Butane Market Analysis

Butane Market Analysis

LPG application market demand is poised to surpass USD 65 billion over the forecast period on account of household inclination towards liquid petroleum gas over other fossil fuels. Rising number of initiatives from government and public organizations to promote LPG adoption for cooking, and heating, are the major driving factors for industry share. Increasing adoption of LPG in automotive application owing to its cost benefits over other fuels may fuel product demand.
 

The petrochemical application segment is expected to register a steady growth at around 3% up to 2022. Increase in demand for petrochemical in Saudi Arabia, UAE and Kuwait may propel industry growth. Rising petrochemical usage in automobile, chemical intermediate manufacturing, and construction industries due to its demand as feedstock may upsurge overall market share.
 

North America, driven by Canada, and the U.S. butane market size may surpass USD 20 billion by 2022. Growing demand for shale gas in the U.S. is expected to boost natural gas liquids market demand, which in turn may drive regional industry growth. Growing petrochemical industry in the region coupled with rising adoption of LPG as an alternative to natural gas and crude oil are factors fuelling the market demand.
 

Asia Pacific market demand led by India and China may expect gains close to 3% over the foreseeable timeframe on account of growth of construction and automotive sectors. Supportive government regulations and initiatives such as providing subsidies to households have contributed towards the regional growth. Rising popularity of LPG as fuel in China and India on account of increase in per capita disposable income along with standard of living may augment growth in the region.
 

Middle East & North Africa butane market demand may record gains over 2.5% up to 2022 owing to the increasing adoption of LPG in refineries as a substitute for natural gas and fossil fuels. Middle East is the largest butane producer owing to abundant availability of natural resources, crude oil.