Bio-Based and Synthetic Dimethyl Ether (DME) Market Size, Growth Factors and Opportunities with 8.5% CAGR value

Bio-Based and Synthetic Dimethyl Ether (DME) Market Size, Growth Factors and Opportunities with 8.5% CAGR value

Global Market Insights, Inc., predicts that global bio-based & synthetic DME market size will be worth more than US$10.8 billion by 2025. Following are some of the major trends driving its consumption.

Biobased and synthetic dimethyl ether is a highly versatile organic compound that finds use in a diverse range of applications, including automotive fuels, electric power generation, industrial processes, and domestic uses such as heating and cooking. The compound has gained wide acceptance across these applications on account of its low carbon footprint.

Akzo Nobel NV, Oberon Fuels, Inc., Mitsubishi Corporation, Royal Dutch Shell PLC, Korea Gas Corporation, and China Energy Ltd. are a few notable DME suppliers. In August 2020, Oberon Fuels expanded the operations team at its Brawley, California-based facility that manufacturers low carbon renewable dimethyl ether (rDME) transportation fuel, indicating the promising investment avenue the industry represents.

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  • Need for alternative transportation fuels

In January 2017, U.S. based truck maker Mac Trucks completed a series of test in collaboration with The New York Sanitation Department and Oberon Fuels on its DME-powered trucks. Biobased and synthetic dimethyl ether can be extensively used in transportation fuel, aerosol propellants, LPG blending, and other industrial processes. A strong demand for aerosol propellants is likely to fuel the product consumption over the next few years.

Aerosol propellants are among the most important raw materials used in cosmetics and personal care, paints and coatings, and pharmaceutical sectors. The abundant availability of fossil fuel resources has created a robust demand for fossil fuel-based dimethyl ether. Recent developments in LPG blending and the need for alternate transportation fuels has garnered the attention of governments as well as the private sector.

  • Favorable regulatory scenario across the globe

Asia Pacific region is expected to be a profitable revenue terrain for dimethyl ether industry in the upcoming years due to the presence of several major DME manufacturers. The rapid growth in urbanization has created a substantial demand for cooking fuel. Asia Pacific countries are focusing on the adoption of clean fuel alternatives. In September 2019, The National Chemical Laboratory (NCL) had announced he inauguration of a new dimethyl ether manufacturing facility in India.

The new project is part of the Indian government’s policy to provide affordable cooking gas with a blend of 20% dimethyl ether in LPG. In July 2017, the Turkmenistan government had disclosed plans to upgrade its domestic chemical gas sector through a series of investments in order to boost the production of dimethyl ether, polyvinyl chloride, nonethylene glycol, and other industrial chemicals.

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  • A positive outlook towards carbon neutrality

Recent advancements in chemical manufacturing technologies have been based around achieving carbon neutrality. Specialty chemical manufacturers have been exploring the scope of dimethyl ether as a sustainable alternative for commercial production of olefins and other chemicals that find wide-ranging uses in industrial processes.

In January 2019, BASF SE had announced several research and development projects for the development of catalysts that can covert synthetic gas into dimethyl ether, which can then be used to manufacture olefins and other compounds in an ecofriendly and sustainable way.

Bio-based & synthetic dimethyl ether market size is highly competitive with key players constituting approximately half the industry share. Some of the major contributors in the market are China Energy Ltd., Shenhua Ningxia Coal Group, Korea Gas Corporation, Toyo, Mitsubishi Corporation, etc.


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