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    Liquid Gas Market

    ID: MRFR/CnM/34569-HCR
    111 Pages
    Chitranshi Jaiswal
    October 2025

    Liquid Gas Market Research Report: By Type (Liquefied Natural Gas, Liquefied Petroleum Gas, Propane), By Application (Residential, Commercial, Industrial, Transportation, Power Generation), By Distribution Method (Cylinders, Bulk, Pipeline), By End Use (Heating, Cooking, Fuel for Vehicles) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035.

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    Liquid Gas Market
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    Liquid Gas Market Summary

    As per MRFR analysis, the Liquid Gas Market Size was estimated at 127.26 USD Billion in 2024. The Liquid Gas industry is projected to grow from 130.29 USD Billion in 2025 to 164.87 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 2.38 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Liquid Gas Market is experiencing a transformative shift towards cleaner energy solutions, driven by technological advancements and rising demand.

    • The market is witnessing a notable shift towards cleaner energy sources, particularly in North America and Asia-Pacific.
    • Technological innovations are enhancing the efficiency of liquefied natural gas and propane applications.
    • Emerging economies are driving rising demand, particularly in the residential and transportation segments.
    • Increasing industrial applications and regulatory support for clean energy are key drivers propelling market growth.

    Market Size & Forecast

    2024 Market Size 127.26 (USD Billion)
    2035 Market Size 164.87 (USD Billion)
    CAGR (2025 - 2035) 2.38%

    Major Players

    Air Liquide (FR), Linde (DE), Praxair (US), TotalEnergies (FR), Shell (GB), ExxonMobil (US), Chevron (US), BP (GB), Messer Group (DE), Nippon Sanso Holdings (JP)

    Liquid Gas Market Trends

    The Liquid Gas Market is currently experiencing a dynamic evolution, driven by various factors that influence demand and supply. The increasing focus on cleaner energy sources has led to a notable shift towards liquefied natural gas, which is perceived as a more environmentally friendly alternative to traditional fossil fuels. This transition is further supported by government policies aimed at reducing carbon emissions and promoting sustainable energy practices. As a result, investments in infrastructure for liquefied gas production and distribution are on the rise, indicating a robust growth trajectory for the market. Moreover, the Liquid Gas Market is characterized by a growing interest in technological advancements that enhance efficiency and safety in gas handling. Innovations in liquefaction processes and storage solutions are likely to improve the overall performance of the sector. Additionally, the increasing demand from emerging economies, coupled with the need for energy security, suggests that the market will continue to expand. Stakeholders are closely monitoring these developments, as they may present both challenges and opportunities in the evolving landscape of energy consumption.

    Shift Towards Cleaner Energy Sources

    The Liquid Gas Market is witnessing a transition towards cleaner energy alternatives, particularly liquefied natural gas. This shift is largely driven by global initiatives aimed at reducing greenhouse gas emissions and promoting sustainable energy solutions.

    Technological Innovations

    Advancements in technology are playing a crucial role in enhancing the efficiency and safety of liquefied gas operations. Innovations in liquefaction and storage methods are expected to improve market performance and operational reliability.

    Rising Demand from Emerging Economies

    Emerging economies are increasingly seeking reliable energy sources, leading to heightened interest in the Liquid Gas Market. This demand is likely to be fueled by the need for energy security and economic growth.

    The Global Liquid Gas Market is poised for expansion, driven by increasing demand for cleaner energy alternatives and advancements in storage and transportation technologies.

    U.S. Energy Information Administration

    Liquid Gas Market Drivers

    Rising Energy Demand

    The Liquid Gas Market is poised for growth due to the rising energy demand across various sectors. As populations increase and economies develop, the need for reliable and efficient energy sources becomes more pronounced. Liquid gases, particularly LNG, are increasingly viewed as a viable solution to meet this growing demand. Data suggests that the energy sector is one of the largest consumers of liquid gases, with projections indicating a steady increase in consumption over the next decade. This trend is further fueled by the shift towards cleaner energy alternatives, as liquid gases offer a lower carbon footprint compared to traditional fuels. Consequently, the Liquid Gas Market is likely to experience robust growth as it adapts to the evolving energy landscape.

