Liquefied Petroleum Gas (LPG) Market Size was valued at USD 103.5 Billion in 2022. The Liquefied Petroleum Gas (LPG) market industry is projected to grow from USD 108.2 Billion in 2023 to USD 153.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.50% during the forecast period (2024 - 2032). Rising acceptance of clean and green energy sources in both developed and emerging countries, as well as growing knowledge of the advantages of using LPG to replace fossil fuels, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Growing public awareness of the advantages of using LPG to replace fossil fuels and the increasing use of clean, green energy sources in developed and emerging nations are two factors that are likely to support the expansion of the LPG market. Additionally, technological factors along with the increasing number of government initiatives aimed at educating rural residents to switch from LPG to conventional cooking fuels like kerosene, wood, and coal are projected to play a critical part in the industry's development.
The market is projected to expand due to the expanding population and rising demand for liquefied petroleum gas as a car emission gas. In addition, the high cost of installation for liquefaction process equipment and technology may have an impact on demand and limit market expansion throughout the forecast period. In the next years, it's expected that increased government initiatives in nations like India, Indonesia, and China would spur the use of liquefied petroleum gas because of the fuel's long-term advantages as a cooking fuel.
LPG is increasingly being viewed as a compelling choice for commercial assets when combined with low-carbon and renewable technologies to integrate a continuous year of 24/7 electrical supply while reducing carbon emissions. In the following years, it is anticipated that the liquefied petroleum gas industry's growing R&D will drive market expansion.
As more people move to areas like Africa, Asia Pacific, and Central and South America, demand is expected to increase during the projection period since people in these areas utilize LPG for cooking. For instance, in India, liquefied petroleum gas is used for more than 60%–75% of home tasks including heating and cooking. Thus, driving the Liquefied Petroleum Gas (LPG) market revenue.
The Liquefied Petroleum Gas (LPG) Market segmentation, based on source, includes refinery, associated gas, and non-associated gas. In 2022, the non-associated gas category held the greatest market share. The sources of the fuel vary depending on the region; for instance, in North America, most of the gas comes from facilities that process natural gas. For output, Asia Pacific is dependent on its refineries. Refineries are one of the main places where gas is produced on a global scale. Over the next years, it is anticipated that increased refining capacity, particularly in Saudi Arabia, Brazil, India, and China, will increase product supply.
The Liquefied Petroleum Gas (LPG) Market segmentation, based on application, includes residential, commercial, agriculture, industrial, transportation, and others. In 2022, the commercial segment held the highest market share. Together, commercial and residential applications made up a sizeable portion of the LPG industry. Urban and rural inhabitants in places like Asia-Pacific and Central and South America are highly dependent on liquefied petroleum gas as a source of cooking fuel.
Government subsidies and programs that support the product as the primary replacement fuel for traditional fuels like wood and coal have been important drivers in the market penetration. Due to their minimal contribution to the ozone layer's deterioration, liquefied petroleum gas is also replacing chlorofluorocarbon and hydrofluorocarbon as a refrigerant in many applications. In addition to cooking applications, this has increased the prospects for application in the commercial and residential areas.
Figure 1: Liquefied Petroleum Gas (LPG) Market, by Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Liquefied Petroleum Gas (LPG) market dominated this market in 2022 (45.80%). The main drivers of increasing market penetration have been population increase, abundant resource availability, high energy needs, and simple affordability because of the provision of government subsidies on LPG cylinders. This is also supported by the expanding petrochemical capacities in China, Thailand, South Korea, India, and China. Moreover, China’s Liquefied Petroleum Gas (LPG) market held the largest market share, and the Indian Liquefied Petroleum Gas (LPG) market was the fastest growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Liquefied Petroleum Gas (Lpg) Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America Liquefied Petroleum Gas (LPG) Market is expected to register fastest growth from 2023 to 2032. Liquefied petroleum gas is regarded as having a big growth market in North America, with the United States serving as the major LP gas exporter. In 2018, the United States generated about 234 thousand metric tonnes of LP gas from natural gas and 10,000 metric tonnes from its refineries. The Energy Information Administration estimates that the United States produced approximately 33.4 trillion cubic feet (Tcf) of dry natural gas in 2020, or an average of 91.4 billion cubic feet per day, suggesting that natural gas is the main fuel source for the production of LP gas. Further, the U.S. Liquefied Petroleum Gas (LPG) market held the largest market share, and the Canada Liquefied Petroleum Gas (LPG) market was the fastest growing market in the North America region.
