Dimethyl Ether Global Market Report 2026

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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the dimethyl ether market by increasing costs of imported feedstocks, synthesis equipment, and storage infrastructure. These impacts are most evident in fuel blending, aerosol, and refrigerant applications. Asia pacific and europe face higher exposure due to cross border chemical trade. Cost volatility has influenced adoption rates. However, tariffs are encouraging regional production and local fuel supply development.

The dimethyl ether market research report is one of a series of new reports from The Business Research Company that provides dimethyl ether market statistics, including dimethyl ether industry global market size, regional shares, competitors with a 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 scenario of the industry.

The dimethyl ether market size has grown strongly in recent years. It will grow from $6.43 billion in 2025 to $7.04 billion in 2026 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to aerosol industry growth, LPG blending usage, chemical intermediate demand, refrigerant market expansion, fuel diversification.

The dimethyl ether market size is expected to see strong growth in the next few years. It will grow to $10.07 billion in 2030 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to clean fuel policies, emission reduction mandates, alternative fuel adoption, expansion of aerosol products, energy transition initiatives. Major trends in the forecast period include rising adoption as clean fuel alternative, increasing use in lpg blending, growing demand as aerosol propellant, expansion in refrigerant applications, higher focus on low emission fuels.

The increasing use of LPG blends is expected to propel the growth of the dimethyl ether market going forward. LPG blending refers to the process of combining liquefied petroleum gas (LPG), a mixture of propane and butane, with other substances or additives to achieve desired fuel characteristics, enhance performance, or meet regulatory requirements. Dimethyl ether (DME) is commonly blended with LPG to improve combustion properties and reduce emissions in various applications. For instance, in December 2023, according to the Energy Market Authority (EMA), a Singapore-based regulator of the electricity and natural gas industries, natural gas accounted for 92.0% of Singapore's fuel mix in 2022 and was expected to reach 94.3% in the first half of 2023. Therefore, the increasing use of LPG blends will drive the growth of the dimethyl ether market.

Major companies operating in the dimethyl ether market are developing clean fuels, such as renewable dimethyl ether synthesis technology, to support sustainable fuel production and lower carbon emissions. Renewable dimethyl ether synthesis technology refers to the processes used to produce DME from renewable feedstocks such as biomass, municipal waste, or renewable hydrogen and CO2, offering a sustainable alternative to conventional fuels. For instance, in May 2024, Lummus Technology LLC, a US-based provider of process technologies and energy solutions, introduced CDDMESM, a renewable DME technology enhanced through catalytic distillation to address challenges in sustainable fuel production. CDDMESM processes various methanol feedstocks to create renewable DME with high conversion rates, fewer unit operations, reduced utility usage, and lower CAPEX and OPEX. The resulting DME can be blended into LPG or used as a hydrogen carrier, providing an efficient, flexible, and cost-effective solution for sustainable fuel and chemical applications.

In December 2023, Daikin Applied Europe S.p.A., an Italy-based manufacturer of chillers, heat pumps, and air handling units, acquired Brooktherm Refrigeration Ltd for an undisclosed amount. This acquisition aims to enhance Daikin's capabilities in developing industrial HVAC projects and solutions while strengthening its technical expertise to support future innovations, including those involving natural refrigerants. Brooktherm Refrigeration Ltd is a UK-based provider of refrigeration and air-conditioning services for 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, Methanex Corporation, Toyo Engineering Corporation, Haldor Topsoe, Sichuan Lutianhua Co Ltd, Zagros Petrochemical Company, Koch Methanol, LLC, Jiutai Energy Group, Oberon Fuels, Aerosolex, China Energy Investment Corporation, Fuel DME Production Co., Ltd., Kaiyue, Lanhua Sci-tech, Henan Kaixiang, Grillo-Werke AG, Nouryon, Shandong Yuhuang Chemical Co., Ltd., Guangdong JOVO Group Co.

Asia-Pacific was the largest region in the dimethyl ether market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the dimethyl ether market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the dimethyl ether market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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.

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.

Dimethyl Ether Market Global Report 2026- By Type (Anhydrous Diethyl Ether, Stabilized Diethyl Ether), By Raw (Material Natural Gas, Coal, Biomass, Other Raw Materials), By Application (Liquefied Petroleum Gas (LPG) Blending, Industrial, Aerosol Propellant, Transportation Fuel, Other Applications) from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses dimethyl ether market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for dimethyl ether ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The dimethyl ether market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Fuel-Grade Dimethyl Ether; Aerosol-Grade Dimethyl Ether; Refrigerant-Grade Dimethyl Ether; Chemical-Grade Dimethyl Ether; Blended or Specialty-Grade Dimethyl Ether
• 2) By Raw Material: Natural Gas; Coal; Biomass; Other Raw Materials
• 3) By Application: Liquefied Petroleum Gas (LPG) Blending; Industrial; Aerosol Propellant; Transportation Fuel; Other Applications
• Subsegments:
• 1) By Fuel-Grade Dimethyl Ether: Transportation Fuel DME; LPG Blending DME; Power Generation DME
• 2) By Aerosol-Grade Dimethyl Ether: Personal Care Aerosol DME; Household Aerosol DME; Industrial Aerosol DME
• 3) By Refrigerant-Grade Dimethyl Ether: Refrigerant Blend DME; Low-GWP Refrigerant DME
• 4) By Chemical-Grade Dimethyl Ether: Chemical Intermediate DME; Solvent and Extraction DME; Pharmaceutical and Laboratory DME
• 5) By Blended or Specialty-Grade Dimethyl Ether: Bio-DME Blends; Low-Carbon DME; Customized Industrial DME Blends
• Companies Mentioned: Royal Dutch Shell Plc; Mitsubishi Corporation; Korea Gas Corporation; Air Liquide SA; Methanex Corporation; Toyo Engineering Corporation; Haldor Topsoe; Sichuan Lutianhua Co Ltd; Zagros Petrochemical Company; Koch Methanol, LLC; Jiutai Energy Group; Oberon Fuels; Aerosolex; China Energy Investment Corporation; Fuel DME Production Co., Ltd.; Kaiyue; Lanhua Sci-tech; Henan Kaixiang; Grillo-Werke AG; Nouryon; Shandong Yuhuang Chemical Co., Ltd.; Guangdong JOVO Group Co.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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