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Asia Pacific Dimethyl Ether Market Size to procure substantial returns from LPG blending applications

Author : Ronak Bora | Published Date : 2019-07-01 

A prominent factor facilitating the commercialization of bio-based and synthetic dimethyl ether market is the increasing proliferation of the product as an alternative transportation fuel. With the growing concerns over energy security, environmental pollution, and future oil supplies, the global population is seeking for non-petroleum-based alternative fuels that would optimize the energy consumption. Owing to its ability to considerably reduce SOx, C0x, and other particulate matter emissions, the potential impact of DME as an alternative high-efficiency ignition fuel is huge compared to other fuel counterparts.

These fuels’ amenability of easily blending with LPG without hampering the resultant byproduct is escalating bio-based and synthetic dimethyl ether market demand. The LPG-DME blend makes it one of the most attractive options of transportation fuel both for petrol as well as diesel engines.

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The eco-friendliness of bio-based and synthetic dimethyl ethers can be majorly given the credit for the market’s remarkable expansion across automotive as well as domestic sectors. Regulatory norms initiated by the government pertaining to minimization of carbon emission has significantly complemented the business landscape in this domain. Growing investments by the automakers in low emission vehicles are also favoring the business landscape. Ford Motors, for instance, is noticeably investing significant capital in the research activities pertaining to advanced internal combustion engines.

Aerosol propellants is a niche application domain contributing significantly toward the global bio-based and synthetic dimethyl ether market share. The relatively low cost, low toxicity, high efficiency, and extensive boiling point and vapor pressure range of DME allows the products’ widespread adoption in aerosol propellants that are deployed across a plethora of end-user industries such as cosmetics, pharmaceuticals, paints & coatings, etc.

In the cosmetic industry, DME as an aerosol propellant finds usage in fragrances, hair sprays, and other similar products. Using dimethyl ether as an aerosol propellant has significant benefits – it provides purity & stability, costs relatively low, has low odor, low toxicity, reduced flammability, and has a wide vapor pressures range. Driven by the fact that it is environmentally friendly, bio-based and synthetic dimethyl ether market share from aerosol propellants is anticipated to increase considerably in the years ahead.

Of the two basic raw materials used, fossil fuels dominated the bio-based and synthetic dimethyl ether market in 2018, on account of the massive natural gas recoverable reserves availability that can be utilized to manufacture products for a plethora of applications in aerosol propellants, LPG blending, and transportation fuels. Fossil-fuel based DME also finds deployment in numerous industrial applications such as solvent extracting agents, blowing agents for insulation panels, refrigerants, fuel for welding & cutting, etc.

In essence, the fossil fuel-based DME industry is projected to amass substantial gains by 2025, driven majorly by the abundant availability of natural gas subject to technological advancements attributed to extensive investment in R&R programs in the oil & gas industry.

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Speaking on the regional spectrum, it is rather overt that Asia Pacific market led by China and India holds a prominent position in the global bio-based and synthetic dimethyl ether industry. The growing population of China and the extensive product usage for domestic purposes are the two major grounds influencing the regional market growth prospects.  In addition to this, the expanding production base with extensive capacities is also allowing Japan to stand as a strong contender in the APAC bio-based and synthetic dimethyl ether market.

Bio-based and synthetic dimethyl ether is a fuel with minimum lubrication property. Due to this, traditional injection systems and fuel delivery cannot be used in conjunction with it. Though this compatibility issue is acting as a major hindrance to growth trajectory of the market, however, oscillating crude oil price trends which is pushing the consumers to opt for a substitute, is providing lucrative business opportunities for bio-based and synthetic dimethyl ether market. Some of the prominent industry players include Akzo Nobel NV., China Energy Ltd, Korea Gas Corporation, Mitsubishi Corporation, and Royal Dutch Shell PLC.

 

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About Author

Ronak Bora

Ronak Bora

A graduate in Electronics Engineering, Ronak writes for Fractovia.org and carries a rich experience in digital marketing, exploring how the online world works from a technical and marketing perspective. His other areas of interest include reading, music, and sport. He can be contacted at- [email protected] | https://twitter.com/RonakBora26

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