Liquefied Petroleum Gas (LPG) Market Analysis By Source (Refinery, Associated Gas, Non-associated Gas), By Application (Residential/Commercial, Chemical, Industrial, Auto Fuel, Refinery) And Segment Forecasts To 2020

Published: May 2015 | Report Code: 978-1-68038-026-2 | Report Format: Electronic (PDF)

Industry Insights

Global LPG market size was estimated at USD 219.43 billion in 2013. Increasing government initiatives in developing countries such as India, Indonesia, and China to encourage LPG applications on account of its wide benefits as a cooking fuel are expected to drive global market growth over the forecast period.

In many developing and underdeveloped countries, coal is used as a cooking fuel owing to its huge availability coupled with low prices. LPG has numerous benefits such as easy accessibility, non-toxic, clean, portable, convenient, and cost-efficient on account of which it is replacing coal and is expected to witness high growth in future.

Regional governments have also encouraged LPG use by offering subsidies on cylinders. Further, expanding uses in other industries such as transportation as a fuel is known as autogas is expected to drive highly the industry demand owing to its environment-friendly nature as increasing carbon emission levels coupled with associated health problems are driving the need for a conventional energy solution.

LPG is also replacing hydrofluorocarbon and chlorofluorocarbon as a refrigerant owing to minimal contribution towards ozone depletion. The U.S. shale has emerged as major trend resulting into LPG oversupply in the global industry. In addition, shale gas developments in China have also accounted for sufficient product supply to meet the demand globally.

Over the forecast period, non-associated conventional gas is expected to produce a huge amount of LPG as compared to associated gas, which is expected to experience slower growth in future. On account of availability of the maximum number of natural gas processing plants and crude refineries, Northern Africa, Middle East, and North America have established as leading LPG manufacturers in the global market.

North America LPG market revenue by application, 2012-2020, (USD Billion)

North America LPG market

Application Insights

Commercial/residential was the largest application segment accounting for USD 101.23 billion of the overall market in 2013. The application segment is also expected to grow at the highest CAGR of 4.8% from 2014 to 2020 on account of favorable government regulations and subsidies in undeveloped and developing countries.

Auto fuel is also expected to witness significant growth in future owing to increasing conventional fuels demand in the transportation sector to minimize environmental concerns such as carbon emission levels and pollution levels. In addition, it is one of the cheapest energy sources, which is making it suitable over diesel and gasoline in the global transportation industry.

Source Insights

On the basis of source, the market is segmented into refinery, associated gas, and non-associated gas. Refinery dominated the global market accounting for over 45% of the volume share as maximum production comes from refinery processing.

Non-associated gas accounted for a significant revenue share and is expected to grow at a CAGR of 4.6% from 2014 to 2020. Associated gas is expected to have slow growth rate over the forecast period.

Regional Insights

Asia Pacific was the largest market owing to the huge demand for developing countries mainly China, Japan, Vietnam, South Korea, and India. Asia Pacific market is also expected to grow at the highest CAGR of 5.0% from 2014 to 2020 on account of increasing government initiatives to promote environment-friendly solutions.

Europe LPG market was valued at over USD 36.04 billion in 2013 and is expected to have the slowest growth in future. China has emerged as a major LPG consumer in the global market. Over the forecast period, Russia, India, and Brazil are expected to establish as key consumers in the global market on account of developing infrastructure coupled with government initiatives to promote green fuel.

The Middle East & Africa is expected to grow at a high CAGR of 4.8% from 2014 to 2020 on account of oil & gas developments in this region. Latin America is expected to grow at a significant growth rate over the forecast period.

Competitive Insights

Global LPG market is fragmented in nature and is expected to attract a huge number of industry participants over the forecast period. Major market players include Exxon Mobil, Philips 66, Royal Dutch Shell, Chevron Corp., Sinopec, CNPC, BP Plc., Petroleos de Venezuela, and Valero Energy.

Fluctuating crude oil prices are expected to emerge as key market opportunity for industry participants. Companies are expected to invest in exploring opportunities to expand application base over the forecast period.

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