Dimethyl Ether (DME) Market Size & Share, by Raw Materials (Fossil Fuel-Based, Bio-based); Application (Aerosol Propellants, LPG Blending, Transportation Fuel, Power Plant Fuel, Chemical Feedstock) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Growth Drivers

• Increasing Demand for Medicated Sprays- The increasing sales of medical sprays especially nasal sprays coupled with their ability to provide immediate relief to affected areas. It is a reason why people are increasing their use of these medical sprays. Thus, the increasing usage of medicated nasal sprays is the major factor that is boosting the demand of the dimethyl ether. For instance, by the end of 2021, nearly 57 suppliers have exported around 310 Saline nasal spray shipments from all over the world.
• Growing Use in LPG Blending- Dimethyl ether has significant applications in LPG blending owing to its widespread use in household heating and cooking. Dimethyl ether is being collaborated with LPG as an alternative fuel additive to reduce harmful emissions and enhance combustion while reducing the dependency on LPG. Government authorities in various regions such as China, India, and Indonesia are promoting the use of dimethyl ether as a substitute fuel. For instance, the encouragement of renewable energy sources by governments and regional regulatory organizations to reduce CO2 emissions, especially in India and China is anticipated to drive the market during the forecast period.
• The surge in the Number of LPG Plants – Dimethyl ether has various applications such as chemical feedstock, propellent, aerosol, and transportation gasoline. However, LPG blending is one of the most significant uses of dimethyl ether in recent times. LPG is combined with LPG and used for various purposes such as cooking and domestic & industrial applications. Therefore, a rise in the number of LPG plants is estimated to drive the growth of this market.  For instance, by 2030, Indian Oil Corp (IOC) plans to produce 80 million cylinders of LPG each year, an increase of approximately 52%.
• Growing Demand for Electric and Non-Electric Vehicles- In hybrid and electronic vehicles, dimethyl ether is increasingly used. It was observed that nearly 13,34,000 electric vehicles are in use in India, compared to approximately 27,80,50,000 non-electric vehicles.

Challenges

• Lack of Oil and Gas Production -   Since the shortfall of investment in the oil and gas industry has been growing, clean energy sources have been gaining traction among people. Moreover, increasing demand for electric vehicles is another factor that is estimated to hamper the market growth over the forecast period.
• High Production Cost
• Strict Government Regulations