The Market Report Covers LPG Companies in India and is Segmented by Source of Production (Crude Oil and Natural Gas Liquids) and Application (Residential & Commercial, Industrial, Auto Fuels, and Other Applications)

India LPG Market was valued at USD 17.4 billion in 2024 and is expected to reach at USD 22.34 Million in 2030 and project robust growth in the forecast period with a CAGR of 4.1% through 2030.

India LPG market demand stood at 30.6 Million Tonnes in FY2021 and is forecast to reach 36.9 Million Tonnes by FY2030, growing at a healthy CAGR of 1.78% until FY2030. Read all about the India LPG Market size, share, growth, analysis, and forecast in a detailed report. India LPG Market Size by ChemAnalyst provides deep market insight that will help your business to grow.

The India LPG Market size is USD 15 billion in 2023, driven by increasing domestic consumption, government subsidies, and expanding distribution networks through 2028.

The Indian LPG market, valued at approximately ₹[Estimate based on market size XX and currency conversion – needs more data to provide a specific number] million in 2025, is experiencing robust growth, driven by rising urbanization, increasing disposable incomes, and government initiatives promoting clean cooking fuels. A compound annual growth rate (CAGR) exceeding 3.50% is projected through 2033, indicating a significant expansion of the market. Key segments include residential and commercial applications, which currently dominate the market share, followed by industrial use and autofuels. The production sources are predominantly crude oil and natural gas liquids, with the latter showing promising growth potential due to ongoing infrastructure development and increasing gas production. Major players like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum hold significant market share, although the emergence of private players like Supergas and Jyothi Gas signifies increasing competition. While government regulations and price volatility pose challenges, the overall market outlook remains positive, fueled by consistent demand growth and the expanding middle class in India. The regional distribution of LPG consumption in India mirrors the country's population density, with higher demand concentrated in densely populated urban areas and states with a larger rural population. The government’s focus on expanding LPG access to rural households under schemes like Pradhan Mantri Ujjwala Yojana further fuels market growth in less-developed regions. However, regional disparities in infrastructure development and affordability could influence the growth trajectory in certain areas. Future market growth will be shaped by factors like technological advancements in LPG distribution and storage, the adoption of cleaner fuels, and the government's continued efforts to improve accessibility and affordability of LPG across all socio-economic strata. Further research into the specific composition of the "Other Applications" segment is recommended to provide a more comprehensive market analysis. Recent developments include: In February 2022, Indian Oil Corp (IOC) announced the plans to construct three new plants in Northeast India to increase its LPG bottling capacity by nearly 53% or to 8 crore cylinders annually by 2030, to meet the growing demand in the region. Furthermore, the total investment in the plant expansion is likely to range between INR 325-350 crore.. Notable trends are: LPG Extracted From Natural Gas is Expected to Have Considerable Growth Rate.

The Indian liquefied petroleum gas (LPG) market stood at $21B in 2024, rising by 14% against the previous year. Overall, consumption continues to indicate a notable increase. Liquefied petroleum gas (LPG) consumption peaked at $22B in 2022; however, from 2023 to 2024, consumption failed to regain momentum.

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Liquefied Petroleum Gas (LPG) Market Size 2025-2029

The liquefied petroleum gas (LPG) market size is valued to increase by USD 55.2 billion, at a CAGR of 3.3% from 2024 to 2029. An increase in the supply of natural gas will drive the liquefied petroleum gas (LPG) market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 58% growth during the forecast period.
By End-user - Residential segment was valued at USD 106.40 billion in 2023
By Source - Natural gas liquid segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 29.69 billion
Market Future Opportunities: USD 55.20 billion
CAGR from 2024 to 2029: 3.3%

Market Summary

The market is a dynamic and ever-evolving sector, driven by the continuous rise in supply of natural gas and the increasing adoption of core technologies such as virtual pipeline technology (VPT). LPG, a versatile and clean-burning fuel, is increasingly gaining popularity as a viable alternative to traditional fossil fuels. However, the market faces challenges from the competition of LPG from other sources of energy, including natural gas and renewable energy. According to recent reports, the global LPG market share held by VPT is projected to reach 20% by 2026, reflecting the growing trend towards more efficient and cost-effective energy solutions.
The market's evolution is further influenced by regulatory frameworks, with stricter emissions norms driving the demand for cleaner fuels. These trends and challenges present significant opportunities for market participants, making the LPG sector an exciting space to watch.

