The global liquefied petroleum gas market size was estimated at USD 117.3 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 3.7% from 2023 to 2030. Growing awareness about the benefits correlated to the usage of LPG to substitute fossil fuels and the rising adoption of clean and green energy sources across developed and developing countries are some of the factors likely to boost the LPG market’s growth. Additionally, technological aspects coupled with the growing number of initiatives taken by governments to educate the rural people to substitute LPG with traditional cooking fuels such as kerosene, wood, and coal which is likely to play a vital role in the industry’s growth.

The growing population and increasing demand for liquefied petroleum gas as a vehicle emission gas are likely to boost the growth of the market. Besides, the high cost of installation related to liquefaction process equipment and technology may affect the demand and can confine the growth of the market during the projection timeframe. Rise in government initiatives across countries such as India, Indonesia, and China to inspire liquefied petroleum gas applications on account of its prolonged benefits as a cooking fuel are anticipated to boost the market growth over the upcoming years.

In the United Kingdom., LPG is gradually being considered as a striking option for commercial assets joined with low-carbon and renewable technologies to assimilate a consistent year with round-the-clock electricity supply with carbon savings. The improving R&D in the liquefied petroleum gas industry is projected to propel the market growth in the upcoming years.

Gather more insights about the market drivers, restrains and growth of the Global liquefied petroleum gas market

Liquefied Petroleum Gas Market Segments Highlights:

1. The non-associated gas source type accounted for more than USD 62.0 billion in 2022. The sources of the fuel differ from area to area, for example, in North America the majority of the gas is procured from natural gas processing units.

2. The demand for liquefied petroleum gas from associated gas in the Asia Pacific region was more than 17.0 million tons in 2022. It is likely to reach more than 23.0 million tons by 2030, increasing at an assessed CAGR of over 3.0% from 2023 to 2030.

3. The United States shale boom has occurred as a major drift resulting in excess in the global LPG market.

4. The chemical application type accounted for more than USD 19 billion in 2022. Commercial and residential application accounted for a substantial share in the LPG market.

5. Autogas is also projected to witness substantial growth in the near future owing to increasing alternate fuel demand in the transportation sector to minimize environmental concerns such as carbon emission levels and pollution levels.

6. Asia Pacific led to a surge in the global market with a net demand of more than 83.0 million tons in 2022. Population growth, ample resource availability, and high energy necessities coupled with easy affordability owed to the existence of government subsidies on LPG cylinders have been the key factors accountable for high market penetration.

7. India is a prominent importer of liquefied petroleum gas demand in 2022, taking consignments at a steady rate from the United States and Middle East regions to fund domestic fuel usage.

8. The LPG demand in Europe was more than USD 33.0 billion in 2022 and is expected to reach over USD 43.0 billion, growing at an estimated CAGR of over 3.0% from 2023 to 2030.

9. In Europe, Russia is forecasted to grow at the fastest CAGR of 4.9% in terms of revenue over the forecast period.

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Liquefied Petroleum Gas Market Segmentation

Grand View Research has segmented the global liquefied petroleum gas market report based on source, application, and region:

Liquefied Petroleum Gas Source Outlook (Volume, Million Tons; Revenue, USD Billion, 2018 - 2030)

1. Refinery

2. Associated Gas

3. Non-Associated Gas

Liquefied Petroleum Gas Application Outlook (Volume, Million Tons; Revenue, USD Billion, 2018 - 2030)

1. Residential/Commercial

2. Chemical

3. Industrial

4. Autogas

5. Refinery

6. Others

Liquefied Petroleum Gas Regional Outlook (Volume, Million Tons; Revenue, USD Billion, 2018 - 2030)

1. North America

2. Europe

3. Asia Pacific

4. Central and South America

5. Middle East and Africa

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