Published: Jan, 2018

The analysts of a recent business publication by Transparency Market Research (TMR) have detected a moderately competitive scenario in the global dimethyl ether market, although the vendor landscape is expected to intensify quickly in the near future as the product is gaining popularity as a strong substitute against traditional fossil fuel. The common pledge among several developed and developing economies is to reduce carbon footprint and consequently, the adoption of liquefied petroleum gas (LPG) is multiplying. As more and more players notice that dimethyl ether offers strikingly similar properties as LPG and can be mixed together for applications across various equipment and machinery, the number of stockholders will increase. As of now, the report has identified Toyo Engineering Corporation, Akzo Nobel NV, Guangdong JOVO Group Co., Ltd, Royal Dutch Shell plc, Ferrostaal GmbH, China Energy Limited, TOTAL S.A., Oberon Fuels Inc., Grillo-Werke AG., and Praxair, Inc. as some of the companies who are ahead of the curve in the global dimethyl ether market.

dimethyl ether market


Global Dimethyl Ether Market to be worth US$9,868.1 mn by 2025

During the forecast period of 2017 to 2025, the TMR report has projected the demand in the global dimethyl ether market to expand at a healthy CAGR of 9.6%. In terms of revenue, the market for dimethyl ether is estimated to provide for opportunities worth US$9,868.1 mn by 2025, substantially up from market’s evaluated valuation of US$4,371.1 mn in 2016. In the near future, most of the key players are expected to invest on research and development activities in order to harness the methanol- and natural gas-based dimethyl ether, which is currently commonly produced using coal. In addition to that, strategic collaborations and acquisitions are expected to help the stronger vendors to expand their geographical presence and strengthen their supply network.

Based on raw material type, the TMR report segments the market for dimethyl ether into coal, natural gas, methanol, and others such as bio-based. Application-wise, the market has been bifurcated into aerosol propellants, LPG blending, power plant fuel, transportation fuel, chemical feedstock, and others including running boilers, refrigeration, and production processes that require heating such as manufacturing of ceramics and glass. Geographically, the analysts have highlighted Asia Pacific as the most lucrative region, providing for more than two-third of the total demand in the global dimethyl ether market.

LPG Blending Applications Driving Demand

The increasing usage of dimethyl ether in LPG blending application is the primary driver of the market for the same. Owing to their similarities, the two can be mixed in equal proportions without fiddling with the quality of resultant fuel. The final product is a colorless gas that is now being extensively used by the chemical industries as aerosol propellant. It is easy to warehouse dimethyl ether with the help of moderate pressure, which in turn eliminates the need for high pressure containers needed for LNG and CNG storage. The combination of dimethyl ether and LPG is a clean burning fuel that is non-toxic and offers a strong alternative as renewable fuel. In the near future, it is expected to replace diesel as the traditional transportation fuel. In addition to that, availability of multiple raw material, widespread application, rich coal deposits in Asia Pacific, and growing environmental concerns are some of the other factors augmenting the demand in the global dimethyl ether market.

On the other hand, existing infrastructure alteration and high cost of production to match profitable commercialization are a few restraints holding the prosperity of the global dimethyl ether market. That being said, the vendors of this market stand to gain new opportunities from growing demand alternative fuel in transportation and power sector.

The information presented in this review is based on a Transparency Market Research report, titled, “Dimethyl Ether Market (Raw Material - Coal, Methanol, and Natural Gas; Application - Aerosol Propellants, LPG Blending, Transportation Fuel, Power Plant Fuel, and Chemical Feedstock) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 - 2025.”

Key Segments of the Global Dimethyl Ether Market

Dimethyl Ether Market – Raw Material Type Analysis

  • Coal
  • Natural Gas
  • Methanol
  • Others

Dimethyl Ether Market – Application Type Analysis

  • Aerosol Propellants
  • LPG Blending
  • Transportation Fuel
  • Power Plant Fuel
  • Chemical Feedstock
  • Others

Dimethyl Ether Market – Regional Analysis

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America

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