Dimethyl Ether Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Dimethyl Ether (DME) Market Companies and is segmented by Application (Propellants, LPG Blending, Fuel, and Other Applications), Source (Natural Gas, Coal, and Bio-based Products), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for Dimethyl Ether (DME) Market in volume (kilotons) for all the above segments.

Dimethyl Ether Market Size

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Dimethyl Ether Market Summary
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Study Period 2019 - 2029
Market Volume (2024) 4.92 Million tons
Market Volume (2029) 7.48 Million tons
CAGR (2024 - 2029) 8.76 %
Fastest Growing Market North America
Largest Market Asia Pacific

Major Players

Dimethyl Ether Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Dimethyl Ether Market Analysis

The Dimethyl Ether Market size is estimated at 4.92 Million tons in 2024, and is expected to reach 7.48 Million tons by 2029, growing at a CAGR of 8.76% during the forecast period (2024-2029).

COVID-19 negatively impacted the market, and considering the pandemic scenario, the demand for DME-based LPG fuel from the automotive segment decreased as people were not traveling frequently. However, after the easing of lockdowns, the industry picked up, and the fuel demand has increased worldwide.

  • Over the short term, the growing demand for the LPG blending application will drive the market's growth.
  • High costs for altering current infrastructure to use DME and increasing EV use can act as a restraint for the market.
  • Growing research for using DME as an alternative fuel and an under-established market will likely create opportunities for the market in the coming years.
  • Asia-Pacific is likely to dominate the market studied during the forecast period with robust demand for fuel, LPG, and others.

Dimethyl Ether Market Trends

This section covers the major market trends shaping the Dimethyl Ether Market according to our research experts:

LPG Blending Segment to Dominate the Market

  • Liquefied petroleum gas (LPG) is one of the significant applications of dimethyl ether (DME), which can be blended with traditional LPG at a pre-specified ratio for many applications.
  • DME is blended with LPG as an alternative fuel additive for enhancing combustion, reducing hazardous emissions, and reducing dependency on LPG. Currently, around 15-25% of DME is utilized in DME-LPG blends, with higher ratio blends being researched, as a better blend may require equipment changes for usage.
  • Countries like China, India, and Indonesia, are aggressively pushing for the use of DME as an alternate fuel, as these countries are highly dependent on imports to meet their local LPG demand.
  • According to the National Bureau of Statistics of China, the cumulative value of liquefied petroleum gas production in the first ten months of 2022 accounted for 41,071 kilotons, compared to 40,009 kilotons during the same period in the previous year.
  • In India, LPG consumption was 2.2 million metric tons (MMT) in April 2022. In 2021-2022, about 90% of LPG was consumed by households, 8% by industrial sectors, and 2% by vehicles in the country.
  • Indonesia is another Asian country aggressively pushing for DME blended LPG for its energy needs. Companies, such as Air Products and Chemicals and PT Bukit Asam, are moving forward with significant projects in the country to produce DME from coal for LPG blending applications.
  • North America is estimated to be the fasting growing region in the global market. In North America, the United States is expected to be the largest market expected to drive demand in the forecast period.
  • DME is used for LPG blending that is in Propane autogas in vehicles. According to the Propane Education and Research Council, there are nearly 260,000 on-road LPG vehicles with certified fuel systems in the United States. Many are used in fleet applications, such as school buses, shuttles, and police vehicles.
  • According to the U.S. Energy Information Administration, the consumption of LPG in the year 2021 was 1387.32 thousand barrels/day.
  • Therefore, the factors above are expected to significantly impact the market in the coming years.
Dimethyl Ether Market: Monthly Liquefied Petroleum Gas Production , in Kilotons, China, March 2022 - October 2022

Asia-Pacific to Dominate the Market

  • Asia-Pacific holds the largest consumption share of dimethyl ether (DME) from various end-use applications such as LPG blending, propellants, fuels, and others. In Asia-Pacific, China has a major demand share, followed by Japan, South Korea, and India, among others.
  • China is the first country to start using DME-blended LPG on a commercial scale. The majority of China's DME demand is from households (for LPG blended cooking gas supply). In China, 20% of DME blended LPG products are used for this purpose.
  • According to the BP Stats, consumption of oil-based fuel in Asia-Pacific accounted for 184.21 exajoules in 2021, compared to 174.17 exajoules in 2020.
  • According to the Petroleum Planning and Analysis Cell, as of April 2022, LPG bottling capacity across the northern region of India amounted to around 6.8 million metric tons per annum. Overall, the bottling capacity across the country stood at around 21.5 million metric tons per annum.
  • According to the METI (Japan), the production volume of liquified petroleum gas (LPG) in Japan accounted for 3.15 million metric tons in 2021, compared to 3.04 million metric tons in 2020.
  • Thus, the demand for DME is expected to increase during the forecast period in the region due to the factors mentioned above.
Dimethyl Ether (DME) Market - Growth Rate by Region, 2022-2027

