US Liquefied Petroleum Gas LPG Market Research Report: By Source (Refinery, Associated Gas, Non-associated Gas) and By Application (Residential, Commercial, Agriculture, Industrial, Transportation, Others) - Forecast to 2035

US Liquefied Petroleum Gas LPG Market Research Report: By Source (Refinery, Associated Gas, Non-associated Gas) and By Application (Residential, Commercial, Agriculture, Industrial, Transportation, Others) - Forecast to 2035.

US Liquefied Petroleum Gas LPG Market Overview:

As per MRFR analysis, the US Liquefied Petroleum Gas LPG Market Size was estimated at 20.35 (USD Billion) in 2023. The US Liquefied Petroleum Gas LPG Market Industry is expected to grow from 21.26(USD Billion) in 2024 to 34.51 (USD Billion) by 2035. The US Liquefied Petroleum Gas LPG Market CAGR (growth rate) is expected to be around 4.502% during the forecast period (2025 - 2035).

Key US Liquefied Petroleum Gas LPG Market Trends Highlighted

The US Liquefied Petroleum Gas (LPG) market is experiencing several significant trends driven by a mix of economic and environmental factors. One key market driver is the increasing demand for cleaner energy sources as the nation works towards reducing carbon emissions. LPG is recognized for its lower carbon footprint compared to other fossil fuels, making it an attractive option for residential, commercial, and industrial applications. This shift towards cleaner energy aligns with various state and federal initiatives aimed at promoting energy efficiency and sustainability. Opportunities in the US LPG market are also expanding with the growth of the transportation sector, particularly in the adoption of LPG as an alternative fuel for vehicles.The US government encourages the use of alternative fuels through grants and incentives, providing a conducive environment for the development of infrastructure to support LPG-fueled vehicles. Additionally, the growing popularity of outdoor activities and the rising demand for portable heating and cooking solutions in both recreational and residential settings present avenues for LPG market expansion. In recent times, a noticeable trend is the rise of technological advancements in LPG storage and distribution methods, making the supply chain more efficient and reducing operational costs. The integration of innovative technologies, such as remote monitoring systems and automated delivery schedules, is helping suppliers enhance service reliability and customer experience.This focus on efficiency, combined with rising health concerns about conventional fuels, is pushing the market towards diversified usage of LPG. As the US continues to prioritize energy independence and sustainability, the future of the LPG market looks promising, driven by these evolving trends.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Liquefied Petroleum Gas LPG Market Drivers

Growing Demand for Clean Energy Alternatives

The ongoing shift towards cleaner energy sources is a major driver for the US Liquefied Petroleum Gas (LPG) Market Industry. According to the U.S. Energy Information Administration (EIA), the demand for LPG as a clean energy alternative is significantly increasing due to its lower carbon emissions compared to traditional fossil fuels. As cities and states across the US set ambitious carbon reduction goals, there was a 20% increase in LPG consumption reported from 2010 to 2020, reflecting a clear preference for low-carbon solutions.In response to the rising awareness of climate change and air quality issues, many industries, including transportation and residential heating, are progressively transitioning to liquefied petroleum gas. This trend underscores the necessity for cleaner fuels, thus propelling growth in the US Liquefied Petroleum Gas LPG Market Industry. Additionally, organizations such as the American Gas Association are promoting the use of LPG, which further bolsters its market presence.

Government Incentives and Regulations Supporting LPG Use

Government policies and regulations aimed at promoting cleaner fuels are a significant driver of the US Liquefied Petroleum Gas (LPG) Market Industry. In 2021, the US government introduced several incentive programs to encourage the use of liquefied petroleum gas, such as tax credits for businesses and homeowners utilizing LPG heating systems. The Environmental Protection Agency (EPA) and other regulatory bodies recognize LPG as a viable alternative that helps meet air quality standards.According to the Clean Air Act, compliance with air quality regulations has shown a notable increase in the adoption of LPG, particularly in areas transitioning from higher-emission fuels. The combined effect of federal and state regulations is projected to enhance the market growth rate of LPG as a clean energy choice in the upcoming years.

