Dimethyl Ether Market Report 2026

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% 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.

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