Global Liquefied Petroleum Gas (LPG) Market – Industry Trends and Forecast to 2030

Liquefied Petroleum Gas (LPG) Market Analysis and Size  

The global liquefied petroleum gas (LPG) market are due to growing residential and commercial demand expected to drive market growth. Additionally, the supportive government initiatives and policies are expected to drive market growth.

Data Bridge Market Research analyses that the global liquefied petroleum gas (LPG) market which was USD 134.3 billion in 2022, would rocket up to USD 188.08 billion by 2030, and is expected to undergo a CAGR of 4.3% during the forecast period of 2023 to 2030. “Natural Gas Liquids” dominate the type segment of the global liquefied petroleum gas (LPG) market due to the abundant availability of natural gas reserves, higher LPG yield during processing, and its cleaner fuel characteristics compared to crude oil refining. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Liquefied Petroleum Gas (LPG) Market Scope and Segmentation

Market Definition

The global liquefied petroleum gas (LPG) market encompasses the production, distribution, and consumption of propane and butane-based fuels derived from natural gas processing and crude oil refining. LPG is stored and transported as a liquid under moderate pressure, making it convenient for various applications. It finds widespread use in residential, commercial, industrial, and transportation sectors as a versatile energy source for cooking, heating, power generation, and automotive fuel. The market is influenced by factors such as energy demand, government policies, infrastructure development, and environmental considerations. It presents opportunities for growth while facing challenges related to price volatility, safety, competition, and infrastructure limitations.

Global Liquefied Petroleum Gas (LPG) Market Dynamics

Drivers

• Growing residential and commercial demand

LPG is widely used for cooking, heating, and other purposes in the residential and commercial sectors, particularly in areas with limited access to natural gas infrastructure. The growing global population and urbanization contribute to the increased demand for LPG.

• Industrial applications

LPG is used as a fuel in a variety of industrial processes including manufacturing, power generation, and petrochemical production. LPG demand is driven by the expansion of the industrial sector and the demand for alternative fuels.

• Government Initiatives and Policies

Governments around the globe are promoting the use of cleaner and more effective fuels, like LPG, to lessen environmental pollution and greenhouse gas emissions. Market expansion is fueled by favorable regulations, subsidies, and incentives for the use of LPG.

Opportunities

• Increasing adoption of vehicles

LPG is used in autogas applications as a transportation fuel, providing an alternative to conventional gasoline and diesel. The growing interest in cleaner fuel options, as well as vehicle conversions to LPG systems, present opportunities for market growth.

• Growing energy demand globally

Rising energy demand in developing nations, along with urbanization and infrastructure expansion, presents the LPG market with significant growth opportunities.

Restraints/Challenges

• Safety concerns related to LPG

Due to its flammability and pressurized nature, LPG poses a risk to safety when being handled, transported, and stored, which could limit market expansion.

• Infrastructure limitations

The availability and accessibility of LPG infrastructure, such as storage terminals, distribution networks, and refueling stations, can present difficulties, particularly in remote areas or regions with insufficient infrastructure.

Recent Developments

• On March 16, 2023, ExxonMobil announced the successful completion of its Beaumont refinery expansion project, which will add 250,000 barrels per day of capacity to one of the largest refining and petrochemical complexes on the United States Gulf Coast. The company's rising crude production in the Permian Basin, along with the largest refinery expansion in more than ten years, will help meet the rising demand for affordable, dependable energy.

• On April 18, 2023, Shell U.K. Ltd, a Shell plc subsidiary, upgraded the Pierce field in the UK Central North Sea to enable gas production after the field had previously produced only oil for many years. As a result, field operations have now resumed in full. Pierce is a joint venture between Shell Companies (92.52 %operator) and Ithaca Energy (UK) Limited (7.48 %.) .

Global Liquefied Petroleum Gas (LPG) Market Scope

The global liquefied petroleum gas (LPG) market is segmented on the basis of source of production, application, and end-use. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Source of Production  

1. Crude Oil
2. Natural Gas

Application

1. Residential
2. Commercial
3. Agriculture
4. Industrial
5. Transportation
6. Others

End-Use

1. Residential
2. Commercial
3. Industrial

Global Liquefied Petroleum Gas (LPG) Market Regional Analysis/Insights

The global liquefied petroleum gas (LPG) market is analysed, and market size insights and trends are provided by country, source of production, application, and end-use, as referenced above.

The countries covered in the global liquefied petroleum gas (LPG) market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina and Rest of South America.

Asia-Pacific is expected to dominate the global liquefied petroleum gas (LPG) market because of its large population, rapid industrialization, and high consumer demand.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends, and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Global Liquefied Petroleum Gas (LPG) Market Share Analysis

The global liquefied petroleum gas (LPG) market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width, and breadth, application dominance. The above data points provided are only related to the companies' focus related to the global liquefied petroleum gas (LPG) market.

Some of the major players operating in the global liquefied petroleum gas (LPG) market are:

• ExxonMobil Corporation (U.S.)
• Royal Dutch Shell plc (U.K.)
• BP plc (U.K.)
• Chevron Corporation (U.S.)
• TotalEnergies SE (France)
• ConocoPhillips (U.S.)
• Phillips 66 (U.S.)
• Sinopec (China)
• PetroChina Company Limited (China)
• Bharat Petroleum Corporation Limited (India)
• Hindustan Petroleum Corporation Limited (India)
• Saudi Aramco (Saudi Arabia)
• Kuwait Petroleum Corporation (Kuwait)
• Petronas (Malaysia)
• Gazprom (Russia)

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