Liquefied Petroleum Gas (LPG) Market size to grow by USD 61.19 billion from 2022 to 2027, Driven by the rising need for cleaner fuel - Technavio
NEW YORK, March 23, 2023 /PRNewswire/ -- The global liquefied petroleum gas (LPG) market size is estimated to increase by USD 61.19 billion from 2022 to 2027. The market's growth momentum will progress at a CAGR of 3.81% during the forecast period. The rising need for cleaner fuel is significantly driving market growth, and technological advances to make the use of LPG convenient and cost-effective are emerging trends in the market.
Discover some insights on market size historic period (2017 to 2021) and Forecast (2023 to 2027) before buying the full report -Request a sample report
What's New? -
Special coverage on the Russia-Ukraine war; global inflation; recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession
Global competitiveness and key competitor positions
Market presence across multiple geographical footprints - Strong/Active/Niche/Trivial - Buy the report!
Liquefied Petroleum Gas (LPG) Market - Segmentation Assessment
Segment Overview Technavio has segmented the market based on source (natural gas liquid and crude oil), end-user (residential, petrochemical, industrial and commercial, transport, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
The market share growth of the natural gas liquid segment is significant for the growth of the global LPG market during the forecast period. Liquefied Petroleum Gas is derived from natural gas liquid (NGL). It is a clean and effective energy source used for transportation, industrial applications, cooking, and heating. Demand for NGL has increased as a result of the growing demand for LPG, particularly in the residential market. The NGL production and refining capacity also needs to be increased, as well as the creation of new extraction technologies to meet the increasing demand. Hence, the development of new extraction and refining technologies, along with the expanding availability of NGL and augmentation in demand for the NGL segment, is anticipated to drive the growth of the market during the forecast period.
By geography, the global liquefied petroleum gas (LPG) market is segmented into APAC, North America, Europe, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global liquefied petroleum gas (LPG) market.
APAC is estimated to contribute to 42% of the global LPG market growth during the forecast period. The growth can be attributed to factors such as the increasing demand for LPG from sectors such as residential and petrochemical. China, India, and Japan are the major contributing countries to the LPG market in the APAC region. The companies with production bases in Taiwan and South Korea have switched to LPG as feedstock. This is because the products compete on a marginal basis with naphtha. Approximately 58% of all US propane shipments traveled to Asian countries between April and November 2020. Hence, factors such as rising urbanization, a growing middle-class population, and pro-user government policies are expected to drive market growth during the forecast period.
For insights on global, regional, and country-level parameters with growth opportunities from 2017 to 2027 - Download a Sample Report
Global Liquefied petroleum gas (LPG) market ? Vendor Analysis Vendor Landscape - The global liquefied petroleum gas (LPG) market is fragmented with the presence of several global as well as regional vendors. A few prominent vendors that offer liquefied petroleum gas (LPG) in the market are Abu Dhabi National Oil Co., Air Liquide SA, Bharat Petroleum Corp. Ltd., BP Plc, Chevron Corp., Exxon Mobil Corp., Hindustan Petroleum Corp. Ltd., Idemitsu Kosan Co. Ltd., Indian Oil Corp. Ltd., Kuwait Petroleum Corp., OQ SAOC, Reliance Industries Ltd., Repsol SA, Saudi Arabian Oil Co., Shell plc, SHV Holdings, Sinopec Shanghai Petrochemical Co. Ltd., TotalEnergies SE, UGI Corp., and Valero Energy Corp. and others.
Vendor Offerings -
Abu Dhabi National Oil Co. - The company offers Liquified Petroleum Gas (LPG) through its subsidiary ADNOC Distribution.
Air Liquide SA - The company offers Liquified Petroleum Gas (LPG) for forklifts, heating, and cutting.
Bharat Petroleum Corp. Ltd. - The company offers Liquified Petroleum Gas (LPG) under its brand Bharatgas.
Liquefied Petroleum Gas (LPG) Market ? Market Dynamics
Leading Drivers -
The rising need for cleaner fuel is driving the Liquefied Petroleum Gas (LPG) market growth during the forecast period. LPG is a clean and effective fuel becoming more and more acknowledged with the rising demand for cleaner energy. By 2025, it is anticipated that the demand for clean energy sources will increase to over 120 million tons, driving market growth. The residential sector is expected to be a major driver of the growth since consumers look for cleaner and more effective energy solutions for their homes. The movement to use cleaner fuels for vehicles continues to gain traction. Hence, the transportation sector is also anticipated to adopt LPG in increasing numbers. Thus, factors like the increasing demand for cleaner fuel in the residential as well as transportation sectors are anticipated to drive the market growth of the LPG market during the forecast period.
