Liquefied Petroleum Gas (LPG)

Global Liquefied Petroleum Gas (LPG) Market to Reach US$153.6 Billion by 2030

The global market for Liquefied Petroleum Gas (LPG) estimated at US$115.3 Billion in the year 2024, is expected to reach US$153.6 Billion by 2030, growing at a CAGR of 4.9% over the analysis period 2024-2030. Non-Associated Gas, one of the segments analyzed in the report, is expected to record a 5.2% CAGR and reach US$115.4 Billion by the end of the analysis period. Growth in the Associated Gas segment is estimated at 4.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$29.4 Billion While China is Forecast to Grow at 7.5% CAGR

The Liquefied Petroleum Gas (LPG) market in the U.S. is estimated at US$29.4 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$35.5 Billion by the year 2030 trailing a CAGR of 7.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.9% and 4.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.6% CAGR.

Global Liquefied Petroleum Gas (LPG) Market - Key Trends & Drivers Summarized

Why Is Liquefied Petroleum Gas (LPG) a Vital Energy Source Globally?

Liquefied Petroleum Gas (LPG) plays a crucial role in the global energy landscape, serving as a versatile and efficient fuel for a wide range of applications, including residential heating, cooking, transportation, and industrial processes. LPG is prized for its clean-burning properties, producing fewer emissions compared to coal and oil, making it an important energy source in the transition to lower-carbon fuels. Its portability and ease of storage make LPG an ideal solution for areas lacking access to natural gas infrastructure, particularly in developing regions. As countries strive to reduce greenhouse gas emissions and improve air quality, the demand for LPG as an alternative to more polluting fossil fuels continues to rise. Additionally, LPG is increasingly being used as an autogas in vehicles, contributing to the global push towards cleaner transportation solutions.

How Are Technological Advancements Impacting LPG Production and Usage?

Technological advancements are significantly enhancing the production, distribution, and usage of Liquefied Petroleum Gas (LPG), making it more efficient, cost-effective, and accessible. Innovations in extraction and processing techniques are improving the yield and quality of LPG, while advancements in storage and transportation technologies, such as the development of more efficient LPG tanks and cylinders, are expanding its availability. In the transportation sector, the development of LPG-powered engines and conversion kits is increasing the adoption of LPG as an autogas, offering a cleaner alternative to traditional gasoline and diesel fuels. Additionally, smart metering and remote monitoring technologies are enhancing the management of LPG distribution networks, improving supply chain efficiency and reducing costs. These technological improvements are driving the wider adoption of LPG across various sectors, supporting its role as a key transitional fuel in the global energy mix.

What Market Trends Are Shaping the Demand for LPG?

Several key market trends are shaping the demand for Liquefied Petroleum Gas (LPG), including the global push for cleaner energy sources, the expansion of infrastructure in developing regions, and the growing adoption of LPG as an autogas. As governments implement policies to reduce carbon emissions and improve air quality, LPG is gaining traction as a cleaner alternative to coal and oil, particularly in residential and industrial applications. The expansion of LPG infrastructure, including the development of storage and distribution facilities, is increasing access to LPG in regions where natural gas is unavailable, driving demand in rural and remote areas. The growing use of LPG in the transportation sector, supported by the availability of LPG-powered vehicles and conversion kits, is further boosting demand, as consumers and businesses seek more environmentally friendly fuel options. Additionally, the increasing use of LPG in the petrochemical industry as a feedstock for producing chemicals and plastics is contributing to the market`s growth.

What Is Driving the Growth in the Liquefied Petroleum Gas (LPG) Market?

The growth in the Liquefied Petroleum Gas (LPG) market is driven by several factors. The increasing global demand for cleaner energy sources, particularly in residential, industrial, and transportation sectors, is a major driver, as LPG offers a low-carbon alternative to more polluting fossil fuels. Technological advancements in LPG production, storage, and distribution are enhancing the efficiency and accessibility of LPG, further driving market growth. The expansion of infrastructure in developing regions, where LPG is often the most viable energy option for households and businesses, is also contributing to the market`s expansion. Additionally, the rising adoption of LPG as an autogas, supported by government incentives and the availability of conversion technologies, is boosting demand in the transportation sector. The growing use of LPG in the petrochemical industry as a feedstock for various products is further supporting market growth, as the demand for chemicals and plastics continues to rise globally.

SCOPE OF STUDY:

The report analyzes the Liquefied Petroleum Gas (LPG) market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Source (Non-Associated Gas, Refinery, Associated Gas); End-Use (Domestic, Chemical, Industrial, Transport, Refinery Fuel, Commercial, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 41 Featured) -

• Aegis Logistics Ltd.
• Air Liquide Australia Limited
• ANGOLA LNG MARKETING LTD
• Aygaz A.S.
• badenova AG and Co.KG
• Bharat Petroleum Corporation Ltd.
• Bison Engineering
• BW LPG
• C3 Biotechnologies
• Calor Gas Ltd.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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