    Increasing Industrial Applications

    The Liquid Gas Market is experiencing a surge in demand due to its extensive applications across various industrial sectors. Industries such as manufacturing, chemicals, and food processing are increasingly utilizing liquid gases for their operational processes. For instance, liquid nitrogen is widely used in food preservation and packaging, while liquid oxygen is essential in steel manufacturing. The versatility of liquid gases allows for enhanced efficiency and productivity, which is crucial in competitive markets. As industries continue to expand and modernize, the reliance on liquid gases is likely to grow, further propelling the Liquid Gas Market. Recent data indicates that the industrial sector accounts for a substantial portion of liquid gas consumption, highlighting its pivotal role in driving market growth.

    Regulatory Support for Clean Energy

    The Liquid Gas Market is benefiting from a favorable regulatory environment that promotes the use of cleaner energy sources. Governments are increasingly implementing policies aimed at reducing carbon emissions and encouraging the adoption of alternative fuels. This regulatory support is particularly evident in the promotion of liquefied natural gas (LNG) as a cleaner alternative to traditional fossil fuels. The transition towards LNG is being facilitated by various incentives, including tax breaks and subsidies for infrastructure development. As a result, the Liquid Gas Market is likely to see a significant uptick in investments and projects aimed at expanding LNG facilities. This trend not only aligns with The Liquid Gas Industry as a key player in the energy transition.

    Emerging Markets and Infrastructure Development

    The Liquid Gas Market is witnessing significant growth driven by emerging markets and ongoing infrastructure development. Countries in Asia, Africa, and Latin America are investing heavily in energy infrastructure to support their economic growth. This includes the construction of LNG terminals, pipelines, and storage facilities, which are essential for the distribution of liquid gases. As these markets develop, the demand for liquid gases is expected to rise, creating new opportunities for suppliers and investors. Furthermore, the increasing urbanization and industrialization in these regions are likely to further bolster the Liquid Gas Market. The combination of infrastructure development and rising energy needs positions the Liquid Gas Market for substantial expansion in the coming years.

    Technological Advancements in Storage and Transportation

    Innovations in storage and transportation technologies are transforming the Liquid Gas Market. Enhanced methods for liquefaction, storage, and distribution are making it more efficient and cost-effective to transport liquid gases. For example, advancements in cryogenic technology have improved the safety and efficiency of transporting liquefied gases over long distances. Additionally, the development of specialized containers and pipelines has reduced the risk of leaks and spills, thereby increasing the reliability of supply chains. These technological improvements are likely to attract new investments and facilitate the expansion of the Liquid Gas Market. As companies seek to optimize their operations, the adoption of these advanced technologies is expected to play a crucial role in shaping the future landscape of the market.

    Market Segment Insights

    By Type: Liquefied Natural Gas (Largest) vs. Propane (Fastest-Growing)

    In the Liquid Gas Market, Liquefied Natural Gas (LNG) emerges as a significant player, holding a predominant share compared to other types such as Liquefied Petroleum Gas (LPG) and Propane. As energy needs evolve, LNG has garnered a strong foothold due to its cleaner burning properties and extensive infrastructure. Contrarily, Propane, while smaller in market share, presents a compelling growth trajectory driven by its versatility and increasing adoption in heating and energy applications.

    Liquefied Natural Gas: Dominant vs. Propane: Emerging

    Liquefied Natural Gas (LNG) is the dominant force in the Liquid Gas market, primarily due to its clean-burning characteristics and efficiency. It serves as a key energy source across various sectors, including residential and industrial applications. In contrast, Propane is an emerging segment, rapidly gaining popularity for heating, cooking, and automotive uses. Its flexibility and lower emissions have contributed to its rise. This segment is increasingly recognized in rural and off-grid areas, where traditional energy supply can be challenging. As both segments evolve, the industry will likely experience greater competition and innovation.

    By Application: Residential (Largest) vs. Transportation (Fastest-Growing)

    The application segment of the Liquid Gas Market is diversified into residential, commercial, industrial, transportation, and power generation. Among these, the residential application dominates, capturing the largest market share. This is largely due to the increasing demand for convenient and efficient heating solutions at home. The commercial sector, while significant, trails behind residential usage in terms of consumption and market presence. In terms of growth trends, the transportation application is emerging as the fastest-growing segment, fueled by the global shift towards cleaner fuel alternatives and increasing awareness regarding environmental impacts. This sector is experiencing heightened investment as companies seek to transition to liquid gas as a viable fuel option, driven by advancements in technology and infrastructure improvements.

