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3. Dimethyl Ether (DME) Market to grow at a CAGR OF 13% from 2013 to 2018

Dimethyl Ether Market report categorizes the global market for DME on the basis of applications, raw materials, and geography; forecasting volumes and analyzing trends in each of the submarkets.

Asia Pacific region has been showing industrial growth. This growth is driven mainly by conventional sources of energy such as fossil fuels .these resources are getting depleted .Hence alternatives are being looked at. One such alternative is Dimethyl ether. Dimethyl ether can be used as a substitute for diesel and it can also be blended with LPG. Thus it has emerged as a major alternative fuel and its demand is expected to grow globally. Asia is a major segment of this market.

Dimethyl Ether Market is produced using  coal, natural gas and methanol. Ultimately DME is produced by dehydrating methanol in the presence of a fixed bed catalyst.Methanol can be procured directly from its producers or it can be produced inhouse.Here methanol is manufactured from coal or natural gas and then dehydrated to give DME.

There is a huge mismatch between the demand and supply of LPG particularly in the Asian countries. This gap canbe  closed by using Dimethyl ether. It can be blended with LPG .Thus it is emerging as a substitute for propane. However there are certain challenges in using Dimethyl ether for blending with LPG. . DME can corrode the rubber sealants used in LPG cylinders or tanks and hence can lead to severe accidents due to gas leakages. Only 20 % of DME can be used for blending. For higher proportions will need a huge change in infrastructure.

Other major application lies as a substitute for diesel in vehicles. With carbon emissions being a major cause for concern , most economies are looking for a substitute for diesel . Hence DME can  be used . It has the same properties as diesel but with lower emissions. Automobile companies are coming up with technological innovations so that DME can be used as a fuel .This will only help to increase the market size. Japan is leading the pack in terms of innovations and many Japanese companies are highly involved in improving the manufacturing processes for DME.

All these factors have contributed to high growth rate for DME market. As mentioned earlier countries like China and Japan are driving this growth . If the major technological innovations materialize and government regulations are favorable then market is estimated to grow at a CAGR of 13 %.

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