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Dimethyl Ether Market Segmentation by Source (Natural Gas, Coal, and Bio-Based Products); and by Application (Transportation Fuel, Aerosol Propellant, LPG Blending, and Others) – Global Demand Analysis & Opportunity Outlook 2030

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  • November 11, 2020- Gas Technologies LLC, a company based in Michigan, entered a Memorandum of Understanding with Bio Friend Inc. and H&H Worldwide, Inc. for developing fully integrated Renewable Methanol to Dimethyl ether (DME) and Polyoxymethylene (POM) system within the United States.

Global Dimethyl Ether Market Highlights 2022 – 2030

The global dimethyl ether (DME) market is estimated to garner a large amount of revenue and grow at a CAGR of ~10% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to the increasing demand for dimethyl ether for LPG blending, abundant availability of raw materials, and growing expansion of the scope of applications of dimethyl ether.  Along with these, dimethyl ether is a compound that has a low boiling point and no sulfur content, which makes it a great alternative of energy fuels. This in turn is expected to be another crucial factor driving the growth in the upcoming years. Furthermore, growing concerns associated with environment conservation, and the rising need to use environment-friendly fuels and products are projected to offer profitable opportunities to the market in the near future.

Dimethyl Ether Market

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The market is segmented by application into transportation fuel, aerosol propellant, LPG blending, and others, out of which, the LPG blending segment is anticipated to hold the largest share in the global dimethyl ether market. This can be accounted to the rising reliance on LPG imports in several nations around the world, and growing use of dimethyl ether with LPG as an additive fuel to reduce hazardous emissions. For instance, more than 13 million metric tons of LPG was imported into India during the financial year 2019, up from about 11 metric tons in 2018. In addition, the transportation segment is predicted to witness the highest growth over the forecast period owing to the increasing emphasis on the usage of dimethyl ether for transportation as a result of elimination of emission of particulate matter. Moreover, on the basis of source, the segment for natural gas is assessed to grab the largest share over the forecast period, which can be credited to the high usage of natural gas to produce DME for power generation and transportation. 

Major Macro-Economic Indicators Impacting the Market Growth

Refinery Catalyst

The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.

Global Dimethyl Ether Market Regional Synopsis

On the basis of geographical analysis, the global dimethyl ether market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in the Asia Pacific is estimated to witness noteworthy growth over the forecast period on the back of the growing usage of DME for various applications such as aerosol propellant, LPG blending and transportation fuel. Apart from these, increasing manufacturing output of China and high availability of raw materials are also evaluated to boost the region’s market growth in the future. As per the data provided by United Nations Statistics Division, China accounted for about 28.7 percent of the global manufacturing output in 2019, which is more than 10 percent of that in the United States, accounting for more than 16 percent of the world’s total manufacturing output. Additionally, the market in North America is anticipated to gather the largest share during the forecast period ascribing to the robust economic growth, high per capita income and rising use of DME to produce propane Autogas for vehicles.

The global dimethyl ether market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
  • Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis

Market Segmentation

Our in-depth analysis of the global dimethyl ether market includes the following segments:

By Source

  • Natural Gas
  • Coal
  • Bio-Based Products

By Application

  • Transportation Fuel
  • Aerosol Propellant
  • LPG Blending
  • Others

Growth Drivers

  • Increasing Demand for Dimethyl Ether for LPG Blending
  • Growing Expansion of Application Scope of Dimethyl Ether


  • Restrictions on Usage of LPG Blending in Some Countries

Top Featured Companies Dominating the Market

  • Mitsubishi Gas Chemical Company, Inc.
    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis
  • Akzo Nobel N.V.
  • China Energy Limited
  • Royal Dutch Shell PLC
  • Jiutai Energy Group
  • Aestar Co. Ltd.
  • Grillo-Werke AG
  • Ferrostaal GmbH
  • Korea Gas Corporation
  • Zagros Petrochemical Company
  • Gas Technologies LLC


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