LPG Market Size, Share and Growth Outlook 2030

Report Description

Forecast Period	2026-2030
Market Size (2024)	USD 129.60 Billion
CAGR (2025-2030)	8.01%
Fastest Growing Segment	Bulk
Largest Market	Middle East & Africa
Market Size (2030)	USD 205.77 Billion

Market Overview

The Global LPG Market, valued at USD 129.60 Billion in 2024, is projected to experience a CAGR of 8.01% to reach USD 205.77 Billion by 2030. Liquefied Petroleum Gas (LPG) is a flammable mixture of hydrocarbon gases, predominantly propane and butane, utilized as a versatile fuel source across various sectors. This product is derived from natural gas processing and crude oil refining, then stored and transported in a liquid state under moderate pressure. The global LPG market's expansion is primarily supported by the increasing global demand for cleaner energy alternatives, rising urbanization, and substantial government initiatives promoting its adoption in residential and commercial applications. Furthermore, the growing utilization of LPG as a petrochemical feedstock and as an automotive fuel (autogas) contributes significantly to its market development. According to the World Liquid Gas Association and Argus, global LPG demand grew by 2.8 percent to 366 million tons in 2024, while global supply increased by 3.1 percent to 370 million tons in the same year.

Despite these growth drivers, a significant challenge impeding market expansion is the persistent issue of infrastructure constraints, particularly within developing regions. Inadequate storage facilities, insufficient distribution networks, and underdeveloped transportation systems restrict the efficient supply and accessibility of LPG, leading to logistical bottlenecks and increased operational costs. Moreover, the inherent price volatility associated with crude oil feedstock also poses a continuous concern for market stability and planning.

Key Market Drivers

The increasing global emphasis on cleaner energy solutions constitutes a primary driver for the expansion of the LPG market. As nations strive to reduce carbon emissions and mitigate air pollution, LPG presents a viable and immediate alternative to traditional polluting fuels such as wood, coal, and kerosene in various applications. Its cleaner burning properties contribute to improved air quality and reduced greenhouse gas emissions, aligning with global sustainability objectives. This shift is particularly evident in the growing sector of renewable liquid gas production. According to Argus Media, in September 2025, 'LPG World editorial: Keep calm and carry on', renewable LPG production capacity significantly rose to 480,000 tonnes per year in 2024 from 300,000 tonnes per year in 2023, indicating increasing investment and technological advancements in sustainable LPG alternatives.

Simultaneously, the growing demand within residential and commercial sectors substantially propels the LPG market forward. Rapid urbanization and population growth, particularly in emerging economies, necessitate efficient and accessible cooking and heating fuels. LPG provides a reliable and convenient energy source for households and small businesses, often filling critical energy access gaps where piped natural gas infrastructure is unavailable. Government initiatives promoting clean cooking and offering subsidies further accelerate this adoption. For example, India has witnessed remarkable growth in household LPG access. According to Goodreturns, in October 2025, 'LPG Price in India Today (16th Oct, 2025), LPG Gas Cylinder Prices in Indian Cities', the number of LPG connections in India increased from 140 million in 2014 to over 330 million in 2024. This expansion highlights LPG's role in addressing fundamental energy needs across diverse populations. Furthermore, according to Reuters, in October 2025, 'India refiners to buy more US LPG in 2026, cut Middle East imports, sources say', India imported approximately 65% of its 31 million tons of LPG consumption in 2024.

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Key Market Challenges

Infrastructure constraints represent a substantial impediment to the global LPG market's expansion, particularly within developing regions. Insufficient storage facilities, underdeveloped distribution networks, and inadequate transportation systems restrict the efficient supply and accessibility of LPG. These limitations create logistical bottlenecks, leading to increased operational costs for market participants and directly hampering the market by impeding the delivery of LPG to potential consumers and businesses.

The lack of robust infrastructure demonstrably restricts market penetration and adoption. For instance, according to the World Liquid Gas Association, in December 2024, nearly 900 million people in Africa remained without access to clean cooking solutions. This situation is directly influenced by inadequate storage, distribution, and delivery networks in remote areas. This significant population segment represents a substantial unrealized demand, where infrastructure limitations prevent LPG from reaching households and industries, thereby hindering market development and growth in critical regions.

