Liquefied Petroleum Gas Market

Market Synopsis:

The Global Liquefied Petroleum Gas Market was valued at USD 134.2 Billion in 2021 and is expected to reach a value of USD 177.7 Billion by 2028. In the estimation period, the Global Market is forecast to expand by exhibiting a Compound Annual Growth Rate (CAGR) of 4.8%.

A clean, non-toxic, renewable, and portable energy source with many uses in both home and industrial settings is Liquefied Petroleum Gas (LPG). It is made up of a combination of explosive hydrocarbon gases, such as propane, butane, and isobutane. Large gas cylinders, tanks, and steel vessels were stored and delivered. In addition, it has higher heat energy than natural gas and burns quickly in the air. LPG thus has a wide range of uses in the automotive, manufacturing, chemical, and domestic industries. Furthermore, global energy consumption is rising due to the expanding world population. This rise is one of the main factors favorably affecting the market and expanding infrastructure worldwide.

Additionally, people use renewable energy sources more frequently due to increased concerns about pollution and carbon emissions. The need for LPG as an auto-emission gas in the automobile industry is growing, boosting the market. Governments from different nations are educating the rural populace about the value of switching from conventional energy sources like coal, wood, and kerosene to LPG. They are introducing beneficial policies and providing tax breaks and supplier subsidies, improving the sector's outlook. Ongoing advancements bolster the market expansion in natural gas extraction and refinement technology. In addition, rising expenditure in Research and Development (R&D) efforts by top market players to launch more improved goods are anticipated to fuel the market.

Market Segmentation:

The Liquefied Petroleum Gas Market is segmented based on Source, Applications, and Region. Based on the Source, the market is further segmented into Refinery, Associated Gas, and Non-Associated Gas. Furthermore, based on the Applications segment, the market is further divided into Residential, Commercial, Agriculture, Industrial, Transportation, and Other Applications.

Based on Source:

The Non-Associated Gas category dominated the market in 2021. This domination is primarily due to the increased production of Liquefied Petroleum Gas from natural gas wells that are not part of an Associated Gas Source. In addition, it is projected that increased demand for Liquefied Petroleum Gas (LPG) from home and industrial uses will propel market expansion.

Based on Applications:

The Residential category dominated the market in 2021. This domination is due to increased demand for Liquefied Petroleum Gas from domestic applications such as space and water heating, cooking, and power generation. It also offers cost-effectiveness, energy efficiency, and environmental friendliness, further fueling market expansion in the upcoming years. The primary drivers of the category growth have been the government's promising subsidies and measures to support the product as the immediate replacement for conventional fuels like coal and wood.

Asia Pacific is projected to grow at the highest CAGR during the forecast period

The Asia Pacific is expected to rise at the highest Compound Annual Growth Rate (CAGR) during the forecast period. The main key drivers of the regional market growth have been population increase, adequate resource availability, and high energy needs, along with simple affordability due to government subsidies on Liquefied Petroleum Gas (LPG) cylinders. The expanding petrochemical capacities also support this in China, Thailand, South Korea, India, and China. Liquefied Petroleum Gas imports from the Middle East and the United States increased gradually as India became a significant importer of fuel to support local fuel use. The region's chemical industry has grown significantly recently, using this gas as the primary feedstock to synthesize various chemicals and plastics. In the Asia Pacific, the auto-gas (LP gas as a transportation fuel) market has grown more swiftly.

Recent Developments:

• In April 2022, the signing of a contract for an ammonia manufacturing process with KBR Inc. was announced by JGC Holdings Corporation. According to the terms of the agreement, JGC Group will have access to KBR's engineering, procurement, and construction (EPC) projects for ammonia manufacturing plants starting at the conceptual stage.

• In March 2021, an agreement was reached by the Abu Dhabi National Oil Corporation (ADNOC) to deliver sulfur and Liquefied Petroleum Gas to Pertamina, the national oil company of Indonesia, for over four years for around USD 2 billion. The LPG and sulfur sales deal, a component of Indonesia-Emirates' "Amazing Week 2021," will be for four years and have an estimated contract value of USD 500 million per year. The agreement further stipulated that the sum can alter if the cost of these items fluctuates on the international market.

Competitive Landscape:

The key players in the Global Liquefied Petroleum Gas Market include- Saudi Arabian Oil Co., China Gas Holdings Ltd., Chevron Corporation, Bharat Petroleum Corporation Limited, Flaga Gmbh, Repsol, Kleenheat, Total SE, Reliance Industries Limited, Exxon Mobil Corporation and others.

Segmentation of the Global Liquefied Petroleum Gas Market: