Dimethyl Ether (DME) Market Size, Share & Trends Analysis, By Production Process (Methanol Dehydration, Coal Gasification, and Others), Application (Propellants, LPG Blending, Fuel, and Others), End-use (Construction, Automobile, and Others), By Region, Forecast Period 2023 – 2030. (Updated Version Available)

Report ID - MRC_1498 | Pages - 268 | Category - Organic Chemicals

Key Market Overview:

Dimethyl Ether (DME) Market size was valued at USD 5.70 Billion in 2022, registering a CAGR of ­­9.7% during the forecast period (2023-2030), and the market is projected to be worth USD 13.10 Billion by 2030.

Dimethyl ether (DME) is a colorless gas that is used primarily as a fuel in various industries, including transportation, power generation, and household heating. It is produced by the dehydration of methanol, which is produced from natural gas or renewable sources such as biomass. DME has a high cetane number, which means it ignites quickly and burns cleanly, making it an attractive fuel alternative to diesel fuel. It has a lower emissions profile than diesel fuel, producing fewer particulate matter, sulfur oxides, and nitrogen oxides. In addition, DME is also used as a propellant in aerosol products as a refrigerant, and as a solvent in various industries.

How much is the Dimethyl Ether (DME) Market worth ?


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Dimethyl ether (DME) is primarily applied as fuel in various industries, such as transportation, power generation, and household heating. The transportation sector is the largest application segment of DME and is expected to continue to dominate the market due to increasing demand for cleaner fuel alternatives. Moreover, some of the key players in the DME market include Royal Dutch Shell Plc, Mitsubishi Corporation, China Energy Limited, Akzo Nobel N.V., and Grillo-Werke AG.

Market Dynamics:


  • The demand for cleaner fuels is increasing globally, driven by concerns about air pollution, greenhouse gas emissions, and climate change. DME is a clean-burning fuel that produces fewer emissions than diesel fuel, making it an attractive alternative for various industries, including transportation, power generation, and household heating which is boosting the dimethyl ether market growth.
  • Dimethyl ether (DME) is a versatile product that is likely to be blended with liquefied petroleum gas (LPG) in a pre-specified ratio for various applications. This blending of DME with LPG serves as an alternative fuel additive, helping to improve combustion efficiency, reduce harmful emissions, and reduce reliance on LPG. Therefore, serving as one of the major drivers for market growth.


The expected issue of international guidelines by the International Organization for Standardization (ISO) on the use of DME is likely to be considered a restraint for the dimethyl ether market. The ISO guidelines are set standards for the production, transportation, storage, and use of DME, with the aim of ensuring safety and consistency in the global DME market. However, these guidelines could also increase the regulatory burden on the production and use of DME, potentially making it more difficult and costly to comply with these standards.


DME can be used as a feedstock for the production of various chemicals, including olefins and methanol. The growing demand for these chemicals further in the production of plastics, synthetic rubbers, and other chemical products is expected to offer lucrative opportunities to the dimethyl ether market in the chemical industry.

Dimethyl Ether (DME) Report Coverage:

Report Attributes Report Details
Study Timeline 2017-2030
Market Size in 2030 (USD Billion) 13.10 billion
CAGR (2023-2030) 9.7%
By Production Process Methanol Dehydration, Coal Gasification, Biomass Gasification and Others
By Application Propellants, LPG Blending, Fuel, and Others
By End Use Construction, Automobile, Pesticides, Textiles, Food Ingredients, and Others
By Geography North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Key Players Nouryon, Mitsubishi Corporation., Akzo Nobel N.V., Shell, Grillo, Oberon Fuels, Haldor Topsoe, Toyo Engineering Corporation, Merck KGaA, Eurisotop

Market Segmentation:

By Production Process

Based on the production process segment, the market is categorized into methanol dehydration, coal gasification, biomass gasification, and others. Methanol dehydration segment held the highest market share, due to the high efficiency and cost-effectiveness of this production process, which has led to its widespread adoption in the industry. Methanol Dehydration process produces high-purity DME with minimal impurities, making it suitable for a wide range of applications. The purity of the DME produced through this process is important for applications in the chemical industry, where impurities can negatively impact the quality of the final product.

