The report “Dimethyl Ether Market by Raw Materials (Coal, Methanol, Natural gas and Bio-based feedstock), by Applications (Aerosol Propellant, LPG Blending, Transportation fuel and Others), and by Region - Trends & forecasts to 2020” defines and segments the DME market with analysis and forecasting of the market size.


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Dimethyl Ether (DME): A projected value of USD 9.7 Billion by 2020, signifying firm annualized growth of 19.65% between 2015 and 2020.

Asia Pacific: The largest market of dimethyl ether

The Asia-Pacific region is the largest market for DME in the world. Jiutai Energy Group (China), China Energy Limited (Singapore) are the leading players in the Asia-Pacific market. DME is majorly used for LPG blending purpose followed by aerosol propellant. In Asia-Pacific region the capacity has gradually increased and it will grow continuously with new plant establishment for the domestic fuel supply. Asia-Pacific is a developing region. Also, being the most populated region globall, the demand for fuel substitutes is the highest in this region. . These factors drive the demand for fuel substitutes such as DME. Major countries which contributed the maximum shares in this market are China, Japan, South Korea, and Indonesia.

“DME produced from Coal: the biggest and bio-based feedstock the fastest growing markets among various raw materials used for the manufacturing of DME “

Most of the DME produced these days is an output of a twostep process in which the first one is methanol generation by using coal or natural gas as a feedstock and the second is methanol dehydration to produce DME. Coal is employed as a feedstock in Asian countries while countries such as Papua New Guinea and Saudi Arabia focus on natural gas reforming to produce methanol and then convert it to DME. Major DME manufacturers include Akzo Nobel N.V. (The Netherlands), Royal Dutch Shell Plc. (The Netherlands), The Chemours Company (U.S.), China Energy Limited (Singapore), Mitsubishi Corporation (Japan), Ferrostal GmbH (Germany), Grillo Werke AG (Germany), Jiutai Energy Group (China), Oberon fuels (U.S.), and Zagros Petrochemical Company (Iran).

Among the various applications of DME, LPG blending represents the largest market for DME. LPG scarcity is a great concern in the countries that have less gas reserves, as they have a very limited choice of replacing LPG with natural gas. DME has emerged as a trustworthy source for such countries to minimize their LPG imports by blending a pre-described amount of DME in LPG without any change in current infrastructure. DME is also implemented as an aerosol propellant under liquefied gases propellant category. The various other applications of DME include its use in the form of chemical feedstock, solvent, refrigerant, and for welding & brazing operations.

DME has the potential to replace diesel in conventional engines with slight modification in fuel injection systems. The potential market for DME as a transport fuel is large as diesel consumption is increasing at a high pace, majorly driven by transportation sector. The global DME market is projected to witness high growth in the next five years due to its clean combustion property. The market is also growing due to the increasing demand of LPG in various countries. Countries emphasizes to minimize the LPG import by blending 20% DME with LPG for household activities.