The dimethyl ether (DME) market size is poised to exceed USD $11 billion by 2024 according to a new research report by Global Market Insights Inc.
Increasing product demand as an alternative to conventional fuels is one of the major factors propelling global DME market share over the projected timeframe. It is extensively used in liquefied petroleum gas (LPG) blending, as the resultant fuel possesses similar characteristics with LPG. LPG is an essential domestic fuel in various applications including cooking and heating. Furthermore, approximately 65% of the DME produced across the globe is used in LPG blending. This trend will subsequently boost industry growth by 2024.
China is the largest LPG producer, supplier and consumer, and hence plays a vital role in the global DME market share. In addition, the rapidly increasing population in Asia Pacific countries, particularly China and India, has significantly propelled domestic fuel demand. Furthermore, industry players in the region has elevated their production capacities, which in turn will drive the global DME market size by 2024. After dehydration, methanol can be converted to DME, which can be used in heavy-duty applications, such as trucks and ships, as a diesel substitute. Methanol also improves combustion proficiency along with minimizing the emissions including carbon monoxide. Increasing awareness along with government legislation towards clean fuel usage in household activities and the transportation industry will positively influence the business growth over the projected period.
Read more about the use of DME in heavy-duty trucks in the article "Regionally-produced clean fuel."
DME is a fuel with minimum lubricative characteristics, therefore, conventional fuel delivery and injection systems are not companionable with it. This fact may obstruct the global DME market size by 2024. Oscillating crude oil price trends, results in increasing LPG prices. This pushes the LPG substitute demand such as DME. For instance, the International Organization for Standardization (ISO) had related standards towards products used as a LPG substitute in 2012, which has brought new growth prospects for the industry participants.
Key insights from the report include:
- Global DME market size is projected to reach USD $11.97 billion by 2024, with estimated gains at 9.9% CAGR.
- Fossil fuel based DME market share is projected to expand at over 8% CAGR in terms of volume. However, strict government legislations regarding clean fuel may hinder the industry growth for the segment.
- Bio-based dimethyl market size is forecast to experience highest gains at over 11% CAGR over the projected timeframe. Rising awareness accompanied with escalating clean fuel demand across transportation and domestic applications will stimulate the business growth by 2024.
- In 2015, the global DME market share for aerosol propellants generated revenue more than USD $1 billion. Relatively low cost, stability and purity, extensive boiling point and vapor pressures range, low odor, low toxicity, efficiency and versatility, flammability and ecofriendly characteristics makes the product desirable for its use as aerosol propellants.
- The global DME market size for transportation fuel is estimated to witness highest growth over 14% CAGR by 2024. Stringent government norms towards minimizing carbon emissions produced from automotive will complement industry growth over the forecast timeframe.
- In 2015, North America, led by the U.S., was valued at over USD $300 million. Rising product acceptance in the region owing to low emissions traits is the major factor contributing the regional dimethyl ether market size.
- In 2015, Asia Pacific, mainly led by China, dominated the global dimethyl ether market share. Growing population in India and China along with escalating product usage across domestic purposes were the prominent growth factors.
- In 2015, the global DME market share was competitive. Some of the industry share contributors are Akzo Nobel NV., Korea Gas Corporation, China Energy Ltd, Royal Dutch Shell PLC and Mitsubishi Corporation.