Butane Market Size

Butane Market Size

Butane Market size was over USD 190 billion in 2014 and consumption expects to reach over 260 million tons by 2022.

Increasing demand for LPG in residential, automotive, and commercial sectors owing to its ability to emit less amount of carbon dioxide should drive butane market demand. Increasing number of government initiatives for subsidies in China, India, and Indonesia to promote the adoption of LPG over other fossil fuels shall propel the industry growth. In 2016, the Indian government started program Pradhan Mantri Ujjwala Yojana (PMUY), through which the government has targeted to distribute 50 million LPG cylinders to below poverty line families. The government of Indonesia initiated Kerosene to LP Gas Conversion Programme to promote the use of LPG and avoid the use of kerosene as cooking fuel among the households in the region. The Indonesian government distributed 3 kg refillable LPG cylinders along with a stove to the households under the scheme.

Growing adoption of natural gas vehicles (NGV) mainly in China, India, the U.S., Germany, and Russia due to increasing support from government bodies to amend emission standard policies to protect the environment should boost industry growth. Global automotive NGV market size may register gains close to 3% during the forecast timeframe. Increasing demand for natural gas in buses and trucks may drive European automotive natural gas vehicles market demand on account of growing commercial vehicles demand. Strict environmental regulations, rising fossil fuels costs, government regulations and subsidies are the major contributing factors for automotive natural gas vehicle mainly in the Eastern and Western Europe.

Increasing butane torch demand for glass making, plumbing, and craft projects is likely to favour product demand. Butane is widely used in lighters as a fuel owing to its ability to handle high pressure. When the compressed liquid is released through nozzle it turns into a gas and ignites easily. Growing demand for lighters across the globe is predicted to boost market growth.

Fluctuating crude oil prices may hamper the overall potential market growth. Moreover, groundwater contamination due to leakage of methyl tert-butyl ether (MTBE) may restrain growth of the butane industry. Stringent regulations regarding the use and production of MTBE in the U.S. owing to various leakage incidents may affect the market growth in the region. However, technological developments by manufacturers with increasing usage of butane in different application area may favour market share.