Liquefied Petroleum Gas Market Research Report 2025
Liquefied Petroleum Gas Market Global Industry Analysis and Forecast (2025-2032) by Source (Refinery, Associated Gas, Non-Associated Gas), Application (Residential, Commercial, Industrial, Transportation, Others), Composition (Propane, Butane, Isobutane, Propylene), Distribution Channel (Bottled (Cylinder) Gas, Bulk (Tanker or Pipeline Delivery), Auto gas Stations, LPG Retailers/Dealers), and Regional Outlook
Liquefied Petroleum Gas Market Synopsis:
Liquefied Petroleum Gas Market Size Was Valued at USD 141.10 Billion in 2024, and is Projected to Reach USD 211.83 Billion by 2032, Growing at a CAGR of 5.21% from 2025-2032.
Liquefied Petroleum Gas (LPG) or cooking gas or canister gas is a multi-purpose fuel consisting primarily of propane and butane. It is produced from the refining of crude oil or natural gas and is in gaseous form at atmospheric pressure but is readily liquefiable at moderate pressure. This makes it convenient to store and transport in pressurized containers.
LPG is commonly used in household settings as fuel for cooking and heating, in industrial applications, and as a motor fuel for vehicles, also known as auto gas. Propane, a substantial part of LPG, is a three-carbon alkane that is a clean-burning fuel with low emissions and is an increasingly popular alternative fuel for most types of vehicles.
The clean-burning quality of the fuel renders it eco-friendly in contrast to conventional fossil fuels such as oil and coal. Its reduced emissions help in decreasing air pollution and aid the world in moving towards cleaner energy sources, particularly in developing countries and rural areas.
Source: EnergyStatistics_India_publication_2024N
- The graph displays India's domestic LPG output from 2019–20 to 2022–23 in million tonnes. Output dropped to 07 MT in 2020–21 but steadily climbed back, reaching 12.83 MT in 2022–23. This reflects a rebound and upward trend in production.
The Top Active Players Involved Are:
“AmeriGas (USA), Bharat Petroleum Corporation Limited (India), BP P.L.C. (UK), Cenovus Energy Inc (Canada), Chevron Corporation (USA), China Gas Holdings Ltd. (China), Dorian LPG Ltd (USA), Exxon Mobil Corporation (USA), Ferrellgas Partners L.P. (USA), Growmark Inc. (USA), Origin Energy Limited (Australia), Petredec (India), Petróleos Mexicanos (Mexico), Petroliam, Nasional Berhad (Malaysia), Phillips 66 Company (USA), Repsol S.A. (Spain), Royal Dutch Shell PLC (UK), Suburban Propane Partners LP (USA), Thompson gas LLC (USA), Valero Energy Corporation (USA), Other Active Players.”
Liquefied Petroleum Gas Market Growth and Trend Analysis:
Growth Driver Rising Demand for Clean and Efficient Energy Sources
- One of the main factors propelling the growth of the LPG market is the increased focus on cleaner and more efficient energy sources on a global scale. LPG is becoming more and more popular as a fuel substitute for coal and other conventional, highly polluting fuels due to its high calorific value and comparatively low carbon emissions.
- Because LPG burns cleanly, it can be used in both urban and rural settings, which encourages its wider use and supports sustainable energy programs. LPG's significance in the global shift to greener energy alternatives is anticipated to grow as countries step up their efforts to satisfy international sustainability targets and lower their carbon footprints.
Limiting Factor Expensive Distribution and Infrastructure
- The distributor cost and infrastructure are the primary constraints for the LPG sector, despite its benefits. Setting up LPG storage centres, bottling plants, and distribution networks requires huge expenditures, particularly in backwards or remote locations, where they do not generate much revenue.
- Running costs are additionally raised by ensuring that it is safe to handle, store, and deliver it. In price-sensitive markets, such financial hurdles could discourage potential entrants and delay development plans, which would inhibit the widespread acceptance of LPG.
Expansion Opportunity Governmental Efforts to Encourage LPG in Rural Communities
- Increasing government efforts to push clean cooking fuel in rural and underpenetrated markets represent a huge opportunity for the LPG industry. Schemes such as the Pradhan Mantri Ujjwala Yojana (PMUY) in India have illustrated how policy assistance can hugely raise the consumption of LPG by households.
