DI METHYL ETHER MARKET ANALYSIS

The Global Di Methyl Ether is projected to reach around US$ 17.56 Billion by the end of 2030, in terms of revenue, growing at a CAGR of 9.1% during the forecast period (2023-2030).

Global Di Methyl Ether: Growth Drivers

Rapidly expanding end-use Industries-

High demand for di-methyl ether-blended LPG from the Asia Pacific region is primarily fueling the market growth of dimethyl ether. According to the Coherent Market Insights analysis among the Asia Pacific countries, China alone accounts for over 80% of the demand for DME for LPG blending purposes. Moreover, China imports LPG in large volumes to meet the unmet demand from the domestic as well as industrial sectors.

Various manufacturers are investing in R&D to utilize the DME as an alternative fuel to LPG as LPG is highly expensive. So to save the cost and make proper utilization of the DME various manufacturer are investing in R&D. This is expected to fuel the market growth of the dimethyl ether.

Regionally, Asia-pacific dominated the global dimethyl ether market in 2021, reporting 84% market share in terms of revenue, followed by Europe and North America, respectively.

Global Di Methyl Ether: Restraints

Lack of distribution networks is hampering the supply chain-

Less viscosity and lubricity of dimethyl ether is restricting its use across diesel in automobiles. Poor lubricating properties and low viscosity lead to wear and tear in the automotive system. Hence, dimethyl ether as diesel is not compatible with the automotive system. This is expected to hamper the market growth of dimethyl ether.

Lack of distribution networks is hampering the supply chain to meet the rising demand for the product. Thus, due to the lack of proper distribution networks, the product remains unavailable to a large number of users. This is projected to hinder the market growth of dimethyl ether.

Market Opportunity-

Most developed and developing countries around the world have introduced strict regulations for high-emission fuels in the automotive sector. As environmental concerns grow, the development of alternative fuels to conventional fuels is progressing. Demand for dimethyl ether is expected to increase in the automotive market, as dimethyl ether may be used as a propane substitute in liquefied petroleum gas (LPG), which is used as a fuel in both the automotive market and households. The use of dimethyl ether as fuel for gas turbine and diesel engines is also expected to increase during the forecast period.

Rising demand for automobiles from growing economies is another major driver. Moreover, household use of dimethyl ether will encourage market players to launch new products, further propelling the market growth during the forecast period.  

Market Trends-

An increasing number of players in the DME market to expand business presence is a major trend in the market.

Go green is a growing trend in the market. Rising demand for clean fuel due to rising environmental pollution is expected to create enormous demand for dimethyl ether. Increasing oil depletion and growing greenhouse gases emission are other major factors projected to augment the market growth. Moreover, rapid growth in the urban population along with the rapid consumption of ether around the globe is further projected to boost the market growth of the dimethyl ether over the forecast period. Global Di Methyl Ether: Recent Developments

In March 2021, SHV Energy and KEW Technology formed a joint venture called Circular Fuels Ltd. a. The company's objective was to develop a renewable dimethyl ether (rDME) production plant to convert renewable and recycled carbon feedstock into renewable LPG. 

In January 2022, Air Products and Chemicals, together with Indonesian coal mining company Bukit Asam and energy company Pertamina, has begun construction of a new plant to convert coal into dimethyl ether (DME). The investment amount reached US$2.3 billion. 

In January 2021, Mitsubishi Corporation announced that Caribbean Gas Chemicals Limited (CGCL), a joint venture between Mitsubishi Group companies, including Mitsubishi Gas Chemical (MGC), Mitsubishi Corporation (MC), and Mitsubishi Heavy Industries Engineering (MHIENG), and Trinidad National Gas Company, will It started commercial production of dimethyl ether (DME) from December 2020, with an annual production capacity of 20 kilotons of DME. 

 Figure 1: Global Di Methyl Ether Share (%) in terms of Value, By Region, in 2022

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Asia Pacific region dominated the Global Di Methyl Ether in 2022, accounting for an 84% share in terms of value, followed by Europe and North America respectively.

Figure 2: Global Di Methyl Ether Market Share (%) in terms of Value, By Application, in 2022

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On the basis of application in 2022, the LPG blending segment has accounted for the largest market share of 62% in terms of value

Global Di Methyl Ether: Key Companies

Key Companies are China Energy Ltd., Fuel DME Production Co., Ltd., Korea Gas Corporation, Royal Dutch Shell PLC, Akzo Nobel NV, Oberon Fuels, Inc., Grillo-Werke AG, Shenhua Ningxia Coal Industry Group Co., Ltd., E. I. du Pont de Nemours & Co, and Mitsubishi Corporation

COVID-19 Impact on Di Methyl Ether Market

The energy industry, especially the petroleum industry, is one of the most important aspects of the global economy. The coronavirus broke out in China, and the infection gradually spread. The disease has dramatically reduced oil demand and oil prices. People are encouraged to "sit". Due to the rapid increase in the number of new coronavirus infections, we are avoiding travel. While all travel is restricted due to Corona. Increased mobility is expected to reduce oil consumption in the transport sector. Aside from that, reduced fuel consumption due to manufacturing and economic operating restrictions. According to ETEnergyworld, due to the effects of Corona, including comprehensive lockdowns, in oil-consuming countries, global oil production is projected to fall by US$ 15 million to US$ 20 million barrels per day (mbpd). The world's biggest oil consumers like this would also reduce oil consumption of Dimethyl ether consumption. 

*Definition: Dimethyl ether is a colorless and odorless gas with a low boiling point. It is produced from various raw materials such as methanol, coal, biomass, and natural gas. It has no sulfur content which makes it an ideal energy fuel and is widely used across various industries such as petrochemical and chemical as a solvent.