Rising consumer preferences coupled with growing environmental concerns shift for less hazardous and improved quality is likely to boost the overall dimethyl ether (DME) market. Dimethyl ether is the colorless organic compound. Its continuous industry growth is expected to bring the key changes in automobile market. The market will experience change usually by replacing gasoline, diesel, LPG and kerosene by dimethyl ether over the forecast period. Moreover, the compound’s clear burning property is the major factor likely to drive the market.
Constantly growing automobile industry in china will drive the dimethyl ether demand over the forecast period. Also, Easy availability of coal reserves in china will provide benefits to the regional market. Moreover, there are certain environmental regulations set by government in the region which will impact the DME development positively. These regulations are mainly against the harmful emission which is estimated to drive the overall market.
Demand-supply scenario in the particular regions affects the prices of DME. Replacing diesel, applicable as an aerosol propellant, power generation and LPG by blending are the chief uses of the DME. The major use of the compund is also in regions which has lack of LPG accessibility. For the promotion purposes of DME, key producers are taking initiatives which will augment dimethyl ether demand over the forecast period.
A fuel engine has been developed by AB Volvo recently. These engines are majorly based on DME in alliance with European Union. There are different technologies required in production of DME production. One of the key technologies is the use of fuel injection system. It also requires huge investment and is further expected to emerge as the key concern in the worldwide market. Although, low performance for long term use of DME is likely to hamper the market growth.
In addition, DME also requires huge development for infrastructure. These developments are mainly for the purpose of distribution. Augmenting demand for DME in several potential countries are projected to provide new opportunities to the market participants. On the basis of raw material, the overall market is segmented into bio-based, natural gas, coal and methanol.
Overall market for DME application is segmented into power generation, LPG blending, aerosol propellant and others. Being the most dominant regional market, Asia Pacific will account for the maximum growth over the coming years. China consumes more than 85% of the worldwide demand for DME.
LPG has emerged as the major application. Although, scarcity of LPG is several countries containing less gas reserves is the major concern. These regions have limited choice for replacement of LPG with natural gas. To minimize the LPG imports, DME has emerged as the trustworthy source in the market. Blending a pre-described amount of DME attributes to the LPG imports. Implementation of DME is also in aerosol propellant and under liquefied gases propellant category.
Dimethyl ether market also finds its applications in welding& brazing operations, chemical feedstock and refrigerant. With slight modification in fuel injection systems, DME could further replace diesel in conventional engines. In addition, Continuous increase in diesel consumption will impact the DME market as the transport fuel. Owing to DME’s rising of consumption at a high pace, the overall industry is expected to be chiefly driven by the transportation sector. Furthermore, due to clean combustion property of DME, the market is likely to undergo high growth over the forecast period. Rising demand for LPG in several countries will assist in raising the demand. Blending of 20% DME with LPG for the purposes of household activities will assist in growing demand.
In the recent times, there have been numerous DME plant announcements; this is expected to bridge the gap between potential DME demands. In addition, this is also assist in persisting its supply. In addition, DME industries long term growth is projected to be driven by its applications as a fuel for power generation and the diesel substitute. For development of DME as the diesel substitute, several regulatory bodies are emphasizing on the novel R&D initiatives. Furthermore, this will also expand DME on the commercial scale.
Due to Unavailability of export infrastructure and trading norms of DME, the compund is rarely traded among the countries. Several DME manufacturers are operating their plant at less operating rates instead of having huge plant capacities. These limitations are projected to be lifted by beneficial governmental efforts by 2018. This is anticipated to majorly impact the countries like Papua New Guinea, China and Saudi Arabia.
Japan, South Korea, India and Indonesia are the regions projected to undergo considerable growth. North America and Europe led the market and are further projected to experience substantial growth over the forecast period. To meet the fast growth in domestic DME demand in several countries like Tobago, Sweden, Trinidad and Egypt are projected to attract attention of the key industry players. This will majorly impact the development of DME manufacturing.
Worldwide market for DME is segmented into ENN Group Company, AKzo Nobel N.V, Grillo-Werke AG, Korea Gas Corp, and Oberon fuels, The Chemours Company, Jiutai Energy Group, Royal Dutch Shell Plc., Zagros Petrochemical Company, China Energy Limited and Methanex Corp. Two step processes such as generation of methanol by using coal and second one production of DME by methanol dehydration is the cost of DME produced currently. Countries such as Saudi Arabia focus and Papau New Guinea are focusing on reforming natural gas to manufacture methanol which further converted to DME. In addition, coal is utilized as feedstock is several Asian countries.
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