Dimethyl Ether Industry Overview

The dimethyl ether market is partially consolidated, with the top five players accounting for a significant share. Some of the key players in the market include KOREA GAS CORPORATION, ZPCIR, Jiutai Energy Group, Mitsubishi Corporation, and Nouryon (not in any particular order).

Dimethyl Ether Market Leaders


  2. Nouryon

  3. Mitsubishi Corporation.

  4. ZPCIR

  5. Jiutai Energy Group

*Disclaimer: Major Players sorted in no particular order

Dimethyl Ether Market Concentration
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Dimethyl Ether Market News

  • In January 2022, Air Products and Chemicals, Inc., with Indonesian coal miner Bukit Asam and energy company Pertamina, started constructing a new plant that converts coal into dimethyl ether (DME) with an investment of USD 2.3 billion.
  • In January 2021, Mitsubishi Corporation announced that 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, started commercial production of dimethyl ether (DME) from December 2020 with an annual production capacity of 20 kilotons of DME.

Dimethyl Ether Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Drivers

      1. 4.1.1 Growing Demand from LPG Blending Applications

    2. 4.2 Restraints

      1. 4.2.1 High Costs for the Alteration of Current Infrastructure to Use DME

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Price Scenario

  5. 5. MARKET SEGMENTATION (Market Size in Volume)

    1. 5.1 Application

      1. 5.1.1 Propellants

      2. 5.1.2 LPG Blending

      3. 5.1.3 Fuel

      4. 5.1.4 Other Applications

    2. 5.2 Source

      1. 5.2.1 Natural Gas

      2. 5.2.2 Coal

      3. 5.2.3 Bio-based Products

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      2. 5.3.2 North America

        1. United States

        2. Canada

        3. Mexico

      3. 5.3.3 Europe

        1. Germany

        2. United Kingdom

        3. Italy

        4. France

        5. Rest of Europe

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. Saudi Arabia

        2. South Africa

        3. Rest of Middle-East and Africa


    1. 6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 DME-AEROSOL

      2. 6.4.2 Grillo-Werke AG

      3. 6.4.3 Jiutai Energy Group


      5. 6.4.5 Mitsubishi Corporation

      6. 6.4.6 Nouryon

      7. 6.4.7 Oberon Fuels, Inc.

      8. 6.4.8 PCC Group

      9. 6.4.9 Shell plc

      10. 6.4.10 The Chemours Company

      11. 6.4.11 ZPCIR

    5. *List Not Exhaustive

    1. 7.1 Growing Research for Use of DME as an Alternative Fuel

    2. 7.2 Under Established Market Offers Huge Potential for DME Growth

**Subject to Availability
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Dimethyl Ether Industry Segmentation

Dimethyl ether (DME), also known as methoxymethane, is an organic compound with the formula CH3OCH3. The dimethyl ether market is segmented by application, source, and geography. By application, the market is segmented into propellants, LPG blending, fuel, and other applications. The market is segmented by source: natural gas, coal, and bio-based products. The report also covers the market size and forecasts for the dimethyl ether market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (kilotons).

LPG Blending
Other Applications
Natural Gas
Bio-based Products
South Korea
Rest of Asia-Pacific
North America
United States
United Kingdom
Rest of Europe
South America
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa
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Dimethyl Ether Market Research FAQs

The Dimethyl Ether Market size is expected to reach 4.92 million tons in 2024 and grow at a CAGR of 8.76% to reach 7.48 million tons by 2029.

In 2024, the Dimethyl Ether Market size is expected to reach 4.92 million tons.

KOREA GAS CORPORATION, Nouryon, Mitsubishi Corporation., ZPCIR and Jiutai Energy Group are the major companies operating in the Dimethyl Ether Market.

North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Dimethyl Ether Market.

In 2023, the Dimethyl Ether Market size was estimated at 4.52 million tons. The report covers the Dimethyl Ether Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Dimethyl Ether Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Dimethyl Ether (DME) Industry Report

Statistics for the 2024 Dimethyl Ether (DME) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Dimethyl Ether (DME) analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Dimethyl Ether Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)