For almost two decades, governments and global bodies have been mulling the need for biofuels that can be a feasible replacement for fossil fuels. Consistent research efforts coupled with financial aid from policy makers and oil companies have introduced several biofuel products to the market recently. And, it is on the behest of this trend that the global dimethyl ether market (DME) is expected to soar at 9.6% CAGR (compound annual growth rate) between 2017 and 2025, finds a recent report by Transparency Market Research (TMR).
There are two aspects that support the use of DME in the biofuels industry. One – the lower amount of carbon emissions when burnt, and two – the availability of it both synthetically and through natural resources. With these advantages, it allows end-users to opt for DME from channels that suit best for their requirements, creating multiple growth avenues for the global DME market. TMR analysts predict that the global DME market will reach US$ 9,868.1 million by 2025 riding on the opportunities from biofuel manufacturers.
The competition in the global DME market will predominantly be defined by the ability to provide quality products and capacity to meet growing demand. A fertile battleground, most players will be looking at adopting new technology and roping in a larger workforce for the factory floor and a small pool of strategy makers to stay ahead in the league.
Favorable Policy and Transport Sector to Sustain Demand
As many as 195 countries across the world have signed the Paris Agreement in 2015, an effort to bring down carbon emissions, and eventually strive to control climate change. While every signatory has to play its part, it is the prominent nations like the U.S., India, China, the U.K. France, Germany, etc. that contribute to more than 50% of the total carbon emissions annually. As a result, most of these nations have set stringent targets to bring down their share of carbon footprint, and to achieve them, they have introduced policies that support the use of natural products. One among them is biofuels. It is these favorable policies that will help sustain growth in the global DME market.
On the other hand, the automotive sector too will bestow promise for growth in the coming years. Several car manufacturers across the world are exploring options of hybrid models that run on both diesel and bio-diesel. As efforts to sustain energy requirements from renewable sources gather prominence and receive incentives from government, the demand for DME to make biofuels will grow. It is will be prudent for players in the global DME market to capitalize on every significant opportunity in the biofuels market.
Transparency Market Research
Pharmaceutical and Research Industry to Remain Equally Important
While the DME market gains prominence from the fresh opportunities opened in the biodiesel market, it is important to note that it is pharmaceutical industry and the scientific fraternity that has sustained the demand for decades. With awareness, investments, and improving research infrastructure, it is evident that the volume of research focused on healthcare and pharmaceutical products will increase in the coming years. At the same time, as biotechnology and allied fields gain importance and research activities in these fields too become prominent, the demand in the global DME market will improve.
The key segments of the global DME market include:
Raw Material Type
- Natural Gas
- Aerosol Propellants
- LPG Blending
- Transportation Fuel
- Power Plant Fuel
- Chemical Feedstock