Liquefied Petroleum Gas LPG Market Size, Share & Trends Analysis 2020-2027 (PDF)
By the end of 2019, the Global LPG market was valued at USD 118.52 billion and is expected to have a steady growth in the upcoming years with a CAGR of 4.8%. Worldwide adoption of cleaner and greener energy sources over traditional fossil fuels is expected to be the prime driver for this market. Government initiatives for bringing the rural population into the same pace as urbanization and promoting the use of LPG over wooden materials, kerosene, and coal are expected to boost the market in upcoming years. Additionally, the growing demand of Liquified Petroleum Gas in urban areas in vehicles and industrial purposes is likely to further grow the LPG Market over the next 10 years.
However, the high initial investment of the liquification process and the process equipment and technology can limit the growth of this market and resist the growth in further years. In developing countries like India, China, and South Asia, the rise in government initiatives to promote and use the Liquified Petroleum Gas for household work as a cooking fuel is expected to boost the market growth in the developing countries. In most of the developed countries of Europe such as the UK, Germany, and France, have initiated maximum utilization of LPG which puts resistance on the carbon savings, which is possible with the appropriate research and development in the liquification process.
In the past decade, LPG has emerged as one of the important fuel sources in both the commercial and residential segment for cooking food and heating substances in industrial applications instead of traditional sources like wood, coal, and biogas. The LPG provides the advantage of easy accessibility, non-toxic, convenience, cost-effectiveness,ness, and portability as compared to the traditional. The population growth and easy accessibility of LPG in countries like Africa, Latin America, and South-East Asia are projected to grow the market subsequently. For example: after the Government initiative almost 77% of the nation’s households are now using LPG as the fuel source for households cooking.
On the contrary, the LPG usage in the commercial sector has hit after the COVID-19 pandemic and the growth have declined after the implied lockdown in most parts of the world. However, the usage has increased in the household after lockdown. Looking at the growth of this market and emerging future expectations of the human race from LPG, many companies have decided to enter in this market and major players are investing in research and development activities to innovate the liquification process and bring the LPG to household and commercial use in less amount of time.
Liquified Petroleum Gas is segmented on the basis of its source which is bifurcated into associated gas, non-associated gas and refinery. The non-associated gas source segment is the largest segment on the basis of revenue as accounted in 2019. The source segment is further segregated into associated gas, non-associated gas and refinery. The sources of liquified petroleum gas differ largely depending upon the geographical region like, in North America, the major production of LPG is by natural gas units. Similarly, the Asia Pacific and other regions, it is reliant on refineries which is one of the primary sources of production for a number of gases. Advancement of refineries in the countries of UAE, Brazil, Saudi Arabia, etc is expected to boost the demand of the LPG market in the upcoming years.
On the basis of volume, the application insights accounted for the largest segment with more than 49% share. The application segment is further segmented into commercial, residential, industrial, chemical, Autogas, and others. The chemical segment is expected to be one of the fastest-growing segments owing to the increasing graph of chemical industries in developing parts of the world. The extensive usage of LPG as household fuel for the households of Asia, Asia, Africa, and Latin America is one of the major drivers for its growth in the application segment.
Promising government subsidies for the commercial sector and encouragement of LPG as a fuel in the residential sector is expected to provide leverage in the application segment. Similarly, Autogas is expected to witness a steady growth in the upcoming years owing to an increase of the alternate demand for fuel in many sectors due to increased emission of CO2 and other gases. The segment is expected to grow at a CAGR of 5.2% in the next few years.
By the end of 2019, the European region witnessed the largest share by volume with more than 75% and is expected to continue further in the next 7 years. The growth and demand for LPG in households and commercial grew largely, this is in conjunction with the preventive steps taken by countries in reducing the carbon footprint. Developed countries of Europe and North America are expected to witness the same growth in the upcoming years too with a constant CAGR of 4.3%.
Similarly, with a growing population, ample requirement of resources coupled with good government subsidiaries are equally important parameters that have propelled the growth of LPG in the Asia Pacific region. In 2019, India emerged as an important importer of LPG gas owing to its target to bring 85% of households on LPG which was under Hon. PM Narendra Modi. India and countries of South-East Asia like the Philippines, Thailand, and Singapore are expected to be the fastest-growing LPG countries in the region.
The global LPG industry experience the presence of many multinational organizations owing to the widespread global industry and high profit. The market is also expecting the entry of many small players from various countries over the upcoming years. Many competitors are focusing on expanding the existing capabilities and increase the fleet count and supply of LPG. Some of the many competitors are Bharat Petroleum Corporation Limited, Reliance Industries Ltd., Exxon Mobil Corp., Petroleum Nasional Berhad, Petrofac Ltd., Repsol etc.
Segmentation of the report:
The global LPG market report is a complete Market Intelligence Research report which aims at forecast revenue growth, market drivers, upcoming trends and competitor’s analysis at Global, regional, and local levels and provides appropriate industry trends. For the purpose of this research study, UpGraph Research and Consultancy have segmented the global LPG market research report based on the below segments.
Source Outlook (Volume, Million Tons; Revenue, USD Billion, 2020 – 2027)
Application Outlook (Volume, Million Tons; Revenue, USD Billion, 2020 – 2027)
Regional Outlook (Volume, Million Tons; Revenue, USD Billion, 2020 – 2027)
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