By 2027, the Global LPG Market is expected to reach US $139.81 billion, thanks to growth in the Source, and Application segment. The report analyzes market dynamics by region and end-user industries.
Global LPG Market Overview:

The global LPG market was valued at US $104.27 Bn. in 2019, and it is expected to reach US $139.81 Bn. by 2027 with a CAGR of 5.01% during the forecast period.

The volatile mixture of hydrocarbon gases propane, butane, and isobutane is known as liquefied petroleum gas (LPG). In 1910, Dr. Walter Snelling produced it, and the first commercial LPG products came in 1912. Also, it is a fuel gas that can be used in heating appliances, cooking equipment, and automobiles. It is gradually being used as an aerosol propellant and a refrigerant to replace chlorofluorocarbons, which are causing ozone layer damage. It is commonly referred to as Autogas when used as an automobile fuel.

It burns easily in the air and produces more heat energy than natural gas. It also has some other advantages, such as being clean-burning, producing no soot, having readily regulated flame temperatures, and having a low sulfur content, making it ideal for heating, cooking, and automobile applications. It is made by refining petroleum (crude oil) or extracting petroleum or natural gas streams as they emerge from the ground.

Global LPG Market

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2019 is considered as a base year to forecast the market from 2021 to 2027. 2020’s market size is estimated based on real numbers and outputs of the key players and major players across the globe. The past five years trends are considered while forecasting the market through 2027. 2020 is a year of exception and is analyzed especially with the impact of lockdown by region.
COVID–19 Influence on Global LPG Market:

The pandemic COVID-19 severely influenced global demand for LPG in the market, particularly in the commercial sector, and thus on its growth rate. But, residential demand for personal consumption purposes such as household cooking has grown. Overall, the rising demand for LPG has expected to continue healthy growth during the forecast period. The demand for LPG in Europe continues to be severely influenced by lockdowns. Several players are joining the market in other regions to meet the needs of LPG. The United States and Russia are developing in the LPG market to gain a dominant position.
Global LPG Market Dynamics:

Increasing demand for residential LPG & supporting government policies

The consistently growing population in the various regions of Asia Pacific, Africa, North America and others have increased the consumption of LPG as a primary cooking fuel among the local population. For example, In India, LPG is used as cooking fuel by approximately 80% of all residential households. As compared to traditional fuels like wood and coal, LPG is easily accessible, clean, sustainable, portable, and most importantly cost-effective. Many governments across the globe have undertaken initiatives to promote the adoption of LPG as cooking fuel considering its benefits over conventional fuel.

For example, Pradhan Mantri Ujjwala Yojna, an Indian government initiative in which, 0.050 billion LPG connections were expected to be distributed to women from below-poverty-line houses, and other initiatives like simplifying registration processes and payments, cylinder delivery, and cylinder subsidies have resulted in increased acceptance of the LPG as household fuel, reducing dependency on traditionally used hazardous cooking fuels such as firewood and coal. Thus, these factors are expected to drive the growth of the global market for LPG.

The volatile price of crude oil feedstock and LPG’s flammable nature

The price and availability of raw materials are the most important factors in determining the overall costs of LPG products. Ethane, propane, and butane are among the basic raw materials needed to make LPG. The majority of these basic materials are derivatives based on crude oil that are subject to commodity price volatility. The rising global demand for crude oil and the instability in the Middle East, are important drivers influencing LPG costs.

The LPG market is also impacted by the flammable nature of LPG which is also a key barrier for the market growth. As a result, it is kept in enormous pressurized cylindrical or spherical tanks. The gas's flammability increases the expenses of storage, transportation, and distribution to end-users as well as high manufacturing costs leading to higher energy expenses. LPG manufacturers have responded to rising manufacturing costs by ensuring that price increases are irregularly allocated, with end-users taking the burden of the cost. Thus, the LPG market faces a challenge from the volatile price of crude oil and its flammable nature.

Emerging new petrochemical projects

The expansion of marine transport of this LPG fuel is expected to be driven by the development of petrochemical projects like PDH (Propane Dehydrogenation Project) and steam crackers and new production lines. Also, other LPG-producing regions, including Canada, Australia, and Angola, are expected to start up new gas exploration and production projects. This is expected to uplift gas exports, creating market opportunities on the global platform.
Global LPG Market Segment Analysis:

Based on Source, the global LPG market is segmented into three types as follows, Refineries, Associated Gas, and Non-Associated Gas.