Key Market Trends

Technological Advancements in Autogas Systems and Infrastructure represent a significant trend driving the global LPG market. Innovations focus on enhancing engine efficiency and reducing emissions, making autogas a more competitive and environmentally sound transportation fuel. According to the World Liquid Gas Association, global LPG consumption in the transportation sector reached 25.45 million tonnes in 2022, with approximately 28 million autogas-consuming vehicles registered worldwide. Further advancements were highlighted in a paper selected for the Global Technology Conference 2025, detailing how an optimized heavy-duty engine achieved a Brake Thermal Efficiency of 43.9% with a direct injection setup, utilizing a high-squish 14:1 compression ratio piston, prechamber ignition, and 29% Exhaust Gas Recirculation. Such developments are crucial for expanding autogas adoption in diverse vehicle segments.

Smart Cylinder and IoT Integration for Enhanced Management is another pivotal trend transforming LPG distribution and customer service. The World Liquid Gas Association emphasizes that IoT can significantly improve the LPG industry's safety, efficiency, and accessibility by providing real-time data on cylinder contents and enabling just-in-time deliveries. A tangible example of this trend includes Copa Energia's successful implementation of an AI-based system for automated LPG cylinder tare reading, which achieved over 99% accuracy and reduced manual labor by more than 80% during a pilot phase that processed over 30,000 cylinders daily. This innovative approach optimizes logistics, minimizes operational costs, and enhances customer satisfaction by ensuring reliable supply.

Segmental Insights

The Bulk segment is experiencing rapid growth within the Global LPG Market primarily due to escalating industrial and commercial demand. Industries, including manufacturing and petrochemicals, increasingly rely on bulk LPG for various applications such as process heat, steam generation, and as a vital feedstock for chemical production, especially in developing economies. This preference is driven by LPG's cleaner-burning characteristics compared to traditional fossil fuels, aligning with stringent environmental regulations and corporate sustainability objectives. Furthermore, its portability and storage flexibility make bulk LPG an ideal solution for regions with limited piped natural gas infrastructure, ensuring a consistent and efficient energy supply for large-scale operations.

Regional Insights

The Middle East & Africa region stands as a dominant force in the global LPG market, primarily driven by its substantial natural gas and crude oil reserves. These extensive hydrocarbon resources provide critical feedstock for LPG production, establishing countries like Saudi Arabia, Qatar, and the United Arab Emirates as major producers and exporters. The region benefits from well-developed upstream infrastructure and robust petrochemical capabilities, facilitating efficient extraction and processing. Additionally, rising domestic demand for cleaner energy solutions across African nations, spurred by urbanization and government initiatives, further solidifies the region's leading position, with entities such as Saudi Aramco being key contributors to its output and supply.

Recent Developments

In October 2025, Roush CleanTech received certification from the California Air Resources Board for its propane engines. This certification marked a significant new product development in the global LPG market, particularly for the automotive sector. The approval enables the deployment of these propane-powered engines in vehicles within California, a region known for stringent emission standards. The development underscores the increasing focus on cleaner alternative fuels and supports the expanded use of LPG as a viable, lower-emission energy source for transportation applications.

In October 2025, Dorian LPG reported on its significant initiatives to advance sustainable shipping practices within the global LPG market. During 2024, the company completed a comprehensive study evaluating wind-assisted propulsion devices for potential retrofitting across its fleet. Furthermore, Dorian LPG was actively preparing for the implementation of FuelEU Maritime regulations, which were set to commence in 2025. These preparations and research efforts demonstrated the company's proactive approach to enhancing environmental performance and operational efficiency in line with upcoming industry decarbonization mandates.

In January 2025, Kanadevia Corporation and the AIST Group achieved a research breakthrough by successfully synthesizing liquefied petroleum gas (LPG) directly from carbon dioxide (CO2). This innovative process utilized a newly developed specialized catalyst under low-pressure conditions, offering a significant advancement in sustainable fuel production. The collaboration aimed to produce green LPG by combining green hydrogen, derived from renewable energy sources, with CO2 emissions. Following this success, the partners planned to initiate a year-long demonstration test to assess the scalability for an annual production of three to four tons, contributing to carbon recycling within the global LPG market.

In December 2024, Eastern Pacific Shipping (EPS) made a strategic investment by placing orders for four new Large Gas Carriers (LGCs). These vessels represented an advancement in the global LPG shipping industry, designed with dual-fuel capabilities to transport both liquefied petroleum gas and ammonia. This move highlighted the company's commitment to adapting to evolving energy demands and preparing for the growing trade in clean ammonia as an alternative marine fuel. The orders positioned EPS to enhance its fleet with versatile vessels capable of supporting the transition towards more sustainable maritime logistics in the global gas market.

