Liquefied Petroleum Gas Market Size, Share & Trends Analysis Report By Source (Associated Gas), By Application (Chemical, Industrial, Autogas), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global liquefied petroleum gas market size was estimated at USD 117.3 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 3.7% from 2023 to 2030. Growing awareness about the benefits correlated to the usage of LPG to substitute fossil fuels and the rising adoption of clean and green energy sources across developed and developing countries are some of the factors likely to boost the LPG market’s growth. Additionally, technological aspects coupled with the growing number of initiatives taken by governments to educate the rural people to substitute LPG with traditional cooking fuels such as kerosene, wood, and coal which is likely to play a vital role in the industry’s growth.

The growing population and increasing demand for liquefied petroleum gas as a vehicle emission gas are likely to boost the growth of the market. Besides, the high cost of installation related to liquefaction process equipment and technology may affect the demand and can confine the growth of the market during the projection timeframe. Rise in government initiatives across countries such as India, Indonesia, and China to inspire liquefied petroleum gas applications on account of its prolonged benefits as a cooking fuel are anticipated to boost the market growth over the upcoming years.

In the United Kingdom., LPG is gradually being considered as a striking option for commercial assets joined with low-carbon and renewable technologies to assimilate a consistent year with round-the-clock electricity supply with carbon savings. The improving R&D in the liquefied petroleum gas industry is projected to propel the market growth in the upcoming years.

LPG has appeared as one of the key fuel sources in commercial and residential segments for heating and cooking applications substituting conventional fuel sources such as wood and coal. However, it could be ascribed to the many benefits such as easy accessibility, non-toxic, clean, convenient, portable, and cost-efficient as compared to other fuels such as wood and coal.

The surge in the population across regions like Africa, Asia Pacific, and Central & South America is projected to fuel up the demand during the projection timeframe as the residents in the subsequent regions use LPG as cooking fuel. For instance, in India, over 60%-75% of household activities such as heating and cooking are done by using liquefied petroleum gas.

The abrupt onset of the COVID-19 pandemic caused a decrease in demand for liquefied petroleum gas in the commercial sector. However, the increase in demand owing to the rise in consumption of LPG for cooking due the situations like lockdowns contributed to the demand. Moreover, the usage of liquefied petroleum gas across industrial, commercial, and transportation is projected to create demand across the region.

Numerous market players are now expected to pursue opportunities past the traditional markets and supply to the demand for LPG across the regions. Since, the demand for LPG continued to deteriorate in Europe owed to the COVID-19 outburst, in April 2020, Russia’s largest petrochemical company Sibur capitalized on the prospect to enter into a new market by delivering two cargoes of LPG to India.

Source Insights

The non-associated gas source type accounted for more than USD 62.0 billion in 2022. The sources of the fuel differ from area to area, for example, in North America the majority of the gas is procured from natural gas processing units. However, Asia Pacific relies on its refineries for production. On a global scale, refineries are one of the primary sources of gas production. Escalating refining capacity, specifically in Saudi Arabia, Brazil, India, and China is projected to surge product supply over the upcoming years.

The demand for liquefied petroleum gas from associated gas in the Asia Pacific region was more than 17.0 million tons in 2022. It is likely to reach more than 23.0 million tons by 2030, increasing at an assessed CAGR of over 3.0% from 2023 to 2030. Non-associated sources accounted for a noteworthy revenue share and are projected to observe the fastest growth over the projected period.

The United States shale boom has occurred as a major drift resulting in excess in the global LPG market. The market has also witnessed substantial field developments in oil and gas wells coupled with growing on-site processing facilities mainly in Russia, China, the U.S., and Canada.

Application Insights

The chemical application type accounted for more than USD 19 billion in 2022. Commercial and residential application accounted for a substantial share in the LPG market. Extensive dependency on liquefied petroleum gas as a cooking fuel can be witnessed among the urban and rural residents across the regions such as Asia-Pacific and Central and South America.

