LPG Cylinder Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Cylinder Material Type (Metal, Composites), By Application (Residential/Consumer-use, Power & Utilities, Transport/Auto-fuel), By Size (0 to 5 Kg, 6 to 10 Kg, 11 Kg & Above), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 167.66 Billion
CAGR (2026-2031)	5.83%
Fastest Growing Segment	Residential/Consumer-use
Largest Market	Asia Pacific
Market Size (2031)	USD 235.55 Billion

Market Overview

The Global LPG Cylinder Market will grow from USD 167.66 Billion in 2025 to USD 235.55 Billion by 2031 at a 5.83% CAGR. The Global LPG Cylinder Market centers on the production and distribution of pressure vessels engineered to store and transport liquefied petroleum gas for diverse residential, commercial, and industrial applications. The fundamental drivers propelling this market include the critical global imperative to transition households from solid biomass to clean cooking fuels, supported by substantial government subsidies and policy mandates in developing economies. Furthermore, the inherent portability of these cylinders makes them indispensable for energy access in off-grid rural areas where permanent infrastructure is economically unviable. According to the World Liquid Gas Association, in 2024, global LPG demand increased by 2.8% to reach 366 million tonnes, a consumption volume that directly underpins the sustained requirement for cylinder manufacturing and circulation.

One significant challenge impeding the expansion of this market is the aggressive development of Piped Natural Gas (PNG) infrastructure in rapidly urbanizing regions. As municipalities invest in reticulated gas networks, residential and commercial consumers in densely populated zones are increasingly switching to continuous pipeline supply, thereby eliminating the reliance on refillable standalone vessels. This structural transition to grid-connected energy, often complemented by the electrification of cooking via induction technologies, presents a long-term barrier to cylinder volume growth in metropolitan markets.

Key Market Drivers

Increasing government initiatives promoting clean cooking fuels serve as the primary catalyst for the Global LPG Cylinder Market, particularly in developing nations where policy mandates aim to replace solid biomass with cleaner alternatives. State-sponsored schemes and subsidies have successfully expanded the consumer base, necessitating a massive influx of new pressure vessels to maintain supply chains. For instance, according to the Press Information Bureau, March 2025, the total number of beneficiaries under India's Pradhan Mantri Ujjwala Yojana (PMUY) reached 10.33 crore as of March 1, 2025. This aggressive expansion in user numbers directly correlates with sustained manufacturing volumes. Furthermore, the effectiveness of such consumption-driving policies is evident in broader market performance; according to the Petroleum Planning & Analysis Cell, November 2025, domestic LPG consumption in India registered a year-on-year growth of 5.6% in October 2025, underscoring the continuous demand for refillable cylinders.

Concurrently, the market is experiencing a significant technological transition to lightweight composite cylinders, driven by the need for safer, non-corrosive, and translucent storage solutions. Manufacturers are increasingly replacing traditional heavy steel vessels with advanced polymer-based alternatives that offer superior portability and explosion-proof features, thereby attracting premium residential and commercial consumers. This shift is substantiated by recent procurement trends among major oil marketing companies. According to The Supreme Industries Limited, July 2025, the company received a Letter of Acceptance worth Rs 54 crore from Bharat Petroleum Corporation Limited (BPCL) to supply 200,000 composite LPG cylinders. Such substantial orders highlight the industry's decisive pivot toward modern materials to enhance user safety and operational efficiency.

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Key Market Challenges

The aggressive expansion of Piped Natural Gas (PNG) infrastructure in rapidly urbanizing regions constitutes a structural barrier impeding the growth of the global LPG cylinder market. As municipal authorities and energy companies prioritize the installation of reticulated gas networks, residential and commercial consumers in high-density metropolitan zones are systematically migrating toward continuous pipeline supply. This transition fundamentally alters energy consumption patterns by eliminating the necessity for refillable standalone vessels and their associated logistical operations. Consequently, the convenience and uninterrupted availability of grid-connected gas render portable cylinders obsolete in established urban centers, effectively capping the addressable market volume for cylinder manufacturers in these high-value territories.

This displacement trend is substantiated by recent industrial data highlighting the scale of infrastructure conversion in key developing markets. According to the Petroleum Planning & Analysis Cell, as of August 2024, the total number of domestic Piped Natural Gas connections in India reached approximately 13.24 million, reflecting a decisive shift away from bottled fuel dependency. This increasing penetration of pipeline networks directly erodes the recurring demand for cylinder circulation, as households connected to the grid permanently exit the refill cycle. As a result, the market faces stagnation in metropolitan demand, limiting growth opportunities to geographically dispersed rural areas where pipeline infrastructure remains economically unfeasible.

