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Liquefied Petroleum Gas Market Size, Share, Growth Analysis 2032

Liquefied Petroleum Gas Market Size and Forecast (2025 - 2032), By Source (Refineries, Associated Gas, Non-Associated Gas), By Application (Residential, Commercial, Industrial, Transportation, Others), By Supply Mode (Packaged, Bulk), and Geography.

Report Code: ENE00859
Report Format: PDF + PPT + Excel
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Report Description

Market Overview

The global Liquefied Petroleum Gas (LPG) market is projected to reach USD YY billion by 2032, growing at a CAGR of 5.2% during the forecast period of 2025-2032.

Asia-Pacific currently dominates the market with a share of YY%, driven by the increasing demand for LPG as a cooking fuel in countries like China and India. The market growth is attributed to factors such as rising population, urbanization, and the growing demand for cleaner cooking fuels in developing countries.

LPG is a versatile, clean-burning fuel that is commonly used for cooking, heating, and transportation. The market is expanding rapidly because of the growing popularity of LPG as a cooking fuel in households, particularly in developing nations where it is replacing traditional biomass fuels. Government attempts to promote the use of LPG and the development of LPG infrastructure are accelerating market expansion.

 

Liquefied Petroleum Gas Market Dynamics

Growing Demand for LPG as an Automotive Fuel Drives Market Growth

LPG is gaining appeal as an alternative vehicle fuel due to its lower emissions when compared to petrol and diesel. The growing emphasis on decreasing air pollution and carbon emissions is accelerating the use of LPG-powered vehicles, particularly in cities. According to the World LPG Association, the worldwide autogas industry is predicted to develop at a CAGR of 3.5% between 2020 and 2030. The availability of LPG refueling infrastructure, as well as government incentives for LPG-powered vehicles, are driving up LPG demand in the transportation industry.

Government Initiatives to Promote LPG Adoption Fuel Market Expansion

Governments around the world are launching campaigns to encourage the use of LPG as a clean cooking fuel, particularly in rural regions. For example, the Indian government introduced the "Pradhan Mantri Ujjwala Yojana" (PMUY) plan in 2016, with the goal of providing free LPG connections to low-income homes. The initiative has greatly boosted LPG penetration in India, with over 80 million connections given by 2021. Similar programs in other emerging countries are accelerating LPG uptake and aiding market expansion.

Volatility in Crude Oil Prices Affects LPG Market Dynamics

LPG is generally obtained from crude oil refining and natural gas processing, hence crude oil price volatility has an impact on the LPG market. Fluctuations in crude oil prices can affect LPG output and pricing, causing market uncertainty. During periods of low crude oil prices, the profitability of LPG production may suffer, resulting in decreased investments in LPG infrastructure. Conversely, high crude oil prices might raise the cost of LPG for end users, thereby reducing demand. Market participants are focussing on diversifying their LPG sourcing and pricing methods in order to offset the impact of crude oil price volatility.

 

Segment Overview

Residential Sector to Dominate the LPG Market

The residential sector is estimated to account for the greatest share of the LPG market over the forecast period. LPG is commonly utilised as a cooking fuel in families, especially in poor nations where clean cooking fuels are scarce. Growing population, urbanisation, and increased disposable incomes are fuelling LPG demand in the residential sector.

According to the World Bank, around 2.6 billion people globally used solid fuels for cooking in 2019, primarily in poorer nations. Governments and international organisations are encouraging the use of LPG as a clean and efficient cooking fuel to improve health outcomes and reduce indoor air pollution.

The residential LPG market is also seeing the rise of novel distribution mechanisms, such as pay-as-you-go and micro-financing schemes, which make LPG more accessible and cheap to low-income homes. The development of LPG cylinders with better safety features, as well as the expansion of LPG distribution networks, are helping to drive the growth of the residential LPG market.

 

Regional Outlook

Asia-Pacific to Lead the Liquefied Petroleum Gas Market

Asia-Pacific is likely to maintain its dominance in the LPG market over the forecast period. The region's high population, increasing urbanisation, and rising demand for clean cooking fuels are the primary factors driving market expansion. Countries such as China, India, and Indonesia make significant contributions to the regional market.

China is the world's largest LPG consumer, accounting for more than 20% of total LPG demand. The residential and industrial sectors drive the country's LPG industry, which the government promotes as a greener alternative to coal and biomass fuels. The National Bureau of Statistics of China estimates that the country's LPG consumption will reach 42.6 million tonnes in 2020.

India is a big LPG market in Asia-Pacific. The Indian government's PMUY plan has greatly boosted LPG penetration throughout the country, notably in rural regions. LPG consumption in the country is predicted to increase at a CAGR of 6.5% between 2021 and 2026, owing to an increasing population and increased disposable incomes.

 

Competitive Intelligence

The LPG market is highly competitive, with many global and regional participants. Leading market players include Saudi Aramco, ExxonMobil Corporation, BP plc, Royal Dutch Shell plc, China Gas Holdings Limited, and ADNOC. To meet rising demand, these companies are increasing LPG production capacity, enhancing distribution networks, and investing in LPG infrastructure.

Strategic alliances and collaborations are significant strategies that market companies use to increase their market presence and share. For example, in 2021, Saudi Aramco and China's Shandong Yulong Petrochemical Company struck a long-term arrangement to supply LPG to China, thereby enhancing Aramco's position in the Asian market.

Market participants are also investing in the development of LPG-based technologies and applications, such as LPG-powered fuel cells and power generating systems, in order to expand their product portfolios and capitalize on new growth prospects.

 

Major Players

  • Saudi Aramco

  • ExxonMobil Corporation

  • BP p.l.c.

