Asia-Pacific
LPG Cylinder Market is expected to experience steady growth during the forecast
period, 2024 to 2028. LPG cylinders serve as a highly efficient fuel source,
finding wide-ranging applications in agriculture, recreation, hospitality,
construction, sailing, and fishing. They are utilized for water heating,
central heating, and cooking, offering an affordable and effective solution for
heating off-grid residences. The market witnessed a decline in demand due to
the pandemic, resulting in a low price of USD 236 per tonne in April 2020.
However, the Russian-Ukrainian war caused a significant surge in prices,
reaching USD 952 per tonne in April 2022. The GDP growth rate in East Asia and
the Pacific region was 5.81% in 2021. This positive economic growth further
fuels market expansion in the future.
The demand for LPG is on the rise in the industrial,
residential, and power generation sectors, with the transportation sector
showing the most promising growth potential. This upward trend is attributed to
a growing public awareness regarding the benefits of using LPG as a replacement
for traditional fossil fuels. Developed and emerging nations are increasingly
adopting clean and sustainable energy sources, further driving the expansion of
the LPG market. Technological advancements also contribute to this growth,
alongside an increasing number of government initiatives aimed at educating
rural communities about transitioning from LPG to conventional cooking fuels
such as kerosene, wood, and coal. These factors are expected to play a crucial
role in the industry's overall development.
Based on customs data, China's imports of LPG during the
period of January to November 2022 witnessed an year-on-year increase of 7%,
totaling 24.2 million metric tons. The primary source countries of these
supplies were the United States, the United Arab Emirates, Oman, Qatar, and
Saudi Arabia. Notably, these imports included a more cost-effective supply from
Iran. Shipping sources indicate that Iranian shipments to China are projected
to reach 8.3 million metric tons by the end of 2023, followed by the shipment
of 6.82 million metric tons in 2022. These figures highlight China's position
as the largest consumer of LPG. According to trade sources, China's LPG imports
are expected to reach 26.3 million metric tons in 2022, surpassing the 24.5
million metric tons imported in 2021. Furthermore, it is projected that China's
LPG imports are going to be increased by 21% by the end of 2023, reaching 31.8
million metric tons. This substantial demand from China contributes to the
anticipated growth of the LPG market all across the Asia-Pacific region in the forecast
period 2024-2028.
Rising Government Initiatives and Policies are Fueling
the Market Growth
In recent years, coal has predominantly been utilized for
electricity and energy generation in economically disadvantaged nations, often
supplemented by natural gas as a backup source. However, emerging economies are
actively seeking alternative options today. These alternatives encompass
distributed generation methods like microgenerators, as well as renewable
energy sources, which rely on improved storage capabilities and reduced
intermittency in power generation. Government bodies and energy providers are now
turning their attention to economically viable, environmentally friendly, and
relatively uncomplicated alternative energy sources. Among these options,
liquid petroleum gas (LPG) is highly utilized by industries.
The purchasing power of households plays a crucial role
in influencing the demand for LPG cylinders. This impact is particularly
pronounced among lower income group families, as they have access to cheaper
alternative fuels such as kerosene and fuel wood, often at heavily subsidized
rates. To stimulate greater LPG consumption, the government has implemented
various initiatives. Notably, programs like PAHAL have been introduced with the
objective of providing clean cooking gas connections to impoverished households
that traditionally rely on cooking fuels like firewood, coal, and cow-dung.
Since its launch, the scheme has successfully reached over 80 million Ujwala
beneficiaries, resulting in an average per capita consumption of around 3 LPG
refills per year. This transformative scheme has positively influenced the
adoption of LPG cylinders among first-time users, bringing about a significant
change in the lives of households that were previously reliant on traditional
cooking fuels. Consequently, there has been a substantial increase in the demand
for LPG cylinders from households.
Market players involved in the LPG cylinder industry have
introduced smaller package sizes to cater to specific market demands. As part
of the government's efforts to support economically disadvantaged families, a
scheme such as Pradhan Mantri Ujjwala Yojana (PMUY) has been implemented that
allows them to exchange their 14 kg LPG cylinder for a 5 kg cylinder. This
scheme offers flexibility, enabling consumers to switch between the two-cylinder
sizes as per their requirements. Additionally, consumers have been given the
opportunity to avail themselves of a PMUY scheme where they can access two 5 kg
cylinders. These initiatives have greatly enhanced affordability for a
significant number of consumers residing in Tier 3 cities and rural areas. To
further assist consumers, special subsidiary loans have been made available,
with LPG marketers deferring the repayment period for one year or until the
consumer has obtained six LPG refills, whichever comes first.
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Increasing Village Level Entrepreneurs (VLC) &
Digital Services
The Asia Pacific region has witnessed a remarkable surge
in the demand for liquefied petroleum gas (LPG) cylinders in recent years. This
growth can be attributed to two key factors: the rise of Village Level
Entrepreneurs (VLC) and the increasing adoption of digital services. Together,
these factors have revolutionized the distribution and accessibility of LPG
cylinders in rural areas, empowering communities and driving economic
development.
Village Level Entrepreneurs (VLCs) have emerged as a
vital link between LPG suppliers and remote rural areas. These enterprising
individuals establish small businesses at the village level to distribute LPG
cylinders, catering to the needs of the local population. VLCs are often local
residents who understand the unique challenges faced by their communities and
possess the knowledge and connections necessary to navigate them effectively.