Promising government subsidies and initiatives to endorse the product as the major substitute fuel to conventional fuels such as wood and coal that has been the key factors contributing towards market penetration. Liquefied petroleum gas is also replacing chlorofluorocarbon and hydrofluorocarbon as a refrigerant owed to nominal contribution toward the depletion of the ozone layer. This has led to amplified application opportunities in the commercial/residential segments in ventilating & heating applications in addition to cooking purposes.

Autogas is also projected to witness substantial growth in the near future owing to increasing alternate fuel 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 for diesel and gasoline in the global transportation industry.

Regional Insights

Asia Pacific led to a surge in the global market with a net demand of more than 83.0 million tons in 2022. Population growth, ample resource availability, and high energy necessities coupled with easy affordability owed to the existence of government subsidies on LPG cylinders have been the key factors accountable for high market penetration. This is further maintained by the increasing petrochemical capacities across India, China, India, Thailand, and South Korea.

India is a prominent importer of liquefied petroleum gas demand in 2022, taking consignments at a steady rate from the United States and Middle East regions to fund domestic fuel usage. Prime Minister Narendra Modi announced that India had met its target to provide 80 million free cooking gas connections to the residents of the country, and 2020 demand will fulcrum on the capability of the government to sustain the market at low marketing prices. To that end, an entry of investment in liquefied petroleum gas receiving distribution pipelines (over 14 million mt/year) and terminals (over 12 million mt/year) will support LPG usage in India.

The LPG demand in Europe was more than USD 33.0 billion in 2022 and is expected to reach over USD 43.0 billion, growing at an estimated CAGR of over 3.0% from 2023 to 2030. Numerous summit meetings such as COP21 are taken into deliberation by many countries to decrease carbon emissions into the atmosphere. For instance, India is taking the initiative to use other cooking fuels for cooking purposes.

Mature economies of Europe and North America are anticipated to witness significant growth owing to growing awareness reduce carbon emissions. In Europe, Russia is forecasted to grow at the fastest CAGR of 4.9% in terms of revenue over the forecast period.

Key Companies & Market Share Insights

The global LPG industry is highly competitive owing to the presence of major manufacturers and distributors along with numerous multinational corporations. The global market is likely to attract a large no of regional players over the estimated period. Key market players such as Royal Dutch Shell, ExxonMobil Corporation, Royal Dutch Shell, Philips 66, Reliance Industries Ltd. (RIL), Chevron Corporation, and others.

The majority of the players have been concentrating on expanding their Autogas capabilities owed to a rapidly growing fleet count mostly in Europe and Asia Pacific. Some of the other initiatives undertaken by the players such as long-term partnerships with auto-OEMs and distributors for supportable supply over the next coming years. Some prominent players in the global liquefied petroleum gas market include:

• Repsol

• China Gas Holdings Ltd

• Saudi Arabian Oil Co.

• FLAGA Gmbh

• Kleenheat

• Bharat Petroleum Corporation Limited

• JGC HOLDINGS CORPORATION

• Phillips 66 Company

• Chevron Corporation

• Reliance Industries Limited

• Exxon Mobil Corporation

• Total

• Royal Dutch Shell

• Petroliam Nasional Berhad (PETRONAS)

• PetroChina Company Limited

• Petredec Pte Limited

• Qatargas Operating Company Limited

• Petrofac Limited

• Vitol

• China Petroleum & Chemical Corporation

• BP Plc.

Liquefied Petroleum Gas Market Report Scope

Global Liquefied Petroleum Gas Market Report Segmentation

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2023 to 2030. For this study, Grand View Research has segmented the global liquefied petroleum gas market report based on source, application, and region:

• Source Outlook (Volume, Million Tons; Revenue, USD Billion, 2018 - 2030)

  • Refinery

  • Associated Gas

  • Non-Associated Gas

• Application Outlook (Volume, Million Tons; Revenue, USD Billion, 2018 - 2030)

  • Residential/Commercial

  • Chemical

  • Industrial

  • Autogas

  • Refinery

  • Others

• Regional Outlook (Volume, Million Tons; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Russia

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central and South America

    • Brazil

  • Middle East and Africa

    • Saudi Arabia

    • South Africa