Butane Market Size By Application (LPG [Residential/Commercial, Chemical/Petrochemical, Industrial, Auto fuel, Refinery, Others], Petrochemicals, Refinery, Others), Regional Analysis, Application Potential, Price Trends, Competitive Market Share & Forecast, 2015 - 2022
Published Date: Mar 2016 | Report ID: GMI113 | Authors: Kunal Ahuja, Kritika Mamtani
Butane Market size was over USD 190 billion in 2014 and consumption expects to reach over 260 million tons by 2022.
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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.
|Base Year:||2014||Market Size in 2014:||190 Billion (USD)|
|Historical Data for:||2012 to 2014||Forecast Period:||2015 to 2022|
|Pages:||102||Tables, Charts & Figures:||89|
|Geographies covered:||North America, Europe, Asia Pacific, Middle East & North Africa (MENA), RoW|
|Segments covered:||Application and Region|
|Companies covered (18):||British Petroleum, Chevron Corporation, ConocoPhillips Co., ExxonMobil Corp., Royal Dutch Shell, Sinopec Group., Proton Gases India Pvt. ltd., Valero Energy Corporation., Aditya Air Product Pvt. Ltd., Devon Energy Corporation, (Basic Chemical Business ), Energy Corporation of America, Praxair, Air Liquide, Linde AG, Perenco, Total S.A., Tyumen Oil Company, China National Petroleum Corporation (CNPC),|
|Pitfalls & Challenges:||
Butane Market, By Application
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.
Key Regional Insights
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.
Competitive Market Share
The market share is fragmented with key market players including ExxonMobil, Shell, Sinopec, British Petroleum, Conoco Phillips, Chevron, Valero Energy, CNPC, and Total SA operating in the butane market. Major manufacturers are involved in various strategic initiatives such as mergers &acquisition, joint ventures, and new product developments to increase their market share and gain a competitive edge in the market.
It is a flammable hydrocarbon gas derived from petroleum. It is used as fuel in automobiles, lighters, cooking, and other applications. It is widely used in the manufacturing process owing to its properties such as easy liquefiable and high flammability.
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