Increased Focus on Energy Security and Independence

The growing need for energy security in the US is a crucial driver for the Liquefied Petroleum Gas (LPG) Market Industry. The US has been promoting policies that encourage the use of domestically produced LPG to reduce reliance on imported fuels. According to the U.S. Department of Energy, US domestic production of liquefied petroleum gas has increased significantly, exceeding 600 million barrels in 2020, allowing the country to not just meet its own needs but also export surplus to international markets.The drive towards energy independence aligns with the nation’s long-term energy strategies and economic goals, reinforcing the importance of liquefied petroleum gas as a stable, reliable energy source. Organizations such as the National Propane Gas Association support these efforts by providing resources and advocacy for the LPG sector, further contributing to its prominence in the energy landscape.

US Liquefied Petroleum Gas LPG Market Segment Insights:

Liquefied Petroleum Gas LPG Market Source Insights

The Source segment of the US Liquefied Petroleum Gas (LPG) Market plays a crucial role in determining the overall landscape of the industry, contributing significantly to its growth trajectory. The primary sources of LPG in the United States can be categorized into Refinery, Associated Gas, and Non-associated Gas. Refinery sources predominantly derive LPG from crude oil refining processes. This segment not only serves as a major contributor to the LPG supply but also benefits from the high operational efficiencies witnessed in US refineries, many of which have been optimized for higher output. As the country continuously enhances its refining capacity, the contribution of this segment to the overall LPG supply is expected to remain substantial.In contrast, Associated Gas originates from the extraction of natural gas that is produced concurrently with crude oil. This segment is vital as it capitalizes on the growing demand for natural gas, which effectively turns a by-product into a valuable resource. As production techniques for oil and gas evolve, this segment's importance in contributing to the US Liquefied Petroleum Gas LPG Market revenue will continue to rise, especially with the increasing focus on utilizing every component of extracted resources. Non-associated Gas, on the other hand, comes solely from natural gas reservoirs and is extracted independently of oil. This segment has become increasingly significant as shale gas exploration in regions like the Appalachian Basin has surged. As the US continues to innovate in extraction technologies, Non-associated Gas is seen as a pivotal source of LPG, providing a stable supply that enhances overall market stability and helps in meeting the growing domestic and export demands. The interplay between these sources reflects the dynamic nature of the US Liquefied Petroleum Gas LPG Market, underpinning its segmentation that highlights the diverse pathways through which LPG is sourced. The emphasis on alternative energy and the efficiency of extraction processes will drive the market growth and ensure that each segment plays a critical role in the expanding landscape of LPG in the coming years. Each source brings unique advantages and challenges, and their collective performance can significantly impact the overall market data and statistics, shaping the future of the US Liquefied Petroleum Gas LPG Market industry.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Liquefied Petroleum Gas LPG Market Application Insights

The US Liquefied Petroleum Gas (LPG) Market is experiencing notable developments within the Application segment, which is crucial for understanding its diverse uses in various sectors. This segment encompasses Residential, Commercial, Agriculture, Industrial, Transportation, and Other applications, with each playing a vital role in market dynamics. The Residential sector is significant due to its reliance on LPG for heating, cooking, and hot water, reflecting the demand for clean energy solutions. In the Commercial arena, businesses are turning to LPG for efficient energy use in restaurants and hotels, highlighting the fuel's versatility.The Agriculture sector utilizes LPG in crop heating, irrigation, and as a weed-control alternative, showcasing its importance in enhancing productivity. The Industrial segment employs LPG extensively in processes such as material handling and chemical manufacturing, indicating strong demand in various industries. Transportation also represents a growing area for LPG as an alternative fuel for vehicles, reducing emissions compared to traditional gasoline. As new technologies emerge, the Others category includes specialized uses, increasing the overall relevance of the US Liquefied Petroleum Gas LPG Market.Overall, the multifaceted applications of LPG are crucial for its contribution to energy diversity and economic development across the United States.

