PUBLISHER: The Business Research Company | PRODUCT CODE: 1925570
PUBLISHER: The Business Research Company | PRODUCT CODE: 1925570
Dimethyl ether (DME) synthesis from carbon dioxide (CO2) refers to a chemical process that converts captured CO2 into dimethyl ether, a clean and efficient alternative fuel, through catalytic hydrogenation. This process offers a sustainable method for utilizing CO2 while helping to reduce greenhouse gas emissions and support the integration of renewable energy.
The main technologies for dimethyl ether (DME) synthesis from carbon dioxide (CO2) are direct synthesis and indirect synthesis. Direct synthesis of dimethyl ether (DME) from carbon dioxide (CO2) refers to a one-step chemical process in which CO2 is converted directly into DME using catalysts, typically through hydrogenation to methanol followed by dehydration, without isolating intermediate products. The feedstocks used include carbon dioxide with hydrogen and carbon dioxide with syngas. These technologies are applied in various uses, such as fuel, aerosol propellant, refrigerant, chemical intermediate, and others, and serve multiple end-users, including automotive, power generation, the chemical industry, and more.
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 affected the dme synthesis from carbon dioxide market by increasing costs of imported catalysts, compressors, and hydrogen handling systems. Fuel production and chemical intermediate segments are most impacted, particularly in asia pacific. Higher tariffs have increased capital costs for synthesis plants. However, tariffs are driving localization of equipment manufacturing and domestic clean fuel infrastructure development.
The dimethyl ether (dme) synthesis from carbon dioxide (co2) market research report is one of a series of new reports from The Business Research Company that provides dimethyl ether (dme) synthesis from carbon dioxide (co2) market statistics, including dimethyl ether (dme) synthesis from carbon dioxide (co2) industry global market size, regional shares, competitors with a dimethyl ether (dme) synthesis from carbon dioxide (co2) market share, detailed dimethyl ether (dme) synthesis from carbon dioxide (co2) market segments, market trends and opportunities, and any further data you may need to thrive in the dimethyl ether (dme) synthesis from carbon dioxide (co2) industry. This dimethyl ether (dme) synthesis from carbon dioxide (co2) 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 (dme) synthesis from carbon dioxide (co2) market size has grown rapidly in recent years. It will grow from $1.2 billion in 2025 to $1.39 billion in 2026 at a compound annual growth rate (CAGR) of 16.2%. The growth in the historic period can be attributed to fossil fuel dependence, fuel emission regulations, methanol to dme pathways, energy diversification efforts, catalytic process development.
The dimethyl ether (dme) synthesis from carbon dioxide (co2) market size is expected to see rapid growth in the next few years. It will grow to $2.51 billion in 2030 at a compound annual growth rate (CAGR) of 15.9%. The growth in the forecast period can be attributed to clean fuel mandates, hydrogen economy growth, renewable energy integration, carbon utilization incentives, transportation fuel decarbonization. Major trends in the forecast period include rising interest in alternative clean fuels, growing use of dme as diesel substitute, expansion of co2 hydrogenation technologies, increased focus on energy security, development of integrated ccu systems.
The increasing demand for clean and sustainable fuels is expected to drive the growth of the dimethyl ether (DME) synthesis from carbon dioxide (CO2) market. Clean and sustainable fuels are energy sources that produce minimal environmental pollution and are derived from renewable or low-carbon resources, ensuring long-term availability without depleting natural resources. This demand is rising due to environmental concerns, as industries and consumers aim to reduce greenhouse gas emissions, combat climate change, and lessen the ecological impact of traditional fossil fuels. Dimethyl ether synthesis from CO2 contributes to clean and sustainable fuels by converting waste CO2 into a low-emission, renewable alternative that reduces dependence on fossil fuels. For example, in September 2023, according to the U.S. Energy Information Administration, nationwide biofuels production capacity-including renewable diesel, biodiesel, ethanol, and other biofuels-stood at 23 billion gallons per year, reflecting a 6% increase in total capacity compared to January 2022.
Companies in the DME synthesis from CO2 market are focusing on advanced catalytic conversion technologies to enhance conversion efficiency and reduce carbon emissions. These technologies use highly efficient catalysts to accelerate chemical reactions, enabling the conversion of CO2 into valuable fuels like DME with lower energy consumption. In November 2025, Godavari Biorefineries Limited, an India-based bio-based manufacturing company, partnered with the Institute of Chemical Technology (ICT) to launch a pilot project converting industrial CO2 emissions directly into DME. This clean-burning, low-emission fuel serves as an eco-friendly alternative to LPG and diesel and functions as a chemical feedstock for various industrial uses. The initiative reduces greenhouse gas emissions, supports a circular economy, and aligns with India's energy transition and rural development goals.
In April 2024, the Council of Scientific and Industrial Research (CSIR) partnered with Bharat Heavy Electricals Limited (BHEL) to develop indigenous technology for capturing and converting CO2 into DME, which can be blended with LPG. This collaboration aims to support India's net-zero goals by advancing sustainable carbon capture and utilization technologies that transform CO2 emissions into a valuable, low-emission fuel.
Major companies operating in the dimethyl ether (dme) synthesis from carbon dioxide (co2) market are Sinopec Limited, BASF SE, Linde plc, Air Liquide S.A., Johnson Matthey plc, Air Products and Chemicals Inc., Toyo Engineering Corporation, Nippon Gases Co. Ltd., Haldor Topsoe A/S, TNO, Proman AG, Mitsubishi Gas Chemical Company Inc., Oberon Fuels Inc., Real Carbon Technology Private Limited, Winspiration Energy and Engineering Pvt. Ltd., Dimeta B.V., Grillo-Werke AG, Carbon Recycling International hf, Thyssenkrupp Uhde (Uhde GmbH), Liquid Wind AB, Eni S.p.A., TotalEnergies SE
Asia-Pacific was the largest region in the market in 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the dimethyl ether (dme) synthesis from carbon dioxide (co2) 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 (dme) synthesis from carbon dioxide (co2) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The dimethyl ether (DME) synthesis from carbon dioxide (CO2) market consists of revenues earned by entities by providing services such as carbon capture and utilization (CCU) services, catalyst development and optimization, process design and engineering services, technology licensing and consulting, and project development and operation services. The market value includes the value of related goods sold by the service provider or included within the service offering. The dimethyl ether (DME) synthesis from carbon dioxide (CO2) market also includes sales of carbon monoxide, higher alcohols, formic acid, and light olefins. 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 (DME) Synthesis From Carbon Dioxide (CO2) Market Global Report 2026 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 (dme) synthesis from carbon dioxide (co2) 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.
Where is the largest and fastest growing market for dimethyl ether (dme) synthesis from carbon dioxide (co2) ? 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 (dme) synthesis from carbon dioxide (co2) 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.
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