments and integrating these to arrive at the global market. Application segments have been further broken down using the top-down approach to derive the regional market demand. Companies were considered for the market share analysis based on their product portfolio, revenue, and manufacturing capacity. In the absence of specific data related to the sales of DME of major China-based manufacturers, calculated assumptions have been made in view of the company’s product portfolio, segment revenue, and regional presence along with demand for products in its portfolio.
 
The report covers a detailed competitive outlook that includes market share and company profiles of key participants operating in the global market. Key players profiled in the report include Jiutai Energy Group, Shenhua Ningxia Coal Industry Group Co., Ltd., China Energy Ltd., Korea Gas Corporation, Guangdong JOVO Group Co. Ltd., Akzo Nobel N.V. and Grillo-Werke AG. Company profiles include attributes such as company overview, brand overview, financial overview (in terms of financial year), business strategies, and recent/key developments.
 
The report segments the global DME market as:
 
Dimethyl Ether Market - Application Analysis
  • LPG blending
  • Aerosol propellants
  • Transportation fuel
  • Industrial
  • Others (Including chemical feedstock, etc.)
Dimethyl Ether Market - Raw Material Analysis
  • Fossil fuel based DME
  • Bio based DME
Dimethyl Ether Market - Regional Analysis
  • North America
  • Europe
  • Asia Pacific
    • China
    • Rest of Asia Pacific
  • Rest of the World


 
 
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