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UAE LPG market by Source and Application: Global Opportunity Analysis and industry Forecast, 2024–2033
WILMINGTON, DE, UNITED STATES, November 14, 2024 /EINPresswire / -- The UAE liquified
petroleum gas market size was valued at $6.6 billion in 2023 and is projected to reach $13.7 billion by 2033, growing at a CAGR of 5.8% from 2024 to 2033.
Liquified Petroleum Gas (LPG) refers to a flammable hydrocarbon gas mixture primarily composed of propane and butane, which are gases at room temperature and atmospheric pressure, but it is liquified under moderate pressure. LPG is derived from natural gas processing and petroleum refining, where it is separated from crude oil and natural gas liquids. It is commonly used as a fuel for heating, cooking, and powering appliances in residential, commercial, and industrial settings.
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Market Dynamics
LPG is a versatile and widely available energy source that plays a crucial role in energy diversification strategy by offering a reliable and cost-effective option for meeting various energy needs across residential, commercial, industrial, and transportation sectors. All these factors are likely to drive the demand for the UAE liquified petroleum gas market during the forecast period.
However, the rapid development of the renewable energy sector and the high installation costs of refineries pose significant challenges to the growth of LPG in the United Arab Emirates. As the UAE strives to diversify its energy mix and transition towards cleaner and more sustainable sources of power, the renewable energy sector has experienced remarkable growth in recent years. This surge in renewable energy investments, particularly in solar and wind power projects, presents a competitive challenge to traditional fossil fuels such as LPG. All these factors are anticipated to hamper the UAE liquified petroleum gas market growth.
By utilizing existing oil and gas infrastructure, the UAE enhances the efficiency and cost-effectiveness of LPG operations, facilitating greater market penetration and accessibility for consumers across residential, commercial, and industrial sectors. All these factors are anticipated to offer new growth opportunities for UAE liquified petroleum gas market share during the forecast period.
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UAE liquified petroleum gas market is segmented into source and application. On the basis of source, the market is classified into refinery, associated gas, and non-associated gas. On the basis of application, the market is divided into residential, commercial, agricultural, industrial, transportation, and others.
Segment Overview
On the basis of source, the market is classified into refinery, associated gas, and non-associated gas. The associated gas segment is anticipated to grow at the fastest CAGR of 6.4% during the forecast period. Associated gas refers to the natural gas found in underground reservoirs along with crude oil. When oil is extracted from these reservoirs, the associated gas is brought to the surface. This gas typically consists of methane, ethane, propane, butane, and other hydrocarbons, as well as some impurities such as carbon dioxide and hydrogen sulfide. Implementation of regulations and incentives to reduce flaring promote the efficient utilization of associated gas.
Regulatory frameworks and policies influence the management of associated gas. These regulations include flaring reduction targets, emission standards, and fiscal policies such as carbon pricing or subsidies for gas utilization projects. Compliance with these regulations and the pursuit of economic opportunities through gas utilization drive investment in gas capture and processing infrastructure, as well as research and development of technologies to improve gas recovery and utilization efficiency.
On the basis of application, the market is divided into residential, commercial, agricultural, industrial, transportation, and others. The agricultural segment is anticipated to grow at the fastest CAGR of 8.6% during the forecast period. LPG is widely utilized in agricultural practices due to its versatility, efficiency, and environmental benefits. In the agricultural sector, LPG serves as a crucial energy source for various applications such as crop drying, pest control, irrigation, and powering agricultural machinery. Its clean-burning properties make it ideal for applications where emissions need to be minimized, contributing to reduced air pollution and environmental impact compared to traditional fuels.
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UAE's commitment to sustainable agriculture and food security drives the adoption of LPG in agricultural activities. As part of its national strategy to enhance food security and reduce dependence on food imports, the UAE government encourages the adoption of modern agricultural technologies and practices that improve productivity, efficiency, and resource management. LPG-powered equipment such as tractors, harvesters, and agricultural machinery offer farmers a cleaner and more environmentally friendly alternative to traditional diesel-powered equipment, reducing air pollution and greenhouse gas emissions while enhancing operational efficiency and productivity.
Key players in the UAE liquified petroleum gas market analysis are Abu Dhabi National Oil Company (ADNOC), Al Fanar Gas, Brothers Gas, Dubai Fuel Supply LLC., Emarat, Emirates Gas LLC, Plumblend, Sharjah National Oil Corporation (SNOC), Shield Gas Systems, and TotalEnergies. Every company follows its own business strategy to attain the maximum market share. Currently, Abu Dhabi National Oil Company (ADNOC), Brothers Gas, Emarat, Emirates Gas LLC, Sharjah National Oil Corporation (SNOC), and Total Energies are some of the leading players in the UAE liquified petroleum gas market.
Key findings of the study
.On the basis of source, the associated gas segment is expected to grow at a CAGR of 6.4%, in terms of revenue, during the forecast period.
.On the basis of application, the agriculture segment is expected to grow at a CAGR of 8.6%, in terms of revenue, during the forecast period.
David Correa
Allied Market Research
+15038946022 ext.
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MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.