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Dimethyl Ether Market Size Worth $ 10.26 Billion by 2027 at 10% CAGR - Report by Market Research Future (MRFR)

Dimethyl Ether (DME) Market Insights and Industry Analysis by Raw Materials (Natural Gas, Coal, Biomass, and Others), by Application (Transportation Fuel, Aerosol Propellant, LPG Blending, and Others), by Region, Competitive Market Size, Share, Trends, and Forecast till 2027

/EIN News/ -- New York, US, June 16, 2021 (GLOBE NEWSWIRE) -- Dimethyl Ether Market Overview:

According to a comprehensive research report by Market Research Future (MRFR), “Dimethyl Ether Market - Information by Raw Materials, Application, and Region - Forecast till 2027” the market revenue is predicted to reach USD 10.26 Billion by 2027 at 10% CAGR.

Market Drivers and Growth Influencers:

The primary driver of the dimethyl ether market in the current environment is the ever-increasing demand for automobiles. As a result, many companies and automobile manufacturers now choose to use higher-quality fuel in their vehicles. As a result, diesel and gasoline use are expected to decline significantly in the coming year. This, in turn, will boost the market's overall growth and provide additional opportunities for proficient evolution. Many prominent factors that favor the growth of the dimethyl ether market include the demand for dimethyl ether, which has several fuel properties that make it desirable for use in diesel engines, increasing demand for LPG blending with DME to lower the overall cost of the mixture, and the demand for renewable energy.

DME is used as an aerosol propellant, allowing vapor state paints or coatings to be sprayed in a pressurized tube. This is expected to increase demand for Dimethyl Ether used in the manufacture of paints and coatings, thereby driving the market's growth over the forecast period. A high rate of adoption, combined with a rising number of LPG plants, is essential to meet the energy needs of an ever-growing population. Additionally, the market is expected to expand during the review period due to the continuous expansion of the automotive sector and manufacturers' move toward renewable energy fuels.

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Competitive Landscape:

Key Players profiled in the report are:

  • Royal Dutch Shell Plc. (The Netherlands)
  • China Energy Limited (Singapore)
  • Mitsubishi Corporation (Japan)
  • Ferrostal GmbH (Germany)
  • Grillo Werke AG (Germany)
  • Jiutai Energy Group (China)
  • Oberon fuels (U.S.)
  • Zagros Petrochemical Company (Iran)

Akzo Nobel N.V. is widely regarded as the industry leader in the dimethyl ether (DME) market. The business, based in the Netherlands, offers its profitable services at an affordable price. Additionally, they are very successful due to their unmatched experience and innovative use of technology in the industry. Apart from that, the Chemours Company performs admirably in the industry. As with Akzo, they are well-known in the industry for their exquisite, creative concepts. However, their pricing strategy is somewhat excessive, which could limit their growth during the forecast period.

Market Restraints:

The majority of people today are worried about environmental problems and therefore opt for cleaner fuel. According to a market study of dimethyl ether, the primary constraint on the market would be the price of automobile-based gasoline. The cost of the same is still very high in the current scenario. As a result, it is reasonable to anticipate that it will continue to grow in the near future. This may have an impact on the overall price of the fuel and cause consumers to abstain from purchasing it.

Dimethyl ether (DME) produces less emissions than other solvents, which improves its applicability in a variety of end-user industries. Due to the fact that dimethyl ether (DME) is less efficient than diesel fuels, this factor can limit its market development. Volatility in raw material prices can pose a significant challenge to manufacturers. Due to the sudden advent of COVID-19, the global financial system collapsed quite dramatically. As a result, if such an occurrence occurs during the forecast period, many people will opt out of purchasing an automobile for their intended use. It can also reduce the normal growth rate of the same in a sequential manner.

Browse In-depth Market Research Report (140 Pages) on Dimethyl Ether (DME):

Market Segmentation

The Dimethyl ether (DME) market can be segmented into two different categories. These are:

Based on Type of Raw Materials, the DME market can be further segmented into two different classes – coal and natural gas. The world's ever-increasing supply of natural gas is considered to be the primary factor driving the sector's growth. Additionally, it can be used for a variety of uses, including propellants, LPG mixing, and aerosol. However, the growth of coal-based applications will accelerate significantly during the forecast period.

Based on Application, the DME market is further segmented into Transportation Fuel, Aerosol Propellant, and LPG Blending Segments. The growth of LPG blending is going to be very sublime, to put it mildly. The primary reason for its emergence will be the growing demand for goods that effectively minimize harmful emissions while running. Due to the widespread development of hazardous substances, the aerosol segment would experience the slowest growth during the forecast era. However, due to their cost-effectiveness, propellant consumption can increase during the same time period.

Regional Overview

The regional segment or section for the Dimethyl ether (DME) market can be segmented into – South America, North America, Europe, Asia, and Middle East & Africa. Among these, the North American region is projected to experience the fastest growth due to increased vehicle use in the United States and Canada. In North America, the United States and Mexico are significant contributors to regional market development, owing to the expansion of offshore and onshore operations, as well as increased innovation. The country's extreme COVID-19 outbreak slowed economic growth, owing to decreased consumer spending and company closures.

Additionally, the European continent could exhibit reasonable growth during the same time. Germany, Russia, and Spain are expected to experience rapid growth in Europe as a result of the enormous demand for Dimethyl Ether in aerosol propellant manufacturing.

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However, Asia will have the highest CAGR rating over this time span, owing to the growing number of car owners in South Korea, India, Japan, China, and other Southern Asian countries. China is the first country to commercialize DME-blended LPG. Households account for the lion's share of China's DME market (for LPG blended cooking gas supply). Indonesia is another Asian country that is promoting DME blended LPG vigorously to meet its energy needs. Asia-Pacific (APAC) offers an advantageous market opportunity for the dimethyl ether industry due to the high availability of raw materials used in manufacturing, which are continuously increasing due to the increased use of DME in a variety of applications such as LPG mixing, aerosol propellant, transportation fuel, and others.

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