(MENAFN- GlobeNewsWire - Nasdaq) Dublin, May 07, 2024 (GLOBE NEWSWIRE) -- The "Global Liquefied petroleum gas (LPG) market Overview, 2024-29" report has been added to ResearchAndMarkets's offering.
Global Liquefied Petroleum Gas (LPG) Market is anticipated to cross USD 270 Billion by 2029, increasing from USD 208.66 Billion in 2023. The market is expected to grow with 4.76% CAGR by 2024-29.
Rapid urbanization, population growth, economic development, and industry are driving rising demand for LPG across regions. Moreover, shifting consumer preferences towards cleaner and more efficient energy sources further bolsters the market's growth trajectory. In addition to its role as a primary energy source, LPG serves as a valuable feedstock in petrochemical processes, contributing to its multifaceted significance in various industries.
The global LPG sector is made up of a variety of geographical marketplaces, each with its own set of characteristics, difficulties, and possibilities. In Asia-Pacific, emerging economies such as China and India are driving strong demand for LPG, powered by urbanization, rising middle-class populations, and government measures pushing clean energy use. In Europe, strict environmental restrictions and initiatives to minimize carbon emissions drive up demand for LPG as a cleaner-burning alternative to traditional fuels.
Meanwhile, in the Americas, the LPG market benefits from the United States' shale gas revolution, which has resulted in increasing domestic production and exports. Technological improvements have a significant impact on the worldwide LPG business, encouraging innovation in production processes, distribution networks, and end-use applications. From modern refining technology to efficient LPG appliances and storage solutions, innovation enhances the safety, efficiency, and sustainability of LPG utilization. Moreover, digitalization and data analytics enable stakeholders to optimize supply chain management, enhance operational efficiency, and meet evolving consumer demands in a rapidly changing market landscape.
Middle Eastern countries like Saudi Arabia, Qatar, and the UAE are major producers, as are the United States, Russia, and China. Meanwhile, nations such as India, China, Brazil, and Nigeria are major LPG consumers, fueling market expansion and demand. LPG plays an important part in the shift to cleaner energy sources and sustainable development. It functions as a transitional fuel, providing a link between conventional fossil fuels and renewable energy sources. Governments and industries worldwide are increasingly promoting LPG as a cleaner alternative to coal and wood, particularly in sectors like cooking and heating.
LPG is stored and transported in its liquefied condition under moderate pressure, allowing for efficient storage and transportation over large distances. Its high energy density and ease of use make it an appealing choice for off-grid populations, isolated areas, and regions with limited access to traditional energy infrastructure. Several rising trends are transforming the global LPG market, including the rise of renewable LPG production methods, the incorporation of digital technology for supply chain optimization, and a greater emphasis on sustainability and circular economy concepts.
These developments reflect shifting customer preferences, regulatory constraints, and industry actions aimed at creating a more sustainable and resilient LPG market. Consumer preferences and cultural factors influence LPG adoption and consumption across regions and countries. Although urban populations in developed countries often prefer LPG for its convenience and cleanliness, rural communities in developing nations rely on LPG as a cleaner alternative to traditional biomass fuels like wood and charcoal.
Market Drivers
Energy transition initiatives: One of the key drivers of the global liquefied petroleum gas (LPG) market is the growing focus on energy transition programs around the world. As governments work to reduce their carbon footprint and shift to cleaner energy sources, LPG emerges as a preferred option because of its lower greenhouse gas emissions than traditional fossil fuels. Government rules, international agreements, and sustainability goals encourage the use of LPG as a cleaner-burning alternative for residential, commercial, and industrial applications, resulting in increased market growth and demand.
Industrial expansion and petrochemical demand: The global LPG market is driven by an expanding industrial sector and rising demand for petrochemical feedstocks. LPG is a critical feedstock for many petrochemical operations, including the manufacturing of plastics, chemicals, and fertilizers. As industrial operations spread across regions, so does demand for LPG, resulting in market expansion. Furthermore, LPG's adaptability and compatibility with industrial processes make it a popular choice for industrial heating, drying, and power generation applications, which contributes to its market demand and growth.
Market Challenges
Infrastructure constraints: One of the most significant issues confronting the global Liquefied Petroleum Gas (LPG) business is a lack of infrastructure, which includes storage facilities, distribution networks, and transport systems. Inadequate infrastructure restricts the effective supply and distribution of LPG, particularly in distant or underserved areas, resulting in supply shortages, logistical bottlenecks, and higher costs. In order to maintain reliable LPG availability for consumer's worldwide, significant investment in building and updating storage terminals, expanding distribution networks, and improving transportation infrastructure is required.
Regulatory complexity: The regulatory frameworks governing the LPG industry differ greatly across countries and regions, making compliance, licensing, and safety criteria difficult for market participants to meet. Diverse regulatory requirements increase administrative burdens, complicate cross-border trade, and impede market harmonization attempts. Streamlining regulations, encouraging standardization, and improving regulatory coordination are critical for creating a favorable business environment and ensuring the smooth operation of the global LPG market.
Market Trends
Growing demand for residential applications: The rising demand for residential applications, particularly in cities and off-grid settlements, is a prominent trend in the global liquefied petroleum gas (LPG) market. With increasing urbanization and family incomes, more people are turning to LPG as a clean and convenient fuel for cooking, heating, and water heating. This movement is motivated by a desire to improve domestic air quality, energy efficiency, and convenience. Governments and energy providers are responding to this trend by providing subsidies, raising awareness, and launching infrastructure development projects.
Shift towards autogas and transportation: A major market trend is the increasing use of LPG as a transportation fuel, particularly in the form of autogas for vehicles. With rising concerns about air pollution and greenhouse gas emissions, many countries are pushing the use of cleaner fuels such as LPG to reduce automotive emissions and enhance air quality. Autogas is a cheaper and more environmentally friendly alternative to gasoline and diesel, emitting less particulate matter and nitrogen oxides. This trend is pushing investments in LPG refuelling infrastructure, fleet conversions, and government policies that promote the transportation industry's move to alternate fuels.
Competitive Landscape
Competitive Dashboard Business Strategies Adopted by Key Players Key Players Market Share Insights and Analysis, 2022 Key Players Market Positioning Matrix Porter's Five Forces
Company Profiles
ExxonMobil Corporation Company Snapshot Company Overview Financial Highlights Geographic Insights Business Segment & Performance Product Portfolio Key Executives Strategic Moves & Developments
Shell plc Chevron Corporation Reliance Industries Limited ConocoPhillips Company The Abu Dhabi National Oil Company TotalEnergies SE Petroleo Brasileiro S.A. UGI Corporation Repsol S.A.
Considered in this report
Historic year: 2018 Base year: 2023 Estimated year: 2024 Forecast year: 2029
Aspects covered in this report
Liquefied Petroleum Gas (LPG) market Outlook with its value and forecast along with its segments Various drivers and challenges On-going trends and developments Top profiled companies Strategic recommendation
By Application
Domestic Agriculture Industrial Transportation Refinery Chemical
By Source
Refinery Associated Gas Non-associated Gas
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