Global LPG Market by Source (Non-associated Gas, Associated Gas, Refinery) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global LPG market was worth USD 116.41 million in 2019. It is projected to grow at a compound annual rate (CAGR of 4.4%) between 2020 and 2027. The market is expected to grow due to increased awareness about the benefits of LPG as an alternative to fossil fuels, and the rise in adoption of green and clean energy sources in both developing and developed countries. The market's growth will be aided by technological advancements and government initiatives to teach rural people how to use LPG instead of traditional cooking fuels like kerosene, wood, or coal. The market's growth will be aided by the increasing population and the increased demand for liquefied petroleum gases as vehicle emission gas.

The high cost of installation for liquefaction technology and equipment can also impact the market's growth. The market is expected to grow due to increased government initiatives in countries like India, Indonesia and China to encourage liquefied petroleum gases applications. This is because of its long-term benefits as a cooking fuel.

LPG is slowly being seen as a viable option for commercial assets in the United Kingdom. It can be combined with low-carbon, renewable technologies to absorb a consistent year with continuous electricity supply with carbon reductions. Market growth is expected to be driven by improvements in R&D in the industry of liquefied petroleum gases.

LPG is a key fuel source in both residential and commercial heating and cooking applications, replacing traditional fuels like wood and coal. It could be explained by the many advantages LPG offers, including easy accessibility, convenience, portability, cost-efficiency, non-toxic, clean and convenient compared to wood or coal. As LPG is used as a cooking fuel in many regions, such as Africa, Asia Pacific and Central and South America, the expected increase in population will fuel the demand. In India, for example, between 60%-75% household work is done using liquefied petroleum gases (i.e. For heating and cooking.

Due to the sudden onset of the COVID-19 epidemic, there was a drop in commercial demand for liquefied petroleum gases. Due to lockdown situations, there has been an increase of demand for liquefied petroleum gases used in household cooking. Future demand for liquefied petroleum gases is expected to increase in all sectors, including the commercial, industrial, and transportation. Many market players will now seek out opportunities in traditional markets to meet the growing demand for LPG throughout the region. In April 2020, Sibur, Russia's largest petrochemical firm, took advantage of the opportunity to enter a new market and delivered two cargoes full of LPG to India as the European demand for LPG continued its decline.

Source Insights

The source segment, which is non-associated gas, accounted for 53.9% of the revenue in 2019. The source segment can be divided into three segments: associated gas, refinery, and non-associated. There are many sources of fuel. For example, North America's main source of gas is natural gas processing units. Asia Pacific, however, is dependent on its refineries to produce. Refineries are a major source of many gases on a global level. In the coming years, product supply will increase due to an increasing refining capacity in Saudi Arabia and Brazil, India, China, and India.

Asia Pacific saw 18.92 million tonnes of liquefied petroleum gases from associated gas in 2019. The revenue share from non-associated sources was notable and is expected to grow significantly over the forecast period. The U.S. shale gas boom is a significant drift that has led to excess in the global market for liquefied petroleum gases (LPG). This market also saw significant field developments in oil-and gas wells. There are also growing on-site processing plants, mainly in Russia and China.

Application Insights

The application segment was the largest contributor to volume at 49.8%. The application segment is sub-divided into residential/commercial, chemical, industrial, autogas, refinery, and others. Over the forecast period, the highest revenue growth is expected in the chemical segment. Urban and rural residents in the region, including the Asia Pacific, Central and South America, have a high dependency on liquefied petroleum gases as a cooking fuel.

In 2019, a significant share of the LPG (liquefied petroleum gases) market was held by residential and commercial applications. The key drivers of the segment's growth have been promising government subsidies and efforts to endorse the product, which is a major alternative to conventional fuels like wood and coal. Due to its minimal contribution to the depletion of the ozone layer, liquefied petroleum gas has been replacing chlorofluorocarbon or hydrofluorocarbon as a refrigeration agent. This has led to amplified application opportunities in the commercial/residential segment in ventilating and heating applications in addition to the cooking uses. This sector will likely experience significant growth in the coming years, which could lead to a global industry that exceeds USD 6.81 millions by 2027.