    Residential (Dominant) vs. Transportation (Emerging)

    The residential application sector within the Liquid Gas Market remains dominant due to its critical role in providing heating, cooking, and hot water solutions for households. As urbanization continues and living standards improve, the demand for liquid gas in residential settings is anticipated to rise steadily. In contrast, the transportation sector is labeled as emerging, experiencing rapid growth as environmental regulations tighten and the automotive industry shifts towards cleaner energy sources. This segment is increasingly leveraging liquid gas as an alternative fuel, gaining traction with both consumers and commercial fleets, positioning itself as a significant player for future developments in the market.

    By Distribution Method: Cylinders (Largest) vs. Bulk (Fastest-Growing)

    In the Liquid Gas Market, the distribution method segment is primarily dominated by cylinders, which provide a convenient and portable option for consumers. Cylinders account for a significant portion of the market share due to their widespread use in residential and commercial applications. On the other hand, the bulk distribution method is gaining traction, especially in industrial sectors, where large-scale gas utilization is required. This shift is indicative of evolving consumer preferences and the increasing demand for efficient and cost-effective delivery solutions.

    Cylinders (Dominant) vs. Bulk (Emerging)

    Cylinders represent the dominant distribution method in the Liquid Gas Market, primarily due to their versatility and accessibility for a wide range of applications, including residential heating and culinary uses. Their ability to be easily transported and stored makes them a preferred choice for many consumers and businesses. However, the bulk distribution method is emerging rapidly, particularly in the industrial segment, as companies seek to optimize operations and reduce costs. Bulk storage allows for larger quantities of liquid gas to be delivered efficiently, catering to high-volume demand while ensuring safety and minimal wastage, positioning it as a compelling alternative.

    By End Use: Cooking (Largest) vs. Heating (Fastest-Growing)

    In the Liquid Gas Market, the End Use segment plays a pivotal role, with cooking applications holding the largest market share. This segment is favored for its efficiency and ease of use, making it the preferred choice for residential and commercial kitchens. Heating applications, while currently smaller in share, are rapidly growing due to rising consumer demand for sustainable and cost-effective heating solutions across residential and industrial sectors.

    Heating (Dominant) vs. Fuel for Vehicles (Emerging)

    The heating segment is dominant in the Liquid Gas Market, driven by its critical role in providing reliable and efficient heating for both residential and industrial applications. As consumers increasingly prioritize energy efficiency and lower environmental impact, liquid gas heating solutions are gaining traction. Meanwhile, the fuel for vehicles segment, though emerging, is experiencing significant growth due to the rising popularity of liquefied natural gas (LNG) as a cleaner alternative for transportation. This shift is bolstered by regulatory support for fuel alternatives, making the fuel for vehicles segment an important area for future development.

    Get more detailed insights about Liquid Gas Market

    Regional Insights

    North America : Energy Innovation Leader

    North America is the largest market for liquid gas, holding approximately 40% of the global share, driven by increasing industrial demand and regulatory support for cleaner energy solutions. The U.S. leads this market, with Canada also contributing significantly due to its vast natural resources and investments in infrastructure. Regulatory frameworks promoting the use of liquefied natural gas (LNG) are further catalyzing growth in this region. The competitive landscape is dominated by major players such as ExxonMobil, Chevron, and Praxair, which are investing heavily in technology and infrastructure to enhance production and distribution capabilities. The presence of these key players, along with a robust supply chain, positions North America as a critical hub for liquid gas production and innovation. The region's focus on sustainability and reducing carbon emissions is also shaping market dynamics.

