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    US Liquefied Petroleum Gas LPG Market

    ID: MRFR/E&P/14759-HCR
    100 Pages
    Garvit Vyas
    September 2025

    US Liquefied Petroleum Gas LPG Market Research Report By Source (Refinery, Associated Gas, Non-associated Gas) and By Application (Residential, Commercial, Agriculture, Industrial, Transportation, Others) - Forecast to 2035

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    US Liquefied Petroleum Gas LPG Market Infographic
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    US Liquefied Petroleum Gas LPG Market Summary

    The US Liquefied Petroleum Gas LPG market is projected to grow from 21.3 USD Billion in 2024 to 34.5 USD Billion by 2035.

    Key Market Trends & Highlights

    US Liquefied Petroleum Gas LPG Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 4.5 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 34.5 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 21.3 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of cleaner energy sources due to environmental regulations is a major market driver.

    Market Size & Forecast

    2024 Market Size 21.3 (USD Billion)
    2035 Market Size 34.5 (USD Billion)
    CAGR (2025-2035) 4.5%

    Major Players

    Colonial Pipeline Company, NGL Energy Partners, World Fuel Services, AmeriGas Propane, Suburban Propane, Clean Energy Fuels, Bridger Energy, Harvest Midstream, UGI Corporation, Pinnacle Propane, Targa Resources, Ferrellgas Partners, Propane Services, ChainLal, Southwest Gas Corporation

    US Liquefied Petroleum Gas LPG Market Trends

    Opportunities in the US LPG market are also expanding with the growth of the transportation sector, particularly in the adoption of LPG as an alternative fuel for vehicles. The US government encourages the use of alternative fuels through grants and incentives, providing a conducive environment for the development of infrastructure to support LPG-fueled vehicles. Additionally, the growing popularity of outdoor activities and the rising demand for portable heating and cooking solutions in both recreational and residential settings present avenues for LPG market expansion.

    In recent times, a noticeable trend is the rise of technological advancements in LPG storage and distribution methods, making the supply chain more efficient and reducing operational costs. The integration of innovative technologies, such as remote monitoring systems and automated delivery schedules, is helping suppliers enhance service reliability and customer experience.

    This focus on efficiency, combined with rising health concerns about conventional fuels, is pushing the market towards diversified usage of LPG. As the US continues to prioritize energy independence and sustainability, the future of the LPG market looks promising, driven by these evolving trends.

    Market Segment Insights

    Liquefied Petroleum Gas LPG Market Source Insights

    The Source segment of the US Liquefied Petroleum Gas (LPG) Market plays a crucial role in determining the overall landscape of the industry, contributing significantly to its growth trajectory. The primary sources of LPG in the United States can be categorized into Refinery, Associated Gas, and Non-associated Gas. Refinery sources predominantly derive LPG from crude oil refining processes. This segment not only serves as a major contributor to the LPG supply but also benefits from the high operational efficiencies witnessed in US refineries, many of which have been optimized for higher output.

    As the country continuously enhances its refining capacity, the contribution of this segment to the overall LPG supply is expected to remain substantial.

    In contrast, Associated Gas originates from the extraction of natural gas that is produced concurrently with crude oil. This segment is vital as it capitalizes on the growing demand for natural gas, which effectively turns a by-product into a valuable resource. As production techniques for oil and gas evolve, this segment's importance in contributing to the US Liquefied Petroleum Gas LPG Market revenue will continue to rise, especially with the increasing focus on utilizing every component of extracted resources. Non-associated Gas, on the other hand, comes solely from natural gas reservoirs and is extracted independently of oil.

    This segment has become increasingly significant as shale gas exploration in regions like the Appalachian Basin has surged. As the US continues to innovate in extraction technologies, Non-associated Gas is seen as a pivotal source of LPG, providing a stable supply that enhances overall market stability and helps in meeting the growing domestic and export demands.

    The interplay between these sources reflects the dynamic nature of the US Liquefied Petroleum Gas LPG Market, underpinning its segmentation that highlights the diverse pathways through which LPG is sourced. The emphasis on alternative energy and the efficiency of extraction processes will drive the market growth and ensure that each segment plays a critical role in the expanding landscape of LPG in the coming years. Each source brings unique advantages and challenges, and their collective performance can significantly impact the overall market data and statistics, shaping the future of the US Liquefied Petroleum Gas LPG Market industry.

