Dimethyl Ether Market Share

APAC Market Insights

Asia Pacific dimethyl ether market is set to account for the largest revenue share of 61% by 2035. Backed by the affordability of raw materials, rising utilization of dimethyl ether in transportation fuel, and LPG blending. Moreover, government support to expand the chemical industry in the region is further expected to drive dimethyl ether sales in the region during the forecast period. For instance, within the Union Budget 2022-23, the Indian government allocated approximately USD 27 million to the Department of Chemicals and Petrochemicals.

In June 2023, India developed its novel DME-fueled tractor on- and off-road applications, marking a new chapter in the country’s alternate sustainable fuel-based transport system. The project was backed by the Science and Engineering Research Board (SERB) and the DME-fueled engines showcased brake thermal efficiency. It generated negligible soot while prominently reducing HC, CO, and CO₂ emissions. India was among the top exporters, valued at USD 7.66 million in 2022 of the world trade of USD 33.8 million, with an outbound CAGR of 5.6%. According to the 2020 NITI report by the Government of India, DME blending with LPG and DME blending with diesel is expected to register a CAGR of 6% between 2023 and 2030. Diesel demand in India is anticipated at 129.8 million tons and DME at 0.32 million tons, with DME’s blending ratio of 5%.

Projected India’s Demand for DME (in million tons)

Source: NITI

Europe Market Insights

The Europe dimethyl ether (DME) market is anticipated to grow at a significant rate by the end of 2035, owing to the rapid rise in the automobile industry in the region. Additionally, the utilization of dimethyl ether in the household also boosts the development and acts as a growth driver of this market. The European Union has set ambitious targets to reduce greenhouse gas emissions, increasing demand for cleaner fuels in the region. Dimethyl ether is a clean burning fuel with low emissions and an attractive alternative to conventional fuels. Demand for clean and alternative fuels in Europe is expected to boost the growth of the dimethyl ether market in the region. Regulatory initiatives and incentives are increasing the use of alternative fuels in Europe.  

Germany was the largest exporter of dimethyl ether in 2022, with outbound trade of USD 8.29 million and accounted for an export share of 24.5%. The growth is underscored by the presence of some of the largest producers in the country, including Ferrostaal GmbH, Grillo WerkeAG, and Shell Deutschland Oil GmbH. The Shell plant at Wesseling is a prominent methanol manufacturer and 99.99% is used for DME.