The global dimethyl ether market size is expected to reach USD 8,755.17 million by 2028, exhibiting a CAGR of 10.5% during the forecast period. The rising capacity expansion of DME in several countries such as Japan and China will boost the growth of the market during the forecast period, states Fortune Business Insights, in a report, titled “Dimethyl Ether Market, 2021-2028.” The market size stood at USD 4,001.89 million in 2020.
COVID-19 Impact:
Diminished Crude Oil Demand to Retard Growth during COVID-19
The reduced demand for crude oil due to fluctuations in prices caused by economic disbalance has drastically inhibited the market's growth amid the global pandemic. The travel restriction and work from home culture have dampened the oil demand, thus limiting the market. Moreover, the disruption in the manufacturing industry has further retarded the consumption of dimethyl ether. The massive drop in barrels per day (BPD) has resulted in massive losses for the global oil industry. However, lifted restrictions in some countries will improve the stature of the market in the forthcoming years. Besides, the stable production and demand for oil will contribute positively to the dimethyl ether market share in the forthcoming years.
Market Segments:
LPG Blending to Hold the Largest Share
Based on application, the market is divided into LPG blending, aerosol propellant, transportation fuel, and others. LPG blending is expected to hold the largest share during the forecast period. The high demand for DME is due to its high energy density. The growing application of DME as an aerosol propellant and as a reagent in the manufacture of common compounds such as dimethyl sulfate and acetic acid will boost the segment’s growth.
Geographically, the market is classified into North America, Asia Pacific, Europe, and the Middle East, and Africa.
Driving Factor:
Growing Promotion of DME as Renewable Synthetic Fuel to Aid Dimethyl Ether Market Growth
Topsoe, Mitsubishi, and Total emphasize the promotion of DME as a modern and renewable synthetic fuel, which will aid the expansion of the market. The shift from liquefied petroleum gas (LPG) to DME because of its combustion properties will incite the market's growth. It is a gas at average temperatures and pressures, but it can be liquefied at a moderate pressure. The increasing use of this chemical as aerosol, propellant, chemical feedstock, transportation gasoline, and refrigerant can have a tremendous impact on the dimethyl ether industry. The shortage of LPG will fuel demand for DME, thus fostering market growth. These bulk chemicals can also be made from various raw materials, including methanol, wood, and syngas, thus enabling high production to cater to the energy demand.
Browse Summary:
https://www.fortunebusinessinsights.com/dimethyl-ether-market-104309
