Dimethyl Ether (DME) Market

Dimethyl Ether (DME) Market Size, Share, Trends, Growth, and Industry Analysis, By Raw Materials (Methanol, Natural gas, Coal, Bio-based feedstock), By Application (Aerosol Propellant, Transportation Fuel, LPG Blending, and Others) Regional Analysis and Forecast 2032.

Chemical & Material | April 2024 | Report ID: EMR00787 | Pages: 250

Global Dimethyl Ether (DME) market is predicted to reach approximately USD 12300.62 million by 2032, at a CAGR of 9.8% from 2024 to 2032.


The global market for Dimethyl Ether (DME) is experiencing significant growth due to its wide range of applications and environmentally friendly features. DME, a clean-burning alternative to conventional fossil fuels, is derived from sources such as natural gas, coal, or biomass. It is commonly used as a propellant in aerosol sprays, a refrigerant, and a transportation, cooking, and heating fuel. Its minimal emissions make it a popular choice for industries and individuals looking to decrease their environmental impact. Moreover, DME's ease of storage and transportation makes it appealing across different industries.

Over the past few years, the global Dimethyl Ether industry has seen significant growth due to rising concerns about the environment and the increasing need for sustainable energy options. The transportation sector, in particular, has become a major user of DME because it can be used in diesel engines and has the potential to lower harmful emissions. Moreover, the chemical sector has recognized DME as a valuable raw material for making different chemicals, which has further increased its demand.


Global Dimethyl Ether (DME) report scope and segmentation.

Report Attribute


Estimated Market Value (2023)

USD 5302.81 Million

Projected Market Value (2032)

USD 12300.62 Million

Base Year


Forecast Years

2024 – 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- Based on By Raw Materials, By Application, & Region.

Segments Covered

By Raw Materials, By Application, & By Region.

Forecast Units

Value (USD Million or Billion), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032.

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others.

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.


Global Dimethyl Ether (DME) dynamics

The global Dimethyl Ether (DME) market is impacted by various factors, such as changing consumer preferences for cleaner energy and strict environmental regulations to reduce greenhouse gas emissions. Governments worldwide are increasingly focusing on combating climate change, leading to a greater push for alternative fuels like DME that have lower carbon footprints than traditional fossil fuels. This has led to increased investments in DME production facilities and infrastructure, driving market expansion.

Furthermore, advancements in technology and innovation are key factors influencing the dynamics of the DME market. Ongoing research and development aim to enhance DME production processes, increase efficiency, and broaden the scope of applications. A notable example is the progress in biomass conversion technologies, enabling the production of DME from renewable sources, making it a more attractive sustainable energy choice. Collaborations between industry and government entities are also promoting innovation and fuelling the uptake of DME in different sectors. However, challenges such as fluctuating raw material prices, limited distribution infrastructure, and competition from other alternative fuels remain key considerations for market participants.


Global Dimethyl Ether (DME) drivers

  • Environmental Regulations and Sustainability Initiatives

The growing global concern for the environment and the need to reduce greenhouse gas emissions is leading to an increased demand for cleaner energy sources such as Dimethyl Ether (DME). Governments around the world are enacting policies to encourage the use of alternative fuels in order to combat climate change. DME, which has low emissions and the potential to replace traditional fossil fuels, is poised to take advantage of these efforts. Therefore, there is a rising trend towards the incorporation of DME in different industries, especially in transportation and heating, where its environmentally-friendly characteristics provide a convincing argument.

  • Technological Advancements and Innovation

The continuous progress in DME production technologies is leading to increased efficiency and cost savings, which in turn is broadening the market's potential. Innovations like better catalysts, process enhancements, and innovative raw material sources are improving the viability and scalability of DME production. For instance, the advancement of biomass-to-DME conversion methods allows for the generation of DME from sustainable sources, reducing reliance on fossil fuels. Furthermore, ongoing research into expanding the range of applications for DME, such as using it as a blending agent in LPG or as a hydrogen carrier in fuel cells, is creating new opportunities for market growth.



  • Infrastructure Challenges

The limited distribution infrastructure for DME is a big obstacle to the market's growth. Unlike traditional fuels, DME needs specific storage and transportation facilities that are not readily found in many areas. This lack of infrastructure makes it tough for DME to be widely adopted, as businesses and consumers run into logistical issues and increased costs. It's crucial to address these infrastructure gaps in order to fully unleash the potential of the DME market and smoothly integrate it into current energy systems.

  • Competitive Pressure from Alternative Fuels

The market for Dimethyl ether (DME) has rivals in the form of other fuel options like liquefied natural gas (LNG), compressed natural gas (CNG), and hydrogen. These alternatives provide comparable environmental advantages and have the backing of well-developed infrastructure and distribution systems. Additionally, changes in crude oil costs can impact how competitive DME is when compared to traditional fuels, thus influencing its market share. To stay ahead, producers of DME must prioritize cutting costs, fostering innovation, and implementing strategies that set them apart within the realm of alternative fuels.



  • Expansion of Renewable DME Production

The growing interest in renewable energy sources presents a significant opportunity for the DME market. Advancements in biomass-to-DME conversion technologies enable the sustainable production of DME from organic feedstocks such as agricultural residues, municipal solid waste, and algae. By leveraging renewable resources, DME producers can enhance their environmental credentials and tap into a rapidly expanding market segment driven by sustainability goals and carbon neutrality targets.


