Liquefied Petroleum Gas LPG Market

Growing awareness about the benefits correlated to the usage of LPG is driving the market growth

The market is projected to expand due to the expanding population and rising demand for liquefied petroleum gas as a car emission gas. In addition, the high cost of installation for liquefaction process equipment and technology may have an impact on demand and limit market expansion throughout the forecast period. In the next years, it's expected that increased government initiatives in nations like India, Indonesia, and China would spur the use of liquefied petroleum gas because of the fuel's long-term advantages as a cooking fuel.

LPG is increasingly being viewed as a compelling choice for commercial assets when combined with low-carbon and renewable technologies to integrate a continuous year of 24/7 electrical supply while reducing carbon emissions. In the following years, it is anticipated that the liquefied petroleum gas industry's growing R&D will drive market expansion.

As more people move to areas like Africa, Asia Pacific, and Central and South America, demand is expected to increase during the projection period since people in these areas utilize LPG for cooking. For instance, in India, liquefied petroleum gas is used for more than 60%–75% of home tasks including heating and cooking. Thus, driving the Liquefied Petroleum Gas (LPG) market revenue.

The Global Liquefied Petroleum Gas (LPG) Market Industry is projected to witness substantial growth in the coming years. With a market value of 118.1 USD Billion anticipated in 2024, the industry is expected to expand to 191.7 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 4.5% from 2025 to 2035. Such projections indicate a robust demand for LPG across various sectors, driven by factors such as cleaner energy initiatives, industrial growth, and technological advancements.

The Global Liquefied Petroleum Gas (LPG) Market Industry experiences a notable surge in demand for cleaner energy sources. As nations strive to reduce carbon emissions and transition to sustainable energy, LPG emerges as a viable alternative to traditional fossil fuels. Countries like India and China are increasingly adopting LPG for residential cooking and heating, contributing to a projected market value of 118.1 USD Billion in 2024. This shift towards cleaner energy not only addresses environmental concerns but also enhances energy security, making LPG a crucial player in the global energy landscape.

Rapid industrialization and urbanization across developing nations significantly bolster the Global Liquefied Petroleum Gas (LPG) Market Industry. As urban areas expand, the demand for energy in sectors such as manufacturing, transportation, and construction escalates. For instance, in regions like Southeast Asia, the industrial sector's reliance on LPG for energy generation is expected to grow, driving the market's value to an estimated 191.7 USD Billion by 2035. This trend indicates a robust CAGR of 4.5% from 2025 to 2035, reflecting the increasing integration of LPG in various industrial applications.

Government policies and initiatives play a pivotal role in shaping the Global Liquefied Petroleum Gas (LPG) Market Industry. Many governments are implementing subsidies and incentives to promote LPG usage, particularly in developing countries. For example, initiatives aimed at providing affordable LPG cylinders to low-income households have been launched in several nations, enhancing accessibility and encouraging adoption. Such measures not only support economic growth but also contribute to the market's expansion, as they facilitate a transition from traditional biomass fuels to cleaner LPG alternatives.

The automotive sector's growing adoption of LPG as an alternative fuel significantly impacts the Global Liquefied Petroleum Gas (LPG) Market Industry. With increasing environmental regulations and a shift towards cleaner transportation options, LPG is gaining traction as a fuel for vehicles. Countries like Italy and Australia have seen a rise in LPG-fueled vehicles, contributing to a more sustainable transport ecosystem. This trend is expected to further drive market growth, as the automotive industry seeks to reduce its carbon footprint and embrace cleaner fuel alternatives.

Technological innovations in LPG production and distribution are transforming the Global Liquefied Petroleum Gas (LPG) Market Industry. Enhanced extraction techniques, such as hydraulic fracturing and improved refining processes, are increasing the efficiency of LPG production. Additionally, advancements in transportation logistics ensure that LPG can be delivered more efficiently to end-users. These developments not only reduce costs but also improve the overall supply chain, making LPG a more attractive option for consumers. As a result, the market is poised for growth, driven by these technological enhancements.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Liquefied Petroleum Gas (LPG) market dominated this market in 2022 (45.80%). The main drivers of increasing market penetration have been population increase, abundant resource availability, high energy needs, and simple affordability because of the provision of government subsidies on LPG cylinders. This is also supported by the expanding petrochemical capacities in China, Thailand, South Korea, India, and China.

