Global Butane Market by Application (LPG (Chemical/ Petrochemical, Auto fuel, Industrial, Refinery, LPG Residential/Commercial) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Industry Insights

In 2015, the butane market was worth USD 60.01 million. This market is expected to grow significantly over the forecast period. The future outlook is positive due to the rising demand for petroleum gas (LPG), in various applications. Because of its high flammability, and easy liquefiability, butane is used in fuel manufacturing.

In 2015, butane consumption was 138.23 millions tons. This figure is expected to rise steadily in the future. Butane growth may be hindered by volatility in crude oil spot prices and NGL. The industry may face challenges in the coming years due to groundwater contamination from MTBE leakage and the growth of alternative fuels such as ethanol to gasoline blending.

U.S. Butane Market Revenue by Application, 2014-2025 (USD Billion).

Market growth will be boosted by increased capacity expansion and spending on the development refineries and petrochemical compounds, especially in the Middle East. LPG applications will continue to grow due to rising demand for basic energy such as heating and cooking.

Industry participants can expect technological developments from companies to increase the butane application areas. To strengthen their global presence, companies have developed strategies that focus on separate upstream and downstream business units.

Application Insights

LPG accounted for the largest market share in 2015, with 92.12 millions tons of its demand in 2015. The market is expected to grow due to increasing demand for LPG as fuel in the residential and commercial sectors. LPG can be used for heating and cooking purposes. Butane and its isomer can be used to blend gasoline in refineries, as oxygenate, as well as to increase its octane rating.

Isobutane will replace conventional hazardous chlorofluorocarbons. Refineries using fuel gas to improve the fuel's flammability properties are expected to drive the growth between 2016 and 2025. Over the forecast period, the fastest-growing market segment will be the petrochemical.

The forecast period will see an increase in disposable income and standard-of-living, which is expected to boost the growth. Market regulations have been put in place to address the increasing health risks posed by inhalation of butane gases. In the next few years, these regulations and standard acts will have a negative impact on the market.

Regional Insights

Asia Pacific was the dominant region segment due to the rise in demand for gas in China's chemical processing units and refineries. The Asia Pacific region segment was valued at USD 22.17 billion in 2015 and is expected to grow at a 4.2% CAGR over the forecast period. The butane market is expected to grow due to the growth of different end-use industries, such as infrastructure and automotive in Asia Pacific, as well as Latin America.

Favorable government regulations regarding subsidies and multiple connections to LPG are major factors that contributed to the rise in LPG and thus butane demand in these areas. Because of their oil and petroleum resources, the Middle East is the largest regional producer of butane.

Global butane market revenues by region in 2015 (USD Billion).

North America's auto fuel and petrochemicals industries are expected to show positive growth. The rapid development of US shale gas will support sustainable supply of natural gas liquids, and will ultimately benefit the market in the coming years.

Market Share in Butane

Market is a monopolistic market and will likely consolidate. Based on their services and overall profitability, key players compete against one another. The barriers to entry are high because the market is complex and capital-intensive.

Few companies have ever been involved in R&D to develop bio-based alternatives in order create niche applications. To be a market leader in this sector and to sustain existing competitors, the company must bring innovation to product development and substitute products with additional applications.

British Petroleum (BP), ConocoPhillips Inc. and Chevron Corporation are the major players in this sector. Royal Dutch Shell PLC. and China Petroleum and Chemical Corporation(SINOPEC) are other companies that have significant butane operations. Total S.A. and China National Petroleum Corporations (CNPC), Praxair and Linde are also important players in this market.

The Report Covers Certain Segments

This report forecasts revenue growth and gives an analysis of the most recent trends in each sub-segment from 2014 to 2025. Up Market Research has divided the global butane market based on application and location.

• Application Outlook (Volume: Million Tons; Revenue USD Billion, 2014-2025)

  • LPG

    • Residential/Commercial

    • Chemical/ Petrochemical

    • Industrial

    • Auto fuel

    • Refinery

    • Other

  • Petrochemicals

  • Refineries

  • Other

• Regional Outlook (Volume: Million Tons; Revenue USD Billion, 2014-2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • ROE

  • Asia Pacific

    • China

    • India

    • APAC

  • CSA

  • MEA

Up Market Research published a new report titled “Butane Market research report which is segmented by Application (LPG (Chemical/ Petrochemical, Auto fuel, Industrial, Refinery, LPG Residential/Commercial), By Players/Companies China National Petroleum Corporation (CNPC), Total SA, Royal Dutch Shell PLC, Air Liquide, China Petroleum and Chemical Corporation (SINOPEC), Praxair, Linde”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Butane Market Report Segments:

The market is segmented by Application (LPG (Chemical/ Petrochemical, Auto fuel, Industrial, Refinery, LPG Residential/Commercial).

Butane Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Butane Market

Overview of the regional outlook of the Butane Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Butane Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Butane Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Chemical/ Petrochemical

                2. Auto fuel

                3. Industrial

                4. Refinery

                5. LPG Residential/Commercial

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Butane Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
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• Understanding Competition Scenario
• Product & Brand Management
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Reasons to Purchase the Butane Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.