Europe Liquefied Petroleum Gas (LPG) market accounts for the significant market share. Many nations are considering reducing carbon emissions into the climate by attending numerous summit events like COP21. For instance, India is leading the charge to embrace alternative cooking fuels. Further, the German Liquefied Petroleum Gas (LPG) market held the largest market share, and the U.K Liquefied Petroleum Gas (LPG) market was the fastest growing market in the European region
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Liquefied Petroleum Gas (LPG) market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Liquefied Petroleum Gas (LPG) industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Liquefied Petroleum Gas (LPG) industry to benefit clients and increase the market sector. In recent years, the Liquefied Petroleum Gas (LPG) industry has offered some of the most significant advantages to medicine. Major players in the Liquefied Petroleum Gas (LPG) market, including Saudi Arabian Oil Co., China Gas Holdings Ltd., Chevron Corporation, Bharat Petroleum Corporation Limited, Flaga Gmbh, Repsol, Kleenheat, Total Se, Reliance Industries Limited, and Exxon Mobil Corporation, are attempting to increase market demand by investing in research and development operations.
Engineering contracting is offered by JGC Holdings Corp (JGC). For several engineering contracts and projects in the fields of oil and gas development, petroleum refining, natural gas processing, petrochemicals, clean energy, and power generation, it provides engineering, procurement, and construction services. Additionally, the business offers management and upkeep for projects at all phases. Additionally, it provides environmental protection and pollution control services and makes investments in a variety of sectors, including resource development, oil-related projects, alternative fuels, and the production of water and electricity. In addition, it develops urban infrastructure and produces catalysts for petroleum refinery. The organization works on projects in numerous nations in the Americas, Africa, Asia-Pacific, Eastern Europe, and the Middle East. The head office of JGC is located in Yokohama-shi, Kanagawa, Japan.
Oil and gas company Indian Oil Corp Ltd (IOCL) is integrated. The business carries out oil and gas exploration, production, refining, pipeline transportation, and sale of natural gas and petroleum products. Additionally, it produces and sells petrochemicals and engages in a sizable amount of alternative energy business. High speed diesel, jet fuel, light petroleum gas, gasoline, bitumen, heavy fuel oil, naphtha, lubricants, and greases are some of the refined petroleum products offered by IOCL. The business established subsidiaries in the United States, the Netherlands, Sweden, Mauritius, the UAE, and Sri Lanka. It is a Maharatna business owned by the Indian government. New Delhi, India serves as the home base for IOCL. Indian Oil Corp (IOC) announced plans to build three additional plants in Northeast India in February 2022 in order to enhance its ability to bottle LPG by roughly 53%, or to 8 crore cylinders yearly by 2030, in order to fulfill the region's rising demand. Additionally, the overall cost of the facility expansion is anticipated to be between INR 325 and 350 crore.
March 2021:The most recent LPG cutting gas product, specifically created for the metal cutting industry, is launched by Total Oil India Private Ltd. A whole LPG factory in Bangalore, Namakkal, and Madurantacam produces this item. The introduction of this product broadens the company's product line.
May 2020:Royal Dutch Shell plc started a sophisticated LNG processing facility in Nigeria. Once the facility is up and running, it will add about 8 million tonnes to the Bonny Island complex's current annual output of 30 million tonnes. The Nigerian National Petroleum Corporation (NNPC) owns 49% of this joint venture along with Royal Dutch Shell plc, Total, 15%, and ENI (10.4%).
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 103.5 Billion |
| Market Size 2023 | USD 108.2 Billion |
| Market Size 2032 | USD 153.8 Billion |
| Compound Annual Growth Rate (CAGR) | 4.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Source, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Saudi Arabian Oil Co., China Gas Holdings Ltd., Chevron Corporation, Bharat Petroleum Corporation Limited, Flaga Gmbh, Repsol, Kleenheat, Total Se, Reliance Industries Limited, and Exxon Mobil Corporation |
| Key Market Opportunities | Increasing government initiatives |
| Key Market Dynamics | 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 |
Liquefied Petroleum Gas LPG Market Highlights:
Frequently Asked Questions (FAQ) :
The Liquefied Petroleum Gas (LPG) Market size was valued at USD 103.5 Billion in 2022.
The global market is projected to grow at a CAGR of 4.50% during the forecast period, 2024-2032.
Asia Pacific had the largest share in the global market
The key players in the market are Saudi Arabian Oil Co., China Gas Holdings Ltd., Chevron Corporation, Bharat Petroleum Corporation Limited, Flaga Gmbh, Repsol, Kleenheat, Total Se, Reliance Industries Limited, and Exxon Mobil Corporation
The non-associated gas dominated the market in 2022.
The commercial had the largest share in the global market.
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Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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