  • Royal Dutch Shell plc

  • China Gas Holdings Limited

  • ADNOC

  • Total S.A.

  • Bharat Petroleum Corporation Limited

  • Repsol S.A.

  • Petroliam Nasional Berhad (PETRONAS)

 

Key Developments

  • ExxonMobil Corporation announced plans in July 2024 to expand its LPG production capacity in Singapore in response to rising demand in Asia-Pacific.

  • In October 2024, Royal Dutch Shell plc introduced a new LPG-powered marine engine to cut pollution in the shipping industry.

Table of Content

1. INTRODUCTION

   1.1. Market Definitions & Study Assumptions

   1.2. Market Research Scope & Segmentation

   1.3. Research Methodology

2. EXECUTIVE SUMMARY

   2.1. Market Overview & Insights

   2.2. Segment Outlook

   2.3. Regional Outlook

3. COMPETITIVE INTELLIGENCE

   3.1. Companies Financial Position

   3.2. Company Benchmarking -- Key Players

   3.3. Market Share Analysis -- Key Companies

   3.4. Recent Companies Key Activities

   3.5. Pricing Analysis

   3.6. SWOT Analysis

4. COMPANY PROFILES (Key Companies list by Country) (Premium) *

5. COMPANY PROFILES

   5.1. Saudi Aramco

   5.2. ExxonMobil Corporation

   5.3. BP p.l.c.

   5.4. Royal Dutch Shell plc

   5.5. China Gas Holdings Limited

   5.6. ADNOC

   5.7. Total S.A.

   5.8. Bharat Petroleum Corporation Limited

   5.9. Repsol S.A.

   5.10. Petroliam Nasional Berhad (PETRONAS) (*LIST NOT EXHAUSTIVE)

6. MARKET DYNAMICS

   6.1. Market Trends

        6.1.1. Growing Demand for LPG as an Automotive Fuel Drives Market Growth

        6.1.2. Increasing Adoption of LPG in the Industrial Sector

        6.1.3. Rising Demand for LPG-based Power Generation

   6.2. Market Drivers

        6.2.1. Government Initiatives to Promote LPG Adoption Fuel Market Expansion

        6.2.2. Urbanization and Rising Disposable Incomes Drive LPG Demand

        6.2.3. Growing Population and Need for Clean Cooking Fuels

   6.3. Market Restraints

        6.3.1. Volatility in Crude Oil Prices Affects LPG Market Dynamics

        6.3.2. Competition from Alternative Clean Energy Sources

   6.4. Market Opportunities

   6.5. Porter's Five Forces Analysis

        6.5.1. Threat of New Entrants

        6.5.2. Bargaining Power of Buyers/Consumers

        6.5.3. Bargaining Power of Suppliers

        6.5.4. Threat of Substitute Products

        6.5.5. Intensity of Competitive Rivalry

   6.6. Supply Chain Analysis

   6.7. Value Chain Analysis

   6.8. Trade Analysis

   6.9. Pricing Analysis

   6.10. Regulatory Analysis

   6.11. Patent Analysis

   6.12. SWOT Analysis

   6.13. PESTLE Analysis

7. BY SOURCE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)

   7.1. Refineries

   7.2. Associated Gas

   7.3. Non-Associated Gas

8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)

   8.1. Residential

        8.1.1. Cooking

        8.1.2. Heating

        8.1.3. Others

   8.2. Commercial

        8.2.1. Hotels & Restaurants

        8.2.2. Institutions

        8.2.3. Others

   8.3. Industrial

        8.3.1. Manufacturing

        8.3.2. Agriculture

        8.3.3. Others

   8.4. Transportation

        8.4.1. Automotive

        8.4.2. Marine

        8.4.3. Others

   8.5. Others

9. BY SUPPLY MODE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)

   9.1. Packaged

        9.1.1. Cylinders

        9.1.2. Bulk Tanks

   9.2. Bulk

        9.2.1. Pipeline

        9.2.2. Tanker Trucks

10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)

    10.1. North America

          10.1.1. United States

          10.1.2. Canada

          10.1.3. Mexico

    10.2. South America

          10.2.1. Brazil

          10.2.2. Argentina

          10.2.3. Rest of South America

    10.3. Europe

          10.3.1. Germany

          10.3.2. United Kingdom

          10.3.3. France

          10.3.4. Italy

          10.3.5. Spain

          10.3.6. Russia

          10.3.7. Rest of Europe

    10.4. Asia-Pacific

          10.4.1. China

          10.4.2. Japan

          10.4.3. India

          10.4.4. Australia

          10.4.5. South Korea

          10.4.6. Rest of Asia-Pacific

    10.5. Middle-East

          10.5.1. UAE

          10.5.2. Saudi Arabia

          10.5.3. Turkey

          10.5.4. Rest of Middle East

    10.6. Africa

          10.6.1. South Africa

          10.6.2. Egypt

          10.6.3. Rest of Africa

 

*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)

Scope of the Report

By Source:

  • Refineries

  • Associated Gas

  • Non-Associated Gas

By Application:

  • Residential

    • Cooking

    • Heating

    • Others

  • Commercial

    • Hotels & Restaurants

    • Institutions

    • Others

  • Industrial

    • Manufacturing

    • Agriculture

    • Others

  • Transportation

    • Automotive

    • Marine

    • Others

  • Others

By Supply Mode:

  • Packaged

    • Cylinders

    • Bulk Tanks

  • Bulk

    • Pipeline

    • Tanker Trucks

By Region:

  • North America

  • Europe

  • Asia-Pacific

  • Latin America

  • Middle East & Africa

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