The latest market report published by Credence Research, Inc. “Liquefied Petroleum Gas (LPG) Market, By Source, By End Use and By Geography- Growth, Future Prospects and Competitive Analysis, 2016 – 2024,” the global liquefied petroleum gas (LPG) market was valued at US$ 257.8 Bn in 2016, and is expected to each US$ 339.2 Bn by 2024, expanding at a CAGR of 3.5% from 2016 to 2024.
Browse the full Liquefied Petroleum Gas (LPG) Market – Growth, Future Prospects and Competitive Analysis, 2016 – 2024 report at https://www.credenceresearch.com/report/liquefied-petroleum-gas-lpg-market
Global Liquefied Petroleum Gas (LPG) market is projected to witness enormous growth due to wide adoption of LPG as a cooking gas from residential sector replacing other cooking fuels. Further, favorable government initiatives especially in key consuming economies of Asia Pacific such as China, India and Indonesia to promote LPG as the cooking fuel with the focus to substitute conventional cooking fuels such as coal, kerosene and wood is anticipated to drive the demand for Liquefied petroleum gas (LPG) during the forecast period. Further, low greenhouse gases emission characteristics of LPG influencing governments to promote the adoption of LPG as auto fuel. This in turn is projected to drive the demand for LPG over the forecast period. However, volatile crude oil and natural gas price is expected to remain the key challenge for the global liquefied petroleum gas (LPG) market during the forecast period (2016-2024).
Asia Pacific is projected to be the key consuming market in global liquefied petroleum gas (LPG) market. Growing demand for cooking gas from residential sector coupled with various government initiatives such as subsidies on LPG cylinder to increase penetration of LPG as cooking fuel in emerging economies such as China and India influencing consumers to replace conventional cooking fuels such as wood, kerosene, coal. Further, increasing demand for LPG auto fuel due to growing awareness about the associated advantages of LPG as fuel in terms of greenhouse gases emission as well as cost-effectiveness of LPG as auto fuel is influencing consumers to adopt LPG as alternative transportation fuel. The region is also projected to witness highest growth over the forecast period (2016-2024).
By Source, natural gas well segment was the most dominant segment in 2015 and anticipated to continue its dominance of over the forecast period. Increasing exploration and production of natural gas reserves along with exploration and production of non-conventional shale gas reserves is anticipated to drive the growth of the segment during the forecast period (2016-2024). However, advancement in technology and growth in capacity expansion of refinery fueling the production of LPG is projected to drive the growth of refinery segment during the forecast period (2016-2024).
By application, residential segment was observed to be the largest segment in 2015 in Liquefied Petroleum Gas (LPG) market owing to wide adoption of the LPG as a cooking. Increasing penetration of LPG as cooking fuel in key consuming economies such as India and China is projected to drive the growth of the segment. According to Petroleum Planning and Analysis Cell (PPAC), the total consumption of LPG was 19.6mt in 2015. Further, in 2015, Nigeria witnessed 100% increase in domestic consumption of LPG. The segment is anticipated to grow at significant rate and projected to maintain its dominance over the forecast period (2016-2024).
Considering the competition, the global liquefied petroleum gas (LPG) market is expected to witness a significant rise in investment in capacity expansion for the production of auto gas as fuel. Further, market has witnessed strategic mergers and collaborations among liquefied petroleum gas (LPG) regional and global players. Such growth strategies are focused on increasing their market penetration in key consuming economies.