What will be the Size of the Liquefied Petroleum Gas (LPG) Market during the forecast period?

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How is the Liquefied Petroleum Gas (LPG) Market Segmented ?

The liquefied petroleum gas (LPG) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Residential
  Petrochemical
  Industrial and commercial
  Transport
  Others


Source

  Natural gas liquid
  Crude oil


Distribution Channel

  Cylinder Distribution
  Bulk
  On-site storage


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By End-user Insights

The residential segment is estimated to witness significant growth during the forecast period.

LPG, or Liquefied Petroleum Gas, is a versatile energy source that plays a significant role in various industries and applications. Approximately 25% of the global LPG consumption is attributed to commercial cooking equipment, highlighting its importance in the foodservice sector. Moreover, leak detection systems, pressure relief valves, and other safety components account for a substantial portion of the market, underlining the industry's commitment to ensuring safety and reliability. LPG is transported using multiple modes, including cylindrical tanks, pipelines, and tanker trucks. Cylindrical tank design is widely adopted due to its cost-effectiveness and ease of use, while spherical tank design offers advantages in terms of safety and efficiency.

In the realm of odorization techniques, vapor pressure measurement, and industrial heating systems, LPG's applications continue to expand. Regulations governing LPG safety and emission monitoring are stringent, with liquid level sensors and refrigeration applications playing crucial roles in ensuring compliance. LPG's compatibility with various materials, thermal efficiency, and high calorific value make it an attractive alternative to traditional fuels. Propane autogas fueling, pipeline integrity management, and automotive fuel systems are among the growing applications for LPG. Pressure regulators, flammability limits, and LPG pipeline infrastructure are essential components of the LPG market. Auto ignition temperature and boiling point are critical factors influencing the combustion efficiency and overall performance of LPG.

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The Residential segment was valued at USD 106.40 billion in 2019 and showed a gradual increase during the forecast period.

Butane-propane mixtures and gas blending processes are essential for optimizing the energy density comparison between LPG and other fuel sources. LPG cylinder valves, calorific value, and flow control devices are essential components of the LPG market. Residential heating systems, energy density comparison, and specific gravity are key factors driving the demand for LPG in the residential sector. The LPG storage tank market is expected to grow by 15% in t

The India Liquefied Petroleum Gas (LPG) market reached approximately 32.20 MMTPA in FY2022 and is expected to grow at a steady CAGR of around 4% by FY2030.

India Liquified Petroleum Gas Market was valued at USD 16.71 Billion in 2023 and is projected to reach USD 23.02 Billion by 2031, growing at a CAGR of 4.1% from 2024 to 2031.

The India LPG market encompasses the production, distribution, and consumption of liquefied petroleum gas across various sectors. This market includes different supply sources, distribution channels, and end-use applications catering to diverse consumer needs. The ecosystem integrates refineries, storage facilities, bottling plants, and an extensive network of distributors to ensure reliable LPG supply for domestic, commercial, and industrial consumers.

The market serves as a crucial component of India’s clean energy transition while simultaneously addressing the growing need for efficient and environmentally friendly fuel solutions. It involves collaboration between oil marketing companies, private players, and government agencies to develop and maintain a robust LPG infrastructure across the country.

Discover the booming Indian LPG market, projected to reach ₹2.35 Trillion (USD 28 Billion) by 2033 with a 3.5% CAGR. This in-depth analysis explores market drivers, trends, restraints, key players (Indian Oil, Bharat Petroleum, Shell), and regional distribution. Learn about growth opportunities and challenges in this vital energy sector. Key drivers for this market are: Declining Cost of Wind Energy, Increasing Investments in Wind Energy Power Generation Projects. Potential restraints include: Increasing Adoption of Alternate Clean Power Sources. Notable trends are: LPG Extracted From Natural Gas is Expected to Have Considerable Growth Rate.

The market is segmented by Vehicle Type (Three-Wheelers, Passenger Cars, Trucks (Light, Medium and Heavy) and Buses), By Fuel Type (CNG and LPG) and Geography.

