Liquefied Petroleum Gas (LPG) Market Size to grow by USD 52.77 billion between 2024-2028
According to a research report “ Liquefied Petroleum Gas (LPG) Market” by End-user (Residential, Petrochemical, Industrial and commercial, Transport, Others) Source (Natural gas liquid, Crude oil) Geography (APAC, North America, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 52.77 billion, at a CAGR of 3.6% during the forecast period. In the dynamic energy landscape, the surge in the production of unconventional natural gas resources, including coalbed methane, shale gas, and tight gas, has propelled natural gas as the fastest-growing fossil fuel. The International Energy Agency (IEA) projects that global natural gas consumption will rise from 3,630 billion cubic meters (bcm) in 2016 to 4,000 bcm by 2022. This expansion is largely driven by successful extraction of shale gas in countries like the US since 2008, which accounts for approximately 40% of the growth in global natural gas output from 2017 to 2022. This trend underscores the significant business opportunities and growth potential in the Liquefied Petroleum Gas (LPG) market, as LPG is derived from natural gas processing and is a valuable byproduct in the oil and gas industry..
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By End-user, the Residential segment is projected to dominate the market size in 2024
Liquefied Petroleum Gas (LPG) is a valuable and versatile energy source, utilized extensively across various sectors. In the residential domain, LPG serves as an efficient alternative for water and space heating and cooling. In developing nations, it is indispensable for lighting in regions devoid of electricity. In developed countries, LPG is popularly used for outdoor activities like barbecues and camping. Due to its high density as a liquid, LPG is liquefied for bulk storage and transportation, necessitating pressurized vessels. For maritime transportation and large-scale storage at receiving terminals, LPG is refrigerated. With a high-energy content per ton in its liquid state, LPG surpasses traditional fuels and most oil products.
By Source, Natural gas liquid segment is expected to hold the largest market size for the year 2024
The Liquefied Petroleum Gas (LPG) market is experiencing significant growth, driven primarily by the increasing demand for this clean and efficient energy source in various sectors, including transportation, industrial applications, cooking, and heating. The primary source of LPG is Natural Gas Liquid (NGL), which is in high demand due to governmental policies favoring clean energy and the rising consumer preference for sustainable alternatives. The residential market, in particular, is driving the demand for NGL, leading to increased production and refining capacity, as well as the development of new NGL extraction technologies. Moreover, the shift towards LPG as a transportation fuel, due to its cleaner and more effective properties compared to conventional fossil fuels, is further fueling the demand for NGL.
APAC is forecasted to hold the largest market size by region in 2024
The Asia-Pacific (APAC) region's ongoing urbanization and industrialization have significantly boosted the demand for Liquefied Petroleum Gas (LPG) in the residential, commercial, and industrial sectors. LPG is a versatile energy source, widely utilized for cooking, heating, power generation, and as a feedstock in various industries. Population expansion and escalating disposable income levels in APAC countries are fueling increased LPG consumption for domestic cooking and heating applications. Furthermore, governments in the region, such as India, offer subsidies and incentives to encourage LPG adoption as a cleaner alternative to traditional fuels like biomass and coal. Consequently, the demand for LPG cylinders and infrastructure is surging, underpinning the market's robust growth in the APAC region.
The Liquefied Petroleum Gas (LPG) Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Liquefied Petroleum Gas (LPG) market is experiencing significant growth due to its chemical application type in various industries, including refineries. LPG is a clean, non-toxic, and convenient fuel source that is cost-efficient compared to conventional fuel sources like coal and wood. Its easy accessibility and portability make it an ideal choice for both residential segments and commercial assets. In the residential sector, LPG is increasingly being used as a replacement for traditional cooking fuels like kerosene, providing a cleaner and more efficient cooking experience. In the commercial sector, LPG is used as a fuel for vehicles, reducing vehicle emission gas and providing a cost-effective alternative to fossil fuels. The projection timeframe for the LPG market shows continuous growth, driven by technological aspects and the increasing demand for cleaner and more efficient fuel sources. The installation cost of LPG infrastructure is a significant factor, but the long-term cost savings and environmental benefits make it a worthwhile investment. The use of LPG is particularly beneficial for rural people who have limited access to conventional fuel sources, providing them with a clean and cost-effective alternative to meet their energy needs. Overall, LPG is a versatile and sustainable fuel source that is poised to replace traditional fuels like kerosene and coal in various applications.
Market Research Overview
Liquefied Petroleum Gas (LPG), also known as propane or butane, is a versatile energy source with a pressurized nature, making it easily transportable through pipelines, tankers, and gas separation facilities. Its flammability makes it an ideal fuel for various applications, including transportation, autogas, power generation, heating, and cooking in both developed and developing nations. The global population's urbanization and increasing energy demand have led to a significant rise in LPG production, with the United Nations data reporting over 300 million metric tons produced in 2020. Policies promoting emission control and cleaner fuel projects have further boosted its usage. LPG is derived from crude oil refining and natural gas processing. Its applications extend beyond fossil fuels, with the emergence of BioLPG from renewable sources. The infrastructure limitations and safety concerns associated with LPG have led to technological advancements, including IoT solutions for LPG storage and distribution. LPG is a valuable resource in the industrial sector, with applications in petrochemical production and as a feedstock for commercial assets. Its uses as an automotive fuel, especially in autogas applications, have gained popularity due to their lower greenhouse gas (GHG) emissions compared to traditional fuels. Despite its benefits, LPG's production and usage come with challenges, including infrastructure limitations, safety concerns, and the high cost of extracting it from non-associated gas sources. The future of LPG lies in its ability to adapt to the evolving energy landscape, balancing its role as a traditional fossil fuel and a potential feedstock for renewable technologies.
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