Monday, September 15, 2014
The global market for LPG is expected to reach more than $219.4 billion by 2020, according to a new study by San Francisco-based Grand View Research Inc. The report notes that growing government initiatives, mainly in China, India, South Africa, and Indonesia, to promote the application of LPG to replace coal as a cooking fuel has been one of the major factors driving global demand for the fuel.
Grand View Research comments that in addition to increasing usage of LPG as a cooking fuel, it is also gaining popularity as a transportation fuel, offering low cost and environmental benefits when compared to gasoline and diesel. Further, with increasing oil and gas demand, LPG production is also rising, making additional product available. In addition, shale gas development, especially in the U.S. and China, is leading to an oversupply of LPG in the global market.
LPG production is expected to increase, primarily from processing of non-associated conventional gas, while production from associated gas is expected to grow at a comparatively lower rate. The Middle East, North America, and North Africa are the major LPG producers. The commercial/residential sector emerged as the leading application segment and accounted for 47.3% of market volume in 2013. That segment is expected to be the fastest growing through 2020.
The Asia Pacific region was the largest consumer of LPG due to its large population. The Asia Pacific accounted for 35% of total market volume in 2013. In addition, the Asia Pacific is expected to be the fastest growing regional market from 2014 through 2020. China, with the highest population, is the largest consumer of LPG. In addition, the developing economies of India, Brazil, and Russia are expected to be key consumers over the forecast period because of their emerging consumer markets. North America and Europe are mature markets, and are expected to grow at a relatively sluggish rate over the forecast period.
Grand View Research comments that in addition to increasing usage of LPG as a cooking fuel, it is also gaining popularity as a transportation fuel, offering low cost and environmental benefits when compared to gasoline and diesel. Further, with increasing oil and gas demand, LPG production is also rising, making additional product available. In addition, shale gas development, especially in the U.S. and China, is leading to an oversupply of LPG in the global market.
LPG production is expected to increase, primarily from processing of non-associated conventional gas, while production from associated gas is expected to grow at a comparatively lower rate. The Middle East, North America, and North Africa are the major LPG producers. The commercial/residential sector emerged as the leading application segment and accounted for 47.3% of market volume in 2013. That segment is expected to be the fastest growing through 2020.
The Asia Pacific region was the largest consumer of LPG due to its large population. The Asia Pacific accounted for 35% of total market volume in 2013. In addition, the Asia Pacific is expected to be the fastest growing regional market from 2014 through 2020. China, with the highest population, is the largest consumer of LPG. In addition, the developing economies of India, Brazil, and Russia are expected to be key consumers over the forecast period because of their emerging consumer markets. North America and Europe are mature markets, and are expected to grow at a relatively sluggish rate over the forecast period.