The size of the LPG Industry in India market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 3.50% during the forecast period. Recent developments include: In February 2022, Indian Oil Corp (IOC) announced the plans to construct three new plants in Northeast India to increase its LPG bottling capacity by nearly 53% or to 8 crore cylinders annually by 2030, to meet the growing demand in the region. Furthermore, the total investment in the plant expansion is likely to range between INR 325-350 crore.. Key drivers for this market are: Declining Cost of Wind Energy, Increasing Investments in Wind Energy Power Generation Projects. Potential restraints include: Increasing Adoption of Alternate Clean Power Sources. Notable trends are: LPG Extracted From Natural Gas is Expected to Have Considerable Growth Rate.

Discover the booming LPG cylinder market analysis for 2025-2033! Explore key drivers, trends, and restraints shaping this $15 billion industry. Learn about regional market shares, leading companies like Worthington Industries and Luxfer, and the projected CAGR, fueling substantial growth opportunities.

Discover the booming Indian natural gas market, projected to surpass $150 million by 2033. This in-depth analysis explores market drivers, trends, restraints, key players (ONGC, Reliance, IOCL), and segment growth (CNG, PNG, LPG). Learn how government policies and rising energy demand are shaping this dynamic sector. Recent developments include: In January 2022, According to the results of the bid opening for the 11th round of city gas distribution (CGD) bidding, Indian Oil Corporation (IOC) stands to get nine licences and Bharat Petroleum Corporation Ltd (BPCL) 6., In May 2022, Adani Total Private Limited has withdrawn its EoI to build a natural gas pipeline from Haldia to Panitar following objections by Hiranandani Energy and others.. Notable trends are: Piped Natural Gas (PNG) to Grow Significantly.

LPG Gas Cylinder Market Outlook

The LPG gas cylinder market size is poised for steady growth, with an estimated market size of USD 7.5 billion in 2023, and projections indicating a growth to approximately USD 11.2 billion by 2032. This growth is driven by a compound annual growth rate (CAGR) of 4.5% from 2024 to 2032. The primary growth factor propelling this market is the increasing demand for clean and efficient energy sources across both residential and commercial sectors worldwide. As economies continue to develop and urbanize, the need for safer and more environmentally friendly cooking and heating solutions becomes even more pronounced, further bolstering the LPG gas cylinder market.

One of the crucial growth factors within the LPG gas cylinder market is the global push towards reducing carbon emissions and promoting sustainable energy. As governments around the world set ambitious targets for reducing greenhouse gas emissions, many are incentivizing the use of LPG as a cleaner alternative to coal and oil. LPG is recognized for its low sulfur content and high calorific value, making it an efficient and less polluting energy source. This shift towards cleaner energy has led to increasing adoption of LPG in residential, commercial, and industrial applications, driving the demand for LPG cylinders significantly.

Additionally, the rising urban population and economic development in emerging economies are key drivers of the LPG gas cylinder market. As more people migrate to urban areas, the demand for reliable and portable energy sources grows. LPG cylinders, with their portability and ease of use, are ideally suited to meet these needs, especially in regions where piped natural gas infrastructure is unavailable or underdeveloped. The increasing purchasing power in these regions is another critical factor, allowing more consumers to switch from traditional biomass fuels to LPG, further expanding the market.

Technological advancements in cylinder manufacturing and safety features are also playing a significant role in market growth. Innovations such as composite cylinders, which are lighter and more durable than traditional steel cylinders, are gaining traction. These advancements not only improve safety by reducing the risk of leaks and explosions but also enhance user convenience. Furthermore, improvements in valve technology and pressure regulators are contributing to safer and more efficient usage, thus encouraging more consumers to opt for LPG cylinders.

Propane Cylinders are an integral part of the LPG gas cylinder market, offering versatile applications across various sectors. These cylinders are particularly valued for their portability and efficiency, making them a popular choice for both residential and commercial uses. In residential settings, propane cylinders provide a reliable energy source for cooking and heating, especially in areas lacking natural gas infrastructure. Their ease of transport and storage also makes them ideal for outdoor activities and events, where a steady supply of energy is essential. In commercial applications, propane cylinders are widely used in industries such as hospitality and catering, where consistent and high-energy output is crucial. The adaptability of propane cylinders to different environments and their ability to deliver clean energy solutions contribute significantly to the overall growth of the LPG gas cylinder market.

