Liquefied Petroleum Gas Market

Liquefied Petroleum Gas Market Size (2024-2029):

The Global Liquefied Petroleum Gas (LPG) Market was estimated at USD 145.37 billion in 2023 and is expected to reach USD 193.48 billion by 2029 and raise at a compound annual growth rate of (CAGR) 4.88% from 2024-2029.

Market Drivers:

Population growth and increased demand for liquefied petroleum gas as a vehicle emission gas are anticipated to drive market growth. Increased government initiatives in countries such as India, Indonesia, and China to inspire liquefied petroleum gas applications due to its long-term benefits as a cooking fuel are expected to drive market growth over the next several years. Increasing awareness of climate change and global warming has further increased the demand for liquefied petroleum gas, as it emits negligible amounts of black carbon. The liquefied petroleum gas market is one of the main drivers of economic growth, especially in rural areas and developing countries, through which the world liquefied petroleum gas market is expected to grow in the next period. Liquefied petroleum gas also plays a central role in reducing desertification and deforestation, which is why demand is likely to remain strong around the world. In view of these factors and the growing emphasis on creating a sustainable energy future in rural and urban areas of the world, the global market for liquefied petroleum gas is poised to expand into the upcoming market.

Market Restraints:

The main limiting factor affecting the LPG market is the flammable nature of the product. Hence, it is stored in large cylindrical or spherical pressurized vessels. In addition, the flammable nature of the gas generates additional storage, transportation, and outlay costs for end users. Another factor that negatively impacts the market includes the volatility of crude oil commodity prices, which hinders market growth.

Market Recent Developments:

• Production of liquefied petroleum gas (LPG) in eastern Russia is expected to rise from 1.0 to 1.2 million tonnes in the upcoming year, according to producers' plans, although exports to Asia at the high-intensity energy could be limited by a lack of infrastructure.
• The price of compressed natural gas (CNG) will drop by one rupee per kg from October 6, 2020. Furthermore, the price of cooking gas or piped natural gas (PNG) will drop by 70 paise.
• The matter of maintaining the cooking gas subsidy will be considered before issuing a tender for the privatization of BPCL, parliament reported recently.

LIQUEFIED PETROLEUM GAS MARKET REPORT COVERAGE:

Market Segmentation:

Liquefied Petroleum Gas Market - By Application:

• Residential
• Commercial
• Chemical
• Industrial
• Automotive Fuel

The residential and commercial categories represented a significant share of the market. This is inconsistent with the widespread dependence on LPG as a cooking fuel among rural and urban populations in Asia-Pacific and Latin America.

Liquefied Petroleum Gas Market - By Source:

• Refineries
• Associated Gas
• Non-associated Gas

The source of the fuel varies by region, for example, the majority of gas production in North America comes primarily from natural gas processors, while Asia-Pacific relies on refineries for its production. Globally, refineries are one of the main sources of production of various gases.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Europe had the highest volume share of 81% in 2020. In Europe, demand for LPG in residential/commercial applications is expected to experience significant growth from 2021 to 2026. Many highs are taken as COP21 many countries have it in account to reduce carbon emissions into the atmosphere. The mature economies of Europe and North America are expected to see significant growth in the coming years due to the growing awareness of reducing carbon emissions. In Europe, Germany is expected to grow at a CAGR of 4.5% in terms of revenue.

The Asia-Pacific region accounted for a significant share in 2020. Population growth, an abundance of available resources, and high energy requirements, coupled with affordability, due to the existence of government subsidies for LPG cylinders, have been the main factors that drove the growth of the regional market. This is further maintained by growing petrochemical capabilities in India, China, India, Thailand, and South Korea. India became a major importer of liquefied petroleum gas in 2020, receiving steady shipments from the United States and the Middle East to finance domestic fuel consumption.

Impact of Covid-19 on Liquefied Petroleum Gas Market:

The sudden onset of the COVID-19 pandemic has led to a decline in demand for liquefied petroleum gas in the commercial sector. The use of liquefied petroleum gas in the industrial, commercial, and transportation sectors is expected to generate demand in the regions in the future. Many market players are now expected to seize opportunities in traditional markets and meet the demand for LPG in the regions. As demand for LPG continued to deteriorate in Europe due to the COVID-19 explosion, in April 2020, Russia's largest petrochemical company, Sibur, took advantage of the prospect of entering a new market by delivering two LPG shipments to India.

Market Key Players:

The major players functioning in the Global LPG Market include

1. Exxon Mobil Corporation
2. UGI Corporation
3. British Petroleum PLC
4. Royal Dutch Shell PLC
5. SHV Energy N.V
6. Copagaz Distribuidora De Gas Ltd
7. Repsol S.A.
8. China Gas Holdings Ltd.
9. Kleenheat Gas Pty Ltd.