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Published Date: 2017-11-24Number of Pages: 170

Dimethyl Ether (DME) Market (Raw Material - Coal based DME, Methanol based DME, Natural Gas based DME, Bio based DME; End Use - Aerosol Propellant, Domestic-Sector Fuel, Transportation Fuel, Power Plant Fuel, Chemical Feedstock, Refrigerant, Others) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2022

Dimethyl ether (DME), also referred to as methoxymethane, is a colorless gas useful as a precursor to various organic compounds. DME is also considered to be an aerosol propellant, being demonstrated as useful in various fuel applications. Dimethyl ether is also being used in domestic applications such as heating and cooking, and power generation.

Increasing Demand for DME as Non-Petroleum-based Alternative will Spur its Market Expansion

Dimethyl ether is witnessing a significant increase in demand as non-petroleum based alternative over the past few years. Increasingly being considered as clean, high-performance compression ignition fuel, dimethyl ether is gaining immense momentum in diesel engines. DME’s use as a fuel rids particulate exhaust emissions from automobiles, saving significant cost required in employing diesel particulate filters. This factor has spurred demand for dimethyl ether in the transportation sector, particularly across developed regions.

Certain environmental regulations concerning harmful emission from fuels are expected to fuel adoption of dimethyl ether in the near future. Production of dimethyl ether requires huge infrastructure development, mainly for distribution purposes. Rising demand for dimethyl ether in potential markets are likely to pave new opportunities for market players.

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A new research study by Transparency Market Research (TMR) has projected the global dimethyl ether (DME) market to exhibit a CAGR of over 10% throughout the forecast period (2017-2022). Worldwide sales of DME for various end uses are estimated to reach nearly US$ 7,500 Mn by 2022-end.

North America – Largest Market for Dimethyl Ether

Demand for bio-based dimethyl ether is increasing significantly in North America, owing to its low emission characteristics. North America will remain the largest market for dimethyl ether, in terms of revenues. Europe is also anticipated to be lucrative for growth of the dimethyl ether market during 2017 to 2022. In Europe, the automakers are making substantial investments in research and development activities related to DME. For example, Ford Motors has announced an R&D investment for the development of a DME-based internal combustion engine, which would offer environmental benefits similar to that of an electric vehicle.

Demand for DME in Asia-Pacific excluding Japan (APEJ) will continue to be sustained by its excessive use in domestic applications. The market in APEJ is projected to register the second highest CAGR through 2022. In addition, dimethyl ether markets in Japan and Europe will witness a parallel expansion at 11.5% CAGR through 2022.

Refrigerant to be fastest expanding end use of dimethyl ether during 2017-2022

Refrigerant is anticipated to emerge as the fastest expanding end use of dimethyl ether during the forecast period. Revenues from end use of DME as domestic sector fuel will continue to be the largest in the market, followed by its end use as transportation fuel. However, sales of DME as transportation fuel will register a comparatively higher CAGR than as domestic sector fuel through 2022. In addition, sales of DME for end use in chemical feed stock and aerosol propellant will reflect similar CAGRs through 2022, with the latter being more lucrative in terms of revenues.

On the basis of raw material, Coal-based and methanol-based dimethyl ether will continue to be preferred in the market. However, natural gas-based dimethyl ether will ride on a relatively higher CAGR than other raw material-based DMEs through 2022.

Competition Tracking

Leading players in the global dimethyl ether (DME) market are making tremendous investments in programs focused toward evaluation of DME’s viability as an environment-friendly and cost-effective fuel. TMR’s report has identified key players contributing to the market expansion, which include Akzo Nobel NV, Royal Dutch Shell Plc, China Energy Limited, Ferrostaal GmbH, TOTAL S.A., Toyo Engineering Corporation, Praxair, Inc., Grillo-Werke AG, Oberon Fuels Inc., and Guangdong JOVO Group Co., Ltd.

Global Dimethyl Ether (DME) Market: Overview

The global dimethyl ether (DME) market is expected to witness a robust growth attributed to increasing demand for electric power generation and various domestic applications such as cooking and heating. With the increasing number of the smart and electric vehicle in the transportation industry, demand for dimethyl ether will continue to increase. Surge in demand for benign aerosol propellant in the personal care industry is further expected to impact growth of the global dimethyl ether market positively. Moreover, increasing demand for various chemical conversions of the natural gases is further expected to boost demand for the dimethyl ether in the global market.

The report provides in-depth insights on the some important aspects of the global dimethyl ether market and provides information on the growth patterns, factors fuelling growth of the global market, competitive landscape and important segments.

Global Dimethyl Ether (DME) Market: Dynamics

Growth of the global dimethyl ether market is mainly bound to various macro-economic and micro-economic factors. The report reveals that the global dimethyl ether market is mainly driven by the increasing demand for the liquid petroleum gases (LPG), gasoline and diesel. Dimethyl ether is mainly produced by various sources such as natural gases, waste from paper and pulp mills, forest products, coal, dedicated fuel crops and municipal waste like switchgrass and the agricultural by-products. Growing demand to convert the chemicals into natural gases is further expected to rev up demand for the dimethyl ether in the global market.

With the growing adoption of the smart and electronic automotive globally, demand for the fuel and power in the vehicles continue to increase. Increasing sales of the automotive has led to an upsurge in demand for automotive fuel globally. Bound to these factors, demand for dimethyl ether is expected to increase in the automotive industry. Besides transportation industry, demand for the dimethyl ether will continue to increase in the personal care industry attributed to surge in demand for the benign aerosol propellant for enhanced quality of personal care products globally. Dimethyl ether has continued to witness significant demand in the residential industry for generation of the electric power. Moreover, surge in demand for domestic applications such as cooking and heating is further expected to boost growth of the dimethyl ether market.

Global Dimethyl Ether (DME) Market: Segmentation

The global dimethyl ether (DME) Market is segmented as raw materials, end use and region. On the basis of raw materials, the global market is segmented as Coal based DME, Methanol based DME, Natural Gas based DME and Bio based DME. Based on the end user, the global market is segmented as Aerosol Propellant, Domestic-Sector Fuel, Transportation Fuel, Power Plant Fuel, Chemical Feedstock, Refrigerant and Others. By region, the global market is expected to be segmented as North America, Latin America, Europe, Japan, APEJ and MEA.

Global Dimethyl Ether (DME) Market: Competition

Key players operating in the global dimethyl ether (DME) market are Akzo Nobel N.V., Royal Dutch Shell PLC, China Energy Limited, Ferrostaal GmbH, TOTAL S.A., Toyo Engineering Corporation, Praxair, Inc., Grillo-Werke AG, Oberon Fuels and Guangdong JOVO Group Co., Ltd. 


 
 
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