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The Natural Gas Liquids (NGL) Market size is forecast to increase by USD 19.62 billion at a CAGR of 6.47% between 2023 and 2028. Increasing demand for natural gas liquids (NGLs) is driven by a variety of factors. Renewable energy demands are growing, prompting a shift towards cleaner-burning fuels like natural gas. Industrial and commercial activities contribute to this demand, utilizing these as feedstock in sectors such as petrochemicals and plastics production. The rising global population and increased electrification further boost the need for NGLs in electricity generation and transportation, especially in developing countries like India and Brazil. Meanwhile, the expansion of shale gas and oil production, despite requiring infrastructure investment, offers a versatile and flexible source of feedstocks for various industries, strengthening market forecasting.
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The industrial segment is estimated to witness significant growth during the forecast period. NGLs, particularly ethane and propane, are essential feedstocks in the petrochemical industry. They serve as raw materials for the production of various chemicals and plastics, including ethylene, propylene, and butadiene, which are critical building blocks for a wide range of products, from plastics and synthetic rubber to detergents and solvents.
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They are used in the production of synthetic rubber, such as polybutadiene, which is used in tire manufacturing. They are also used as blowing agents in the production of foam plastics. In addition to that, propane and isobutane are used as refrigerants in small-capacity refrigeration systems and air conditioning units, particularly in mobile and portable applications. Propane can be used in industrial metalworking processes as a fuel for cutting, welding, and brazing due to its high heat content. Propane is used in textile manufacturing processes such as heat setting and drying of synthetic fibers. Thus, these factors will drive the growth of the industrial segment, which will boost the growth of the global market during the forecast period.
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North America is estimated to contribute 45% 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 market in North America is expected to grow significantly during the forecast period. NGLs are essential feedstocks for the petrochemical industry, which uses them to produce a wide range of chemicals and plastics. The growth of the petrochemical sector, driven by various industries such as automotive, construction, and packaging, has spurred the demand for NGLs.
Moreover, NGLs serve as a transitional fuel as North America shifts towards cleaner energy sources. They are less carbon-intensive than coal and can be replaced in power generation and industrial processes, aiding in reducing greenhouse gas emissions. Additionally, the utilization of petroleum liquid feedstock in NGL production further supports their role in the energy transition. NGLs are economically competitive as a fuel source, making them attractive for both industrial and residential applications. This economic viability contributes to their growing adoption, thereby driving the NGLs market in North America during the forecast period. As industries and consumers increasingly prioritize cleaner energy alternatives, the versatility and environmental benefits of NGLs position them favorably within the energy mix, supporting market growth as North America continues its transition towards more sustainable energy solutions.
The Natural Gas Liquids (NGL) Market is shaped by various factors, including the increasing demand for renewable energy, which serves as a driver for sustainable alternatives. However, a notable trend is the rise in shale gas and oil production, contributing to the growth of the NGL market. These NGLs, including butane, isobutane, and ethylene, serve as crucial petrochemicals and refinery feedstock for the chemical and energy sectors. The market is driven by their versatility and uses across various industries. NGLs are a group of hydrocarbon liquids, including hydrocarbon compounds like ethane, propane, butane, and pentanes plus. They are extracted during the processing of natural gas and crude oil in gas processing plants and petrochemical plants. NGLs play a crucial role in the sector, serving as a vital component for vehicle fuel and combustion engines. The market is influenced by crude oil prices and the demand for autogas and natural gasoline. With increasing urbanization and industrialization in emerging economies, the demand for NGLs is expected to rise, particularly in heavy industries requiring energy recovery. The transportation infrastructure is also a key factor in the distribution of NGLs to various industries.
Increasing renewable energy demand is notably driving the market growth. As global energy demand rises, there is a need to diversify energy sources. NGLs, particularly natural gas and its components are considered cleaner-burning fossil fuels compared to coal and oil. In response to environmental concerns and the need for cleaner energy, there is a growing interest in using natural gas and NGLs for power generation, heating, and industrial processes. The increasing energy demand is driven by industrial and commercial activities. NGLs are used as feedstock in various industries, particularly in the petrochemical sector, for the production of plastics, chemicals, and other products. The growth in these industries directly contributes to the demand for NGLs. With the rising global population and increased electrification of various sectors, including transportation and heating, NGLs are used for electricity generation.
Additionally, natural gas-fired power plants are often used to meet peak electricity demand and provide a stable energy supply. NGLs, such as propane and butane, are used as fuels in the transportation sector. Propane, for example, is used for vehicles, including buses and trucks, which can help reduce greenhouse gas emissions. Developing countries such as India and Brazil, with rapidly growing economies, contribute significantly to the increasing energy demand, which results in market expansion. These markets often rely on NGLs and natural gas as a cleaner alternative to traditional energy sources. Thus, increasing energy-demand will boost the global NGLs market during the forecast period.
