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The Liquefied Petroleum Gas (LPG) Market size is forecast to increase by USD 52.77 billion, at a CAGR of 3.6% between 2023 and 2028. The market is currently witnessing a surge in demand driven by several key factors. Firstly, the rise of virtual pipeline technology (VPT) has significantly contributed to the increased demand for liquefied petroleum gas (LPG). This innovative technology facilitates the transportation of LPG to areas without traditional pipeline infrastructure. Additionally, there is a growing adoption of LPG as a marine fuel, aligning with the maritime industry's shift towards cleaner and more sustainable energy sources. Furthermore, there is a notable trend towards the use of autogas, indicating a shift in the automotive sector towards LPG as a preferred fuel option.
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A growing shift toward autogas is an emerging trend in the market. Autogas is essentially a cleaner alternative to traditional gasoline and diesel, with lower emissions of greenhouse gases and air pollutants. In addition, this environmental advantage is a significant driver for the adoption of autogas in the transportation sector. Furthermore, autogas is often more cost-effective compared to traditional fuels, making it an attractive option for consumers and fleet operators.
Moreover, the economic advantage of using autogas can drive its adoption in transportation. In addition, governments in several countries, such as the US and India, have implemented incentives and policies to encourage the use of autogas. Furthermore, these may include tax incentives, subsidies, and regulations promoting the installation of autogas refueling infrastructure. Hence, such factors are positively impacting the liquefied petroleum gas market. Therefore, it is driving the market growth during the forecast period.
The residential segment is estimated to witness significant growth during the forecast period. LPG is a highly versatile source of energy, which can be utilized across a broad range of applications, including water and space heating and cooling in the residential sector. In addition, in developing countries, liquified petroleum gas is also used for lighting where electricity is unavailable. Furthermore, in developed countries, liquified petroleum gas is often used for outdoor activities such as barbecues and camping.
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Moreover, LPG is usually liquefied for bulk storage and transportation, owing to its high density as a liquid, thus creating a need for pressurized vessels. In addition, it is refrigerated for shipment by sea and storage of large volumes at the receiving terminals. Furthermore, liquified petroleum gas has high-energy content on a per-ton basis in a liquid state compared with traditional fuels and most other oil products. In addition, it burns readily in the presence of air, thus releasing a hot flame. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 54% 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. The APAC region is undergoing rapid urbanization and industrialization, resulting in an increased demand for liquified petroleum gas for residential, commercial, and industrial applications. In addition, it is widely used for cooking, heating, and power generation and as a feedstock in various industries, driving regional market growth. Moreover, population growth and rising disposable income levels in APAC countries are driving increased consumption of liquified petroleum gas for cooking and heating purposes. In addition, as more households transition from traditional solid fuels to LPG for cooking, the demand for liquified petroleum gas cylinders and infrastructure is growing. Furthermore, countries in the APAC region, such as India, provide subsidies and incentives to promote the use as a cleaner alternative to traditional fuels such as biomass and coal. In addition, subsidized LPG cylinders and distribution networks help increase access to liquified petroleum gas in rural and remote areas, stimulating regional market growth. Hence, such factors are driving the market growth in APAC during the forecast period.
The market is experiencing robust growth, driven by the increasing demand for clean and green energy sources amidst concerns over pollution and climate change. As governments worldwide implement stringent regulations to reduce carbon emissions and mitigate environmental damage, there's a notable shift towards cleaner energy alternatives. LPG, being a versatile and environmentally friendly fuel, is gaining traction in both developed and developing countries. Its non-toxic, clean, and convenient nature makes it ideal for residential, commercial, and industrial applications, including heating, cooking, and process industries. Additionally, the easy accessibility of LPG and government subsidies and initiatives further fuel its adoption, contributing to the market's growth trajectory.
Moreover, the versatility of LPG as a portable fuel and its suitability for various applications make it a preferred choice for consumers seeking cost-efficient and sustainable energy solutions. With its non-associated gas source type and sulfur-free composition, LPG offers a cleaner alternative to conventional fuels like diesel and gasoline, thereby reducing carbon emission levels and pollution. The global transportation industry is increasingly turning to LPG as a cleaner energy source for vehicles, further driving market expansion. Additionally, ongoing technological advancements in natural gas processing units and refineries are enhancing the efficiency and availability of LPG, making it an attractive option for both residential and commercial use.
