Enjoy complimentary customisation on priority with our Enterprise License!
The liquefied petroleum gas (LPG) market is estimated to grow at a CAGR of 3.81% between 2022 and 2027. The size of the market is forecast to increase by USD 61.19 billion. The growth of the market depends on several factors, including the increase in the supply of natural gas, increasing government support for LPG adoption, and the rising need for cleaner fuel.
This report extensively covers market segmentation by 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). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
The reports categorize the global liquefied petroleum gas (LPG) market as a part of the global oil and gas exploration and production market within the global oil and gas market under the energy sector. The parent global oil and gas exploration and production market covers the companies engaged in the process of exploration and production (extraction) of crude oil and natural gas. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rising need for cleaner fuel is notably driving the market growth, although factors such as the availability of alternative fuels for residential end-user may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Liquefied Petroleum Gas (LPG) Market Driver
The rising need for cleaner fuel is notably driving the market growth. LPG is a clean and effective fuel that is becoming more and more acknowledged with the rising demand for cleaner energy. By 2025, the demand for clean energy sources is anticipated to increase to over 120 million tons, which will drive the market. The residential sector is expected to be a major driver of the growth of the LPG market since consumers are looking for cleaner and more effective energy solutions for their homes. The transportation sector is also anticipated to adopt LPG in increasing numbers as the movement to use cleaner fuels for vehicles continues to gain traction.
During the forecast period, it is anticipated that these developments, along with the expanding availability of LPG infrastructure and helpful government policies, will propel continued growth in the LPG industry. Hence, the demand for clean fuel is likely to boost the growth of the global LPG market during the forecast period.
Significant Liquefied Petroleum Gas (LPG) Market Trend
Technological advances to make the use of LPG convenient and cost-effective is an emerging trend in the market. LPG is being acknowledged as an efficient fuel that is easily accessible and tradable across the world. Various technological developments are being 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 that 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 compared with electricity from the US grid.
Hence, such developments are boosting the adoption of LPG in power generation and other industrial applications. Also, vendors in the market provide maintenance and filling services for LPG tanks. Such product offerings make the adoption of LPG convenient in sectors like residential and commercial, thus boosting the growth of the market.
Major Liquefied Petroleum Gas (LPG) Market Challenge
The availability of alternative fuels for residential end-user is the major challenge impeding market growth. Currently, a sizable portion of the population, particularly in developing nations, views conventional fuels like kerosene, charcoal, coal, wood, animal dung, and rice husks as viable, accessible, and affordable alternatives. Such fuels are available for sale in small affordable quantities. The ongoing challenge with such consumers in developing nations is that they hesitate to bear the cost of refilling LPG. Hence, they prefer using traditional fuels over LPG.
Another modern alternative is piped CNG and LNG. Piped natural gases provide a continuous supply of gas to customers. Additionally, they are relieved of the hassles of booking, refilling, and replacing bulky LPG cylinders. Thus, the availability of various alternative fuel options will hinder the growth of the market during the forecast period.
Key Liquefied Petroleum Gas (LPG) Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Liquefied Petroleum Gas (LPG) Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Kuwait Petroleum Corp. - The company offers Liquified Petroleum Gas (LPG) through its subsidiary Kuwait National Petroleum Co. The segment focuses on refining and manufacturing petroleum products and processes and markets fuels, oils, diesel, and lubricants.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the natural gas liquid segment will be significant during the forecast period. LPG which is derived from natural gas liquid (NGL), is a clean and effective energy source used for transportation, industrial applications, cooking, and heating. Support from governmental policies and the rising demand for clean energy sources is driving the demand for NGL.
Get a glance at the market contribution of various segments Request a PDF Sample
The natural gas liquid segment was valued at USD 164.94 billion in 2017 and continued to grow until 2021. Demand for NGL has also increased as a result of the rising demand for LPG, particularly in the residential market. To meet the increasing demand, the production of NGL production and refining capacity also increased, as well as the creation of new NGL extraction technologies. The development of new extraction and refining technologies, as well as the expanding availability of NGL and augmentation in demand of the NGL segment, is anticipated to fuel the growth of the market during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. China, India, and Japan are the major contributing countries to the LPG market in APAC. Approximately 58% of all US propane shipments traveled to Asian countries between April and November 2020. Nearly half of US propane exports during those months went to three countries: Japan, China, and South Korea. The companies with production bases in Taiwan and South Korea have switched to LPG as feedstock, as these products compete on a marginal basis with naphtha. For instance, in December 2017, Formosa Plastics announced its plans to invest 800 million in Ningbo, Zhejiang Province, China, to produce petrochemical raw materials. At the beginning of 2018, Formosa Plastics capitalized on the discount held by LPG against naphtha, thus increasing its usage of LPG in cracker feedstock slate, while South Korea LG Chem planned to use LPG in March 2018. Hence, owing to the increasing demand for LPG from sectors such as residential and petrochemical, the market in APAC is expected to grow rapidly during the forecast period.
Owing to the advent of the COVID-19 pandemic, the market witnessed slow growth in the second, third, and fourth quarters of 2020 and the first quarter of 2021. However, LPG usage has increased in the residential sector as a result of rising urbanization, a growing middle-class population, and pro-user government policies. This is expected to drive the growth of the regional market in focus during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
|
Liquefied Petroleum Gas (LPG) Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
176 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 3.81% |
|
Market growth 2023-2027 |
USD 61.19 billion |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
3.4 |
|
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
|
Performing market contribution |
APAC at 42% |
|
Key countries |
US, China, India, Japan, and Germany |
|
Competitive landscape |
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. |
|
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, and Market condition analysis for the 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Get the report (PDF) sent to your email within minutes.