Moreover, China’s Liquefied Petroleum Gas (LPG) market held the largest market share, and the Indian Liquefied Petroleum Gas (LPG) market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Liquefied Petroleum Gas (Lpg) Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The North America Liquefied Petroleum Gas (LPG) Market is expected to register fastest growth from 2023 to 2032. Liquefied petroleum gas is regarded as having a big growth market in North America, with the United States serving as the major LP gas exporter. In 2018, the United States generated about 234 thousand metric tonnes of LP gas from natural gas and 10,000 metric tonnes from its refineries.

The Energy Information Administration estimates that the United States produced approximately 33.4 trillion cubic feet (Tcf) of dry natural gas in 2020, or an average of 91.4 billion cubic feet per day, suggesting that natural gas is the main fuel source for the production of LP gas. Further, the U.S. Liquefied Petroleum Gas (LPG) market held the largest market share, and the Canada Liquefied Petroleum Gas (LPG) market was the fastest growing market in the North America region.

Europe Liquefied Petroleum Gas (LPG) market accounts for the significant market share. Many nations are considering reducing carbon emissions into the climate by attending numerous summit events like COP21. For instance, India is leading the charge to embrace alternative cooking fuels. Further, the German Liquefied Petroleum Gas (LPG) market held the largest market share, and the U.K Liquefied Petroleum Gas (LPG) market was the fastest growing market in the European region

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Liquefied Petroleum Gas (LPG) market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Liquefied Petroleum Gas (LPG) industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Liquefied Petroleum Gas (LPG) industry to benefit clients and increase the market sector. In recent years, the Liquefied Petroleum Gas (LPG) industry has offered some of the most significant advantages to medicine.

Major players in the Liquefied Petroleum Gas (LPG) market, including Saudi Arabian Oil Co., China Gas Holdings Ltd., Chevron Corporation, Bharat Petroleum Corporation Limited, Flaga Gmbh, Repsol, Kleenheat, Total Se, Reliance Industries Limited, and Exxon Mobil Corporation, are attempting to increase market demand by investing in research and development operations.

Engineering contracting is offered by JGC Holdings Corp (JGC). For several engineering contracts and projects in the fields of oil and gas development, petroleum refining, natural gas processing, petrochemicals, clean energy, and power generation, it provides engineering, procurement, and construction services. Additionally, the business offers management and upkeep for projects at all phases.

Additionally, it provides environmental protection and pollution control services and makes investments in a variety of sectors, including resource development, oil-related projects, alternative fuels, and the production of water and electricity. In addition, it develops urban infrastructure and produces catalysts for petroleum refinery. The organization works on projects in numerous nations in the Americas, Africa, Asia-Pacific, Eastern Europe, and the Middle East. The head office of JGC is located in Yokohama-shi, Kanagawa, Japan.

Oil and gas company Indian Oil Corp Ltd (IOCL) is integrated. The business carries out oil and gas exploration, production, refining, pipeline transportation, and sale of natural gas and petroleum products. Additionally, it produces and sells petrochemicals and engages in a sizable amount of alternative energy business. High speed diesel, jet fuel, light petroleum gas, gasoline, bitumen, heavy fuel oil, naphtha, lubricants, and greases are some of the refined petroleum products offered by IOCL.

The business established subsidiaries in the United States, the Netherlands, Sweden, Mauritius, the UAE, and Sri Lanka. It is a Maharatna business owned by the Indian government. New Delhi, India serves as the home base for IOCL. Indian Oil Corp (IOC) announced plans to build three additional plants in Northeast India in February 2022 in order to enhance its ability to bottle LPG by roughly 53%, or to 8 crore cylinders yearly by 2030, in order to fulfill the region's rising demand. Additionally, the overall cost of the facility expansion is anticipated to be between INR 325 and 350 crore.