Dimethyl Ether Market

Analysis by Raw Material (Fossil Fuel-based, and Bio-based); and by Application (Aerosol Propellants, LPG Blending, Transportation Fuel, Power Plant Fuel, Chemical Feedstock, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033

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Report ID: 3501 | Published On: Feb 08, 2023
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Global Dimethyl Ether Market Size, Forecast, and Trend Highlights Over 2023 - 2033

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.

dimethyl ether market overview
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Global Dimethyl Ether Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

~ USD 7,856 Million

Forecast Year Market Size (2033)

~ USD 21528.5 Million

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 Middle East and Africa)

Global Dimethyl Ether Market: Growth Drivers and Challenges

Growth Drivers

  • 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).

Global Dimethyl Ether Market Regional Synopsis

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.

Market Segmentation

Our in-depth analysis of the global dimethyl ether 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

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Top Featured Companies Dominating the Global Dimethyl Ether Market

    • Mitsubishi Corporation

      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • 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 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.


Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the dimethyl ether market?

Ans: 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.

2) What would be the CAGR of dimethyl ether market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~9% over the forecast period, i.e., 2023 – 2033.

3) What are the challenges affecting the dimethyl ether market growth?

Ans: Lack of oil and gas production and high production cost are the challenges affecting the market growth.

4) Which region will provide more business opportunities for growth of dimethyl ether market in future?

Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.

5) Who are the major players dominating the dimethyl ether market?

Ans: 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.

6) How are the company profiles selected?

Ans: 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.

7) What are the segments in the dimethyl ether market?

Ans: The market is segmented by raw material, application, and by region.

8) Which segment captures the largest market size in raw material segment in the dimethyl ether market?

Ans: The fossil fuel segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.

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