US Liquefied Petroleum Gas LPG Market Key Players and Competitive Insights:

The competitive landscape of the US Liquefied Petroleum Gas (LPG) market is characterized by a diverse mix of large-scale operators and regional players, driving innovations and growth in this sector. With the increasing demand for LPG in residential, commercial, and industrial applications, companies are continually vying for market share by optimizing their supply chains and enhancing operational efficiencies. The landscape has been shaped by various factors including changing regulations, technological advancements, and fluctuations in crude oil prices, prompting companies to adapt swiftly to maintain their competitive edge. As the market continues to evolve, insights into the competitive strategies and capabilities of key players provide valuable information on the trajectory of the LPG industry in the United States.Colonial Pipeline Company plays a significant role in the US Liquefied Petroleum Gas market, leveraging its extensive pipeline network to transport LPG efficiently across a wide geographic area. This company's strengths are reflected in its operational capabilities, with a focus on safety, reliability, and efficiency in transporting hydrocarbons. With a strategic presence across major markets, Colonial Pipeline is well-positioned to cater to the growing demands for LPG, taking advantage of its logistical advantages and established relationships with producers and distributors. The company’s commitment to maintaining high operational standards and meeting regulatory requirements further solidifies its reputation and encourages loyalty among its customer base, ensuring a robust foothold in the competitive LPG landscape.NGL Energy Partners operates prominently within the US Liquefied Petroleum Gas market, offering a diverse portfolio of services that include the transportation, storage, and distribution of LPG and other natural gases. This company emphasizes integrated solutions, enabling it to provide comprehensive service to customers in various sectors, from residential to industrial. NGL Energy Partners distinguishes itself through its considerable market presence and strategic partnerships that enhance its service offerings. The company has been actively pursuing growth through mergers and acquisitions, which not only expand its market reach but also strengthen its operational capabilities. By continually investing in infrastructure and technology, NGL Energy Partners aims to deliver reliable services while adapting to the dynamic needs of the market, reinforcing its position as a key player in the US LPG sector.

Key Companies in the US Liquefied Petroleum Gas LPG Market Include:

Colonial Pipeline Company

NGL Energy Partners

World Fuel Services

AmeriGas Propane

Suburban Propane

Clean Energy Fuels

Bridger Energy

Harvest Midstream

UGI Corporation

Pinnacle Propane

Targa Resources

Ferrellgas Partners

Propane Services

ChainLal

Southwest Gas Corporation

US Liquefied Petroleum Gas LPG Market Industry Developments

Recent developments in the US Liquefied Petroleum Gas (LPG) market have shown notable activity, with companies like Colonial Pipeline Company and Targa Resources focusing on infrastructure upgrades to enhance supply and distribution networks. AmeriGas Propane and Suburban Propane are adapting their strategies in response to rising demand for clean energy alternatives. In September 2023, NGL Energy Partners announced its acquisition of a midstream asset, reinforcing its commitment to expanding its footprint in the LPG sector. Furthermore, the market has witnessed a valuation increase as households turn to propane as a more efficient energy source amid fluctuating prices of traditional fuels. Clean Energy Fuels and Harvest Midstream are innovating in logistics solutions to streamline operations, contributing to overall market growth. Recent regulatory changes aimed at promoting cleaner fuels have also shaped the LPG landscape, creating opportunities for companies like UGI Corporation and Pinnacle Propane. Proposals for more stringent regulations on greenhouse gas emissions are steering market dynamics and pushing firms towards sustainability initiatives. These trends reflect a vibrant and evolving LPG market in the US, underpinned by both corporate strategies and broader economic shifts.

US Liquefied Petroleum Gas LPG Market Segmentation Insights

Liquefied Petroleum Gas LPG Market Source Outlook

Refinery

Associated Gas

Non-associated Gas

Liquefied Petroleum Gas LPG Market Application Outlook

Residential

Commercial

Agriculture

Industrial

Transportation

Others

Report Scope: ,,,,,,,,,,,,,

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	20.35(USD Billion)
MARKET SIZE 2024	21.26(USD Billion)
MARKET SIZE 2035	34.51(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	4.502% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Colonial Pipeline Company, NGL Energy Partners, World Fuel Services, AmeriGas Propane, Suburban Propane, Clean Energy Fuels, Bridger Energy, Harvest Midstream, UGI Corporation, Pinnacle Propane, Targa Resources, Ferrellgas Partners, Propane Services, ChainLal, Southwest Gas Corporation
SEGMENTS COVERED	Source, Application
KEY MARKET OPPORTUNITIES	Increased consumer adoption, Infrastructure development, Renewable LPG demand, Export market expansion, Technological advancements in production
KEY MARKET DYNAMICS	Rising demand for clean energy, Increased adoption in residential heating, Regulatory framework and compliance, Fluctuating crude oil prices, Infrastructure development and investment
COUNTRIES COVERED	US