Expanding LPG Applications and Petrochemical Demand Propel Market Growth

Business Upturn

21-04-2025

By GlobeNewswire Published on April 21, 2025, 19:00 IST
Austin, April 21, 2025 (GLOBE NEWSWIRE) — The global butane market is projected to reach USD 163.23 billion by 2032, growing at a compound annual growth rate (CAGR) of 4.93% from 2024 to 2032.
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Butane does an essential job in LPG mixing, fuel applications, as well as cultivating as a petrochemical raw material. Key factors contributing to the market growth include expanding energy consumption trends, urbanization, and petrochemical production surge. Furthermore, due to the increasing focus on cleaner fuels and replacing traditional biomass fuels in developing countries, butane-based LPG demand is rising.
Refining and extraction processes have continuously evolved to maximize yield and minimize environmental impact. Meanwhile, low-emission fuels regulatory support is pushing LPG infrastructure investments and underlying butane demand. Emergence of alternative storage, transportation, and safety systems is adjusting the global butane market to suit the needs of experts globally, in Asia-Pacific, North America, and Europe.
The United States held the largest market share in the butane market in 2023, with a valuation of USD 16.76 billion, and held 72% market share from 2024 to 2032. The U.S. dominance is primarily attributed to a strong domestic LPG sector, well-established petrochemical industries, and rising residential and commercial energy demands. The shale gas boom has provided abundant natural gas liquids (NGLs), enhancing butane availability. Moreover, key companies such as Chevron Phillips Chemical, Enterprise Products Partners L.P., and Targa Resources are focusing on expanding storage and export infrastructure, ensuring market growth. In addition, the rising trend toward energy-efficient and low-emission fuels aligns with increased butane consumption in both urban and rural households.
Key Players: ExxonMobil Corporation
Royal Dutch Shell plc
TotalEnergies SE
Chevron Corporation
British Petroleum (BP) plc
China Petroleum & Chemical Corporation (Sinopec)
Indian Oil Corporation Limited
Reliance Industries Limited
Saudi Arabian Oil Company (Saudi Aramco)
Qatar Energy
Gazprom PJSC
Phillips 66
PetroChina Company Limited
ConocoPhillips
Ecopetrol S.A.
Petróleos de Venezuela, S.A. (PDVSA)
Petrobras
Repsol S.A.
Lukoil PJSC
Marathon Petroleum Corporation
Butane Market Report Scope: Report Attributes Details Market Size in 2023 USD 105.84 Billion Market Size by 2032 USD 163.23 Billion CAGR CAGR of 4.93% From 2024 to 2032 Base Year 2023 Forecast Period 2024-2032 Historical Data 2020-2022 Report Scope & Coverage Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook Key Segments • By Application (Residential/Commercial, Industrial, Auto Fuel, Refinery, Chemical Feedstock, Petrochemicals, Others) Key Drivers • Growing demand for liquefied petroleum gas (LPG) in residential and commercial sectors drives the butane market growth.
Market Segmentation
By Application
Residential/Commercial accounted for the largest share of the market at approximately 42% in 2023. This extends mainly to residential cooking and heating applications, as this drives a large portion of the liquefied petroleum gas (LPG) growth in this area. As a pure LPG fraction, it's very efficient in heat, economic, and clean combustion, and so widely used in domestic kitchens, restaurants, hotels & commercial establishments. Subsidies and policies in favor of LPG in emerging economies such as India, China, and Brazil will also help maintain high butane levels. Furthermore, an increase in urban population, improved accessibility to the gas distribution network, and a rise in per capita income at the household and commercial levels were the driving forces in the growth of LPG in the residential and commercial sectors. Butane resonates particularly with residential and commercial sectors, so it has a stronger hold because of the ongoing exodus from traditional biomass and coal to environmental and low-carbon alternative fuels.
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Regional Analysis
In 2023, Asia Pacific emerged as the largest butane market, accounting for 38% of the global revenue share. This dominance is underpinned by a massive demand for LPG in residential sectors, particularly in India, China, Indonesia, and Vietnam. The region's industrial expansion, increasing urbanization rates, and proactive government policies to promote clean cooking fuels are major catalysts. In addition, the availability of low-cost feedstock, rising petrochemical manufacturing, and significant investments in refining and processing facilities are propelling market growth.
Countries like China and India are leading global LPG consumption and continue to invest heavily in infrastructure development, including LPG terminals, storage facilities, and transportation networks. These developments provide a positive outlook for butane producers and suppliers in the region.
Meanwhile, North America and Europe are also significant markets, driven by strong petrochemical industries, advancements in fuel blending technologies, and increasing LPG exports. Stringent environmental policies promoting clean energy sources have further strengthened butane demand in these regions.
Recent Developments In 2023, Enterprise Products Partners L.P. completed the expansion of its NGL fractionation facility in Mont Belvieu, Texas, boosting butane processing capacity to meet rising domestic and export demands.
In 2024, Chevron Phillips Chemical announced a new petrochemical complex in Orange, Texas, with integrated steam cracking units utilizing butane as a key feedstock, expected to be operational by 2026.
In 2024, Indian Oil Corporation revealed plans to invest in a large-scale LPG bottling plant in West Bengal, India, to cater to the increasing rural demand for LPG, thereby enhancing butane consumption regionally.
Table of Contents – Major Key Points
1. Introduction
2. Executive Summary
3. Research Methodology
4. Market Dynamics Impact Analysis
5. Statistical Insights and Trends Reporting
6. Competitive Landscape
7. Butane Market Segmentation, By Application
8. Regional Analysis
9. Company Profiles
10. Use Cases and Best Practice
11. Conclusion
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