However, the biomass gasification segment is anticipated to register the fastest CAGR in the dimethyl ether (DME) market over the forecast period attributed to the increasing demand for renewable and sustainable energy sources and the growing focus on reducing carbon emissions. Biomass gasification offers several advantages over traditional fossil fuel-based production processes, such as lower carbon emissions, better waste management, and improved sustainability. Therefore, expected to drive the biomass gasification segment in the dimethyl ether market.

By Application

On the basis of application segment, market is segmented into propellants, LPG blending, fuel, and others. The LPG blending segment dominated the dimethyl ether (DME) market in terms of revenue in 2022. This is due to the increasing demand for cleaner and more efficient fuel alternatives, as well as the growing adoption of DME as a blending component by LPG producers and distributors. Moreover, the fuel segment is anticipated to witness significant growth in the dimethyl ether (DME) market over the forecast period due to the increasing demand for alternative fuels and the growing focus on reducing emissions.

By End Use

On the basis of end-use industries, the market is segmented into construction, automobile, pesticides, textiles, food ingredients, and others. The automotive industry held the largest share of the dimethyl ether (DME) market in terms of value. This is attributed to the increasing demand for cleaner-burning fuel alternatives in the transportation sector. The textiles industry segment is expected to register significant growth over the forecast period due to the rising demand for environmentally friendly and sustainable production practices. The textile industry is exploring the use of DME as a solvent for dyeing and finishing processes which is expected to drive the segment over the forecast period in the dimethyl ether market.

By Region

Based on the region, the dimethyl ether (DME) market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. Asia Pacific region dominated the dimethyl ether market in 2022, in terms of revenue. This is due to the growing demand for LPG blending and transportation fuel applications in countries such as China and India. The region is also witnessing a rise in chemical production activities, which is driving the demand for DME as a feedstock. Furthermore, Europe is expected to witness significant growth over the forecast period. This is attributed to the well-established automotive industry and actively promoting of the use of alternative fuels to reduce greenhouse gas emissions. DME is increasingly being used as a clean fuel additive for diesel engines in the region. In addition, Europe is witnessing significant growth in the chemical industry, driving the demand for DME as a raw material for the production of chemicals such as olefins and methanol.

Dimethyl Ether (DME) Market Competitive Landscape:

The dimethyl ether (DME) market is highly competitive comprising numerous players operating in the industry. The players are focusing on strategic initiatives, such as mergers and acquisitions, partnerships, collaborations, new product launches, and capacity expansions to strengthen their market position and expand their global presence.

The following are the major key players operating in the dimethyl ether (DME) market:

Recent Developments

  • In January 2022, Air Products and Chemicals, Inc. constructed a new plant that converts coal into dimethyl ether (DME) in partnership with Indonesian coal miner Bukit Asam and energy company Pertamina. The plant is expected to cost USD 2.3 billion in investment.
  • In January 2021, Caribbean Gas Chemical Limited (CGCL), a joint venture between Mitsubishi group companies including Mitsubishi Gas Chemical Company (MGC), Mitsubishi Corporation (MC), and Mitsubishi Heavy Industries Engineering (MHIENG), and the National Gas Company of Trinidad began commercially producing dimethyl ether (DME) with an annual production capacity of 20 kilotons.

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Dimethyl Ether (DME) Market Size, Share & Trends Analysis, By Production Process (Methanol Dehydration, Coal Gasification, and Others), Application (Propellants, LPG Blending, Fuel, and Others), End-use (Construction, Automobile, and Others), By Region, Forecast Period 2023 – 2030. (Updated Version Available)
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