The global LPG market has been subjected to significant skills and market trends in recent years, it is driven by economic, environmental, and technological factors. As it is a sustainable fuel, and cost effective, in the upcoming years, it is expected to see growth in the market. The global liquified petroleum market has approximately reached 320 million tonnes in 2022 and is expected to increase at a CAGR of 3.40% by 2035.
So, what are the trends we are expecting in the LPG market in the upcoming years?
The primary growth driver in the LPG market is the Domestic Sector. The network of dealer distributors of Shivgas’s private gas agency caters to a large segment of domestic users. According to the report, around 44% of global Liquified Petroleum Gas (LPG) was utilised by Domestic Sector. In this, LPG is used for the preparation of food on cooktops, heating systems, and hot water systems. Other than that, in India the growth of LPG users is not only in Urban cities but also in rural areas where conventional systems of cooking were prevalent, contributing to the growth of the LPG industry.
Other than domestic/residential consumption, LPG is extensively used in transport, refinery, chemical, pharmaceutical, plastic, and agricultural industries. But, in the last couple of years, transportation has seen a surge in the application of LPG. This fuel has an inherent advantage with respect to PM formation when compared to diesel or petrol engines. In India, there is the dual use of LPG in vehicles, one is where you can switch from petrol to LPG or vice-versa, and LPG-powered vehicles. This helps in reducing the PM levels in the air and reduces the release of harmful toxic gases in the air.
In response to increasing environmental concerns, governments and industries worldwide are making efforts to promote cleaner energy sources. LPG has gained favour due to its lower greenhouse gas emissions than other fossil fuels. It is considered a bridge fuel toward a more sustainable energy future. Initiatives to promote LPG as an alternative to more carbon-intensive fuels, such as coal and oil, are on the rise. In this, the role of LPG gas dealership has played significantly, where the requirements were met with deliveries on time, to raising awareness.
LPG prices are influenced by various factors, including crude oil prices, supply and demand dynamics, geopolitical events, and weather conditions. Therefore, the LPG market is subject to price volatility. Understanding these market dynamics and factors affecting LPG prices is essential for industry stakeholders.
The LPG market is highly international, with the trade of LPG occurring across borders. Key suppliers of LPG include the United States, Saudi Arabia, Qatar, and Russia. Propane and butane are the two primary LPG components, and their production, trade, and supply sources can impact market trends.
Today the requirement of LPG from natural gas is way higher than extracted from crude oil. Natural gas extracted from the earth’s crust contains a mixture of butane and propane. These are extracted to produce LPG. Today, the majority of LPG is extracted from natural gas, while the rest is produced during crude oil refining. Most of which is extracted from the Asia Pacific region. To promote the use of quality LPG, Shivgas uses 100% imported propane-rich LPG received through global trade.
The LPG industry is navigating through various trends, from growing residential consumption and expanding industrial applications to sustainability initiatives and autogas adoption. These trends highlight the industry's ability to adapt to changing economic, environmental, and technological landscapes.
As the world seeks cleaner and more sustainable energy solutions, LPG remains a promising player in the global energy market. However, it is essential to monitor market trends and adapt strategies to address evolving consumer preferences and environmental regulations.
In the drive to incorporate a sustainable solution for the energy requirement of today, LPG gas dealership is playing a key role. Creating a well-connected network of distributors, and agents, to streamline the flow of transportation, Shivgas’s gas agencies are the driving force behind this transformation.
As the LPG market will grow in the upcoming years, it is one of the recommended times to get an LPG gas dealership. Interested in an LPG gas dealership? Then reach out to us for more information.