- In a move aimed at mitigating the health implications of using traditional biomass fuel sources such as charcoal and wood, governments from Latin America, Asia, and Africa are increasingly subsidising LPG. Potential long-term growth is generated through such initiatives, as they also work towards protecting the environment and the general public's health, apart from availing new market outlets.
Challenge Barrier Volatility in Crude Oil Prices
- Because LPG is a by-product of natural gas and oil manufacturing, its sensitivity to crude oil prices is an ongoing issue for the LPG industry. Retail prices, production costs, and profit margins can all be significantly affected by shifts in the price of crude oil worldwide.
- It is difficult for customers to consistently depend on LPG due to price volatility, especially in developing countries where consumers are highly sensitive to prices. In addition, sudden price hikes have the possibility of driving customers back to traditional fuels, undermining efforts to sell LPG as a green, clean energy source.
Liquefied Petroleum Gas Market Segment Analysis:
Liquefied Petroleum Gas Market is segmented based on Source, Application, Composition, Distribution Channel and Region
By Application, the Residential and Commercial Segment is Expected to Dominate the Market During the Forecast Period
- The Liquefied Petroleum Gas (LPG) sector is dominated predominantly by its residential application, and it has the largest proportion as it is utilized predominantly for cooking, space heating, and hot water needs. Its high burning quality, competitiveness, and availability, especially in off-grid areas, make it a popular domestic fuel.
- The business sector, like hotels and restaurants, follows, relying on LPG for efficient, high-demand business operations.
- The refinery and petrochemical industry use LPG both as feedstock and fuel, and the transport market is increasingly growing due to the environmental benefits it provides. Diversification of LPG in markets ensures high and steady market demand.
By Source, the Non-associated gas Segment Held the Largest Share in 2024
- The source area is separated into three classifications: refinery, associated gas, and non-associated gas. LPG mainly comes from non-associated gas, which is natural gas found without oil. This type of gas is processed to get LPG and usually gives a cleaner and higher-quality fuel. It’s very reliable and better for the environment
- Another source is associated gas, which is found along with crude oil. When oil is pumped, this gas is also released and turned into LPG. This adds extra supply, especially in oil-rich areas.
Liquefied Petroleum Gas Market Regional Insights:
Asia Pacific is projected to lead the market throughout the forecast period
- Asia Pacific will lead the world's liquefied petroleum gas (LPG) market during the forecast period, backed by robust demand in residential, industrial, and transport sectors. The region enjoys extensive use of LPG as a main cooking and heating fuel, with help from an ample domestic supply and government subsidies that further boost affordability.
- Rising petrochemical capacities and growth in population rates further drive the market. Increased cultural dependence on LPG for household use, combined with rising urbanisation and infrastructure growth, continues to propel consumption. All these, combined with changing energy requirements and local investments in renewable fuel options, place Asia Pacific as the dominant influence in the international LPG market.
Liquefied Petroleum Gas Market Active Players:
- AmeriGas (USA)
- Bharat Petroleum Corporation Limited (India)
- BP P.L.C. (UK)
- Cenovus Energy Inc (Canada)
- Chevron Corporation (USA)
- China Gas Holdings Ltd. (China)
- Dorian LPG Ltd (USA)
- Exxon Mobil Corporation (USA)
- Ferrellgas Partners L.P. (USA)
- Growmark Inc. (USA)
- Origin Energy Limited (Australia)
- Petredec (India)
- Petróleos Mexicanos (Mexico)
- Petroliam Nasional Berhad (Malaysia)
- Phillips 66 Company (USA)
- Repsol S.A. (Spain)
- Royal Dutch Shell PLC (UK)
- Suburban Propane Partners LP (USA)
- Thompson Gas LLC (USA)
- Valero Energy Corporation (USA)
- Other Active Players
Key Industry Developments in the Liquefied Petroleum Gas Market:
- In April 2025, PETRONAS and PETROVIETNAM signed a Key Principles Agreement in Hanoi to extend the Production Sharing Contract (PSC) and Upstream Gas Sales Agreement (UGSA) for the PM3 Commercial Arrangement Area (CAA) by 20 years. The agreement ensured continued production until 2047, supporting energy security for both Malaysia and Vietnam. It also included plans for CO₂ reinjection to align with net-zero goals. This milestone reinforced strong cross-border energy collaboration between the two nations.
