Global Liquified Petroleum Gas Market Size, Share, Growth Analysis, By Type(Propane, Butane and Propane - Butane Blend.), By Application(Residential, Commercial) - Industry Forecast 2024-2031

Liquified Petroleum Gas Market size was valued at USD 101.73 billion in 2021 and is poised to grow from USD 106 billion in 2022 to USD 147.32 billion by 2030, growing at a CAGR of 4.2% in the forecast period (2023-2030).

Liquefied Petroleum Gas (LPG) market is driven by its versatility and environmentally friendly attributes. LPG, composed primarily of propane and butane, is a clean-burning and efficient source of energy widely used for residential, commercial, industrial, and transportation applications. The global LPG market has experienced steady expansion due to its adoption as a cleaner alternative to traditional fossil fuels, especially in regions with stringent emission regulations. The growing demand for LPG is its application as a cooking fuel in residential households. In developing countries, the transition from traditional biomass fuels to LPG for cooking has gained momentum due to its convenience, safety, and reduced indoor air pollution. Governments and international organisations have also been actively promoting LPG as a clean cooking solution, further propelling market growth.

The rising industrialization in developing nations and the steady demand from developed economies have contributed to the increased consumption of LPG in this sector. As a lower carbon-emitting fuel compared to gasoline and diesel, LPG has gained traction as an alternative fuel option for vehicles. In some regions, incentives and supportive policies from governments have encouraged the conversion of vehicles to run on LPG, further bolstering market growth.

US Liquified Petroleum Gas Market is poised to grow at a sustainable CAGR for the next forecast year.