Dimethyl Ether Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The dimethyl ether market size has grown rapidly in recent years. It will grow from $5.83 billion in 2024 to $6.51 billion in 2025 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to rising demand in aerosol propellants, demand for fuel alternatives in transportation, chemical feedstock demand, growing use In LPG blending, government initiatives and regulations.

The dimethyl ether market size is expected to see strong growth in the next few years. It will grow to $9.47 billion in 2029 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to green energy initiatives, growing demand for electric and non-electric vehicles, expanding industrial applications, rising exports of aromatic ethers. Major trends in the forecast period includes bio-based DME production, technological advancements, innovative advancements, increasing adoption in propellant applications, advanced catalytic technologies.

The anticipated growth of the dimethyl ether market is expected to be propelled by the increasing use of LPG blends. LPG blending involves the combination of liquefied petroleum gas (LPG), comprising a mixture of propane and butane, with other substances or additives to achieve specific fuel characteristics, enhance performance, or meet regulatory requirements. Dimethyl ether (DME) is frequently blended with LPG to improve combustion characteristics and reduce emissions in certain applications. For instance, in December 2023, the Energy Market Authority (EMA), a regulator in Singapore, reported that natural gas accounted for 92% of the country's fuel mix in 2022, with an expected increase to 94.3% in the first half of 2023. This rise in LPG blends is expected to drive the growth of the dimethyl ether market.

The increasing demand for frozen and processed food is anticipated to drive the growth of the dimethyl ether market in the future. Frozen food refers to products that are quickly frozen and kept frozen until needed, while processed food encompasses items that have undergone various mechanical or chemical processes to change or preserve them. Dimethyl ether is utilized in food processing to cool the large quantities of water involved in these processes. For example, in October 2023, Agriculture and Agri-Food Canada (AAFC), a federal department responsible for regulating agriculture and agri-food sectors, reported that exports of processed food and beverage products reached a record high of $54.3 billion in 2022, reflecting a 14.1% increase from 2021. Thus, the rising demand for frozen and processed food is propelling the dimethyl ether market.

Major companies operating in the dimethyl ether market are proactively developing clean fuels, such as ultra-low-carbon molecule products, to provide cleaner alternatives. Ultra-low carbon molecule solutions refer to substances or fuels with a minimal carbon footprint, often derived from renewable sources, aimed at minimizing greenhouse gas emissions and environmental impact. For instance, in April 2022, Suburban Propane, a U.S.-based electric power distribution company, launched Propane + recycled carbon DME (rDME), a blend that enhances the lower emissions of pollutants such as particulate matter, nitrogen oxides (NOx), and sulfur compounds compared to conventional diesel fuels. This contributes to cleaner air and lower carbon benefits, serving as a drop-in replacement for propane engines in various applications without requiring additional investments in equipment and infrastructure. The blend of propane and rDME can be stored and transported using existing LPG infrastructure, helping reduce the emissions profile and meet global climate commitments.

In December 2023, Daikin Applied Europe S.p.A., an Italy-based manufacturer specializing in chillers, heat pumps, and air handling units, acquired Brooktherm Refrigeration Ltd for an undisclosed sum. This acquisition is intended to strengthen Daikin's capabilities in developing Industrial HVAC projects and solutions, while also enhancing its technical expertise in preparation for upcoming innovations, particularly those involving natural refrigerants. Brooktherm Refrigeration Ltd is a UK-based company that offers refrigeration and air conditioning services to commercial and industrial clients.

Major companies operating in the dimethyl ether market are Royal Dutch Shell PLC, Mitsubishi Corporation, Korea Gas Corporation, Air Liquide SA, Merck KGaA, E. I. du Pont de Nemours & Co (DuPont), Akzo Nobel N.V., The Chemours Company, Nouryon Chemicals Holding BV, Methanex Corporation, Sigma-Aldrich, Toyo Engineering Corporation, Haldor Topsoe, Sichuan Lutianhua Co Ltd., Oxea GmbH, Grillo-Werke AG, Zagros Petrochemical Company, Koch Methanol, LLC, Ferrostal GmbH, Jiutai Energy Group, Oberon Fuels, Aerosolex, Vizag chemical, Guangdong JOVO Group Co., Jiangsu July Chemical Co Ltd., Fujian Lyondissolve Chemical Co., Ltd., and Shenhua Ningxia Coal Industry Group Co.

Asia-Pacific was the largest region in the dimethyl ether market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in dimethyl ether (DME) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the dimethyl ether (DME) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The dimethyl ether (DME) market consists of sales of aerosol sprays, wood ether, and dimethyl oxide. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Dimethyl ether (DME), or methoxymethane, is an organic compound represented by the chemical formula CH3OCH3. This colorless gas functions as a valuable precursor to various organic compounds and serves as an aerosol propellant. It is also employed in refrigerant blends alongside other gases such as ammonia, carbon dioxide, butane, and propene.

The primary types of dimethyl ether include anhydrous diethyl ether and stabilized diethyl ether. Anhydrous diethyl ether, commonly known as ethoxyethane or ethyl ether, is an organic compound used as a solvent with narcotic properties. It finds application in the production of cellulose acetate, a type of plastic derived from cellulose. These types of dimethyl ether are produced from raw materials such as natural gas, coal, biomass, and others. Their versatile applications encompass usage in liquefied petroleum gas (LPG) blends, industrial processes, aerosol propellants, transportation fuels, and various other industrial applications.

The dimethyl ether market research report is one of a series of new reports that provides dimethyl ether market statistics, including dimethyl ether industry global market size, regional shares, competitors with dimethyl ether market share, detailed dimethyl ether market segments, market trends, and opportunities, and any further data you may need to thrive in the dimethyl ether industry. This dimethyl ether market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.