Liquefied Petroleum Gas (LPG) Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | > 5.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Liquefied Petroleum Gas (LPG) Market Analysis
The Liquefied Petroleum Gas Market is expected to register a CAGR of greater than 5% during the forecast period.
COVID-19 negatively impacted the market in 2020. Presently the market has reached pre-pandemic levels.
- Over the long term, the increasing consumption of LPG on account of government initiatives to increase the usage of cleaner fuel projects is expected to drive the market.
- On the other hand, the problem in LPG storage and their non-continuous supply is expected to hinder the market's growth.
- Nevertheless, the increasing demand for LPG by the growing population and increasing focus on emission control is expected to create enormous opportunities for the liquefied petroleum gas market.
- North America dominates the market due to increased usage of LPG in recent years.
Liquefied Petroleum Gas (LPG) Market Trends
LPG Extracted from Natural Gas Liquids to Dominate the Market
- Global LPG production from natural gas is much higher than from crude oil production. Natural gas extracted from the earth's crust contains a mixture of gases and liquids (propane and butane) that are extracted to produce LPG. The majority of the LPG produced globally is extracted from natural gas, while the rest is produced during crude oil processing in refineries.
- LPG extracted from natural gas is estimated to be the highest in North America, which contributes to the maximum percentage of LPG produced globally. According to the United Nations Data, in 2021, natural gas liquids from the United States accounted for around 151,604 metric tons, the world's highest. It grew by 4.2% as compared to 2020. A similar trend is expected to be followed during the forecasted period.
- Moreover, the global production of natural gas liquids increased significantly. According to BP Statistical Review of World Energy 2022, in 2021, global natural gas liquids production was at 12047 thousand barrels per day, recording a growth rate of 2.2% compared to 2020 and an annual increase of 3.2% annually over the last decade.
- LPG produced from natural gas does not require any oil refinery; it just needs a gas separation facility that can extract the necessary gases to form the LPG. Thus, LPG extraction from natural gas is less expensive than LPG production from crude oil in refineries. LPG extracted can be distributed through tankers or pipelines.
North America to Dominate the Market
- North America is one of the most prominent markets for LPG production. North America had a significant share in global LPG production, with nearly 1,980,085 thousand barrels per day of natural gas liquid production in 2021. The United States and Canada are the key producers and exporters of the region.
- Out of the total NGL production in North America, most goes to LPG production. Moreover, the contribution of the United States, Canada, and Mexico to LPG production from the crude oil refineries makes North America one of the main LPG-producing regions.
- In September 2022, Enterprise Products Partners announced plans to extend its natural gas liquid (NGL) pipeline system in the Permian Basin and build two processing plants to accommodate the basin's continuous production expansion. The company intends to expand its Shin Oak NGL pipeline infrastructure by looping new pipelines and modifying current pump stations. This initial extension would increase capacity to 275,000 bpd, with completion planned in the first part of 2024.
- Apart from the United States, government initiatives in Canada to provide incentives, fuel subsidies, and distribution licenses to promote large consumption and usage of LPG fuels, especially in the transport and cooking sectors, are anticipated to accelerate the LPG market growth during the forecast period. The governments in the region are concentrating on using LPG to reduce the percentage of the death rate due to the harmful gases produced from the combustion of conventional fossil fuels like wood, cow dung, and coal. Such initiatives will likely increase the LPG market demand in the coming years.
Liquefied Petroleum Gas (LPG) Industry Overview
The liquefied petroleum gas market is moderately fragmented. The key players in the LPG market (in no particular order) include BP PLC, Exxon Mobil Corporation, Abu Dhabi National Oil Company (ADNOC), Indian Oil Corporation Ltd, and Sinopec Corp, among others.
Liquefied Petroleum Gas (LPG) Market Leaders
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BP Plc.
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Sinopec Corp.
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Abu Dhabi National Oil Company (ADNOC)
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Exxon Mobil Corporation
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Indian Oil Corporation Ltd.
*Disclaimer: Major Players sorted in no particular order
Liquefied Petroleum Gas (LPG) Market News
- In October 2022, Maire Tecnimont S.p.A. announced that its principal subsidiary, Tecnimont S.p.A., was awarded an EPC contract by SONATRACH's Direction Centrale Engineering & Project Management for the execution of an LPG extraction plant within the existing Rhourde El Baguel oil and gas treatment complex in northeastern Algeria. The total contract value is around USD 380 million.
- In February 2022, Indian Oil Corp. (IOC) announced plans to construct three new plants in Northeast India to increase its LPG bottling capacity by nearly 53% or to 8 crore cylinders annually by 2030 to meet the growing demand in the region. The total investment in the plant expansion is likely to range between USD 43- 46 million.
