The Di-methyl Ether Market is predicted to reach 5,867.28 kiloton by 2026
The Di-methyl Ether Market is predicted to reach 5,867.28 kiloton by 2026, with a CAGR of 9.10 percent over that time (2021-2026). COVID-19 had a negative impact on the market in 2020. Dimethyl ether (DME) is a propellant that can be used in paint sprays, liquefied petroleum gas (LPG) blending, transportation, and power generation. In the event of a pandemic, demand for DME-based LPG fuel from the automotive sector has declined because people are not travelling as much.
- The market is likely to develop in the short term due to rising demand from the LPG blending application.
- The market's expansion is projected to be hampered by unfavourable conditions resulting from COVID-19's impact.
- Growing research into the use of DME as an alternative fuel is expected to open up new business prospects in the coming years.
- The LPG Blending Segment Will Take Over the Market
Dimethyl ether (DME) can be blended with standard LPG at a pre-specified ratio for a variety of purposes, including liquefied petroleum gas (LPG). DME is being combined with LPG as a fuel additive to improve combustion and reduce hazardous emissions while also lowering reliance on LPG.Currently, DME-LPG blends contain about 15-25 percent DME, with greater ratio blends being investigated because a better blend may necessitate equipment changes. Countries such as China, India, and Indonesia are pushing hard for the adoption of DME as an alternative fuel because they rely heavily on imports to meet their domestic LPG consumption.
On a commercial basis, China is the first country to use DME-blended LPG. Households account for the majority of China's DME demand (for LPG blended cooking gas supply). For this reason, 20 percent DME blended LPG products are utilised in China. India's Minister of Science and Technology and Earth Sciences introduced a customised burner unit for DME-LPG blend as a domestic cooking fuel in October 2020, as part of the country's National Science and Technology Policy.i.e “Aditi UrjaSanch” scheme. The newly designed stoves are expected to operate on 30% DME blended LPG. The country is trying to significantly increase the consumption of DME to reduce the dependence on LPG. According to the Union Budget 2021, the Indian government plans to add another 10 million LPG beneficiaries in the years 2021-22 under the Pradhan Mantri Ujjwala Yojana, which provides low-cost LPG cooking gas connections to women from BPL families. This has resulted in an increase in demand for LPG across the country, which in turn stimulates the economy.
Another Asian country pushing hard for DME mixed LPG to meet its energy needs is Indonesia. DME is less expensive than LPG, which contributes to its increased demand. Air Products and Chemicals and PT Bukit Asam, for example, are forging forward with substantial projects in the country to produce DME from coal for LPG blending purposes.
In the transportation industry, DME mixed LPG is also utilised, but acceptance is minimal. As a result, the aforementioned variables are projected to have a substantial impact on the market in the approaching years.
United States to Drive the Di-methyl Ether Market Growth
In 2018, the United States had a per capita income of USD 59,610, making it the world's largest and most powerful economy. During April-June 2019, the economy grew at a rate of 2.0 percent. Furthermore, the economy grew by 1.9 percent on an annualised basis in the third quarter of 2019. As the year came to a close, there were evidence that the economy was continuing to expand at a moderate pace, aided by a robust labour market.
Due to a drop in consumer spending and business closures, the country's economic growth slowed as a result of the catastrophic COVID-19 outbreak. By 2021, the non-residential construction sector is expected to rise by 7.2 percent, with public and educational building construction expected to grow by 3.9 percent. Healthcare construction is predicted to expand by 3.4 percent, followed by industrial construction, at 0.6%
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