Key Market Trends

Adoption of Pay-As-You-Go (PAYG) Smart Valve Technology is emerging as a transformative trend, specifically designed to dismantle financial barriers for low-income households in developing regions. This model integrates cellular-connected flow control valves with mobile money platforms, allowing consumers to purchase gas in small, affordable increments rather than paying the prohibitive upfront cost of a full cylinder refill. By democratizing access to clean fuel, this technology significantly expands the addressable market beyond the affluent urban demographic. This trend is gaining substantial momentum through large-scale strategic deployments; for instance, according to Bboxx, November 2025, the company entered a partnership with the Government of Rwanda to distribute 50,000 affordable LPG cooking kits equipped with smart valves to low-income households over an 18-month period.

Simultaneously, the Integration of IoT-Based Smart Gas Level Monitoring Systems is revolutionizing supply chain visibility and consumer engagement across the sector. Advanced telemetry devices attached to cylinders transmit real-time data regarding fill levels and consumption patterns to central cloud platforms, enabling distributors to optimize delivery logistics and automatically schedule refills before stockouts occur. This digital layer transforms the traditional hardware-centric business into a data-driven service model, fostering higher customer retention and operational efficiency. The commercial scalability of this technology is evident in the rapid financial growth of specialized players; according to The Kenyan Wall Street, November 2025, smart LPG distributor Circle Gas reported that its revenue more than doubled to KES 2.57 billion (approximately USD 19.86 million) for the fiscal year ended December 2023, driven by the expansion of its IoT-enabled distribution network.

Segmental Insights

The Residential segment is identified as the fastest-growing category within the Global LPG Cylinder Market, fueled by the widespread transition toward clean cooking energy in developing nations. Governments are actively promoting liquid petroleum gas as a healthier alternative to solid fuels like wood or coal, often supported by policy frameworks aligned with World Health Organization guidelines on indoor air quality. Increased urbanization and targeted subsidy programs in emerging economies further stimulate demand, ensuring that household consumption remains the primary driver of market momentum.

Regional Insights

Asia Pacific commands the global LPG cylinder market, primarily driven by extensive government initiatives to replace traditional solid fuels with cleaner alternatives. Rapid urbanization and population growth in developing economies have necessitated a robust supply chain for residential energy distribution. Furthermore, state-sponsored subsidy schemes focused on improving rural energy access significantly boost the adoption of liquefied petroleum gas. This widespread transition to modern fuel sources for cooking and heating ensures that the region remains the principal driver of demand within the global industry.

Recent Developments

• In March 2025, Worthington Enterprises executed a strategic rebranding of its composite LPG cylinder portfolio in North America. Following the acquisition of a Norwegian composite cylinder manufacturer the previous year, the company transitioned its existing Viking Cylinders brand to the globally recognized Ragasco name. This initiative was designed to unify the company’s brand identity and leverage the acquired entity's strong reputation for quality and innovation. The rebranded products were positioned to expand the company’s market presence in both commercial and residential sectors, including applications for propane-powered forklifts and outdoor living solutions.
• In April 2024, Hexagon Ragasco, in partnership with a leading industrial gas marketer, launched the Linktra® Smart cylinder in Norway. This innovative product integrated Internet of Things (IoT) technology, enabling the LPG cylinders to communicate with users' smartphones to provide real-time gas level monitoring and refill alerts. The digital solution was designed to optimize logistics for distributors by offering valuable insights into consumption patterns, ensuring efficient stock management and timely deliveries. The nationwide rollout followed a successful pilot program and represented a significant technological advancement in the residential and leisure LPG cylinder market.
• In February 2024, Confidence Petroleum India Limited entered into a strategic collaboration by forming a joint venture with BW LPG, a Norway-based global leader in LPG shipping. The 50:50 partnership, named BW Confidence Enterprise Private Limited, was established to develop comprehensive LPG infrastructure in India, including new bottling plants and import terminals. This alliance aimed to combine the Indian company's local operational capabilities with the Norwegian partner's international logistics expertise to meet the region's growing energy demands. The collaboration also included plans to construct a large-scale LPG storage facility at the Jawaharlal Nehru Port Trust in Mumbai.
• In February 2024, Emirates Gas, a subsidiary of the ENOC Group, announced the launch of the first Marine LPG Composite Cylinders in the United Arab Emirates. These specialized cylinders were introduced to enhance the marine lifestyle, offering a rust-free and safe solution for boating and sailing applications. The product launch was part of the company's commitment to innovation, providing a lightweight and durable alternative to traditional steel cylinders that often corrode in marine environments. The new cylinders also featured a translucent body, allowing users to easily monitor gas levels during their voyages, thereby improving safety and convenience.

Key Market Players

• 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.

By Cylinder Material Type	By Application	By Size	By Region
Metal Composites	Residential/Consumer-use Power & Utilities Transport/Auto-fuel	0 to 5 Kg 6 to 10 Kg 11 Kg & Above	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• LPG Cylinder Market, By Cylinder Material Type:

• Metal
• Composites

• LPG Cylinder Market, By Application:

• Residential/Consumer-use
• Power & Utilities
• Transport/Auto-fuel

• LPG Cylinder Market, By Size:

• 0 to 5 Kg
• 6 to 10 Kg
• 11 Kg & Above

• LPG Cylinder Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE