Butane Market by Application and Geography - Forecast and Analysis 2021-2025

The butane market share 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%.

This butane market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers butane market segmentation by application (LPG, petrochemicals, refineries, and others) and geography (APAC, MEA, North America, Europe, and South America). The butane market report also offers information on several market vendors, including BP Plc, Chevron Corp., China Petroleum and Chemical Corp., ConocoPhillips Co., Exxon Mobil Corp., LAIR LIQUIDE SA, Linde Plc, Royal Dutch Shell Plc, TotalEnergies SE, and Valero Energy Corp. among others.

What will the Butane Market Size be During the Forecast Period?

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Butane Market: Key Drivers, Trends, and Challenges

The advantages of LPG as auto fuel over conventional fuels are notably driving the butane market growth, although factors such as fluctuation in raw material prices may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the butane industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Butane Market Driver

The increasing demand for LPG will drive the butane market growth during 2021-2025. Vehicular emission is one of the major sources of air pollution, specifically in urban areas. To reduce pollution, many governments encourage the use of environment-friendly alternative fuels such as LPG. The LPG-driven vehicles provide mileage better than petrol vehicles with the same mass of fuel. Additionally, these vehicles have a comparatively lower maintenance cost than petrol and diesel-driven vehicles. The switching of normal cars to LPG-driven cars involves a certain initial cost but the running cost of LPG-driven vehicles has proven to be much lower than vehicles driven by petrol or diesel in many regions, and also depends on the government policies prevalent in the region.

Key Butane Market Trend

Rapid industrialization in BRICS will influence the market growth during 2021-2025. Industrialization in Brazil, Russia, India, China, and South Africa (BRICS) economies is accelerating the demand for minerals and chemicals. For instance, in October 2020, Brazilian oil producer Enauta Participacoes SA had a budget to invest 2 billion reais ($356 million) in restoring its portfolio and acquiring new fields. Enauta produces 15,000 barrels of equivalent oil per day in the third quarter, including natural gas, from its stake at the Manati field. Such investments in the petroleum industry will benefit the global butane market as the demand for butane is directly proportional to the production of natural gas. Currently, investments and economic growth in developed countries are saturated, which is encouraging investors to establish their manufacturing bases in developing countries and target their markets. The growing rate of industrialization worldwide is expected to accelerate the demand for diversified chemicals, as they are widely used as process chemicals in various manufacturing processes. Thus, industrialization and urbanization are expected to drive the demand for various diversified chemicals in developing countries, which is likely to support the growth of the global diversified chemicals industry and thus the global butane market.

Key Butane Market Challenge

Logistical concern related to hazardous chemicals is a major hindrance to the butane market growth. Safe transportation of hazardous chemicals such as butane across the globe is one of the biggest concerns. A boom in the chemical industry has led to an increase in the safety concerns of chemical logistics as freight traffic has witnessed a sharp increase. The shortage of untrained professionals for handling packaging and transportation of hazardous chemicals and the lack of awareness about new and emerging trends and technologies are some of the major drawbacks witnessed globally. Hydrocarbon gas liquids (HGL) that are extracted from natural gas at petroleum refineries are transported as separate HGL purity products or as liquids in mixtures of HGL through pipelines, trucks, ships, and rail cars, and barges. Propane and normal butane can be transported through LPG pipelines or in batches as purity products. These pipelines are also used to transport other kinds of petroleum products. In addition, poor storage infrastructure, which includes warehouses that are not leakproof, ill-equipped with security systems, and without adequate warehousing facilities hampers the market growth for butane.

This butane market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global butane market as a part of the global diversified chemicals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the butane market during the forecast period.

Who are the Major Butane Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

• BP Plc
• Chevron Corp.
• China Petroleum and Chemical Corp.
• ConocoPhillips Co.
• Exxon Mobil Corp.
• LAIR LIQUIDE SA
• Linde Plc
• Royal Dutch Shell Plc
• TotalEnergies SE
• Valero Energy Corp.

 

This statistical study of the butane market encompasses successful business strategies deployed by the key vendors. The butane market is concentrated and the vendors are deploying growth strategies such as continuously engaging in R&D to ensure their products adhere to stringent quality standards to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The butane market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Butane Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the butane market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the diversified chemicals market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

 

Which are the Key Regions for Butane Market?

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51% of the butane market growth will originate from APAC during the forecast period. China, India, and Japan are the key markets for butane in APAC. Market growth in this region will be faster than the growth of the market in regions.

The use of LPG as an ingredient in plastics for the production of numerous products, ranging from drinking bottles to carrier bags will facilitate the butane market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of respiratory and infectious diseases in the region had a slightly negative impact on the growth of the regional butane market in 2020. China, India, Nepal, Pakistan, South Korea, Malaysia, Sri Lanka, and the Philippines were under partial or complete lockdowns because of the COVID-19 pandemic. As of June 24, 2021, the total number of COVID-19 cases reported in India, Indonesia, and Japan was around 30.08 million, 2.03 million, and 0.79 million, respectively. In March 2020, India imposed a complete, nationwide lockdown to prevent the community spread of the disease. Lockdowns and stringent rules on social distancing and isolation have affected the manufacturing industry in APAC countries. The production of butane was categorized under essential services, and therefore, its supply chain was not affected much. Thus, barring some logistics and supply chain issues, butane was made available in the market in late 2020. Thus, the growth of the market is expected to stabilize during the latter half of the forecast period, following the containment of the COVID-19 pandemic. 

What are the Revenue-generating Application Segments in the Butane Market?

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The butane market share growth in the LPG segment will be significant during the forecast period. The demand for LPG for use in central heating systems, and as an engine fuel and raw material for chemical plants will drive the LPG market segment growth during 2021-2025.

This report provides an accurate prediction of the contribution of all the segments to the growth of the butane market size and actionable market insights on post COVID-19 impact on each segment.

 

Butane Market Scope
Report Coverage	Details
Page number	120
Base year	2020
Forecast period	2021-2025
Growth momentum & CAGR	Accelerate at a CAGR of 3.45%
Market growth 2021-2025	$ 12.75 billion
Market structure	Concentrated
YoY growth (%)	2.16
Regional analysis	APAC, MEA, North America, Europe, and South America
Performing market contribution	APAC at 51%
Key consumer countries	China, US, India, Saudi Arabia, and Japan
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	BP Plc, Chevron Corp., China Petroleum and Chemical Corp., ConocoPhillips Co., Exxon Mobil Corp., LAIR LIQUIDE SA, Linde Plc, Royal Dutch Shell Plc, TotalEnergies SE, and Valero Energy Corp.
Market dynamics	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
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Butane Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive butane market growth during the next five years
• Precise estimation of the butane market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the butane industry across APAC, MEA, North America, Europe, and South America
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of butane market vendors

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