The natural gas liquids (NGLs) market is expected to grow by USD 19.62 billion from 2023 to 2028, according to Technavio. In addition, the growth momentum of the market will progress at a compound annual growth rate (CAGR) of 6.47% during the forecast period. Increasing renewable energy demand is notably driving the NGL market. However, factors such as growing environmental concerns may impede market growth. The market is segmented by application (industrial, residential, and commercial), product (propane, butane, pentane, and ethane), and geography (North America, Middle East and Africa, Europe, APAC, and South America). Technavio has announced its latest market research report titled Global Natural Gas Liquids (NGLs) Market 2024-2028 Technavio has announced its latest market research report titled Global Natural Gas Liquids (NGLs) Market 2024-2028
Technavio provides a comprehensive report summary describing the market size and forecast along with research methodology. There is a free sample report available as a PDF.
Key Segment Analysis
The industrial segment is estimated to witness significant growth during the forecast period. Natural gas liquids are a major feedstock for petrochemical production, e.g. ethylene and propane. They are used as raw materials for the manufacture of a wide range of chemical and plastic substances, such as ethylene, propylene, or butadiene. Natural gas liquids are used in the manufacture of synthetic rubbers such as polybutadiene for tyre production.
In the production of plastics made from foam, they are also blown as blow agents. In addition to this, in small-capacity refrigeration equipment and air conditioning units, especially for mobile and portable applications, propane and isobutene are used as refrigerants. Hence, these factors are expected to drive segment growth during the forecast period.
Geographical Market Analysis
North America is estimated to contribute 45% to the growth of the global market during the forecast period. NGLs are critical feedstock for the petrochemical sector, which, in turn, produces a wide variety of chemicals and plastics. Demand for NGL has been stimulated by the growth of the petrochemicals sector, which is led by a range of industry sectors including automotive, construction, and packaging. In addition, since North America is shifting to cleaner energy sources, NGLs are playing an essential role in the transition. They have a lower carbon intensity than coal and can substitute for power generation and industry processes in order to mitigate the impact of greenhouse gas emissions.
Company Insights
The NGL market is fragmented, and companies are deploying organic and inorganic growth strategies to compete in the market. The report analyzes the market's competitive landscape and offers information on several market companies, including: BP Plc; Canadian Natural Resources Ltd.; Chesapeake Energy Corp.; Chevron Corp.; Citizen Energy; ConocoPhillips Co.; Equinor ASA; Exxon Mobil Corp.; Nigeria LNG Ltd.; Ovintiv Inc.; Petroleos de Venezuela SA; PJSC LUKOIL; PT Pertamina Persero; Repsol SA; Saudi Arabian Oil Co.; Shell plc; SilverBow Resources Inc.; SM ENERGY; TotalEnergies SE; and Valero Energy Corp.
