LPG [Liquefied petroleum gas] Market Forecast to Reach USD 273.24 Billion by 2034, Expanding at 6.46% CAGR (2026–2034)

Key companies covered in LPG (Liquefied Petroleum Gas) market report are BP, ExxonMobil, ConocoPhillips, ADNOC Group, Qatar Petroleum, NOVATEK, Gazprom, SINOPEC

NY, UNITED STATES, February 5, 2026 /EINPresswire.com/ -- The global LPG (Liquefied Petroleum Gas) market was valued at USD 162.98 billion in 2025 and is projected to grow from USD 176.27 billion in 2026 to USD 273.24 billion by 2034, exhibiting a CAGR of 6.46% during the forecast period. Asia Pacific dominated the global market with a share of 48.34% in 2025. Liquefied petroleum gas is widely used for cooking, heating, industrial processing, power generation, and as an alternative automotive fuel. Its advantages, including lower carbon emissions, high energy efficiency, and ease of storage and transportation, make LPG an essential energy source across both developed and emerging economies.
Liquefied petroleum gas, also known as propane, is a flammable hydrocarbon gas used commonly as a non-toxic, sulfur-free fuel. It comprises propane (C3H8) and butane (C4H10) with small concentrations of other hydrocarbons. The easy storage of LPG makes it a highly portable fuel and versatile source of energy for industries located in areas where pipe gas supply is not available. It is preferred over several other energy fuels since it burns with lower sulfur and carbon emissions and thus is environment-friendly. LP gas is commonly used in process industries to fuel the boilers for generating steam and boiling water. It is also used as a household cooking gas due to its high flash point and a clean fuel with low emission of GHGs as compared to other fuels.

Get a Free Sample PDF: https://www.fortunebusinessinsights.com/enquiry/request-sample-pdf/lpg-liquefied-petroleum-gas-market-106373

Key Growth Drivers-
Growing residential demand for LPG as a primary cooking and heating fuel remains a major growth driver, particularly in developing regions transitioning away from traditional solid fuels. Government initiatives promoting clean energy access have further accelerated LPG adoption in rural and semi-urban areas.
Industrial and commercial sectors are also contributing significantly to market growth due to LPG’s efficiency, portability, and relatively lower emissions compared to conventional fossil fuels. In addition, the expanding use of LPG as autogas in transportation is supporting rising consumption levels.
Investments in LPG storage, distribution, and transportation infrastructure continue to improve accessibility and supply reliability, further strengthening market demand.

Market Segmentation Analysis-
By Source:
• LPG sourced from crude oil refining holds a significant share due to consistent refinery operations worldwide.
• LPG derived from natural gas processing is gaining importance with rising global natural gas production and shale gas development.
• Growth in gas-based LPG is particularly strong in regions with expanding LNG and shale gas infrastructure.
By Application:
• Residential applications dominate the market, driven by widespread use of LPG for cooking and space heating.
• Commercial usage includes hotels, restaurants, hospitals, and small enterprises requiring reliable energy supply.
• Industrial applications represent a substantial share due to LPG usage in ceramics, metal fabrication, glass manufacturing, and food processing.
• Transportation (autogas) is growing steadily, supported by its lower emissions and fuel cost advantages.
• Petrochemical feedstock applications support demand for LPG derivatives such as propylene and butylene.
By End-Use Sector:
• Households account for the largest share, especially in emerging economies promoting clean cooking fuels.
• Industrial sectors utilize LPG for controlled combustion processes and energy-intensive manufacturing.
• Automotive end-users contribute to gradual growth due to LPG-fueled vehicles and fleet adoption.
• Agricultural users rely on LPG for crop drying, pest control, and heating applications.

Market Trends-
• Increasing shift toward cleaner-burning fuels to reduce carbon emissions and indoor air pollution.
• Growing adoption of LPG as autogas, particularly where fuel costs and emission regulations favor alternatives.
• Expansion of LPG export-import infrastructure, including terminals and storage facilities.
• Rising investments in digital monitoring systems and smart cylinder tracking for safety and efficiency.
• Increasing focus on energy security and diversification of fuel sources.

Speak To Analyst: https://www.fortunebusinessinsights.com/enquiry/speak-to-analyst/lpg-liquefied-petroleum-gas-market-106373

Regional Insights-
Asia Pacific holds the largest share of the global LPG market, driven by rapid urbanization, population growth, increasing industrial activity, and strong government support for clean cooking fuels. North America and Europe follow, supported by consistent demand from residential, industrial, and transportation applications.

Competitive Landscape-
• The LPG market is moderately fragmented with global, regional, and local players.
• Competition is influenced by supply availability, pricing strategies, and distribution reach.
• Major players focus on strengthening logistics, storage capacity, and supply chains.
• Long-term sourcing agreements are used to ensure supply reliability and price stability.
• Strategic partnerships, mergers, and acquisitions are common to expand geographic presence.
• Investments in safety standards, digitalization, and customer service enhance competitive advantage.

Report Coverage-
• Comprehensive global, regional, and country-level market analysis.
• Detailed segmentation by source, application, end-use sector, and distribution mode.
• Assessment of market size, growth trends, and future outlook.
• Evaluation of competitive landscape and strategic developments.
• Analysis of regulatory frameworks and environmental policies impacting the market.

𝐁𝐫𝐨𝐰𝐬𝐞 𝐃𝐞𝐭𝐚𝐢𝐥𝐞𝐝 𝐒𝐮𝐦𝐦𝐚𝐫𝐲 𝐨𝐟 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡 𝐑𝐞𝐩𝐨𝐫𝐭 𝐰𝐢𝐭𝐡 𝐓𝐎𝐂: https://www.fortunebusinessinsights.com/toc/lpg-liquefied-petroleum-gas-market-106373

List of Top Companies-
• BP (U.K.)
• ExxonMobil (U.S.)
• ConocoPhillips (U.S.)
• ADNOC Group (UAE)
• Qatar Petroleum (Qatar)
• NOVATEK (Russia)
• Gazprom (Russia)
• SINOPEC (China)
• Reliance Industries Limited (India)

Key Industry Developments-
• January 2024 – Novatek increased its natural gas sales by 2.7% to 78.6 billion cubic meters (bcm) last year. Novatel also raised its natural gas production last year to 82.4 bcm, marking a 0.9% rise compared to 2022.
• October 2023- ConocoPhillips continues to advance its liquified natural gas (LNG) strategy by securing offtake and equity positions in various global projects. And added 1.5 million tons per annum (MTPA) of LNG regas capacity at the Gate terminal in the Netherlands.

Related Reports-
Oil Refining Market Size, Share, Growth Forecast, 2034
Cng And Lpg Vehicle Market Size, Share, Outlook, 2034

Ashwin Arora
Fortune Business Insights™ Pvt. Ltd.
+1 833-909-2966
sales@fortunebusinessinsights.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.