Liquefied Petroleum Gas (LPG) Storage Market - By Storage Type (Pressurized Tanks, Refrigerated Tanks) & Global Forecast, 2023 - 2032

Liquefied Petroleum Gas (LPG) Storage Market - By Storage Type (Pressurized Tanks, Refrigerated Tanks) & Global Forecast, 2023 - 2032

Liquefied Petroleum Gas (LPG) Storage Market size is estimated to expand at 1.2% CAGR from 2023 to 2032 driven by the increasing number of government initiatives for promoting the usage of cleaner alternatives to traditional.

With the intensifying concerns about air quality and carbon emissions, several governments across the globe are incentivizing the adoption of LPG through subsidies, tax benefits, and policy frameworks for encouraging its usage in various sectors. For instance, in September 2023, the Indian government authorized funds of Rs 1,650 crore to oil marketing corporations to establish 75 lakh LPG connections under the Pradhan Mantri Ujjwala Yojana. The influx of such initiatives is driving consumer awareness while stimulating investments in LPG storage infrastructure, fostering more sustainable energy landscape. The surging regulatory support for cleaner fuels will also contribute to the market growth.

The liquefied petroleum gas storage industry is categorized by storage type and region.

Based on storage type, the market value from the refrigerated tanks segment generated substantial revenue in 2022 and is projected to gain significant traction through 2032. This is owing to the increasing demand for reliable and efficient storage solutions. Refrigerated tanks, equipped with advanced cooling systems, have become indispensable for preserving properties and ensuring safe long-term storage in LPGs. Moreover, the growing technological advancements in insulation materials and cooling mechanisms for enhanced efficiency and sustainability of tanks will add to the segment expansion.

Based on regional landscape, Asia Pacific held sizable share of the LPG storage industry in 2022 and is poised to exhibit notable growth rate through 2032. The burgeoning energy demands is contributing to the increasing adoption of LPG as a cleaner fuel source in the region.

With the rising rate of urbanization and industrialization, China, India, and Indonesia are demonstrating robust appetite for LPG, leading to the surge in storage infrastructure development. For addressing the shortage of liquefied petroleum gas, market participants are investing in the construction of storage facilities. For instance, in March 2023, the government-owned Hindustan Petroleum Corporation (HPCL) announced plans to establish its third underground storage facility, or cavern, for LPG in India. Moreover, the influx of government initiatives for promoting cleaner energy alternatives will further accelerate the regional market expansion.