NEW YORK, Dec. 06, 2022 (GLOBE NEWSWIRE) -- The global LPG market is on the rise. Here are some of the most interesting takeaways from IndexBox's exclusive report.
The LPG market size was valued at USD 180 billion in 2021 and is expected to register a CAGR of 4.2% from 2021 to 2030. The major drivers of market growth are the expanding petrochemical industry, growing demand from the residential and commercial sectors, and rising investments in the transportation sector.
Market Outlook
LPG is a clean-burning and efficient fuel that is used in a variety of applications, such as residential and commercial heating, cooking, automotive, and power generation. The growing demand for LPG in these applications is expected to drive the growth of the global LPG market during the forecast period.
LPG is a versatile and clean fuel that can be used in a variety of applications, such as heating, cooking, drying, refrigeration, and power generation. It is also used as a feedstock for the petrochemical industry. The Asia-Pacific region is the largest market for LPG, followed by North America and Europe.
Market Drivers
LPG is a clean and efficient energy source that offers several advantages over other fossil fuels. It is non-toxic, doesn't produce harmful emissions, and is one of the safest fuels to use. These properties make LPG an attractive option for a wide range of applications, such as cooking, heating, hot water, drying clothes, and space heating.
There are many different potential substitutes for LPG, including natural gas, propane, and butane. Natural gas is the most commonly used substitute for LPG, as it is typically cheaper and more abundant than LPG. Propane and butane can also be used as substitutes for LPG, but they are not as common due to their higher costs.
LPG market is driven by various factors, such as the growing demand for LPG in the residential and commercial sectors, the growing automotive sector, and the rising LNG prices.
The residential and commercial sector is the largest consumer of LPG. The commercial sector is the largest consumer of LPG, accounting for around 45% of total consumption. LPG is also used in a variety of industrial applications such as food processing, glassmaking, metalworking, and others.
The residential sector is the second-largest consumer of LPG, accounting for around 30% of total consumption. The rising standard of living and growing awareness about the benefits of using LPG are fuelling the demand for LPG in the residential sector. In addition, government initiatives to promote the use of cleaner fuels are also driving the growth of the residential sector.
The automotive sector is another major consumer of LPG, accounting for more than 30% of the total demand. The demand for LPG in this sector is driven by its environmental benefits and cost-effectiveness. Moreover, with the rise in fuel prices, many consumers are opting for LPG-powered vehicles.
The transportation sector is the fastest-growing consumer of LPG, with a CAGR of around 8%. This growth can be attributed to the increasing use of LPG as an alternative fuel for vehicles. LPG-powered vehicles emit less carbon dioxide than gasoline-powered vehicles, making them environmentally friendly. In addition, they are cheaper to operate and maintain than electric vehicles.
Lastly, the rising LNG prices are also driving the growth of the global LPG market. As LNG becomes costlier, many gas-based power plants are switching to using cheaper alternatives like coal and oil. This has led to an increase in the demand for LPG as it is a less expensive fuel option.
Market Challenges
The global LPG market is facing a number of challenges, which include:
1. Increasing competition from other energy sources: The growth of the LPG market is being hindered by the increasing competition from other energy sources, such as natural gas, renewable energy, and coal.
2. Lack of infrastructure: In many parts of the world, there is a lack of infrastructure to support the transport and storage of LPG. This makes it difficult for countries to expand their LPG production and consumption.
3. Fluctuating prices: The price of LPG is highly volatile, which makes it difficult for consumers and producers to plan ahead. This can lead to disruptions in supply and demand, and ultimately, higher prices.
4. Limited applications: Currently, the main use for LPG is as a fuel for heating and cooking. However, its applications are limited compared to other energy sources such as natural gas or electricity. This limits the potential growth of the LPG market.
5. Regulations: The LPG industry is highly regulated in order to minimize environmental impact. This includes regulations surrounding emissions, waste management, and water discharge. Availability of substitutes: There are a number of energy sources that can be used in place of LPG, including natural gas, coal, and renewable energy. High capital investment: LPG facilities require a significant amount of initial investment, which can deter new entrants to the market.
Market Prospects
The share of LPG in the global energy mix is still relatively small, but it is expected to grow in the coming years. According to the International Energy Agency (IEA), the share of LPG in primary energy consumption is estimated at 2% by 2020.
There are several reasons why the share of LPG in the global energy market is expected to grow in the coming years. First, LPG is a cleaner burning fuel than many other fossil fuels and it emits fewer greenhouse gases when burned. This makes it an attractive option for countries that are looking to reduce their carbon footprint.
Second, LPG is a very versatile fuel that can be used in a variety of applications, including cooking, heating, and transportation. Additionally, LPG can also be used as a feedstock for chemicals and petrochemicals.
Finally, the demand for LPG is expected to grow in the coming years as the world population increases and economic growth continues. This will create new opportunities for companies that are involved in the production and distribution of LPG.
Most Promising Suppliers
LPG production is forecast to increase in the US, Russia, and the Middle East over the next decade. The US is expected to become the world’s largest LPG producer by 2025 due to the shale gas boom. Russia is also forecast to see a significant increase in production, as it looks to capitalize on its large reserves of natural gas.
The Middle East is home to some of the world’s largest LPG producers, including Qatar, Saudi Arabia, and the United Arab Emirates. Qatar is set to become the world’s largest exporter of LPG by 2020, as a result of its vast reserves of natural gas. Saudi Arabia and the UAE are also significant players in the global LPG market, with both countries looking to increase their production in order to meet rising demand from Asia.
Technology
LPG technology has seen significant advancements in recent years, making it a more viable option for a wide range of applications. One such advancement is the development of autogas, which is a cleaner burning and more efficient form of LPG.
Autogas is now used in a number of countries around the world as a transportation fuel, and its popularity is growing. In addition to being more environmentally friendly than gasoline or diesel, autogas is also less expensive. This makes it an attractive option for both consumers and businesses.
The benefits of LPG are not just limited to autogas. This versatile fuel can also be used for heating, cooking, and power generation. LPG-powered generators are becoming increasingly popular as they offer a clean and efficient way to produce electricity.
With its many benefits, it's no wonder that the global demand for LPG is on the rise. The global LPG consumption is estimated at 293 million tonnes in 2021. The further growth will be driven by rising demand in Asia, where economic growth and urbanization lead to increased energy needs.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Total SA (France), Royal Dutch Shell plc (Netherlands), ExxonMobil Corporation (US), China National Petroleum Corporation (China), Chevron Corporation (US), PetroChina Company Limited (China), and Qatar Petroleum (Qatar).
Sources
World - LPG - Market Analysis, Forecast, Size, Trends and Insights
EU - LPG - Market Analysis, Forecast, Size, Trends and Insights
Asia - LPG - Market Analysis, Forecast, Size, Trends and Insights
U.S. - LPG - Market Analysis, Forecast, Size, Trends and Insights