The rise in shale gas and oil production is an emerging trend shaping the market growth analysis. Shale formations, such as the Permian Basin in the United States, are rich in NGLs, including ethane, propane, butane, and natural gasoline—the extraction of shale gas and oil results in a substantial amount of associated NGL production. Ethane, one of the primary components of NGLs, is a crucial feedstock for the petrochemical industry, particularly in the production of ethylene. The abundance of ethane from shale production has fueled the expansion of ethane cracker plants, which convert ethane into ethylene, a fundamental building block for plastics and chemicals.
However, the extraction and processing of NGLs from shale require the development of infrastructure such as pipelines, fractionation plants, and storage facilities. Investment in this infrastructure is essential to ensure a reliable supply chain. Shale-derived NGLs provide a versatile and flexible source of feedstocks for the petrochemical industry, allowing it to adapt to changing natural gas liquids market research and growth demands, and consumer preferences. Thus, the rise in shale gas and oil production will strengthen the market forecast of the market in focus during the market growth and forecasting period.
Competition with renewable energy is a significant challenge hindering market growth. The global shift toward renewable energy sources, such as wind, solar, and hydropower, is driven by environmental concerns and the need to reduce carbon emissions. As a result, the demand for fossil fuels, including natural gas and NGLs, in the power generation sector is decreasing. Renewable energy sources are increasingly integrated into electricity grids, displacing the need for natural gas and NGLs in power generation. This trend can lead to lower demand for NGLs in the energy sector. Renewable energy technologies have experienced significant cost reductions, making them more price-competitive with natural gas and NGLs. This makes it more challenging for NGLs to maintain their competitiveness in the energy market.
Moreover, government policies and incentives to promote renewable energy adoption further enhance the competitiveness of clean energy sources. These policies can include tax credits, subsidies, and renewable portfolio standards. Countries such as France, Germany, and the US are setting emission reduction targets as part of their efforts to combat climate change. This often involves a shift away from fossil fuels and an increased focus on renewable energy, which restricts the natural gas liquids market growth. Thus, the competition with renewable-energy will impede the growth of the global market 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.
Global Market 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.
BP Plc- The company offers natural gas liquid products such as Ethane, Propane, Normal Butane, Isobutane, and more.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 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.
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Liquefied Petroleum Gas (LPG) Market: Liquefied Petroleum Gas (LPG) Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, India, Japan, Germany - Size and Forecast
Oil and Gas Pipeline Market: Oil and Gas Pipeline Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, Canada, China, India, Russia - Size and Forecast
The market is a vital component of the Petroleum Industry, encompassing various stages from NGL Processing to NGL Distribution. Pentanes, Butylene, and other hydrocarbons derived from Natural Gas Processing serve as crucial Petrochemicals and Refinery Feedstock. With efficient NGL Transportation via Gas Pipelines, Tanker Transport, Truck Transport and Rail Transport, these valuable commodities reach global markets.
NGL Storage solutions, including Underground and Aboveground Storage, ensure supply reliability, while Export Terminals and Import Terminals facilitate international trade. Market dynamics, including Demand Forecast and Price Trends, drive strategic decisions in NGL Market Analysis. The versatility of NGLs as LPG and Chemical Feedstocks fuels their demand in various industries, including Petrochemical Manufacturing. Ethane Supply, Propane Production, and Butane Distribution play key roles in meeting market demands, with continuous investments in NGL Infrastructure to enhance production capacity and logistics efficiency. As a critical link in the energy value chain, the NGLs market continues to evolve, supporting global energy needs and industrial growth.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.47% |
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Market growth 2024-2028 |
USD 19.62 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.04 |
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Regional analysis |
North America, Middle East and Africa, Europe, APAC, and South America |
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Performing market contribution |
North America at 45% |
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Key countries |
US, Iran, Saudi Arabia, China, and Russia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BP Plc, Canadian Natural Resources Ltd., Chesapeake Energy Corp, Chevron Corp., Citizen Energy, ConocoPhillips Co., Equinor ASA, Exxon Mobil Corp., Nigeria LNG Ltd., Ovintiv Inc., Petroleos de Venezuela SA, PJSC LUKOIL, PT Pertamina Persero, Repsol SA, Saudi Arabian Oil Co., Shell plc, SilverBow Resources Inc., SM ENERGY, TotalEnergies SE, and Valero Energy Corp. |
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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 |
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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 Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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