Liquefied Petroleum Gas (LPG) Market Size, Share & Growth 2024-32

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IMARC Group’s report titled “Liquefied Petroleum Gas (LPG) Market Report by Source (Refinery, Associated Gas, Non-Associated Gas), Application (Residential, Commercial, Refinery and Petrochemical, Transportation, and Others), Supply Mode (Packaged, Bulk and On-site), and Region 2024-2032“. The global liquefied petroleum gas (LPG) market size reached US$ 139.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 192.4 Billion by 2032, exhibiting a growth rate (CAGR) of 3.5% during 2024-2032.

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Factors Affecting the Growth of the Liquefied Petroleum Gas Industry:

  • Demand in Domestic and Commercial Sectors:

The increasing demand for liquefied petroleum gas (LPG) in domestic and commercial sectors represents one of the key factors impelling the market growth. The rising utilization of LPG in residential settings for cooking and heating due to its efficiency and clean-burning properties compared to traditional fuels like coal and wood is supporting the market growth. This demand is particularly strong in developing countries, where urbanization and improving living standards are leading to a switch from traditional fuels to LPG for household energy needs. LPG finds applications in sectors like hospitality, agriculture, and various industries due to its versatility. This widespread adoption is accelerated by government initiatives in many countries aiming to promote cleaner fuels, thereby bolstering the LPG market’s growth.

  • Government Subsidies and Support Programs:

Many governments are implementing subsidy schemes to make LPG more affordable for lower-income households. These initiatives are part of broader strategies to encourage the transition from traditional, less environment-friendly fuels to cleaner energy sources. These policies are not only driving the domestic demand for LPG but also playing a crucial role in improving public health by reducing the reliance on biomass and other polluting fuels for cooking and heating.

  • Environmental Concerns and Emission Regulations:

LPG is perceived as a cleaner alternative to other fossil fuels, emitting lower levels of greenhouse gases, particulate matter, and other pollutants. This environmental advantage aligns with the international efforts to combat climate change and improve air quality. Many governments around the world are implementing policies to reduce carbon footprints, which often include incentives for LPG usage. Moreover, the utilization of LPG in transportation is helping to reduce vehicular emissions significantly compared to diesel and gasoline. These regulatory frameworks and the growing public awareness about environmental issues are driving the demand for LPG as a more sustainable energy option.

Leading Companies Operating in the Global Liquefied Petroleum Gas (LPG) Industry:

  • Bharat Petroleum Corporation Limited
  • BP P.L.C.
  • Chevron Corporation
  • China Gas Holdings Ltd.
  • Exxon Mobil Corporation
  • Origin Energy Limited
  • Petroliam Nasional Berhad
  • Phillips 66 Company
  • Repsol S.A.
  • Royal Dutch Shell PLC
  • Valero Energy Corporation

Liquefied Petroleum Gas Market Report Segmentation:

By Source:

  • Refinery
  • Associated Gas
  • Non-Associated Gas

Non-associated gas exhibits a clear dominance in the market, as it is extracted independently of crude oil and is more abundantly available and cost-effective for producing LPG.

By Application:

  • Residential
  • Commercial
  • Refinery and Petrochemical
  • Transportation
  • Others

Residential represents the largest segment due to the widespread use of LPG for cooking and heating purposes in homes.

By Supply Mode:

  • Packaged
  • Bulk and On-site

On the basis of the supply mode, the market has been bifurcated into packaged and bulk and on-site.

Regional Insights:

  • North America: (United States, Canada)
  • Asia Pacific: (China, Japan, India, South Korea, Australia, Indonesia, Others)
  • Europe: (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
  • Latin America: (Brazil, Mexico, Others)
  • Middle East and Africa

Europe dominates the market, attributed to the increasing implementation of stringent environmental regulations favoring cleaner fuels, coupled with well-established LPG distribution networks in the region.

Global Liquefied Petroleum Gas Market Trends:

The rising development and adoption of bioLPG, due to the growing focus on sustainable and renewable energy sources, is supporting the market growth. Produced from renewable feedstocks, bioLPG has a similar chemical composition to conventional LPG but with a significantly lower carbon footprint. This development is particularly attractive for sectors committed to reducing greenhouse gas emissions without major infrastructural changes. The increasing investment in bioLPG production and the supportive regulatory environment in many countries is contributing to the market growth. This trend not only caters to the rising environmental consciousness but also aligns with sustainability goals.

Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.

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