LPG Market Likely To Touch At 4.36 Billion By 2027: Grand View Research Inc.

Posted by Mrudula Anil Karmarkar on April 20th, 2021

The global LPG market size is expected to reach USD 164.36 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 4.4% from 2020 to 2027. Growing demand for liquefied petroleum gas (LPG) from emerging countries is projected to drive the global market during the estimated period. Urbanization and industrialization have increased expressively across the world over the past few years. The flow of investments has changed from developed countries toward emerging countries owing to the low costs of labor and infrastructure.

Increasing prices of fuel and growing environmental concerns have upturned the countries’ attention towards LPG to be used as an alternative fuel, which is the main factor propelling the market growth. Some of the key government mandates such as Federal Emission Standards, and the California Air Resources Board Zero Emission Vehicle Mandate are turning the automotive industry towards more advanced technologies so as to reduce carbon emission and achieve fuel economy, which will directly increase the demand for LPG across the market.

Demand for LPG is anticipated to observe significant growth over the projected period on account of its numerous benefits, such as low cost, low-carbon emissions, and operational benefits. LPG is emerging as a striking option for the commercial sector, combined with low-carbon technologies and renewables to assimilate a reliable year with round the clock power supply with less carbon emissions. The residential/commercial application segment accounted for a substantial share in 2020 and is estimated to witness significant growth in the next seven years. High demand for LPG as a heating fuel and for cooking purpose in the commercial as well as residential segments has been the major factor increasing its penetration in the sector.

The liquefied petroleum gas (LPG) market in the Asia Pacific conquered the global consumption and accounted for over 28.0% share of the total volume in 2020. The Asia Pacific is anticipated to witness significant growth during the forecast period. Increasing consumption of liquefied petroleum gas for domestic usage purposes, such as cooking fuel, coupled with initiatives taken by the government, mainly in India, China, and Indonesia, is projected to propel LPG demand across the region.

LPG Market Report Highlights

  • The chemical application segment is expected to witness the fastest growth over the forecast period
  • The Asia Pacific held a substantial revenue share in 2020. China is expected to account for the maximum share in the Asia Pacific market
  • The residential/commercial application segment accounted for 17.8% share of the total revenue in 2020
  • North America is likely to witness moderate growth during the projected period.

Besides, the high cost of installation related to liquefaction process equipment and technology may affect the demand and can confine the growth of the market during the projected timeframe. Rise in government initiatives across countries, such as India, Indonesia, and China, to inspire liquefied petroleum gas applications on account of its prolonged benefits as a cooking fuel is anticipated to boost the market growth over the upcoming years.

In the United Kingdom, LPG is gradually being considered a striking option for commercial assets joined with low-carbon and renewable technologies to assimilate a consistent year with round the clock electricity supply with carbon savings. Improving R&D in the liquefied petroleum gas industry is projected to propel the market growth over the upcoming years.

LPG has emerged as one of the key fuel sources in the commercial and residential segments for heating and cooking applications substituting the conventional fuel sources, such as wood and coal. However, it could be ascribed to the many benefits such as easy accessibility, non-toxic, clean, convenient, portable, and cost-efficient as compared to other fuels, such as wood and coal. The surge in the population across regions like Africa, Asia Pacific, and Central and South America is projected to fuel up the demand during the projected timeframe as the residents in the subsequent regions use LPG as cooking fuel. For instance, in India, over 60%-75% of household works are done by using liquefied petroleum gas, i.e. for heating and cooking.

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The abrupt onset of the COVID-19 pandemic caused a decrease in demand for liquefied petroleum gas in the commercial sector. There has been an increase in demand owing to the rise in consumption of liquefied petroleum gas for household cooking purposes due to situations like lockdown. The usage of liquefied petroleum gas across the industrial, commercial, and transportation sectors is projected to create demand across the regions in the future. Numerous market players are now expected to pursue opportunities in the traditional markets and cater to the demand for LPG across the regions. As the demand for LPG continued to deteriorate in Europe owing to the COVID-19 outburst, in April 2020, Russia’s largest petrochemical company, Sibur capitalized on the prospect to enter into a new market by delivering two cargoes of LPG to India.

The global LPG industry has been characterized by high competition owing to the presence of major manufacturers and distributors, along with numerous multinational corporations. The global market is likely to attract a large number of regional players over the estimated period. The majority of the market players have been focusing on expanding their autogas capabilities owing to the rapidly growing fleet count, mostly in Europe and the Asia Pacific. Some of the other initiatives undertaken by the players are long-term partnerships with auto-OEMs and distributors for supportable supply over the next few years. Some of the prominent players in the LPG market include:

  • Repsol
  • China Gas Holdings Ltd
  • Saudi Arabian Oil Co.
  • FLAGA Gmbh
  • Kleenheat
  • Bharat Petroleum Corporation Limited
  • JGC HOLDINGS CORPORATION
  • 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.

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

For More Information:www.grandviewresearch.com

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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