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Dimethyl Ether (DME) Market to Rear Excessive Growth During 2022

Press Release   •   Jan 19, 2018 02:15 EST

Dimethyl Ether (DME) is an ether which has the largest application in chemical industry. It is produced using fossil fuels, methanol, and biomass. However, the most prominent raw material used in producing DME is coal. Having various properties similar to Liquefied Petroleum Gas (LPG) it is being considered as an excellent alternative to the traditional fuel. Many countries are moving towards using dimethyl ether, reducing their dependency LPG. Various plans are underway to access DME as an alternative fuel in vehicles. Companies producing DME are also using raw materials from natural organic waste, hence, this is also expected to help in reducing carbon footprints. Various major market players are also entering into a partnership to enhance DME production and evaluate fuel performance and viability.

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Moreover, stringent regulations by the government in various countries is also one of the major factors driving the demand for dimethyl ether. Regions with the lack of LPG accessibility are moving towards using DME. New fuel engines based on DME are also being developed by manufacturers.

According to the latest report compiled by Transparency Market Research (TMR), the global dimethyl ether (DME) market is expected to witness strong growth. The market is estimated to register 11.5% CAGR during the forecast period 2017-2022. It is also estimated to bring in US$ 7,488.7 million revenue by the end of 2022.

The global dimethyl ether (DME) market is segmented on the basis of raw material, end use, and region. On the basis of raw material, the market segments include methanol based DME, coal based DME, bio based DME, and natural gas based DME. Among these, coal based DME is expected to witness impressive growth during the forecast period 2017-2022. Based on the end use, dimethyl ether (DME) is expected to be largely used as the domestic-sector fuel during the forecast period 2017-2022.

Region-wise, the market is segmented into North America, Europe, Latin America, Japan, Asia Pacific Excluding Japan (APEJ), and the Middle East and Africa (MEA). North America is expected to emerge as the largest market in the global dimethyl ether (DME) market during 2017-2022. Various companies, especially in North America are planning to use DME as an alternative to LPG in urban fleets and commercial vehicles. Moreover, on-going improvements in vehicle emission technology and increase in adoption of bio-based fuel are also driving the growth of DME in North America.

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The scarcity of LPG in various regions is one of the major concerns, hence, the demand for DME is rising. DME is considered as the high-performance and clean fuel, hence, it is being extensively used in diesel engines. The automobile industry is also moving towards the use of DME, as it eliminates particulate exhaust emissions, thereby saving the high cost of diesel particulate filters. The automobile industry is also moving towards using DME blended with LPG or DME as standalone as it is considered as a cleaner energy source. With the rise in demand, the production of DME is also increasing. Companies are increasing investments in research and development activities to produce DME in an efficient manner. Countries are also moving towards using DME in order to reduce emission and fulfill increasing demand for cost-effective and clean fuel.

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