Key Market Players

Saudi Arabian Oil Company (Saudi Aramco)
Exxon Mobil Corporation
Shell plc
BP International Limited
Chevron Corporation
TotalEnergies SE
Petroliam Nasional Berhad (PETRONAS)
Phillips 66 Company

By Source	By Supply Mode	By Application	By Region
Refinery Associated Gas Non-associated Gas	Packaged Bulk On-site	Residential Commercial Agriculture Industrial Transportation Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global LPG Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

LPG Market, By Source:

o Refinery

o Associated Gas

o Non-associated Gas

LPG Market, By Supply Mode:

o Packaged

o Bulk

o On-site

LPG Market, By Application:

o Residential

o Commercial

o Agriculture

o Industrial

o Transportation

o Others

LPG Market, By Region:

o North America

§ United States

§ Canada

§ Mexico

o Europe

§ France

§ United Kingdom

§ Italy

§ Germany

§ Spain

o Asia Pacific

§ China

§ India

§ Japan

§ Australia

§ South Korea

o South America

§ Brazil

§ Argentina

§ Colombia

o Middle East & Africa

§ South Africa

§ Saudi Arabia

§ UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global LPG Market.

Available Customizations:

Global LPG Market report with the given market data, TechSci 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).

Global LPG 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]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global LPG Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Source (Refinery, Associated Gas, Non-associated Gas)

5.2.2. By Supply Mode (Packaged, Bulk, On-site)

5.2.3. By Application (Residential, Commercial, Agriculture, Industrial, Transportation, Others)

5.2.4. By Region

5.2.5. By Company (2024)

5.3. Market Map

6. North America LPG Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Source

6.2.2. By Supply Mode

6.2.3. By Application

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States LPG Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Source

6.3.1.2.2. By Supply Mode

6.3.1.2.3. By Application

6.3.2. Canada LPG Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Source

6.3.2.2.2. By Supply Mode

6.3.2.2.3. By Application

6.3.3. Mexico LPG Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Source

6.3.3.2.2. By Supply Mode

6.3.3.2.3. By Application

7. Europe LPG Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Source

7.2.2. By Supply Mode

7.2.3. By Application

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany LPG Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Source

7.3.1.2.2. By Supply Mode

7.3.1.2.3. By Application

7.3.2. France LPG Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Source

7.3.2.2.2. By Supply Mode

7.3.2.2.3. By Application

7.3.3. United Kingdom LPG Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Source

7.3.3.2.2. By Supply Mode

7.3.3.2.3. By Application

7.3.4. Italy LPG Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Source

7.3.4.2.2. By Supply Mode

7.3.4.2.3. By Application

7.3.5. Spain LPG Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Source

7.3.5.2.2. By Supply Mode

7.3.5.2.3. By Application

8. Asia Pacific LPG Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Source

8.2.2. By Supply Mode

8.2.3. By Application

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China LPG Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Source

8.3.1.2.2. By Supply Mode

8.3.1.2.3. By Application

8.3.2. India LPG Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Source

8.3.2.2.2. By Supply Mode

8.3.2.2.3. By Application

8.3.3. Japan LPG Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Source

8.3.3.2.2. By Supply Mode

8.3.3.2.3. By Application

8.3.4. South Korea LPG Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Source

8.3.4.2.2. By Supply Mode

8.3.4.2.3. By Application

8.3.5. Australia LPG Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Source

8.3.5.2.2. By Supply Mode

8.3.5.2.3. By Application

9. Middle East & Africa LPG Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Source

9.2.2. By Supply Mode

9.2.3. By Application

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia LPG Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Source

9.3.1.2.2. By Supply Mode

9.3.1.2.3. By Application

9.3.2. UAE LPG Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Source

9.3.2.2.2. By Supply Mode

9.3.2.2.3. By Application

9.3.3. South Africa LPG Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Source

9.3.3.2.2. By Supply Mode

9.3.3.2.3. By Application

10. South America LPG Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Source

10.2.2. By Supply Mode

10.2.3. By Application

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil LPG Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Source

10.3.1.2.2. By Supply Mode

10.3.1.2.3. By Application

10.3.2. Colombia LPG Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Source

10.3.2.2.2. By Supply Mode

10.3.2.2.3. By Application

10.3.3. Argentina LPG Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Source

10.3.3.2.2. By Supply Mode

10.3.3.2.3. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global LPG Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Saudi Arabian Oil Company (Saudi Aramco)

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Exxon Mobil Corporation

15.3. Shell plc

15.4. BP International Limited

15.5. Chevron Corporation

15.6. TotalEnergies SE

15.7. Petroliam Nasional Berhad (PETRONAS)

15.8. Phillips 66 Company

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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