Dimethyl Ether (DME) Market Size & Share, by Raw Materials (Fossil Fuel-Based, Bio-based); Application (Aerosol Propellants, LPG Blending, Transportation Fuel, Power Plant Fuel, Chemical Feedstock) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3501
  • Published Date: Apr 25, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Dimethyl Ether Market size is estimated to reach USD 22 billion by the end of 2035, growing at a CAGR of 9% during the forecast period, i.e., 2023-2035. 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 that are propelling the market growth during the forecast period. Dimethyl ether is blended with LPG as an alternative fuel additive to improve combustion, reduce harmful emissions and reduce reliance on LPG. About 15-25% of dimethyl ether is currently used in dimethyl ether-LPG blends. Better blends may require changes in the equipment used, so higher percentage blends are being considered. Countries such as China, India and Indonesia, which rely heavily on imports to meet their LPG needs, are actively promoting the use of dimethyl ether as an alternative fuel. According to data of China's National Bureau, the cumulative value of LPG production in the first ten months of 2022 was 41,071 kilotonnes, compared with 40,009 kilotonnes in the same period last year. 

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 dimethyl ether. 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 that are anticipated to drive global dimethyl ether demand 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.

Dimethyl Ether Market
Get more information on this report: Request Free Sample PDF

Dimethyl Ether Sector: Growth Drivers and Challenges

Growth Drivers

  • Increasing Demand for Medicated Sprays- The increasing sales of medical sprays especially nasal sprays coupled with their ability to provide immediate relief to affected areas. It 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 that is boosting the demand of the dimethyl ether. For instance, by the end of 2021, nearly 57 suppliers have exported around 310 Saline nasal spray shipments from all over the world.
  • Growing Use in LPG Blending- Dimethyl ether has significant applications in LPG blending owing to its widespread use in household heating and cooking. Dimethyl ether is being collaborated with LPG as an alternative fuel additive to reduce harmful emissions and enhance combustion while reducing the dependency on LPG. Government authorities in various regions such as China, India, and Indonesia are promoting the use of dimethyl ether as a substitute fuel. For instance, the encouragement of renewable energy sources by governments and regional regulatory organizations to reduce CO2 emissions, especially in India and China is anticipated to drive the market during the forecast period.
  • The surge in the Number of LPG Plants – Dimethyl ether has various applications such as chemical feedstock, propellent, aerosol, and transportation gasoline. However, LPG blending is one of the most significant uses of dimethyl ether in recent times. LPG is combined with LPG and used for various purposes such as cooking and domestic & industrial applications. Therefore, a rise in the number of LPG plants is estimated to drive the growth of this market.  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 the oil and gas industry has been growing, clean energy sources have been gaining traction among people. Moreover, increasing demand for electric vehicles is another factor that is estimated to hamper the market growth over the forecast period.
  • High Production Cost
  • Strict Government Regulations

Dimethyl Ether Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

~USD 8 billion

Forecast Year Market Size (2035)

~USD 22 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
Get more information on this report: Request Free Sample PDF

Dimethyl Ether (DME) Segmentation

Raw Materials (Fossil Fuel-Based, Bio-based)

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 in the year 2022 as it is suitable for direct utilization 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.

Application (Aerosol Propellants, LPG Blending, Transportation Fuel, Power Plant Fuel, Chemical Feedstock)

The global market of dimethyl ether is segmented and analyzed for demand and supply by application into aerosol propellants, LPG blending, transportation fuel, power plant fuel, chemical feedstock, and others. The LPG blending segment is anticipated to have the highest market share in the forecast year. This can be found in the increased usage of dimethyl ether with LPG to improve combustion and reduce & protect the emission of hazardous gases. Growing research and development for blending ratio is considered to be the major factor driving the growth of this segment.  To reduce hazardous emissions, enhance combustion, and low the dependency on LPG, dimethyl ether is combined with LPG. For instance, around 15%-25% of dimethyl ether is being used with higher ratio blends.

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

      By Raw Material

  • Fossil Fuel-based
  • Bio-based

      By Application

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

Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.

Customize this Report

Dimethyl Ether Industry - Regional Synopsis

APAC Market Statistics

The market of dimethyl ether in Asia Pacific, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. Backed by the affordability of raw materials, 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 sales 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.

North American Market Forecast

North America is expected to account for the majority of the market share by the end of 2035. Maritime fleets, school buses, and other means of transport use dimethyl ether for LPG blending which is expected to drive the market in this region in the forecast period. It is projected that the region highly uses propane which will drive the industry growth. In North America, dimethyl ether comes in use in various industries such as agriculture, shipping, construction, and others.  

Europe Market Forecast

Furthermore, the region of the European market is anticipated to grow significant rate by the end of 2035 owing to the rapid rise in the automobile industry in European countries. Additionally, the utilization of dimethyl ether in the household also boosts the development and acts as a growth driver of this market. The European Union has set ambitious targets to reduce greenhouse gas emissions, increasing demand for cleaner fuels in the region. Dimethyl ether is a clean burning fuel with low emissions and an attractive alternative to conventional fuels. Increasing demand for clean fuels in Europe is expected to boost the growth of the dimethyl ether market in the region. Regulatory initiatives and incentives are increasing the use of alternative fuels in Europe. Dimethyl ether can be used as a mixture with liquefied petroleum gas (LPG) or as a standalone fuel, making it a versatile alternative to conventional fuels. Increased adoption of alternative fuels in Europe is expected to boost demand for dimethyl ether in the region. 

Research Nester
Dimethyl Ether Market Size
Get more information on this report: Request Free Sample PDF

Companies Dominating the Global Dimethyl Ether Landscape

    • Mitsubishi Corporation
      • SWOT Analysis
      • Regional Presence
      • Recent Development
      • Risk Analysis
      • Key Performance Indicators
      • Financial Performance
      • Key Product Offerings
      • Business Strategy
      • Company Overview
      • Air Products and Chemicals, Inc.
      • Nouryon Chemicals Holding B.V.
      • Shell plc
      • Praxair Technology, Inc.
      • Akzo Nobel N.V.
      • Dongguan JOVO Chemical Co., Ltd.
      • Ferrostaal GmbH
      • Chinese Energy Holdings Limited
      • TotalEnergies Company


In The News


  • Air Products and Chemicals, Inc. has announced a long-term contract with Imperial to supply low-carbon hydrogen for Imperial’s proposed renewable diesel facility. Imperial will use Air Product’s low-carbon hydrogen to produce renewable diesel at Strathcona which substantially reduces greenhouse gas emissions relative to conventional production.
  • To launch a commercial operation of a methanol and dimethyl ether (DME) 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.

Author Credits:  Smruti Ranjan, Rajrani Baghel

  • Report ID: 3501
  • Published Date: Apr 25, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing utilization of dimethyl ether in aerosol propellants along with a 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., 2023-2035.

Lack of oil and gas production and high production cost are the few factors likely to hamper the market growth.

The market in Asia Pacific is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future

The major players in the market are Mitsubishi Corporation, Air Products, and Chemicals, Inc., Nouryon Chemicals Holdings B.V., Shell plc, Praxair Technology, Inc., Akzo Nobel N.V., and so on.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by raw materials, application, and by region.

The fossil fuel segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Dimethyl Ether Market Report Scope

FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.

 Request Free Sample Copy

Have questions before ordering this report?

Inquiry Before Buying