Global Dimethyl Ether Market is Expected to Reach US$ 8.37 Bn in 2020: Transparency Market Research

Global Dimethyl Ether Market is Expected to Reach US$ 8.37 Bn in 2020: Transparency Market Research
Transparency Market Research has published a new report titled “Dimethyl Ether Market by Raw Material Types (Fossil Fuel Based and Bio Based) for LPG Blending, Aerosol Propellants, Transportation Fuel, Industrial Applications and Other Applications – Global & China Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2020.” According to the report, the DME market in China and across the globe was valued at US$ 4.46 Bn in 2013 and is likely to reach US$ 8.37 Bn in 2020, expanding at a CAGR of 9.4% between 2014 and 2020

Dimethyl ether (DME) is a downstream derivative of methanol and is used in a number of applications such as LPG blending, aerosol propellants, transportation fuel, industrial, and others. LPG blending is the largest application of DME on the global scale. However, the DME market is highly region-oriented, with China alone accounting for over 80% of the global market. Domination of China in terms of production and demand is ascribed to the high demand for LPG –DME blended domestic cooking fuel in the country. China has the largest coal reserves in the world. The country also accounts for the highest coal output every year. Furthermore, China has high coal-based methanol manufacturing capacity in the country. Manufacture of DME from its existing methanol capacity results in lower LPG import burden on China. However, the recent government regulations have banned blending of DME and LPG for domestic use. The country had rapidly expanded DME manufacturing capacities in anticipation of high growth from the LPG blending application. Strict government regulations adversely affected the DME market in China, thereby hampering market growth. Illicit blending of DME in LPG exists in the country. The DME market is experiencing a slowdown of late. It is anticipated to pick up pace after the announcement of clear government directives pertaining to DME-LPG blends.


Fossil fuel based DME is the largest segment in terms of raw materials in the world. Its dominance can be ascribed to China’s dominance in the market. Demand for bio based DME is higher in developed regions such as North America, Europe, Japan and South Korea due to its lower carbon footprint. Aerosol propellants is the major application segment in North America and Europe. Akin to global trends, transportation fuel is the fastest growing application in these regions.
Key players operating in the DME market include China Energy Ltd., Jiutai Energy Group, Shenhua Ningxia Coal Industry Group Co., Ltd., Korea Gas Corporation, Guangdong JOVO Group Co. Ltd. and Akzo Nobel N.V.
The report segments the global DME market as:
Dimethyl Ether Market – Application Analysis
o          LPG blending
o          Aerosol propellants
o          Transportation fuel
o          Industrial
o          Others (Including chemical feedstock, etc.)
Dimethyl Ether Market – Raw Material Analysis
o          Fossil fuel based DME
o          Bio based DME
Dimethyl Ether Market – Regional Analysis
o          North America
o          Europe
o          Asia Pacific
o          China
o          Rest of Asia Pacific
o          Rest of the World

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