LPG Market: Global Industry Analysis, Size, Share, Growth, Trend, and Forecast 2024-2030

LPG Market Overview:

Liquified petroleum gas (LPG) is a non-renewable energy source, which is extensively used in home and industrial applications as a portable, clean, and non-toxic energy source. It's made up of flammable hydrocarbon gases and volatile hydrocarbons like propane, butane, and isobutane, and it's kept in steel vessels, big gas cylinders, and tanks. LPG burns easily in the air and produces more heat energy than natural gas. It also has a number of other advantages, such as being clean-burning, producing no soot, having readily regulated flame temperatures, and having a low sulfur content, making it ideal for heating, cooking, and automotive applications. In addition, LPG is less expensive than other traditional fuels since the majority of its energy is converted to heat, and it can be transported and stored. This all advantages are equally responsible in the growth of LPG market.

 

 

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LPG Market Dynamics:

Growing Awareness of LPG across the Globe:

 

Increased awareness of the benefits of using LPG as a fossil fuel alternative, along with increased adoption of a clean energy source among individuals in established and developing nations, are expected to boost the global liquefied petroleum gas market growth through the forecast period. In addition, technological advancements, along with an increase in government attempts to educate rural populations on how to replace traditional cooking fuels such as coal, wood, and kerosene with LPG, are expected to contribute significantly to the market's growth. In addition, the growing population, urbanization, and demand for LPG as an auto emission gas are expected to propel the LPG market growth.

 

Growing Adoption of LPG across the Globe:

 

LPG has risen to prominence in the commercial and residential sectors as a viable alternative to traditional fuel sources such as wood and coal for heating and cooking. However, when compared to other fuels such as wood and coal, it might be attributed to numerous advantages such as easy accessibility, non-toxic, clean, convenient, portable, and cost-effectiveness. The spike in population in regions such as Africa, Asia Pacific, and Central and South America is expected to fuel demand in the LPG market during the forecasted period, as individuals in those regions use LPG as cooking fuel. For example, In India, liquefied petroleum gas is used for approximately 60% to 75% of domestic tasks, such as heating and cooking.

 

LPG market growth is being driven by rising vehicle gas usage, along with large semi-urban and rural populations in Africa, Latin America, and Asia-Pacific. The indigenous people in these locations use this substance as cooking fuel. For example, over 80% of all home households in India, utilize LPG as cooking fuel. Government schemes (such as the Pradhan Mantri Ujjwala Yojna) and initiatives to wean people off hazardous cooking fuels like firewood and coal, such as streamlining subscription processes and payments, cylinder delivery, and cylinder subsidies, have resulted in increased adoption of the gas mix as a dome.

 

However, high installation costs associated with liquefaction process technology and equipment are expected to hamper the LPG market growth throughout the forecast period.

 

Growing Environmental Concerns across the Globe:

 

The growing environmental concerns are driving the LPG market across the globe. When compared to typical fossil fuel options, LPG emits far less carbon. As a result, LPG has gained popularity as a clean and efficient energy source in a variety of industries. LPG is being more widely used in a variety of industries, including agriculture, commercial, and manufacturing. Because it is used for heating and cooking, it has seen a large increase in residential applications. It's also being investigated as a possible substitute to conventional fuels, reducing oil dependency and greenhouse gas emissions. In addition, the market's growth is expected to be aided by its use in the petrochemical and car industries. These factors are expected to fuel the LPG market growth through the forecast period.

 

LPG Market Segment Analysis:

By Source, the LPG Market is segmented into Refiners, Associated Gas, and Non-Associated Gas. The Refiners segment dominated the market share with 54.1% in 2023. Refineries are one of the most important sources of various gases production. An increase in the number of refinery factories and plants along with growing refining capacity, particularly in Saudi Arabia, Brazil, India, and China, is likely to boost product supply through the forecast period.

 

 

By Application, the LPG Market is segmented into Automobile fuel, Residential, Commercial, Industrial, and Others. The Residential segment dominated the market share with 39.1% in 2023. The segment's growth has been fueled by promising government subsidies and initiatives to promote the product as a viable alternative to traditional fuels like wood and coal. Due to a little impact on ozone depletion, liquefied petroleum gas is also replacing chlorofluorocarbon and hydrofluorocarbon as a refrigerant. This has resulted in increased application potential in the residential segment, particularly in the areas of ventilation and heating, in addition to cooking.

 

LPG Market Regional Insights:

The European region has dominated the market with a 76.3% share in 2023. LPG demand in residential and commercial applications is expected to increase significantly throughout the Europe region. The growing adoption of LPG in the Automobile industry also driving LPG Market growth in Europe. For example, according to the European LPG Association, there are over 47 million LPG-powered vehicles in Europe, accounting for around 7.1% of the passenger car fuel mix.

 

In addition, liquefied petroleum gas is gaining traction in the region's construction, food & beverage, manufacturing, residential, agriculture, and transportation industries, owing to government initiatives aimed at reducing carbon emissions and the European Union's goal of becoming climate neutral by 2050, which is expected to boost the LPG market in Europe during the forecast period.

 

The Asia Pacific region is expected to witness significant growth at a CAGR of 6.3% during the forecast period. Population growth, plentiful resource availability, and high energy consumption, as well as simple affordability thanks to government LPG cylinder subsidies, have been the key factors driving the regional market growth. This trend is being supported by increased petrochemical capacity in China, Thailand, South Korea, and India.

 

The objective of the report is to present a comprehensive analysis of the Global LPG Market to the stakeholders in the industry. The report provides trends that are most dominant in the Global LPG Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the global market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Global LPG Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Global LPG Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the global market.

 

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Global LPG Market. The report also analyses if the Global LPG Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Global LPG Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Global LPG Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Global LPG Market is aided by legal factors.

 

LPG Market Scope:

LPG Market
Market Size in 2023	USD 157.48 Bn.
Market Size in 2030	USD 247.97 Bn.
CAGR (2024-2030)	6.7%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Sources Associated Gas Non-Associated Gas
	By Applications Automobile fuel Residential Commercial Industrial Others
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

LPG Market Key Players:  

• Saudi Aramco (Saudi Arabia)
• Sinopec (China)
• ADNOC (United Arab Emirates)
• CNPC (China)
• Exxon Mobil (US)
• Reliance Industries (India)
• KNPC (Kuwait)
• Phillips66 (US)
• Bharat Petroleum Corporation Ltd. (India)
• Pemex (Mexico)
• Qatar Petroleum (Qatar)
• Equinor (Norway)
• Chevron (US)
• ConocoPhillips Company (US)
• SHV Energy (NL)
• Valero Energy (US)
• UGI Corporation (US)
• Royal Dutch Shell PLC (UK)