In 2019, the Non-Associated Gas segment was dominant and held the largest market share of 54%. For example, natural gas processing units make for the majority of gas production in North America, whereas refineries make for the majority of gas production in Asia-Pacific. Refineries are one of the most important sources of different gases production on a global platform. In the future years, rising refining capacity, particularly in Saudi Arabia, Brazil, India, and China, is expected to increase the supply of the product.

Global LPG Market

Based on Application, the global LPG market is segmented into four types as follows, Automobile Fuel, Residential/Commercial, Industrial, and Others.

In 2019, the Residential/Commercial segment was dominant and held the largest market share of 51.20%. The segment's growth has been driven by promising government subsidies and initiatives to promote the product as a feasible alternative to traditional fuels like wood and coal. Thanks to a little impact on ozone depletion, liquefied petroleum gas is also replacing chlorofluorocarbon and hydrofluorocarbon as a refrigerant.

This has resulted in increased application opportunities in the residential/commercial segment, particularly in the areas of ventilation and heating, in addition to cooking. The industry is expected to grow during the forecast period, with a net global industry of more than US $ 0.00681 billion by 2027.
Global LPG Market Regional Insights:

Global LPG MarketIn 2019, Asia Pacific was the dominant region and held the highest market share xx% of the global LPG market. The key factors driving regional market growth have been population increase, sufficient resource availability, high energy needs, and easy affordability thanks to government subsidies on LPG cylinders. India and China together make for 37% of global residential and commercial LPG demand. In 2019, India became a major importer of liquefied petroleum gas, importing consignments at a constant rate from the United States and the Middle East to meet domestic demand. Various government initiatives are supporting the adoption of LPG and are expected to drive the demand during the forecast period in this region.

In 2019, Europe held 78.5% of the market share in terms of volume. From 2021 to 2027, LPG demand in residential and commercial applications is expected to increase considerably. Many countries are considering summit events such as COP21 to reduce carbon emissions in the atmosphere. For example, India is pursuing programs to promote the use of alternative cooking fuels. In terms of revenue, Germany is expected to grow at a CAGR of around 4.0%. during the forecast period.

The objective of the report is to present a comprehensive analysis of the global LPG market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the global LPG market dynamics, structure by analyzing the market segments and project the global LPG market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global LPG market make the report investor’s guide.

 

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Global LPG Market Scope: Inquire before buying

Global LPG Market
Global LPG Market, by Region

• North America
• Europe
• Asia Pacific
• The Middle East and Africa
• South America
Global LPG Market Key Players

• Saudi Aramco
• Sinopec
• ADNOC
• CNPC
• Exxon Mobil
• Reliance Industries
• KNPC
• Phillips66
• Bharat Petroleum Corporation Ltd.
• Pemex
• Total Corp.
• Qatar Petroleum
• Equinor
• BP Corp.
• Gazprom Corp.
• Chevron
• ConocoPhillips Company
• SHV Energy (NL)
• Valero Energy
• UGI Corporation
• Royal Dutch Shell PLC
• Others
Frequently Asked Questions:

1. What is the forecast period considered for the LPG market report?
Ans. The considered forecast period for the LPG market is 2021-2027.

2. Which key factors are hindering the growth of the LPG market?
Ans. The volatile price of crude oil and LPG’s flammable nature are the key factors expected to hinder the growth of the LPG market over the forecast period.

3. What is the compound annual growth rate (CAGR) of the LPG market for the next 6 years?
Ans. The global LPG market is expected to grow at a CAGR of 5.01% during the forecast period (2021-2027).

4. What are the key factors driving the growth of the LPG market?
Ans. The growing demand for residential LPG and supporting government regulations are expected to drive the growth of the market during the forecast period.

5. Which are the worldwide major key players covered for the LPG market report?
Ans. Saudi Aramco, Sinopec, ADNOC, CNPC, Exxon Mobil, Reliance Industries, KNPC, Phillips66, Bharat Petroleum Corporation Ltd., Pemex, Total Corp., Qatar Petroleum, Equinor, BP Corp., Gazprom Corp., Chevron, ConocoPhillips Company, SHV Energy (NL), Valero Energy, UGI Corporation, Royal Dutch Shell PLC, and Others.

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