    Europe : Sustainable Energy Transition

    Europe is the second-largest market for liquid gas, accounting for approximately 30% of the global market share. The region is experiencing significant growth due to stringent environmental regulations and a strong push towards renewable energy sources. Countries like Germany and France are leading the charge, implementing policies that encourage the adoption of liquefied natural gas (LNG) as a cleaner alternative to traditional fuels, thus driving demand in the sector. The competitive landscape in Europe features key players such as Air Liquide and Linde, which are actively expanding their operations to meet the rising demand for liquid gas. The presence of these companies, along with government initiatives aimed at reducing greenhouse gas emissions, is fostering a favorable environment for market growth. The European Union's commitment to achieving carbon neutrality by 2050 further underscores the importance of liquid gas in the region's energy strategy.

    Asia-Pacific : Emerging Market Potential

    Asia-Pacific is witnessing rapid growth in the liquid gas market, holding approximately 25% of the global share. The region's demand is primarily driven by industrialization, urbanization, and increasing energy needs. Countries like China and India are at the forefront, with significant investments in infrastructure and technology to support the growing consumption of liquefied natural gas (LNG) as a cleaner energy source, thus enhancing energy security and reducing pollution levels. The competitive landscape is characterized by the presence of key players such as Nippon Sanso Holdings and other regional companies that are expanding their operations to cater to the rising demand. The government's focus on energy diversification and sustainability is further propelling market growth. As the region continues to develop, the liquid gas market is expected to play a crucial role in meeting energy demands while addressing environmental concerns.

    Middle East and Africa : Resource-Rich Opportunities

    The Middle East and Africa region is emerging as a significant player in the liquid gas market, accounting for approximately 5% of the global share. The growth is primarily driven by the region's abundant natural gas resources and increasing investments in infrastructure. Countries like Qatar and the UAE are leading the market, focusing on expanding their LNG export capabilities to meet global demand, particularly from Asia and Europe. The competitive landscape is shaped by key players such as TotalEnergies and BP, which are actively involved in developing new projects and enhancing production capacities. The region's strategic location and resource wealth position it as a vital hub for liquid gas exports. Additionally, government initiatives aimed at diversifying energy sources and promoting cleaner fuels are expected to further boost market growth in the coming years.

    Key Players and Competitive Insights

    The Liquid Gas Market is currently characterized by a dynamic competitive landscape, driven by increasing demand for cleaner energy solutions and advancements in technology. Major players such as Air Liquide (France), Linde (Germany), and TotalEnergies (France) are strategically positioning themselves through innovation and regional expansion. Air Liquide (France) focuses on enhancing its hydrogen production capabilities, which aligns with global decarbonization efforts. Linde (Germany) emphasizes digital transformation, leveraging data analytics to optimize operations and improve efficiency. TotalEnergies (France) is actively pursuing partnerships to expand its liquefied natural gas (LNG) portfolio, indicating a shift towards more sustainable energy sources. Collectively, these strategies not only enhance their competitive edge but also shape the market's trajectory towards sustainability and technological advancement.

    Key business tactics within the Liquid Gas Market include localizing manufacturing and optimizing supply chains to enhance responsiveness to regional demands. The market structure appears moderately fragmented, with several key players exerting influence over various segments. This fragmentation allows for competitive differentiation, as companies adopt unique strategies to capture market share. The collective influence of these major players fosters an environment where innovation and operational efficiency are paramount, driving the market forward.

    In August 2025, Linde (Germany) announced a significant investment in a new hydrogen production facility in North America, aimed at meeting the growing demand for clean energy. This strategic move not only reinforces Linde's commitment to sustainability but also positions the company as a leader in the hydrogen economy. The facility is expected to enhance Linde's supply capabilities and reduce carbon emissions, aligning with global energy transition goals.

    In September 2025, TotalEnergies (France) entered into a strategic partnership with a leading technology firm to develop advanced liquefaction technologies for LNG. This collaboration is poised to enhance TotalEnergies' operational efficiency and reduce costs associated with LNG production. By integrating cutting-edge technology, TotalEnergies aims to solidify its position in the competitive LNG market, responding to the increasing demand for cleaner energy solutions.

    In October 2025, Air Liquide (France) launched a new initiative focused on carbon capture and storage (CCS) technologies, aimed at reducing emissions from industrial processes. This initiative underscores Air Liquide's commitment to sustainability and positions the company as a frontrunner in the development of innovative solutions to combat climate change. The strategic importance of this initiative lies in its potential to enhance Air Liquide's market position while contributing to global decarbonization efforts.