Technological advancements in LPG production are notably driving the market. Continuous progress in processing technologies, particularly enhanced distillation and fractionation processes, significantly contributes to increased efficiency in LPG production. The modern LPG production landscape incorporates catalytic dehydrogenation processes, enabling the extraction of valuable chemical feedstocks like propylene and ethylene from propane and butanes. Tailored Floating Production, Storage, and Offloading (FPSO) units designed for LPG production are under development, enhancing flexibility and cost-effectiveness, particularly in offshore settings.
On the other hand, Natural Gas Liquids, Commercial assets, Renewable technologies, R&D, Vehicles, Non-associated gas source, Safety Concerns, Infrastructure Limitations, Clean and green energy sources, and technological aspects are pivotal elements shaping the landscape of natural gas and energy production. Governments play a crucial role in driving sustainable practices and influencing the transition from traditional energy sources like kerosene, wood, and coal to more environmentally friendly alternatives. This transition not only addresses safety concerns but also aligns with global efforts to reduce vehicle emissions and embrace cleaner energy solutions. Hence, such factors are driving the market growth during the forecast period.
The availability of alternative fuels for residential end-users is a major challenge hindering the market. Currently, a major part of the population, particularly in developing countries, considers traditional fuels, such as charcoal, coal, wood, animal waste, rice husks, and kerosene, as feasible, easily available, and cost-effective options. Therefore, such fuels are available for sale in small, affordable quantities. In addition, the ongoing challenge with such consumers in developing nations is that they hesitate to bear the cost of refilling LPG.
Moreover, another modern alternative is piped CNG and LNG. As CNG is lighter than air, it will dissipate in the case of leakage. In addition, this provides a significant safety advantage over LPG. Furthermore, LNG offers a high energy density compared with that of petrol and diesel fuels, thereby reducing the refueling frequency. In addition, piped natural gases also provide a continuous supply of gas to customers. Therefore, such factors are negatively impacting the liquefied petroleum gas market. Hence, such factors are hindering the market growth during the forecast period.
The market research 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.
Customer Landscape
Companies 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.
Air Liquide SA: The company offers liquified petroleum gas as a cleaner burning fuel alternative for forklifts and as a fuel for industrial applications such as heating and cutting.
The research report also includes detailed analyses of the competitive landscape of the market and information about 22 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The global liquefied petroleum gas (LPG) market is a dynamic sector influenced by various factors. The U.S. market, in particular, plays a significant role in shaping market trends and demand. LPG, consisting of propane and butane, is utilized in diverse applications, including vehicle emissions control, chemical processes, and as an energy source. The Energy Information Administration provides valuable insights into production, consumption, and storage. The PAHAL scheme, supported by United Nations data, aims to streamline LPG distribution, enhancing accessibility and efficiency.
Safety concerns and infrastructure limitations are critical challenges, requiring stringent regulations and technological advancements. Despite these hurdles, LPG remains a cleaner alternative to fossil fuels like kerosene, wood, and coal. The installation cost of LPG infrastructure, particularly for non-associated gas sources, is a key consideration for governments and commercial entities. The petrochemical industry relies heavily on LPG for various processes, emphasizing its importance in industrial applications. Government initiatives and cleaner fuel projects are driving the demand for LPG, especially in developing nations, where population growth and urbanization are significant factors influencing energy demand. Autogas applications are gaining traction as a transportation fuel, highlighting the versatility and potential of the global energy landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.6% |
Market Growth 2024-2028 |
USD 52.77 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.46 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 54% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abu Dhabi National Oil Co., Air Liquide SA, Bharat Petroleum Corp. Ltd., BioLPG LLC, Chevron Corp., Exxon Mobil Corp., Hindustan Petroleum Corp. Ltd., Indian Oil Corp. Ltd., Kuwait Petroleum Corp., Linde Plc, National Gas and Industrialization Co., OQ SAOC, QatarEnergy, Reliance Industries Ltd., Sahara Group Ltd., Saudi Arabian Oil Co., Shell plc, SHIVGAS, SHV Holdings N.V., TotalEnergies SE, UGI Corp., and Vitol Netherlands Cooperatief UA |
Market dynamics |
Parent market analysis, market growth and forecasting |
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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Source
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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