Global Dimethyl Ether Market Size 2022, Growth And Forecast to 2027

The bio-based & synthetic DME market is anticipated to witness exponential growth by 2027 on account of its widespread industrial applications in the automotive, medical, personal care, and pharmaceuticals sectors.

Dimethyl ether (DME) is a colorless gas produced from waste feedstock, fossil fuels, biomass, and methanol. It is a cost-efficient and environment-friendly alternative to diesel as it does not generate particulate emissions. It is considered vital for a circular fuels economy as it is primarily obtained from various waste streams and is a sustainable alternative to many fossil fuels, which has bolstered industry expansion.

Moreover, rising research efforts focused on developing long-term sustainable transport solutions have fostered product adoption in recent years. Notably, industry participants are employing lucrative strategies to gain a competitive edge in developing marketplaces, which has favorably impacted the global business scenario.

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For instance, in June 2021, Oberon Fuels, a leading producer of dimethyl ether (DME) transportation fuel, announced the production commencement of its first renewable DME (rDME) in the United States. Oberon began the production of rDME to leverage the various advantageous features that allow it to store and transport renewable hydrogen at a cheap cost. The move also enabled Oberon to cut transportation emissions while potentially expediting the development of the hydrogen economy.

The bio-based & synthetic DME market has been segmented based on application, raw material, and region. In terms of application, the market has been categorized into industrial, LPG blending, transportation fuel, aerosol propellants, and others.

The industrial sub-segment is projected to witness significant expansion at a CAGR of around 12.4% over the forecast period. Extensive use of DME in various industrial applications as an intermediate in the preparation of a wide variety of organic chemicals and as a catalyst in polymerization processes is likely to boost product demand over the coming years.

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Meanwhile, the others sub-segment is slated to grow at a steady pace over the assessment timeline. Other applications of bio-based & synthetic DME include fuel for welding & cutting, refrigerants, solvent extracting agents, and blowing agents for insulation panels, among others.

From the regional point of view, the North America bio-based & synthetic DME market is expected to surpass a valuation of USD 2.7 billion by 2027. Mounting demand for DME as aerosol propellants in the region is estimated to drive regional market expansion.

The Latin America bio-based & synthetic DME market held a revenue share of over 2.9% in 2020 and is foreseen to progress at a CAGR of approximately 10.4% through the assessment period. Rising demand for LPG blending across LATAM is likely to propel product demand over the review timeframe. The Middle East & Africa bio-based & synthetic dimethyl ether market is set to gain notable traction over 2021-2027 owing to increasing utilization of DME as aerosol propellants in the MEA region.

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