- In September 2024, Petredec, a leading LPG company, partnered with South Africa's state-owned logistics firm Transnet to enhance LPG distribution via rail. The project, expected to be operational by 2028, will establish a dedicated LPG rail system from Richards Bay to Gauteng province, aiming to address supply challenges and meet rising demand.
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Liquefied Petroleum Gas Market |
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Base Year: |
2024 |
Forecast Period: |
2025-2032 |
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Historical Data: |
2018 to 2024 |
Market Size in 2024: |
USD 141.10 Bn. |
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Forecast Period 2025-32 CAGR: |
5.21% |
Market Size in 2032: |
USD 211.83 Bn. |
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Segments Covered: |
By Source |
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By Application |
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By Composition |
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By Distribution Channel |
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By Region |
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Growth Driver: |
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Limiting Factor |
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Expansion Opportunity |
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Challenge Barrier |
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Companies Covered in the Report: |
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Chapter 1: Introduction
1.1 Scope and Coverage
Chapter 2:Executive Summary
Chapter 3: Market Landscape
3.1 Market Dynamics and Opportunity Analysis
3.1.1 Growth Drivers
3.1.2 Limiting Factors
3.1.3 Growth Opportunities
3.1.4 Challenges and Risks
3.2 Market Trend Analysis
3.3 Industry Ecosystem
3.4 Industry Value Chain Mapping
3.5 Strategic PESTLE Overview
3.6 Porter's Five Forces Framework
3.7 Regulatory Framework
3.8 Pricing Trend Analysis
3.9 Intellectual Property Review
3.10 Technology Evolution
3.11 Import-Export Analysis
3.12 Consumer Behavior Analysis
3.13 Investment Pocket Analysis
3.14 Go-To Market Strategy
Chapter 4: Liquefied Petroleum Gas Market by Source (2018-2032)
4.1 Liquefied Petroleum Gas Market Snapshot and Growth
Frequently Asked Questions
What is the Forecast Period Covered in the Liquefied Petroleum Gas Market Research Report?
The projected forecast period for the Liquefied Petroleum Gas Market Research Report is 2025-2032.
Who are the Key Players in the Liquefied Petroleum Gas Market?
AmeriGas (USA), Bharat Petroleum Corporation Limited (India), BP P.L.C. (UK), Cenovus Energy Inc (Canada), Chevron Corporation (USA), China Gas Holdings Ltd. (China), Dorian LPG Ltd (USA), Exxon Mobil Corporation (USA), Ferrellgas Partners L.P. (USA), Growmark Inc. (USA), Origin Energy Limited (Australia), Petredec (India), Petróleos Mexicanos (Mexico), Petroliam, Nasional Berhad (Malaysia), Phillips 66 Company (USA), Repsol S.A. (Spain), Royal Dutch Shell PLC (UK), Suburban Propane Partners LP (USA), Thompson gas LLC (USA), Valero Energy Corporation (USA), and Other Active Players.
How is the Liquefied Petroleum Gas Market segmented?
The Liquefied Petroleum Gas Market is segmented into Source, Application, Composition, Distribution Channel and Region. By Source, the market is categorised into Refinery, Associated Gas, and Non-Associated Gas. By Application, the market is categorised into Residential, Commercial, Industrial, Transportation, and Others. By Composition, the market is categorised into Propane, Butane, Isobutane, and Propylene. By Distribution Channel, the market is categorised into Bottled (Cylinder) Gas, Bulk (Tanker or Pipeline Delivery), Auto gas Stations, and LPG Retailers/Dealers. By Region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Russia; Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; The Netherlands; Italy;; Spain; Rest of Western Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New Zealand, Rest of APAC), Middle East & Africa (Türkiye, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa), South America (Brazil; Argentina, South America).
What defines the Liquefied Petroleum Gas Market?
Liquefied Petroleum Gas (LPG) or cooking gas or canister gas is a multi-purpose fuel consisting primarily of propane and butane. It is produced from the refining of crude oil or natural gas and is in gaseous form at atmospheric pressure, but is readily liquefiable at moderate pressure. This makes it convenient to store and transport in pressurized containers.
What is the market size of the Liquefied Petroleum Gas Market?
Liquefied Petroleum Gas Market Size Was Valued at USD 141.10 Billion in 2024, and is Projected to Reach USD 211.83 Billion by 2032, Growing at a CAGR of 5.21% from 2025-2032.
