South Korea Liquefied Petroleum Gas (LPG) Market Overview, 2029

South Korea Liquefied Petroleum Gas (LPG) Market Overview, 2029

South Korea's relationship with LPG is a long-standing one. Introduced in the 1960s, it quickly became a crucial part of the nation's energy mix, accounting for around 4% of primary energy supply. Initially, propane use soared for cooking and heating in homes, keeping citizens warm during the cold winters. The 1970s saw a further rise in demand, with propane feeding the growing need for petrochemical products. This trend continued in 2016 with the expansion of PDH facilities for propylene production. Butane's story in South Korea is intertwined with transportation. The 1980s saw a surge in its use as a taxi fuel, offering a more affordable alternative. This trend continued into the early 2000s with the introduction of 7-seater LPG SUVs. Their fuel efficiency was a major selling point, leading to a significant rise in LPG vehicles on the road. However, the popularity of diesel vehicles later caused a decline in LPG car ownership. This trend slowed down recently due to government policies enacted in 2019 to combat particulate matter pollution, which lifted restrictions on LPG vehicle use. Culturally, LPG is seen as a reliable and convenient source of energy for households. Its affordability, particularly when compared to other options like LNG, makes it a popular choice for heating and cooking. However, a recent trend towards cleaner energy sources is emerging. The South Korean government is actively promoting greener alternatives like electric vehicles and renewable energy sources. This could potentially impact the long-term demand for LPG.

According to the research report ""South Korea Liquefied Petroleum Gas (LPG) Market Research Report, 2029,"" published by Actual Market Research, the South Korean Liquefied Petroleum Gas (LPG) market is expected to reach market size of more than USD 12 Billion by 2029. The South Korean Liquefied Petroleum Gas (LPG) market is driven by several factors. Firstly, the robust petrochemical industry is a major consumer of LPG, particularly propane, for olefin production. This sector's continued growth is expected to fuel demand for LPG. Secondly, LPG remains a cost-effective option for many households, especially for heating during the cold winters. Finally, government policies that discourage the use of high-emission fuels, like diesel in taxis, can indirectly create opportunities for LPG in the transportation sector. Challenges also exist for the Liquefied Petroleum Gas (LPG) market in South Korea. The aforementioned push for cleaner energy sources could pose a significant threat in the long run. Additionally, the global market price of LPG can be volatile, impacting domestic prices and potentially discouraging consumers. Lastly, the decline in the number of LPG vehicles on the road due to the rise of electric and hybrid alternatives could dampen overall demand.

Market segmentation analysis along applications reveals distinct categories within South Korea's Liquefied Petroleum Gas (LPG) market. In the domestic sphere, LPG holds significant sway, commonly employed for cooking and heating in households countrywide, owing to its convenience, affordability, and cleaner combustion compared to traditional alternatives like coal. Yet, urban areas witness a gradual shift towards electric and natural gas appliances, potentially challenging this segment's dominance. Meanwhile, in agriculture, LPG emerges as a crucial resource for crop drying and greenhouse operations due to its portability and efficient heat generation, its growth interlinked with agricultural advancements and governmental sustainability drives. In the industrial realm, South Korea's thriving industrial sector relies on LPG for process heating, metalworking, and power generation, drawn to its clean-burning properties and precise temperature control, with future expansion contingent on manufacturing health and technology uptake. Transportation experiences a surge in LPG use post-deregulation in 2019, offering a cost-effective and cleaner substitute to gasoline for taxis, commercial vehicles, and retrofitted private cars, spurred by escalating fuel prices and environmental consciousness. Refineries themselves utilize LPG for internal operations and blending into other products, with segment size fluctuating alongside refinery activity and economic viability. The chemical industry emerges as a major LPG consumer, utilizing it as a feedstock for olefin production, its trajectory closely linked to chemical industry performance and product demand.

On the sourcing front, refinery-derived LPG reigns supreme, with its future influenced by global crude oil prices and refining capacities, while associated gas contributes modestly to supply, subject to natural gas industry developments. Non-associated gas, extracted from specific natural gas wells for commercial purposes, remains a minor player owing to limited local reserves, yet exploration initiatives or imports could alter this landscape.

The South Korean Liquefied Petroleum Gas (LPG) market operates under a strict regulatory framework overseen by the Ministry of Trade, Industry and Energy (MOTIE) and the Korea Gas Safety Corporation (KGSC). These entities establish policies and enforce safety standards across the entire LPG supply chain, from import and production to distribution, storage, and utilization. Market participants, including importers, refiners, distributors, and appliance manufacturers, must comply with a range of regulations. LPG imports require approval from MOTIE, ensuring adherence to quality specifications. Local production facilities need to be licensed by KGSC, and all storage tanks must undergo mandatory safety inspections. Appliance manufacturers must obtain KGSC certification for their LPG-powered products, guaranteeing they meet stringent safety and performance benchmarks. These regulations prioritize public safety and environmental protection, influencing market dynamics by potentially raising barriers to entry for new players and impacting product development costs for manufacturers. However, they also foster consumer confidence and contribute to a well-established LPG infrastructure in South Korea.
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

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Liquefied Petroleum Gas (LPG) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Liquefied Petroleum Gas (LPG) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.