Liquefied Petroleum Gas Market To Reach $172.01 Billion By 2033

Liquefied Petroleum Gas Market Growth & Trends

The global liquefied petroleum gas market size is anticipated to reach USD 172.01 billion by 2033, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 3.9% from 2025 to 2033. Growing demand for liquefied petroleum gas (LPG) from emerging countries is projected to drive the global market during the estimated period. Urbanization and industrialization have increased expressively across the world over the past few years. The flow of investments has changed from developed countries toward emerging countries owing to the low costs of labor and infrastructure.

Increasing prices of fuel and growing environmental concerns have upturned the countries’ attention towards LPG to be used as an alternative fuel, which is the main factor propelling the market growth. Some of the key government mandates such as Federal Emission Standards, and the California Air Resources Board Zero Emission Vehicle Mandate are turning the automotive industry towards more advanced technologies so as to reduce carbon emission and achieve fuel economy, which will directly increase the demand for LPG across the market.

Demand for LPG is anticipated to observe significant growth over the projected period on account of its numerous benefits, such as low cost, low-carbon emissions, and operational benefits. LPG is emerging as a striking option for the commercial sector, combined with low-carbon technologies and renewables to assimilate a reliable year with round the clock power supply with less carbon emissions.

The residential/commercial application segment accounted for a substantial share in 2019 and is estimated to witness significant growth in the next seven years. High demand for LPG as a heating fuel and for cooking purpose in the commercial as well as residential segments has been the major factor increasing its penetration in the sector.

The liquefied petroleum gas (LPG) market in the Asia Pacific conquered the global consumption and accounted for over 28.0% share of the total volume in 2019. The Asia Pacific is anticipated to witness significant growth during the forecast period. Increasing consumption of liquefied petroleum gas for domestic usage purposes, such as cooking fuel, coupled with initiatives taken by the government, mainly in India, China, and Indonesia, is projected to propel LPG demand across the region.

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Liquefied Petroleum Gas Market Report Highlights

• The non-associated gas segment accounted for the largest revenue share, approximately 55.1% in 2024, establishing itself as the leading source category in the global Liquefied Petroleum Gas (LPG) market.

• The industrial segment accounted for the largest revenue share of 17.1% in 2024, reaffirming its dominant role in the global Liquefied Petroleum Gas (LPG) industry.

• The ship transportation segment accounted for the largest revenue share, approximately 23.8% in 2024, establishing itself as the dominant mode in the global liquefied petroleum gas market.

• The Latin America liquefied petroleum gas industry is projected to grow at the fastest CAGR of 4.4% from 2025 to 2033, driven by expanding residential and commercial consumption, as well as efforts to enhance access to clean fuels.

Liquefied Petroleum Gas Market Segmentation

Grand View Research has segmented the global liquefied petroleum gas market report based on source, application, transportation, and region:

Liquefied Petroleum Gas Source Outlook (Volume, Million Tons; Revenue, USD Million, 2021 - 2033)

• Refinery

• Associated Gas

• Non-Associated Gas

Liquefied Petroleum Gas Application Outlook (Volume, Million Tons; Revenue, USD Million, 2021 - 2033)

• Residential

• Commercial

• Chemical

• Industrial

• Autogas

• Refinery

• Others

Liquefied Petroleum Gas Transportation Outlook (Volume, Million Tons; Revenue, USD Million, 2021 - 2033)

• Ship

• Railways

• Intermodal ISO Tank Containers

• Pipelines

• Reticulated Gas Systems

• Large Road Tankers

• Bobtail Tankers

• Bike Carts

Liquefied Petroleum Gas Regional Outlook (Volume, Million Tons; Revenue, USD Million, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

• Latin America

  • Brazil

• Middle East & Africa

  • Saudi Arabia

  • UAE

List Of Key Players in the Liquefied Petroleum Gas Market

• Saudi Arabian Oil Co. (Saudi Aramco)

• Royal Dutch Shell Plc

• BP Plc

• Exxon Mobil Corporation

• TotalEnergies SE

• China Petroleum & Chemical Corporation (Sinopec)

• PetroChina Company Limited

• Qatargas Operating Company Limited

• Reliance Industries Limited

• Vitol Group