Segment Overview

  • By Raw Materials

The production of DME depends on various raw materials such as methanol, natural gas, coal, and bio-based feedstock. Methanol is widely used in DME synthesis and contributes significantly to global production. Natural gas is also a key feedstock, especially in regions with abundant gas reserves. Coal is less commonly used but is still prominent in countries with ample coal resources. The use of bio-based feedstocks is on the rise, offering a sustainable option for producing renewable DME from sources like agricultural residues, forestry waste, and organic waste streams. Each raw material offers unique advantages and challenges, influencing the cost, environmental footprint, and regional distribution of DME production facilities.

  • By Application

In various industries, DME is used for aerosol propellant, transportation fuel, LPG blending, and more. As an aerosol propellant, DME offers a cleaner alternative to traditional propellants, improving safety and environmental impact. In transportation, DME is a viable diesel substitute that works well with current infrastructure and engines, reducing harmful emissions. Additionally, DME has the ability to mix well with liquefied petroleum gas (LPG), providing the chance to improve the qualities of LPG for cooking, heating, and industrial purposes. Apart from these main uses, DME is also useful in different industries such as power generation, chemical production, and refrigeration, due to its excellent combustion traits and adaptable properties.


Global Dimethyl Ether (DME) Overview by Region

The Dimethyl Ether (DME) market varies regionally due to factors like access to raw materials, regulations, infrastructure, and economic factors. Regions with plentiful natural gas, like North America and the Middle East, mostly use gas for DME production, giving them a cost and supply edge. On the other hand, countries with abundant coal, such as China and India, are turning to coal-to-DME tech to meet energy needs and lessen dependency on imported fuels.

Moreover, areas with strong renewable energy industries, like Europe and some parts of the Asia-Pacific region, are investigating bio-based materials for producing sustainable DME, in line with environmental objectives. Usage trends differ across regions, with established markets in North America and Europe mainly using DME for transportation fuel and aerosol propellants. Meanwhile, emerging economies in Asia-Pacific are seeing a rise in demand for DME in blending with LPG and industrial uses. Regulatory initiatives aimed at curbing emissions and promoting clean energy sources further shape regional dynamics, with supportive policies driving market growth in certain areas and regulatory hurdles posing challenges in others.



Global Dimethyl Ether (DME) market competitive landscape

Key players in the DME production space include companies such as Mitsubishi Corporation, China Energy Investment Corporation, and Oberon Fuels, among others. These companies leverage their technological expertise, production capabilities, and distribution networks to maintain their competitive positions and expand their market presence. Additionally, strategic alliances, mergers, and acquisitions are prevalent strategies among market participants to strengthen their foothold in the industry and capitalize on emerging opportunities.

Moreover, research and development investments focused on enhancing production efficiency, exploring new feedstock sources, and expanding application areas are key differentiators driving competitiveness in the market. As the demand for clean energy solutions continues to rise, competition intensifies, prompting companies to innovate and differentiate their offerings to meet evolving customer needs and gain a competitive edge in the global Dimethyl Ether market.

Key Players:

  • Mitsubishi Corporation
  • China Energy Investment Corporation
  • Oberon Fuels Inc.
  • Akzo Nobel N.V.
  • Korea Gas Corporation (KOGAS)
  • Grillo-Werke AG
  • Jiutai Energy Group
  • Toyo Engineering Corporation
  • Ferrostaal GmbH
  • Zagros Petrochemical Company
  • Guangdong JOVO Group Co., Ltd.
  • China Energy Technology Holdings Ltd.
  • ENN Energy Holdings Ltd.
  • Air Liquide SA
  • Royal Dutch Shell plc.


Global Dimethyl Ether (DME) Recent Developments

  • April 2022, Nouryon raised DME prices by 30% due to inflation in raw materials, energy, freight, and labor costs. Effective May 1, 2022, the increase applies across all markets and applications.
  • January 2022, Air Products and Chemicals, Inc., along with Indonesian coal miner Bukit Asam and energy company Pertamina, began building a new coal-to-DME plant with a $2.3 billion investment.


Scope of global Dimethyl Ether (DME) report

Global Dimethyl Ether (DME) report segmentation



By Raw Materials

  • Methanol
  • Natural gas
  • Coal
  • Bio-based feedstock

By Application

  • Aerosol Propellant
  • Transportation Fuel
  • LPG Blending
  • Others

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request


  • Available upon request


Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Dimethyl Ether (DME) size and forecast: To identify and estimate the market size for global Dimethyl Ether (DME) market segmented By Raw Materials, By Application, and by region. Also, to understand the consumption/ demand created by consumers between 2024 and 2032.
  • Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for global Dimethyl Ether (DME)
  • Market Influencing Factors: To find out the factors which are affecting the market of global Dimethyl Ether (DME) among consumers.
  • Company Profiling: To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

Global Dimethyl Ether (DME) forecast period is 2024 - 2032.
According to global Dimethyl Ether (DME) research, the market is expected to grow at a CAGR of ~ 9.8% over the next eight years.
The possible segments in global Dimethyl Ether (DME) are based on By Raw Materials, By Application, & by region.
The expected market size for Global Dimethyl Ether (DME) is USD 5302.81 million in 2023.
The major players in the market Mitsubishi Corporation, China Energy Investment Corporation, Oberon Fuels Inc., Akzo Nobel N.V., Korea Gas Corporation (KOGAS), Grillo-Werke AG, Jiutai Energy Group, Toyo Engineering Corporation, Ferrostaal GmbH, Zagros Petrochemical Company, Guangdong JOVO Group Co., Ltd., China Energy Technology Holdings Ltd., ENN Energy Holdings Ltd., Air Liquide SA, Royal Dutch Shell plc.

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