Liquefied Petroleum Gas Market Size, Share & Trends Analysis Report By Source (Refinery, Associated Gas, Non-Associated Gas), By Application (Chemical, Industrial, Autogas), By Transportation, By Region, And Segment Forecasts, 2025 - 2033

Liquefied Petroleum Gas Market Summary

The global liquefied petroleum gas market size was estimated at USD 123.14 billion in 2024 and is projected to reach USD 172.01 billion by 2033, growing at a CAGR of 3.9% from 2025 to 2033. The growth is primarily driven by the increasing use of Liquefied Petroleum Gas (LPG) as a cleaner alternative to traditional fossil fuels across residential, commercial, and industrial sectors.

The rising demand for low-emission energy sources to curb urban air pollution and achieve carbon neutrality targets is driving the expansion of the liquefied petroleum gas industry. The availability of abundant natural gas feedstock, ongoing refinery upgrades, and government-led initiatives to expand LPG distribution infrastructure, especially in developing economies, are further accelerating adoption. Additionally, the rising transition from biomass to LPG for domestic cooking and heating, coupled with the expansion of autogas applications and the development of renewable LPG (bio-LPG) production technologies, continues to shape a positive long-term outlook for the market.

In North America, the growth of the liquefied petroleum gas market is supported by strong LPG production capacities, advanced export infrastructure, and growing utilization as a petrochemical feedstock and for residential heating. The United States dominates regional supply, benefiting from shale gas expansion, midstream investments, and strong export flows to Latin America and Asia. The increasing adoption of propane autogas and strategic storage developments in the Gulf Coast region are enhancing market resilience. Canada contributes through its robust propane and butane production from the Western Canadian Sedimentary Basin, as well as ongoing investments in liquefaction terminals for Asian export. The region’s market outlook is further supported by clean energy transition policies and rural electrification programs promoting LPG as a low-carbon bridge fuel.

Europe represents another key market, characterized by efforts to diversify energy sources, supportive environmental policies, and growing integration of renewable LPG alternatives. Countries such as Germany, France, the United Kingdom, and Italy are expanding the role of LPG in heating, transportation, and agricultural applications amid efforts to phase out coal and heavy fuel oil. The European Union’s REPowerEU plan and related carbon reduction initiatives are stimulating demand for bio-LPG, driving innovation in renewable propane synthesis and circular carbon technologies. Additionally, supply diversification through imports from the U.S. and North Africa, combined with the expansion of LPG storage terminals and distribution networks, is enhancing energy security. As Europe intensifies its energy transition and seeks cost-effective, low-carbon alternatives, LPG, particularly renewable LPG, is emerging as a strategic component of sustainable energy supply chains.

Global Liquefied Petroleum Gas Market Report Segmentation

This report forecasts revenue & volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global liquefied petroleum gas market report based on source, application, transportation, and region:

• Source Outlook (Volume, Million Tons; Revenue, USD Million, 2021 - 2033)
• Refinery
• Associated Gas
• Non-Associated Gas
• Application Outlook (Volume, Million Tons; Revenue, USD Million, 2021 - 2033)
• Residential
• Commercial
• Chemical
• Industrial
• Autogas
• Refinery
• Others
• Transportation Outlook (Volume, Million Tons; Revenue, USD Million, 2021 - 2033)
• Ship
• Railways
• Intermodal ISO Tank Containers
• Pipelines
• Reticulated Gas Systems
• Large Road Tankers
• Bobtail Tankers
• Bike Carts
• Regional Outlook (Volume, Million Tons; Revenue, USD Million, 2021 - 2033)
• North America
• U.S.
• Canada
• Mexico
• Europe
• Germany
• UK
• France
• Asia Pacific
• China
• India
• Japan
• South Korea
• Latin America
• Brazil
• Middle East & Africa
• Saudi Arabia
• UAE

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