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US Dimethyl Ether Market Research Report Information By Raw Materials (Natural Gas, Coal, Biomass, Others), By Application (Transportation Fuel, Aerosol Propellant, LPG Blending, Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030.

ID: MRFR/CnM/11830-US | 100 Pages | Author: MRFR Research Team| December 2023

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US Dimethyl Ether (DME) Market Overview

In 2011, the United States had a population of 311.9 million and a GDP of approximately $15,094.0 billion. As a nation with high energy intensity, the per capita energy consumption in the U.S. reached 311.8 million BTU per person in 2011. While the country faces a deficit in Liquefied Petroleum Gas (LPG), it is predominantly covered by natural gas and other alternatives, limiting the potential for Dimethyl ether (DME) as a substitute for propane in LPG. Additionally, the widespread use of hydrocarbon-based aerosol propellants in the U.S. further constrains the scope for DME consumption. Presently, E. I. du Pont de Nemours and Company (U.S.) is the sole producer and user of DME as a feedstock for manufacturing other chemicals. However, the U.S. is gradually expressing interest in developing the DME market as a substitute for diesel.
In 2012, an estimated 12.5 KT (kilotons) of DME was consumed in the U.S. In both scenarios, this consumption volume is projected to reach 18.5 KT by 2018 and 19.9 KT by 2023. The growth rates are anticipated to be a Compound Annual Growth Rate (CAGR) of 7.2% from 2013 to 2018 and 4.3% from 2013 to 2023. A significant portion of DME in the country is utilized for the production of dimethyl sulfate. Moreover, the U.S. has invested in research and development for employing DME as a fuel for heavy vehicles, with plans for a pilot plant to produce 4.5 KT of fuel-grade DME before 2018.

The predominant method of DME production in the U.S. involves using methanol as a feedstock, accounting for nearly 100.0% of the total volume produced in 2012. However, this share is expected to decrease with the initiation of a pilot project by Southern California Gas Co (U.S.), which will utilize natural gas as a feedstock for manufacturing fuel-grade DME. The abundance of natural gas deposits in the country presents an opportunity to bolster its DME production capabilities.

The United States, with its considerable population and high GDP, exhibits a unique energy profile characterized by high per capita energy consumption. While challenges such as LPG deficits and extensive use of hydrocarbon-based propellants limit the immediate scope for DME, the country is gradually exploring its potential as a diesel substitute. The anticipated growth in DME consumption, particularly in chemical production and as a vehicle fuel, indicates a shifting landscape with increased interest and investment in DME-related endeavors in the U.S.

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