    Liquefied Petroleum Gas LPG Market Application Insights

    The US Liquefied Petroleum Gas (LPG) Market is experiencing notable developments within the Application segment, which is crucial for understanding its diverse uses in various sectors. This segment encompasses Residential, Commercial, Agriculture, Industrial, Transportation, and Other applications, with each playing a vital role in market dynamics. The Residential sector is significant due to its reliance on LPG for heating, cooking, and hot water, reflecting the demand for clean energy solutions. In the Commercial arena, businesses are turning to LPG for efficient energy use in restaurants and hotels, highlighting the fuel's versatility.

    The Agriculture sector utilizes LPG in crop heating, irrigation, and as a weed-control alternative, showcasing its importance in enhancing productivity. The Industrial segment employs LPG extensively in processes such as material handling and chemical manufacturing, indicating strong demand in various industries. Transportation also represents a growing area for LPG as an alternative fuel for vehicles, reducing emissions compared to traditional gasoline. As new technologies emerge, the Others category includes specialized uses, increasing the overall relevance of the US Liquefied Petroleum Gas LPG Market.

    Overall, the multifaceted applications of LPG are crucial for its contribution to energy diversity and economic development across the United States.

    Get more detailed insights about US Liquefied Petroleum Gas LPG Market Research Report — Global Forecast till 2035

    Key Players and Competitive Insights

    The competitive landscape of the US Liquefied Petroleum Gas (LPG) market is characterized by a diverse mix of large-scale operators and regional players, driving innovations and growth in this sector. With the increasing demand for LPG in residential, commercial, and industrial applications, companies are continually vying for market share by optimizing their supply chains and enhancing operational efficiencies. The landscape has been shaped by various factors including changing regulations, technological advancements, and fluctuations in crude oil prices, prompting companies to adapt swiftly to maintain their competitive edge.

    As the market continues to evolve, insights into the competitive strategies and capabilities of key players provide valuable information on the trajectory of the LPG industry in the United States.

    Colonial Pipeline Company plays a significant role in the US Liquefied Petroleum Gas market, leveraging its extensive pipeline network to transport LPG efficiently across a wide geographic area. This company's strengths are reflected in its operational capabilities, with a focus on safety, reliability, and efficiency in transporting hydrocarbons. With a strategic presence across major markets, Colonial Pipeline is well-positioned to cater to the growing demands for LPG, taking advantage of its logistical advantages and established relationships with producers and distributors.

    The company’s commitment to maintaining high operational standards and meeting regulatory requirements further solidifies its reputation and encourages loyalty among its customer base, ensuring a robust foothold in the competitive LPG landscape.

    NGL Energy Partners operates prominently within the US Liquefied Petroleum Gas market, offering a diverse portfolio of services that include the transportation, storage, and distribution of LPG and other natural gases. This company emphasizes integrated solutions, enabling it to provide comprehensive service to customers in various sectors, from residential to industrial. NGL Energy Partners distinguishes itself through its considerable market presence and strategic partnerships that enhance its service offerings. The company has been actively pursuing growth through mergers and acquisitions, which not only expand its market reach but also strengthen its operational capabilities.

    By continually investing in infrastructure and technology, NGL Energy Partners aims to deliver reliable services while adapting to the dynamic needs of the market, reinforcing its position as a key player in the US LPG sector.

    Key Companies in the US Liquefied Petroleum Gas LPG Market market include

    Industry Developments

    Recent developments in the US Liquefied Petroleum Gas (LPG) market have shown notable activity, with companies like Colonial Pipeline Company and Targa Resources focusing on infrastructure upgrades to enhance supply and distribution networks. AmeriGas Propane and Suburban Propane are adapting their strategies in response to rising demand for clean energy alternatives. In September 2023, NGL Energy Partners announced its acquisition of a midstream asset, reinforcing its commitment to expanding its footprint in the LPG sector. Furthermore, the market has witnessed a valuation increase as households turn to propane as a more efficient energy source amid fluctuating prices of traditional fuels.