Liquefied Petroleum Gas (LPG) Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast, in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Source of Production
5.1.1 Crude Oil
5.1.2 Natural Gas Liquids
5.2 Application
5.2.1 Residential
5.2.2 Commercial & Industrial
5.2.3 Autofuels
5.2.4 Other Applications
5.3 Geography [Market Size and Demand Forecast till 2028 (for regions only)]
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Norway
5.3.2.2 Netherlands
5.3.2.3 United Kingdom
5.3.2.4 Germany
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 South Korea
5.3.3.4 Japan
5.3.3.5 Rest of Asia-Pacific
5.3.4 Middle East and Africa
5.3.4.1 Saudi Arabia
5.3.4.2 Qatar
5.3.4.3 South Africa
5.3.4.4 Rest of Middle East and Africa
5.3.5 South America
5.3.5.1 Brazil
5.3.5.2 Argentina
5.3.5.3 Chile
5.3.5.4 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BP PLC
6.3.2 Exxon Mobil Corporation
6.3.3 ConocoPhillips
6.3.4 Abu Dhabi National Oil Company (ADNOC)
6.3.5 QatarEnergy
6.3.6 Novatek PAO
6.3.7 Gazprom PJSC
6.3.8 China Petroleum & Chemical Corporation
6.3.9 Indian Oil Corporation Ltd
6.3.10 Reliance Gas
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Liquefied Petroleum Gas (LPG) Industry Segmentation
Liquefied petroleum gas is a combustible mixture of hydrocarbon gases, including propane, propylene, butylene, isobutane, and n-butane. LPG is a fuel gas that is used in heating appliances, cooking equipment, and automobiles. It is called liquefied gas because it is easily transformed into a liquid.
The liquefied petroleum gas market is segmented by the source of production, application, and geography. By source of production, the market is segmented into crude oil and natural gas liquids. By applications, the market is segmented into residential, commercial & industrial, auto fuels, and others. The report also covers the market size and forecasts for the liquified petroleum gas market across major regions (North America, South America, Europe, Asia-Pacific, and Middle-East and Africa). For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
| Source of Production | |
| Crude Oil | |
| Natural Gas Liquids |
| Application | |
| Residential | |
| Commercial & Industrial | |
| Autofuels | |
| Other Applications |
| Geography [Market Size and Demand Forecast till 2028 (for regions only)] | |||||||
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Liquefied Petroleum Gas (LPG) Market Research FAQs
What is the current Liquefied Petroleum Gas Market size?
The Liquefied Petroleum Gas Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Liquefied Petroleum Gas Market?
BP Plc., Sinopec Corp., Abu Dhabi National Oil Company (ADNOC), Exxon Mobil Corporation and Indian Oil Corporation Ltd. are the major companies operating in the Liquefied Petroleum Gas Market.
Which is the fastest growing region in Liquefied Petroleum Gas Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Liquefied Petroleum Gas Market?
In 2024, the North America accounts for the largest market share in Liquefied Petroleum Gas Market.
What years does this Liquefied Petroleum Gas Market cover?
The report covers the Liquefied Petroleum Gas Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Liquefied Petroleum Gas Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the long-term growth prospects for the LPG Market?
The long-term growth prospects for the LPG Market are a) Focus on reducing air pollution could lead to increased LPG usage in the industrial and transportation sectors b) The development of cleaner alternatives like renewable energy sources could pose a challenge to LPG demand in the long run
LPG Industry Report
The global liquefied petroleum gas (LPG) market is expected to see significant growth driven by increasing LPG production and the rising adoption of clean and green energy sources. The market outlook is positive with a compound annual growth rate anticipated. This growth is fueled by increasing awareness about the benefits of using LPG as a substitute for fossil fuels and technological advancements in LPG production. Additionally, government initiatives to educate rural populations about the benefits of switching from traditional cooking fuels to LPG are also boosting the market.
Despite the high cost of installation related to liquefaction process equipment and technology, the market analysis indicates that the demand for LPG is expected to rise. Significant market growth is forecasted in regions such as Africa, Asia Pacific, and Central & South America due to the increasing population and the use of LPG as a cooking fuel. The increasing demand for LPG in the commercial and residential sectors for heating and cooking applications is also expected to benefit the market.
The industry analysis highlights that the market size and market share are driven by the applications in residential, commercial & industrial, and auto fuels sectors. The market report also suggests that the industry trends are influenced by the growing need for cleaner energy solutions. The market leaders in the LPG industry are focusing on expanding their production capabilities and investing in new technologies to stay competitive.
The industry outlook remains strong with a market forecast that predicts continued growth. The market segmentation by source of production, applications, and geography provides a comprehensive view of the industry. The market value is expected to increase as more consumers and businesses adopt LPG as a viable energy source.
The report pdf available for download offers detailed market data, market overview, and market predictions. This industry research provides valuable insights into the market growth and industry statistics, helping stakeholders make informed decisions. The report example includes industry reports, industry sales, and industry size information, making it a valuable resource for anyone interested in the LPG market.
In summary, the LPG market is poised for growth with a positive market outlook and strong industry trends. The market review and market segmentation provide a clear picture of the opportunities and challenges in the industry. The industry information and research companies involved in this sector are expected to play a crucial role in driving the market forward.
