Liquefied Petroleum Gas (LPG) Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Liquefied Petroleum Gas (LPG) Category Overview

The global liquefied petroleum gas (LPG) category is anticipated to grow at a CAGR of 3.7% from 2023 to 2030. It is driven by growing acceptance of green and renewable energy sources in emerging and developed nations, rising understanding of the benefits of switching to LPG from fossil fuels, and efforts and contributions by local governments to promote the usage of LPG in a variety of applications. In addition, rise in the usage of LPG in automotives as an alternate fuel to diesel and regular gasoline, and as a clean-burning fuel for indoor cooking in residential settings (especially as a smokeless fuel) in various regions is also anticipated to fuel the growth of the category. However, Infrastructure constraints, and concerns pertaining to safety during the storage, handling, and transportation of LPG since it is pressurized and flammable, may hinder the growth of the global category during the forecasted timeframe.

Key technologies that are trending in the liquefied petroleum gas (LPG) industry include internet of things (IoT), artificial intelligence (AI), big data & analytics, robotics & automation, cloud computing, and blockchain.The IoT is being utilized by the industry to monitor remote areas, increase worker safety, optimize equipment, and boost production. Real-time data collection is made possible by sensors installed within choke valves, blowout preventers (BOP), and wells.Utilizing this information, producers can promptly detect malfunctioned machinery, assisting field engineers in anticipating and responding promptly. In addition, AI and data science are being used by the industry more and more to address challenging issues in upstream, middle, and downstream processes. Platforms with AI capabilities assist with decision-making by providing insights from cognitive, prescriptive, and predictive analytics.

The category for liquefied petroleum gas (LPG) exhibits a fragmented landscape, with intense competition among the global suppliers operating in the industry. Key players in the industry are placing a great deal of emphasis on the exploration and production of natural gas with improved operational features. In addition, they are incorporating tactics such as geographics expansion, capacity expansion, mergers & acquisitions, partnerships, etc. to strengthen their position across the globe. For instance, after producing solely oil for many years, Shell U.K. Ltd., a subsidiary of Shell plc, improved the Pierce field in the UK Central North Sea to enable gas production. Majority of the players are focusing on enhancing their Autogas (automotive grade gas) capabilities due to a steadily increasing fleet counts, particularly in Asia-Pacific and Europe. Buyers in the category possess high negotiation capability owing to intense competition which enables switching to better alternative when required.

Cost of raw materials / feedstock (natural gas and crude oil), labor, equipment & machinery, rent & utilities, and transportation & logistics are the key cost components in this category. Raw materials / feedstock forms the largest cost component in the category. Gas offered in the category is the byproduct of both natural gas and crude oil. In the U.S., though LPG is more directly competitive with the other crude oil byproducts, natural gas processors provide around 69.9% of the propane. For this reason, changes in the price of crude oil are reflected in the wholesale price of propane. Since propane is a byproduct, demand and price fluctuations cannot be used to modify the amount of propane made available through the processing of natural gas and crude oil. The majority of propane sold at wholesale in the nation is generated domestically. The average price of LPG in the U.S. during 2023 had been 2.018 USD/US gallon.

Asia-Pacific region dominates the global liquefied petroleum gas (LPG) category, holding substantial share of revenue. It is dominated by China as the biggest market, followed by India and Japan are the key contributing nations.For the past several years, the governments of the nations in the region have encouraged the use of LPG for cooking, which is expected to supplement region’s demand. For instance, the Indian government offers free LPG cylinders and subsidies to rural sections of the nation. Reviewing the supplier’s infrastructure and supply chain management to assess if it’ll be able to provide uninterruptible supply, assessing a supplier’s technical expertise on design and application elements, checking about the safety protocols and support that a supplier offers during transportation and after installation, and comparing the pricing structure of different suppliers are some of the best sourcing practices considered in this category.

Liquefied Petroleum Gas (LPG) Procurement Intelligence Report Scope