    As of October 2025, current competitive trends in the Liquid Gas Market are increasingly defined by digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances are becoming more prevalent, as companies recognize the need for collaboration to drive innovation and enhance operational efficiency. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability. This shift indicates a transformative phase in the market, where companies that prioritize sustainable practices and technological advancements will likely emerge as leaders.

    Key Companies in the Liquid Gas Market market include

    Industry Developments

    • Q4 2024: The Permian Basin’s natural gas production has nearly doubled to 25 billion cubic feet per day (Bcf/d) in the last five years. However, the takeaway capacity of natural gas remains highly constrained in the basin, with natural gas pipeline utilization exceeding 90% in 2024, pushing regional Waha Hub spot prices below zero. However, new midstream infrastructure, such as the 2.5 Bcf/d Matterhorn Express Pipeline, which began transporting natural gas in October 2024, is expected to alleviate some bottlenecks. The Matterhorn Express Pipeline, with a capacity of 2.5 Bcf/d, began operations in October 2024, aiming to relieve natural gas takeaway constraints in the Permian Basin.

    Future Outlook

    Liquid Gas Market Future Outlook

    The Liquid Gas Market is projected to grow at a 2.38% CAGR from 2024 to 2035, driven by increasing demand for cleaner energy and technological advancements.

    New opportunities lie in:

    • Expansion of liquefied natural gas (LNG) infrastructure in emerging markets.
    • Development of advanced storage solutions for liquid gas transportation.
    • Investment in renewable liquid gas production technologies.

    By 2035, the Liquid Gas Market is expected to achieve robust growth, reflecting evolving energy needs.

    Market Segmentation

    Liquid Gas Market Type Outlook

    • Liquefied Natural Gas
    • Liquefied Petroleum Gas
    • Propane

    Liquid Gas Market End Use Outlook

    • Heating
    • Cooking
    • Fuel for Vehicles

    Liquid Gas Market Application Outlook

    • Residential
    • Commercial
    • Industrial
    • Transportation
    • Power Generation

    Liquid Gas Market Distribution Method Outlook

    • Cylinders
    • Bulk
    • Pipeline

    Report Scope

    MARKET SIZE 2024127.26(USD Billion)
    MARKET SIZE 2025130.29(USD Billion)
    MARKET SIZE 2035164.87(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)2.38% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesAdoption of cleaner technologies driving growth in the Liquid Gas Market.
    Key Market DynamicsRising demand for cleaner energy sources drives innovation and competition in the liquid gas market.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

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    FAQs

    What is the current valuation of the Liquid Gas Market as of 2024?

    The Liquid Gas Market was valued at 127.26 USD Billion in 2024.

    What is the projected market valuation for the Liquid Gas Market in 2035?

    The market is projected to reach 164.87 USD Billion by 2035.

    What is the expected CAGR for the Liquid Gas Market during the forecast period 2025 - 2035?

    The expected CAGR for the Liquid Gas Market during 2025 - 2035 is 2.38%.

    Which segment of the Liquid Gas Market had the highest valuation in 2024?

    In 2024, the Bulk distribution method segment had the highest valuation at 50.0 USD Billion.

    What are the projected valuations for Liquefied Natural Gas and Liquefied Petroleum Gas by 2035?

    By 2035, Liquefied Natural Gas is projected to reach 65.0 USD Billion, while Liquefied Petroleum Gas is expected to reach 50.0 USD Billion.

    Which application segment is anticipated to grow the most in the Liquid Gas Market by 2035?

    The Industrial application segment is anticipated to grow the most, reaching 45.0 USD Billion by 2035.

    Who are the key players in the Liquid Gas Market?

    Key players in the Liquid Gas Market include Air Liquide, Linde, Praxair, TotalEnergies, Shell, ExxonMobil, Chevron, BP, Messer Group, and Nippon Sanso Holdings.

    What is the projected valuation for the Transportation application segment by 2035?

    The Transportation application segment is projected to reach 25.0 USD Billion by 2035.

    How does the valuation of the Propane segment compare to other segments in 2024?

    In 2024, the Propane segment was valued at 37.26 USD Billion, which is lower than both Liquefied Natural Gas and Liquefied Petroleum Gas.

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