Key Trends -
Technological advances to make use of LPG convenient and cost-effective is a leading trend in the Liquefied Petroleum Gas (LPG) market. LPG is being acknowledged as an efficient, easily accessible, and tradable fuel across the world. Several technological developments are carried out globally to make the use of LPG convenient and cost-effective. For instance, in 2018, 12 white papers were submitted, which included developments such as a new type of co-generation technology. The technology is designed particularly for light-commercial and residential markets by Enviro Power. The technology is affordable, easy to install and maintain, cost-efficient, provides backup power and generates electricity with a smaller carbon footprint when compared to electricity from the US grid. Hence, technological developments to make LPG cost-effective are a leading trend that drives demand for the market in focus during the forecast period.
Major challenges -
The availability of alternative fuels for residential end-user is a major challenge that may impede market growth during the forecast period. Currently, a sizable portion of the population, particularly in developing nations, views conventional fuels like kerosene, charcoal, coal, wood, animal dung, and rice husks, which are available for sale in small affordable quantities, as viable, accessible, and affordable alternatives. Consumers in developing nations hesitate to bear the cost of refilling LPG and prefer to use traditional fuels over LPG. Piped CNG and LNG are the other modern alternative options. Piped natural gases provide a continuous supply of gas to customers. Moreover, consumers are relieved of the hassles of booking, refilling, and replacing bulky LPG cylinders. Hence, the availability of various alternative fuel options will hinder the growth of the market during the forecast period.
The predicted growth of the liquefied petroleum gas (LPG) cylinder market size from 2021 to 2026 is USD 610.4 million at a progressing CAGR of 6.3%. One of the major factors driving growth in the liquefied petroleum gas (LPG) cylinder market is the growing use of LPG in many applications.
The butane market size is expected to increase by USD 12.75 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 3.45%. The rising demand for LPG will drive the butane market growth during 2021-2025.
Liquefied Petroleum Gas (LPG) Market Scope
Growth momentum & CAGR
Accelerate at a CAGR of 3.81%
Market growth 2023-2027
USD 61.19 billion
YoY growth 2022-2023 (%)
APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution
APAC at 42%
US, China, India, Japan, and Germany, Canada, Mexico, Italy,Spain, India, Japan, Australia, and South Korea
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled
Abu Dhabi National Oil Co., Air Liquide SA, Bharat Petroleum Corp. Ltd., BP Plc, Chevron Corp., Exxon Mobil Corp., Hindustan Petroleum Corp. Ltd., Idemitsu Kosan Co. Ltd., Indian Oil Corp. Ltd., Kuwait Petroleum Corp., OQ SAOC, Reliance Industries Ltd., Repsol SA, Saudi Arabian Oil Co., Shell plc, SHV Holdings, Sinopec Shanghai Petrochemical Co. Ltd., TotalEnergies SE, UGI Corp., and Valero Energy Corp.
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.
Exhibit 167: Saudi Arabian Oil Co. - Product / Service
Exhibit 168: Saudi Arabian Oil Co. - Key offerings
12.16 Shell plc
Exhibit 169: Shell plc - Overview
Exhibit 170: Shell plc - Business segments
Exhibit 171: Shell plc - Key news
Exhibit 172: Shell plc - Key offerings
Exhibit 173: Shell plc - Segment focus
12.17 TotalEnergies SE
Exhibit 174: TotalEnergies SE - Overview
Exhibit 175: TotalEnergies SE - Business segments
Exhibit 176: TotalEnergies SE - Key news
Exhibit 177: TotalEnergies SE - Key offerings
Exhibit 178: TotalEnergies SE - Segment focus
13.1 Scope of the report
13.2 Inclusions and exclusions checklist
Exhibit 179: Inclusions checklist
Exhibit 180: Exclusions checklist
13.3 Currency conversion rates for US$
Exhibit 181: Currency conversion rates for US$
13.4 Research methodology
Exhibit 182: Research methodology
Exhibit 183: Validation techniques employed for market sizing
Exhibit 184: Information sources
13.5 List of abbreviations
Exhibit 185: List of abbreviations
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
The ministère des Ressources naturelles et des Forêts has decided to prohibit access to the forest in lands in the domain of the State and close roads for public interest for the following seven (7) areas, effective immediately.
Here is the location...
Noble Corporation plc ("Noble") today announces that the persons listed below (the "PDMRs") have conducted transactions in the A ordinary shares of Noble each with a nominal value of USD 0.00001.
Further details are set out in the notifications...
Shaw Pipeline Services ("SPS") announced today that it has been acquired from Shawcor by a US-based investor group which includes Achieve Capital LLC and members of the current SPS management team.
"Today's announcement is an exciting new chapter...
The Citizens Utility Board on Friday alerted Ameren Illinois and Commonwealth Edison (ComEd) customers of new electric supply prices as of June 1, and warned consumers to beware of bad deals peddled by alternative suppliers this summer....
Congress is set to vote on the Save Our Gas Stoves Act, which would block a proposed Department of Energy regulation that would result in longer cooking times and the loss of many valued gas stove features....