Global DME market: 13% CAGR forecast between 2013-2013

Press Release   •   Jul 02, 2013 14:24 BST

The global DME market (Dimethyl ether) is forecast to grow to a volume total of 6,500 kilo tons by 2018, and then to push forward to 11,400 kilo tons by then end of 2023. This would suggest a CAGR growth rate of around 12.9% between 2013 and 2023. The industry will be driven by increased demand from the Asia-Pacific region. Currently, the production facilities for DME are majorly concentrated in China, with a few capacities in Japan, Germany, The Netherlands, and U.S. etc.

China is the world's largest consumer of DME with the highest production capacity around the globe. China consumed more than 90.0% of the global DME demand in 2012. The country is at the front to commercialize the use of DME for blending it with LPG, so as to reduce its reliance on LPG imports. DME consumption in the country is estimated to grow at a CAGR of around 10.6% from 2013 to 2023. The country has intensified its efforts in recent times, so as to reduce its LPG imports, and hence, minimize hard cash expenditure on such imports. After 2018, the growth in expected to be driven by transportation fuel segment, which may grow at a CAGR of over 20.0% after 2018. The country has already started focusing on replacing diesel with DME, which may further reduce emission levels in China.

Dimethyl ether (DME) is an organic compound with molecular formulae CH3OCH3 and a clean burning hydrocarbon fuel with no carbon-carbon bond. It is the simplest ether and is a gas in normal state. It is colorless and non poisonous if inhaled by humans. DME is commercially manufactured by first converting coal or natural gas to syn gas, which is converted to methanol in presence of a catalyst. Methanol is then dehydrated to form DME as an end product. A significant portion of DME is also manufactured by simply dehydrating marketed methanol in order to avoid huge plant establishment cost.

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