By leveraging their entrepreneurial skills, VLCs have become key drivers of LPG
cylinder adoption, particularly in regions where traditional distribution
networks may be inadequate.
The proliferation of digital technologies has played a
pivotal role in transforming the LPG cylinder market in the Asia Pacific
region. With the advent of mobile applications, online platforms, and
e-commerce solutions, the accessibility and convenience of LPG cylinder
distribution have significantly improved. Digital platforms have enabled VLCs
to streamline their operations, manage inventory, track deliveries, and
efficiently communicate with suppliers and customers. These advancements have
eliminated many inefficiencies in the supply chain, reducing costs, and
ensuring timely availability of LPG cylinders in rural areas.
The Asia Pacific LPG cylinder market has experienced
significant growth due to the efforts of Village Level Entrepreneurs (VLCs) and
the adoption of digital services. VLCs have emerged as key facilitators,
bridging the gap between LPG suppliers and rural communities, while digital
platforms have revolutionized the distribution process. This transformation has
not only improved the living standards of rural populations but also generated
economic opportunities and contributed to environmental sustainability. With
continued support and advancements in technology, the VLC-driven and digitally
enabled LPG cylinder market in the Asia Pacific region is poised for further
expansion and success.
Recent Developments
- In April 2021, a memorandum of understanding (MOU) was
signed between Mitsui & Co. (Asia Pacific) Pte. Ltd., a prominent Japanese
conglomerate, and INOXCVA, a leading Indian multinational specializing in
cryogenic liquid storage, distribution, and re-gas solutions. The purpose of
this MOU was to establish a virtual pipeline in India and facilitate the
deployment of small-scale liquefied natural gas (LNG) infrastructure.
Market Segmentation
The Asia-Pacific LPG
Cylinder Market is divided into Material
Type, Cylinder type, Application, Size, and Country. Based on Material Type,
the market is segmented into Glass Fiber composites, Metal, and Others. Based
on Cylinder type, the market is segmented into Metal
and Composites. Based on Application, the market is segmented into Residential/Consumer-use, Power & Utilities, and Transport/Auto-fuel.
Based on Size, the market is divided into 0 to 5 Kg, 6 to 10 Kg, and 11 Kg
& Above. Based on country, the market is fragmented into China, Japan,
India, South Korea, Australia, Vietnam, Indonesia, Singapore, Philippines, and Malaysia.
Market Players
Major
market players in the Asia-Pacific LPG
Cylinder Market are Shandong
China
Huanri Group Co. Ltd, Hebei Baigong High-Pressure Vessel Co. Ltd, Mauria Udyog
Ltd., Metal Mate Co. Ltd, Sahamitr Pressure Container PLC, Supreme Industries
Ltd, Time Technoplast Ltd, Worthington Industries Inc.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 – 2022
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Estimated Year
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2023
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Forecast Period
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2024 – 2028
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Quantitative Units
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Revenue in USD Million, and CAGR for 2018-2022
and 2023-2028
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Report coverage
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Revenue forecast, company share, growth factors, and
trends
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Segments covered
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Material Type
Cylinder type
Application
Size
Region
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Country scope
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China, Japan, India, South Korea, Australia, Vietnam,
Indonesia, Singapore, Philippines, Malaysia
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Key companies profiled
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Shandong China Huanri Group Co. Ltd, Hebei Baigong
High-Pressure Vessel Co. Ltd, Mauria Udyog Ltd, Metal Mate Co. Ltd, Sahamitr
Pressure Container Plc, Supreme Industries Ltd, Time Technoplast Ltd,
Worthington Industries Inc.
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Customization scope
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10% free report customization with purchase. Addition or alteration to
country, regional & segment scope.
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Pricing and purchase options
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Avail customized purchase options to meet
your exact research needs. Explore purchase options
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Delivery Format
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PDF and Excel through Email (We can also provide the
editable version of the report in PPT/Word format on special request)
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Report Scope:
In this report, the Asia-Pacific LPG Cylinder Market has been
segmented into following categories, in addition to the industry trends which
have also been detailed below:
·
Asia-Pacific LPG Cylinder Market, By Material Type:
o
Glass Fiber Composites
o
Metal
o
Others
·
Asia-Pacific LPG Cylinder Market, By Cylinder Type:
o
Metal
o
Composites
·
Asia-Pacific LPG Cylinder Market, By Application:
o
Residential/Consumer-use
o
Power & Utilities
o
Transport/Auto-fuel
·
Asia-Pacific LPG Cylinder Market, By Size:
o
0 to 5 Kg
o
6 to 10 Kg
o
11 Kg & Above
·
Asia-Pacific LPG Cylinder Market, By Country:
o
China
o
Japan
o
India
o
South Korea
o
Australia
o
Vietnam
o
Indonesia
o
Singapore
o
Philippines
o
Malaysia
Competitive Landscape
Company Profiles: Detailed analysis of the
major companies present in the Asia-Pacific LPG
Cylinder Market.
Available Customizations:
Asia-Pacific LPG Cylinder Market report with the given market data, Tech
Sci Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
Asia-Pacific LPG Cylinder Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]