In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.
Request InsightsPurchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively. Request Insights
IN THE NEWSAir Products and Chemicals, Inc. has been announced a long-term contract with Imperial to supply low-carbon hydrogen for Imperial's proposed renewable diesel facility.
To launch a commercial operation of a methanol and dimethyl ether (DME) plant in Trinidad and Tobago, Mitsubishi Corporation, Mitsubishi Gas Chemical Company and Mitsubishi Heavy Industries Engineering have joined forces with NGC and Massy Holdings, a joint venture in Trinidad and Tobago, Caribbean Gas Chemical Limited.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~9% |
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Base Year Market Size (2022) |
~ USD 7,856 Million |
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Forecast Year Market Size (2033) |
~ USD 21528.5 Million |
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Regional Scope |
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The global dimethyl ether market is estimated to garner a revenue of ~USD 21,528.5 Million by the end of 2033 by growing at a CAGR of ~9% over the forecast period, i.e., 2023 – 2033. Further, the market generated revenue of ~USD 7,856 Million in the year 2022. The growth of the market is primarily attributed to the expansion of the chemical industry worldwide. For instance, the Indian chemical industry accounted for nearly USD 170 billion in the year 2019 and is anticipated to reach around USD 300 billion by 2025. Furthermore, the surging applications of dimethyl ether in LPG blending, and as a power plant gasoline are some more factors which are propelling the market growth during the forecast period.
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Synthetic dimethyl ether (DME) is used in compression ignition diesel engines as a replacement for diesel. Synthesis gas is produced when hydrocarbons are converted through gasification into odorless and colorless DME. It has a low boiling point and is derived from coal, biomass, and natural gas. Thus, the rising cognizance regarding the various benefits of dimethyl ether in numerous end-use industries, along with the growing rate of industrial production worldwide along are some major aspects which are anticipated to drive global dimethyl ether market growth during the forecast period. For instance, the rate of industrial production in China increased by nearly 4% between July 2020 and July 2022 as compared to the previous year.
Increasing Demand of Medicated Sprays- The increasing sales of medical sprays especially nasal sprays coupled with their ability to provide immediate relief to affected areas is a reason why people are increasing their use of these medical sprays. Thus, the increasing usage of medicated nasal sprays is the major factor which is boosting up the growth of dimethyl ether market. For instance, by the end of 2021, nearly 57 Suppliers have exported around 310 Saline nasal spray shipments from all over the world.
Rising Exports of Aromatic Ethers - According to the statistics by the International Trade Center (Trademap), the value of exports of aromatic ethers in China in the year 2021 was recorded to be USD 133,809 thousands, which was an increase from USD 124,434 thousands in the previous year.
Growing Use in LPG Blending- DME has significant applications in LPG blending owing to its widespread use in household heating and cooking. For instance, encouragement of renewable energy sources by governments and regional regulatory organizations in order to reduce CO2 emissions, especially in India and China is anticipated to drive the market during the forecast period.
Surge in Number of LPG Plants – For instance, by 2030, Indian Oil Corp (IOC) plans to produce 80 million cylinders of LPG each year, an increase of approximately 52%.
Growing Demand for Electric and Non-Electric Vehicles- In hybrid and electronic vehicles, dimethyl ether is increasingly used. It was observed that nearly 13,34,000 electric vehicles are in use in India, compared to approximately 27,80,50,000 non-electric vehicles.
Lack of Oil and Gas Production - Since the shortfall of investment in oil and gas industry has been growing, the clean energy sources have been gaining traction among people. Moreover, increasing demand for electric vehicles is another factor which is estimated to dampen the market growth over the forecast period.
High Production Cost
Strict Government Regulations
The global dimethyl ether market is segmented and analyzed for demand and supply by raw material into fossil fuel-based, and bio-based. Among these segments, the fossil fuel segment held the largest market share by 85% in the year 2022 as it is suitable for direct use in conventional internal combustion engines (ICs) without requiring any substantial alterations. Moreover, the increasing exports of internal combustion piston engines are expected to further augment the segment growth during the forecast period. It has been reported that the US exported internal combustion piston engines worth USD 5,935,305 thousand in the year 2021, which was an increase from USD 4,753,345 thousand in the previous year according to figures from the International Trade Center (Trademap).
The Asia Pacific dimethyl ether market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033 backed by the affordability of raw materials, and rising utilization of dimethyl ether in transportation fuel, and LPG blending. Moreover, government support to expand the chemical industry in the region is further expected to drive the dimethyl ether market in the region during the forecast period. For instance, within the Union Budget 2022-23, the Indian government allocated approximately USD 27 million to the Department of Chemicals and Petrochemicals.
Our in-depth analysis of the global dimethyl ether market includes the following segments:
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By Raw Material |
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By Application |
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FREQUENTLY ASKED QUESTIONS
Increasing utilization of dimethyl ether in aerosol propellants along with growing number of LPG plants are the major factors driving the growth of the dimethyl ether market.
The market is anticipated to attain a CAGR of ~9% over the forecast period, i.e., 2023 – 2033.
Lack of oil and gas production and high production cost are the challenges affecting the market growth.
The market in Asia Pacific held the largest market share of 80% in the year 2022 and expected to provide more business opportunities in the future.
The major players in the market are Mitsubishi Corporation, Air Products and Chemicals, Inc., Nouryon Chemicals Holding B.V., Shell plc, Praxair Technology, Inc., Akzo Nobel N.V., and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by raw material, application and, by region.
The fossil fuel segment captured the largest market size by 85% in the year 2022 and expected to display significant growth opportunities.
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