Dimethyl Ether Market Size

Dimethyl Ether Market size was valued at USD 8.69 Billion in 2023 and is anticipated to reach USD 25.4 Billion by 2036, registering around 8.6% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of dimethyl ether is assessed at USD 9.38 Billion. Furthermore, the surging applications of dimethyl ether in LPG blending, and as a power plant gasoline are some more factors that are propelling the market growth during the forecast period. Dimethyl ether is blended with LPG as an alternative fuel additive to improve combustion, reduce harmful emissions and reduce reliance on LPG. About 15-25% of dimethyl ether is currently used in dimethyl ether-LPG blends. Better blends may require changes in the equipment used, so higher percentage blends are being considered. Countries such as China, India and Indonesia, which rely heavily on imports to meet their LPG needs, are actively promoting the use of dimethyl ether as an alternative fuel. According to data of China's National Bureau, the cumulative value of LPG production in the first ten months of 2022 was 41,071 kilotonnes, compared with 40,009 kilotonnes in the same period last year. 

Synthetic dimethyl ether (DME) is used in compression ignition diesel engines as a replacement for diesel. Synthesis gas is produced when hydrocarbons are converted through gasification into odorless and colorless dimethyl ether. It has a low boiling point and is derived from coal, biomass, and natural gas. Thus, the rising cognizance regarding the various benefits of dimethyl ether in numerous end-use industries, along with the growing rate of industrial production worldwide along are some major aspects that are anticipated to drive global dimethyl ether demand during the forecast period. For instance, the rate of industrial production in China increased by nearly 4% between July 2020 and July 2022 as compared to the previous year.