LPG Market Analysis Report By Source, By Application, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global liquefied petroleum gas (LPG) market size was accounted for USD 116.41 billion in 2019. It is also estimated to witness a 4.4% CAGR over the forecasted period, 2020 to 2027. The rising awareness about environmental pollution associated with the consumption of fossil fuels and the adoption of green and clean energy sources are expected to drive market growth.

Several initiatives are being undertaken by statutory governing bodies for promoting the usage of such non-conventional energy resources. They are majorly focusing to educate the individuals residing in the developing and rural regions about the usage of LPG as a substitute for conventional cooking fuels like coal, kerosene, and wood.      

The LPG is being considered as a major fuel source across residential and commercial segments for cooking and heating applications. Further, its features like clean, non-toxic, easily accessible, cost-effective, and portable are projected to propel its demand across the globe. Thus, the majority of the global population has shifted towards the consumption of LPG. For example, around 60% - 75% of household cooking is done by using LPG cylinders.

The LPG is considered a good alternative in Europe for commercial assets that can be joint with renewable and low carbon emission technologies. But, higher installation costs associated with setting up liquefaction process technology and equipment are anticipated to hamper the market growth to some extent.

Source Insights

The global liquefied petroleum gas market is segmented into associated gas, non-associated gas, and refinery based on the source type. The source segment of non-associated gas held the largest share of around 53.9% across the global market in 2019. These sources vary according to the region. For instance, Asia Pacific hugely relies on refineries for LPG production while North America produces gas in natural gas processing units.

The refineries are also one of the major producers of gas across the global market. Increasing refining capacities across countries like Brazil, Saudi Arabia, China, and India are expected to augment the market growth for this segment. Moreover, the market is also projected to register more field developments in the gas and oil well due to the rising number of on-site processing facilities.

Application Insights

The market can be segmented into Residential/Commercial, industrial, chemical, refinery, autogas, and others based on the application. In 2019, the other application segment accounted for the largest share across the global market. Rising dependency on LPG as a fuel to serve several applications is projected to drive the market growth for this segment.

The segment of autogas is also expected to register substantial growth with a 4.7% CAGR in the upcoming years. This can be associated with the rising need for using alternative fuels across the transportation sector. As the autogas helps in minimizing environmental concerns like reduction in pollution and carbon emission levels, they are acting as a substitute for conventional vehicle fuels like petrol and diesel.

Regional Insights

Europe accounted for a dominant share of more than 78.5% across the global LPG market in 2019. This can be associated with the rising number of summits and meetings like COP21 is being conducted across this region for reducing the carbon emissions in the atmosphere. The market across North America and Europe is matured and is expected to show linear growth in the upcoming years.

The Asia Pacific also held a significant share across the global market in 2019. Increasing population, surging need for energy sources, ease of affordability, and subsidies provided by governments for boosting the consumption of such LPG cylinders are expected to augment the market growth across this region. Moreover, the rising number of petrochemical properties in countries like China, India, South Korea, and Thailand is further expected to fuel up the market growth.

COVID-19 Impact Insights

The LPG market has been negatively impacted due to the ongoing COVID-19 pandemic. The imposition of lockdown across several countries has resulted in a decrease in its demand across the commercial sector. Further, shut down of several industries, stagnancy over the transportation sector, and a decrease in the availability of laborers have reduced the demand for LPG. Moreover, hindrance in the supply chain due to restrictions over cargo movement has obstructed the market growth for LPG gas. But, the increase in its demand for residential cooking purposes is expected to propel the market growth to some extent over the post-pandemic period.

Liquefied Petroleum Gas (LPG) Market Share Insights

The key players operating in the market are China Gas Holdings Ltd, FLAGA Gmbh, Bharat Petroleum Corporation Limited, Repsol, Saudi Arabian Oil Co., Exxon Mobil Corporation, PetredecPte Limited, Reliance Industries Limited, Royal Dutch Shell, and Vitol. The market is witnessing stiff competition due to the surging presence of several key players operating at different geographical locations.

Strategies like expansions of autogas capabilities are being undertaken by these players to widening their global reach. Also, other initiatives such as long-term partnerships are being undertaken with distributors and auto-OEMs by these players for enhancing their supply chain.

Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub-segments. For this study, Million Insights has segmented the global LPG market based on source, application, and region:

• Source Outlook (Volume, Million Tons; Revenue, USD Billion, 2016 - 2027)
    • Refinery
    • Associated Gas
    • Non-associated Gas

• Application Outlook (Volume, Million Tons; Revenue, USD Billion, 2016 - 2027)
    • Residential/Commercial
    • Chemical
    • Industrial
    • Autogas
    • Refinery
    • Others

• Regional Outlook (Volume, Million Tons; Revenue, USD Billion, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • The U.K.
        • France
        • Italy
        • Russia
        • Spain
    • The Asia Pacific
        • China
        • India
        • Japan
        • Australia
        • South Korea
    • Central & South America
        • Brazil
    • The Middle East & Africa
        • Saudi Arabia
        • South Africa