Regionally, Asia Pacific is the largest market for LPG gas cylinders, driven by countries like China and India, where rapid industrialization and urbanization are prevalent. These regions have seen significant government initiatives aimed at promoting LPG as a primary energy source for cooking and heating, which has greatly increased market penetration. In contrast, regions like North America and Europe are experiencing moderate growth due to their mature markets but are also seeing an uptick in LPG adoption in rural and suburban areas where natural gas pipelines are not as extensive. Meanwhile, Latin America and the Middle East & Africa are emerging markets with substantial growth potential due to increasing energy demands and governmental support for clean energy solutions.

Product Type Analysis

The LPG gas cylinder market is segmented by product type into steel cylinders and composite cylinders, each offering distinct advantages and challenges. Steel cylinders have been the traditional choice for many years due to their durability and cost-effectiveness. They are known

As of April 2024, the number of liquified petroleum gas distributors of public sector undertaking oil marketing companies across northern India was around *****. In comparison, the number of liquified petroleum gas distributors of public sector undertaking oil marketing companies across southern India was around *****.

MEA & India CNG And LPG Vehicle Market size was valued at USD 7.2 Billion in 2023 and is projected to reach USD 12.5 Billion by 2031 growing at a CAGR of 7.2% from 2024 to 2031.

MEA & India CNG And LPG Vehicle Market Dynamics

The key market dynamics that are shaping the MEA & India CNG And LPG vehicle market include:

Key Market Drivers

Rising Environmental Concerns and Emissions Regulations: India's ambitious objective of increasing natural gas share from 6.3% to 15% by 2030 is causing significant changes in the automotive industry. The government has adopted higher pollution standards, requiring manufacturers to use cleaner fuel technology.

Cost-effectiveness of CNG/LPG: According to Indian Oil Corporation, CNG has a 45-60% cost advantage over traditional fuels, making for a convincing economic rationale. Commercial fleet operators are saving significantly on operational costs by converting to CNG/LPG.

According to Cognitive Market Research, the global liquefied petroleum gas market size will be USD 134680 million in 2025. It will enlarge at a compound annual growth rate (CAGR) of 4.2% from 2025 to 2033.

North America held the major market share for more than 40% of the global revenue with a market size of USD 49831.6 million in 2025 and will prosper at a compound annual growth rate (CAGR) of 2.7% from 2025 to 2033.
Europe accounted for the second largest market share of over 30% of the global revenue, with a market size of USD 39057.2 million.
APAC held a market share of around 23% of the global revenue with a market size of USD 32323.2 million in 2025 and will flourish at a compound annual growth rate (CAGR) of 6.9% from 2025 to 2033.
South America has a market share of more than 5% of the global revenue with a market size of USD 5117.8 million in 2025 and will thrive at a compound annual growth rate (CAGR) of 4.9% from 2025 to 2033.
Middle East had a market share of around 2% of the global revenue and was estimated at a market size of USD 5387.2 million in 2025 and will heighten at a compound annual growth rate (CAGR) of 5.4% from 2025 to 2033.
Africa had a market share of around 1% of the global revenue and was estimated at a market size of USD 2963 million in 2025 and will grow at a compound annual growth rate (CAGR) of 4.5% from 2025 to 2033.
The non-associated gas source is the fastest-growing category of the liquefied petroleum gas industry.

Market Dynamics of Liquefied Petroleum Gas Market

Key Drivers for Liquefied Petroleum Gas Market

Growing Demand for Cleaner and More Efficient Energy Sources to Facilitate Market Growth

One of the key drivers for the liquefied petroleum gas (LPG) market is the rising global demand for cleaner and more efficient energy alternatives. LPG is known for its lower carbon emissions and minimal particulate matter compared to other conventional fuels, which makes it an ideal option for residential, commercial, and industrial applications. In many developing economies, government-led initiatives and subsidies have accelerated the adoption of LPG, particularly in household cooking, reducing reliance on biomass fuels such as wood and charcoal, which contribute to deforestation and indoor air pollution. According to the Council on Energy, Environment, and Water (CEEW), more than 70% of Indian homes use LPG as their primary cooking fuel, with 85% having LPG connections. The transition to LPG is also gaining momentum in numerous industries, including power generation, petrochemical, manufacturing, and transportation, where it is used as an alternative fuel for heating and machinery operations.

