Liquefied Petroleum Gas Industry Overview

The global liquefied petroleum gas (LPG) market was valued at USD 117.3 billion in 2022 and is expected to experience a steady expansion, growing at a compound annual growth rate (CAGR) of 3.7% from 2023 to 2030. Several factors are driving the market's growth, including the increasing awareness about the benefits of using LPG as an alternative to fossil fuels and the rising global adoption of cleaner, greener energy sources in both developed and developing nations. As governments and organizations promote the use of clean energy, LPG is becoming a preferred choice, particularly in rural areas where traditional fuels like kerosene, wood, and coal are still prevalent. Government initiatives aimed at educating and encouraging rural populations to switch from these conventional fuels to LPG are expected to play a significant role in the market's expansion.

Furthermore, the growing global population and the increasing demand for LPG as a vehicle emission gas are anticipated to contribute to the market's growth. LPG’s use in vehicles as an alternative fuel option is gaining traction due to its environmental benefits, including lower emissions compared to conventional fuels. However, the high cost associated with the installation of liquefaction process equipment and technology may pose challenges to the market, potentially limiting its growth during the forecast period.

Government initiatives in countries such as India, Indonesia, and China are also expected to significantly boost the LPG market. These initiatives focus on promoting LPG as a cooking fuel due to its long-term benefits, such as improved air quality and reduced health risks associated with traditional cooking fuels. For example, in India, a large percentage of households rely on LPG for daily cooking and heating needs, further driving the demand for this clean fuel.

In the United Kingdom, LPG is increasingly being considered as a viable option for commercial applications, especially when combined with low-carbon and renewable technologies. This integration helps to provide a consistent and reliable energy supply while reducing carbon emissions. Research and development (R&D) in the LPG sector are also expected to foster innovation and further drive the market's growth in the coming years.

LPG has gained popularity as a key fuel source in both commercial and residential applications, particularly for cooking and heating. Its advantages—such as easy accessibility, non-toxicity, cleanliness, convenience, portability, and cost-efficiency—make it a preferred alternative to traditional fuels like wood and coal. The surge in population in regions such as Africa, Asia Pacific, and Central and South America is likely to further boost LPG demand, as many households in these regions already rely on LPG for cooking. In India, for instance, LPG is used in 60%-75% of households for daily cooking and heating activities, underscoring its growing importance as a fuel source in emerging economies.

Gather more insights about the market drivers, restrains and growth of the Liquefied Petroleum Gas Market

Regional Insights:

• Asia Pacific led the global liquefied petroleum gas (LPG) market in 2022, with a demand of more than 83.0 million tons. Several key factors contributed to this dominance, including rapid population growth, ample resource availability, and high energy demand. Additionally, the affordability of LPG, largely due to government subsidies on LPG cylinders, has significantly boosted market penetration in the region. This trend is further supported by the growing petrochemical production capacities in countries like India, China, Thailand, and South Korea, which are also expanding their consumption of LPG.
• India emerged as a major importer of LPG in 2022, consistently receiving supplies from the United States and the Middle East to meet its domestic fuel needs. The Indian government played a pivotal role in expanding LPG access, as Prime Minister Narendra Modi announced that the country had successfully met its goal of providing 80 million free cooking gas connections to residents. The future demand for LPG in India will depend largely on the government’s ability to sustain the market at affordable prices. Key investments in infrastructure, such as LPG distribution pipelines (with a capacity of over 14 million metric tons per year) and LPG terminals (with a capacity of over 12 million metric tons per year), are expected to further support the growth and widespread usage of LPG in India.
• Europe saw a demand of more than USD 33.0 billion in LPG in 2022, with expectations to reach over USD 43.0 billion by 2030. This market growth is driven by growing environmental awareness and initiatives aimed at reducing carbon emissions, as seen in various global summits like COP21. Many European countries are focusing on transitioning to cleaner energy sources, with India also exploring alternative cooking fuels. The shift towards reducing reliance on fossil fuels in Europe is expected to fuel LPG demand over the coming years.
• Mature economies in regions like Europe and North America are anticipated to witness significant LPG market growth, driven by increasing environmental consciousness and efforts to reduce carbon emissions. Within Europe, Russia is expected to grow at the fastest rate, with a projected CAGR of 4.9% in terms of revenue during the forecast period, further bolstering the regional market’s expansion.

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• The global oil storage market volume was estimated at 2199.1 MCM in 2024 and is projected to grow at a CAGR of 4.8% from 2025 to 2030.
• The global tight gas market size was valued at USD 52.71 billion in 2024 and is projected to grow at a CAGR of 5.0% from 2025 to 2030.

Key Liquefied Petroleum Gas Company Insights

The global LPG industry is highly competitive owing to the presence of major manufacturers and distributors along with numerous multinational corporations. The global market is likely to attract a large no of regional players over the estimated period. Key market players such as Royal Dutch Shell, ExxonMobil Corporation, Royal Dutch Shell, Philips 66, Reliance Industries Ltd. (RIL), Chevron Corporation, and others.

The majority of the players have been concentrating on expanding their Autogas capabilities owed to a rapidly growing fleet count mostly in Europe and Asia Pacific. Some of the other initiatives undertaken by the players such as long-term partnerships with auto-OEMs and distributors for supportable supply over the next coming years. Some prominent players in the global liquefied petroleum gas 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.

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