    Clean Energy Fuels and Harvest Midstream are innovating in logistics solutions to streamline operations, contributing to overall market growth. Recent regulatory changes aimed at promoting cleaner fuels have also shaped the LPG landscape, creating opportunities for companies like UGI Corporation and Pinnacle Propane. Proposals for more stringent regulations on greenhouse gas emissions are steering market dynamics and pushing firms towards sustainability initiatives. These trends reflect a vibrant and evolving LPG market in the US, underpinned by both corporate strategies and broader economic shifts.

    Market Segmentation

    Outlook

    • Residential
    • Commercial
    • Agriculture
    • Industrial
    • Transportation
    • Others

    Liquefied Petroleum Gas LPG Market Source Outlook

    • Refinery
    • Associated Gas
    • Non-associated Gas

    Liquefied Petroleum Gas LPG Market Application Outlook

    • Residential
    • Commercial
    • Agriculture
    • Industrial
    • Transportation
    • Others

    Report Scope

     

    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 20.35 (USD Billion)
    MARKET SIZE 2024 21.26 (USD Billion)
    MARKET SIZE 2035 34.51 (USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 4.502% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Colonial Pipeline Company, NGL Energy Partners, World Fuel Services, AmeriGas Propane, Suburban Propane, Clean Energy Fuels, Bridger Energy, Harvest Midstream, UGI Corporation, Pinnacle Propane, Targa Resources, Ferrellgas Partners, Propane Services, ChainLal, Southwest Gas Corporation
    SEGMENTS COVERED Source, Application
    KEY MARKET OPPORTUNITIES Increased consumer adoption, Infrastructure development, Renewable LPG demand, Export market expansion, Technological advancements in production
    KEY MARKET DYNAMICS Rising demand for clean energy, Increased adoption in residential heating, Regulatory framework and compliance, Fluctuating crude oil prices, Infrastructure development and investment
    COUNTRIES COVERED US

    FAQs

    What is the expected market size of the US Liquefied Petroleum Gas LPG Market in 2024?

    The US Liquefied Petroleum Gas LPG Market is expected to be valued at 21.26 billion USD in 2024.

    What will be the projected market size of the US Liquefied Petroleum Gas LPG Market by 2035?

    By 2035, the US Liquefied Petroleum Gas LPG Market is projected to reach a valuation of 34.51 billion USD.

    What is the anticipated CAGR for the US Liquefied Petroleum Gas LPG Market from 2025 to 2035?

    The anticipated compound annual growth rate for the US Liquefied Petroleum Gas LPG Market from 2025 to 2035 is 4.502%.

    Which source is expected to dominate the US Liquefied Petroleum Gas LPG Market in terms of value in 2024?

    In 2024, the Refinery source is expected to dominate the US Liquefied Petroleum Gas LPG Market with a value of 7.5 billion USD.

    What is the value of the Associated Gas segment of the US Liquefied Petroleum Gas LPG Market in 2024?

    The Associated Gas segment is valued at 5.3 billion USD in the US Liquefied Petroleum Gas LPG Market in 2024.

    What is the projected market size of the Non-associated Gas segment by 2035?

    By 2035, the Non-associated Gas segment is projected to reach a size of 13.91 billion USD.

    Who are the major players in the US Liquefied Petroleum Gas LPG Market?

    Major players in the US Liquefied Petroleum Gas LPG Market include Colonial Pipeline Company, NGL Energy Partners, and AmeriGas Propane.

    What are the key applications driving the US Liquefied Petroleum Gas LPG Market?

    Key applications include heating, cooking, and transportation, which are driving the growth of the market.

    What challenges may impact the US Liquefied Petroleum Gas LPG Market in the upcoming years?

    Challenges such as regulatory issues and fluctuations in oil prices may impact the growth of the US Liquefied Petroleum Gas LPG Market.

    How does the US Liquefied Petroleum Gas LPG Market growth differ across various regions?

    The growth of the US Liquefied Petroleum Gas LPG Market varies across regions, driven by local demand, infrastructure, and regulatory landscapes.

    US Liquefied Petroleum Gas LPG Market Research Report — Global Forecast till 2035 Infographic
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