https://www.ceew.in/press-releases/more-70-indian-households-use-lpg-primary-cooking-fuel-ceew

Expansion of LPG Distribution Networks in Emerging Economies to Strengthen Market Share

The robust expansion of LPG infrastructure and distribution networks, particularly in emerging markets, is another factor that is promoting the overall growth of the LPG industry. Many developing nations are investing heavily in expanding LPG accessibility through improved storage facilities, bottling plants, and distribution centers. Governments and private sector players are collaborating to build extensive LPG networks, which ensure wider availability even in remote and rural areas. For instance, countries such as India, Indonesia, and various African nations have launched large-scale programs to promote LPG as a primary cooking fuel, replacing traditional biomass fuels. Moreover, the construction of new import terminals, bulk storage facilities, and transshipment hubs is further enhancing supply chain efficiency, reducing logistical challenges, and ensuring stable LPG supply. This expansion is not only improving energy access for millions of households but also propelling industrial and commercial LPG consumption, supporting market development on a global scale.

Restraint Factor for the Liquefied Petroleum Gas Market

High Initial Costs for LPG Storage, Transportation, and Infrastructure to Limit Market Size

The higher capital expenditure required for establishing and maintaining LPG storage facilities, transportation infrastructure (such as pipelines and tankers), and distribution networks is a significant constraint for the LPG market. Building large-scale storage tanks for both domestic and industrial use requires substantial financial investment. Thes...

The liquefied petroleum gas (LPG) market is experiencing robust growth, driven by increasing industrial and commercial demand, particularly in developing economies. Our analysis projects a market size of $250 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 5% from 2025 to 2033. This growth is fueled by several key factors: rising urbanization and industrialization, which increase energy consumption across various sectors; the increasing adoption of LPG as a cleaner alternative to traditional fuels in cooking and heating, especially in regions with limited access to natural gas pipelines; and supportive government policies aimed at promoting LPG usage and reducing reliance on fossil fuels in some regions. Significant growth is expected in Asia-Pacific, driven by the expanding economies of India and China, as well as increasing demand from Southeast Asian nations. However, price volatility of crude oil, a primary feedstock for LPG production, poses a significant restraint. Furthermore, the development of alternative renewable energy sources presents a long-term challenge to LPG market growth. The competitive landscape is dominated by global energy majors such as BP, ExxonMobil, Shell, and national oil companies like ADNOC Group and Gazprom. These companies are actively investing in expanding LPG production capacity and distribution networks to meet the growing demand. The market is segmented by type (Natural Gas Liquids, Crude Oil), and application (Commercial, Agriculture, Industrial, Transport, Chemical). The projections indicate that the industrial and commercial sectors will continue to be the largest consumers of LPG, followed by the residential and transportation sectors. The regional breakdown shows significant potential across diverse geographies, with North America, Europe, and Asia-Pacific representing the most substantial market shares. The forecast period (2025-2033) anticipates continued growth, albeit with a moderated CAGR due to the anticipated leveling off of demand in mature markets and the emergence of competing technologies. Comprehensive Analysis of the Global Liquefied Petroleum Gas (LPG) Market: A 2024 Perspective This in-depth report provides a comprehensive overview of the global liquefied petroleum gas (LPG) market, offering crucial insights for businesses and investors seeking to navigate this dynamic sector. We delve into production trends, market segmentation, regional dominance, key players, and emerging opportunities. The report leverages extensive market research and data analysis to deliver actionable intelligence for informed decision-making. Keywords: LPG Market, Liquefied Petroleum Gas, Propane, Butane, Natural Gas Liquids, LPG Production, LPG Consumption, LPG Prices, Energy Market, Petrochemical Industry.

The CNG & LPG Vehicle Market is booming, projected to hit $12.48B in 2025, with a 9.4% CAGR through 2033. Learn about market drivers, trends, restraints, and key players shaping this sustainable transportation sector. Explore regional insights and future growth projections.