Autogas is expected to see significant growth due to increased alternative fuel demand in transportation sector to reduce environmental concerns such as pollution and carbon emissions. It is also one of the most affordable energy sources, making it suitable to be used in diesel and gasoline for the global transportation sector. In terms of revenue, the segment is expected to grow at a 4.7% CAGR from 2020-2027.

Regional Insights

Europe accounted for 78.5% of the total volume in 2019. In Europe, LPG demand in residential/commercial applications is expected to witness significant growth from 2020 to 2027. Many countries are taking into account the COP21 summit meeting to reduce carbon emissions in the atmosphere. India, for example, is exploring other cooking fuels.

Due to increasing awareness about carbon emissions, mature economies in North America and Europe are expected to experience significant growth over the next few years. Germany is expected to grow at a 4.0% CAGR in terms of revenue.

In 2019, a large portion of the market was accounted for by the Asia Pacific. The key drivers of regional market growth have been population growth, abundant resource availability, high energy needs, and easy affordability, due to government subsidies on LPG tubes. The increasing petrochemical capacity in India, China and India, Thailand, as well as South Korea, further contribute to this growth.

India was a major importer of liquefied Petroleum Gas in 2019, importing consignments from the United States, Middle East and other countries at a steady pace to finance domestic fuel consumption. Prime Minister Narendra Modi stated that India had achieved its goal of providing 80 million cooking gas connections free to Indian residents. The government's ability to maintain the market at low prices will be a key determinant of India's 2020 demand. LPG consumption in India will be supported by investment in liquefied petroleum gases receiving distribution pipelines (more than 14 million mt/year), and terminals (12 million mt/year).

Market Share Insights & Key Companies

Due to the presence major distributors and manufacturers, as well as many multinational corporations, the global LPG industry has seen high competition. Over the forecast period, there will be a lot of regional players in the global market. Due to the rapid growth of their fleets, the majority of market players are focusing on expanding their automotive gas capabilities. This is mainly in Europe and Asia Pacific. The players have also begun long-term partnerships to build supportable supply in the future. The following are some of the major players in the LPG market:

• Repsol

• China Gas Holdings Ltd

• Saudi Arabian Oil Co.

• FLAGA Gmbh

• Kleenheat

• Bharat Petroleum Corporation Limited

• JGC HOLDINGS COMPANY

• Phillips 66 Company

• Chevron Corporation

• Reliance Industries Limited

• Exxon Mobil Corporation

• Total

• Royal Dutch Shell

• Petroliam Nasional Berhad (PETRONAS)

• PetroChina Company Limited

• Petredec Pte Limited

• Qatargas Operating Company Limited

• Petrofac Limited

• Vitol

• China Petroleum & Chemical Corporation

• BP Plc.

Up Market Research published a new report titled “LPG Market research report which is segmented by Source (Non-associated Gas, Associated Gas, Refinery), By Players/Companies PetroChina Company Limited, Saudi Arabian Oil Co, Petrofac Limited, Total, Kleenheat, Phillips 66 Company, Reliance Industries Limited, Qatargas Operating Company Limited, Bharat Petroleum Corporation Limited, Petroliam Nasional Berhad (PETRONAS), Chevron Corporation, Vitol, Repsol, Royal Dutch Shell, China Petroleum & Chemical Corporation, BP Plc, Petredec Pte Limited, China Gas Holdings Ltd, Exxon Mobil Corporation, FLAGA Gmbh, JGC HOLDINGS CORPORATION”. 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 LPG Market Report Segments:

The market is segmented by Source (Non-associated Gas, Associated Gas, Refinery).

LPG 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 LPG Market

Overview of the regional outlook of the LPG 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 LPG Market Report:

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

                1. Non-associated Gas

                2. Associated Gas

                3. Refinery

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 LPG 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
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
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Reasons to Purchase the LPG 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.