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Published Date: 2014-09-05Number of Pages: 119

Liquefied Petroleum Gas (LPG) Market (Source - Refinery, Associated Gas, and Non-Associated Gas; End User - Residential/Commercial, Petrochemical and Refinery, Industrial, and Transportation) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020

Global Liquefied Petroleum Gas Market: Snapshot

The global liquefied petroleum gas (LPG) market demonstrates a fragmented and competitive vendor landscape due to the presence of a large number of players. The entry of new players is likely to intensify the competition in the market in the upcoming years. Key players in the market are focusing hard on branding and market positioning to stay ahead in the competition. Mergers and acquisitions and expansion of retail and distribution outlets are some other growth strategies that players in this market have resorted to.

One of the key growth drivers of the global LPG market is the ubiquitous usage of LPG as a cooking fuel in a number countries in Asia Pacific, Africa, and Latin America. The residential and commercial segment, primarily for cooking purpose, accounted for more than 60% of overall consumption of LPG in 2013. The increasing use of LPG as a transportation fuel, predominantly in Europe and the increasing use of LPG as a feedstock in petrochemical refineries is also having a positive bearing on this market.

A report by Transparency Market Research predicts the global LPG market to expand at a CAGR of 3.40% between 2014 and 2020, for the market to become worth US$299.05 bn by the end of 2020 increasing from US$ 233.83 bn in 2013.

Residential and Commercial End-use Segment to Remain Significant

The segments of the global LPG market depending upon source are refineries, non-associated gas, and associated gas. Amongst all, the segment of non-associated gas is expected to hold the leading share of the market over the forecast period.

In terms of end-use, the segments into which the global LPG market is divided are petrochemical and refinery, transportation, residential and commercial, industrial, and others. Of them, the segment of residential and commercial led in 2013 with a share of over 60% in the market. LPG is majorly used as a cooking fuel and also for lighting and eating in the residential and commercial segment.

Expansion of Trade Routes Makes North America Significant Export Market

From a geographical standpoint, the global LPG market is divided into: North America, Europe, Asia Pacific, the Middle East and Africa, and South and Central America. Asia Pacific, among all, is expected to lead in terms of consumption accounting for 36.90% of the overall market by 2020. The growth of the region is driven by high consumption of LPG in China and India. Besides this, development of shale gas in China will lead Asia Pacific to emerge as a significant market for LPG production.

North America is expected to emerge as a significant region for LPG production over the forecast period. The shale gas boom in the U.S. has led the country to account for significant export of LPG. In addition, the extension of the Panama Canal leading to its heavy use for movement of gas carrying vessels from North America is having a positive influence on this regional market. The surplus production from the U.S. routed through Latin America is benefitting countries in these regions for commercial and residential demand for LPG. This is also benefitting Asia Pacific for cheap imports of LPG from the U.S., and giving an increased competition for export from the Middle East.

Key players operating in the global LPG market include SHV Energy N.V., Copagaz Distribuidora De Gas S.A., Repsol S.A., Kleenheat Gas Pty Ltd, China Gas Holdings Ltd., Royal Dutch Shell plc, Origin Energy, UGI Corp., British Petroleum plc, and Exxon Mobil Corp.

Global Liquid Petroleum Gas Market: Overview 

The rising consumption of autogas across the world is reflecting significantly on the usage of liquid petroleum gas (LPG) across the world. As per Transparency Market Research (TMR), the global market for LPG presented an opportunity worth US$233.8 bn in 2013. Expanding at a CAGR of 3.40% during the period from 2014 to 2023, it is likely to increase to US$299.05 bn by the end of the forecast period. 

This research study attempts to provide a better understanding of the present as well as the future status of the global market for LPG to players and other stakeholders in order to help them in making crucial strategies for the further development of their businesses. 

Global Liquid Petroleum Gas Market: Trends and Opportunities 

The increasing usage of LPG as primary cooking fuel in a number of economies in Asia Pacific, Latin America, and Africa, on account of the cost benefits it offers, is the key driving factor behind the growth of the global LPG market across the world. Researchers expect the demand for LPG to remain escalating substantially over the next few years. However, the volatility in crude oil prices may limit this otherwise increasing demand to some extent in the near future. 

LPG extracted from a non-associated source has been witnessing a robust demand across the world. Analysts project the trend to remain so over the forthcoming years. Among end users, the residential/commercial sector have led the demand for LPG in 2013 with a share of more than 60% in the overall market and is anticipated to retain its dominance over the forecast period. 

Global Liquid Petroleum Gas Market: Geographical Analysis 

Based on the geography, the global market for LPG is classified into Europe, Asia Pacific, the Middle East and Africa, North America, and South and Central America. In terms of production volume, the Middle East has emerged as the market leader; however, on the basis of consumption, Asia Pacific has grabbed the lion’s share in the overall market. The scenario is likely to remain more or less same over the next few years. 

China and India account for a considerable portion of the overall LPG consumption in Asia Pacific and are expected to experience an increase in the demand for LPG in the near future. Economies in Latin America and Africa are also expected to exhibit a similar scenario in the years to come due to the escalating demand from the domestic and the commercial sectors. Besides, North America is likely to witness a significant rise in the production of LPG over the forecast period. 

Companies mentioned in the research report 

The global market for LPG demonstrates a fragmented and competitive landscape. Some of the leading players in this market are SHV Energy N.V., Repsol S.A., Copagaz Distribuidora De Gas S.A., China Gas Holdings Ltd., Kleenheat Gas Pty Ltd., Origin Energy, UGI Corp., Royal Dutch Shell Plc, Exxon Mobil Corp., and British Petroleum Plc. 

Key Segments of Global Liquefied Petroleum Gas Market 

By Source

  • Refinery
  • Associated Gas
  • Non-Associated Gas 

By End User

  • Residential/Commercial
  • Petrochemical and Refinery
  • Industrial
  • Transportation
  • Others 

Major regions analyzed under this research report are:

  • Europe
  • North America
  • Asia Pacific
  • Rest of the World 

This report gives you access to decisive data such as:

  • Market growth drivers
  • Factors limiting market growth
  • Current market trends
  • Market structure
  • Market projections for the coming years 

Key highlights of this report

  • Overview of key market forces propelling and restraining market growth
  • Up-to-date analyses of market trends and technological improvements
  • Pin-point analyses of market competition dynamics to offer you a competitive edge
  • An analysis of strategies of major competitors
  • An array of graphics and SWOT analysis of major industry segments
  • Detailed analyses of industry trends
  • A well-defined technological growth map with an impact-analysis
  • Offers a clear understanding of the competitive landscape and key product segments


 
 
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