Butane Market Size (2024 - 2029)

The butane market is projected to experience significant growth, driven by increased demand from the petrochemical, metalworking, and construction industries. The market size is positively influenced by the sustained demand in the residential sector and the rising use of butane in power generation, despite potential challenges from renewable energy advancements. The Asia-Pacific region, particularly China and India, leads in consumption, reflecting its substantial market share. The market's expansion is further supported by the recovery and reopening of various sectors post-pandemic, which has maintained high butane demand levels.

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Market Size of Butane Industry

Butane Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 6.00 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration Low

Major Players

Butane Market Major Players

*Disclaimer: Major Players sorted in no particular order

Butane Market Analysis

During the forecast period, the butane market is estimated to witness a CAGR of over 6%.

The butane market was affected by the COVID-19 virus, as it is used in the residential sector. The major use of butane is in LPG, which increased demand during the pandemic as most families were confined to their homes. The consumption of LPG cylinders spiked exponentially for a major part of the year. India, the second largest LPG consumer, also saw a hike in demand. According to the Oil Ministry, the sales of domestic LPG have registered a growth of 10.3 % during the fiscal year (April 2020 to February 2021). After the COVID era, the other sectors have also started to open up, thus keeping the demand for butane high along with its usage in the residential sector, which had not seen much of a hit since the pandemic. Therefore, the demand for butane is positively impacted in the post-pandemic era.

  • Over the long term, one of the major factors driving the market studied is the rising demand from the petrochemical industries. Apart from this, increasing demand from the metalworking and construction Industry is also considered one of the reasons driving the market forward.
  • However, increasing research and development in renewable sources are expected to negatively affect the market's growth.
  • Nevertheless, the increasing use of butane in power generation will likely act as an opportunity.
  • Asia-Pacific dominated the world market, with the largest consumption generated by China and India.

Butane Industry Segmentation

An alkane with the formula C4H10 is said to be Butane. It is a highly flammable, colorless, easily liquefied gas that quickly vaporizes at room temperature. Butane serves many purposes, out of which a few are as a fuel for cigarette lighters and portable stoves, a propellant in aerosols, a heating fuel, a refrigerant, and in the manufacture of a wide range of products. The butane market is segmented by end-user industry, source, and geography. By end-user industry, the market is segmented into residential/commercial, industrial (including chemical feedstock), engine fuel, refinery, and other end-user industries. By source, the market is segmented into natural gas processing and refining. The report also covers the market size and forecasts for the butane market in 15 countries across major regions. The market sizing and forecasts are based on volume (million tons) for each segment.

End-user Industry
Residential/Commercial
Industrial ( including Chemical Feed Stock)
Engine Fuel
Refinery
Other End-user Industries
Source
Natural Gas
Refining
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa
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Butane Market Size Summary

The butane market is poised for significant growth, driven by its essential role in various industries and its increasing demand in the residential sector. The market experienced a surge in demand during the COVID-19 pandemic, primarily due to its use in liquefied petroleum gas (LPG), which became a crucial energy source for households confined to their homes. This trend continued post-pandemic as sectors reopened, maintaining high demand for butane. The market is further bolstered by rising consumption in petrochemical industries, metalworking, and construction sectors. However, the growth trajectory faces challenges from advancements in renewable energy sources, while the expanding use of butane in power generation presents new opportunities.

Asia-Pacific emerges as the dominant region in the global butane market, with China and India leading in consumption. The region's prominence is attributed to the increasing use of LPG in residential and commercial applications, alongside its significant role in the automotive industry. Initiatives like India's Pradhan Mantri Ujjwala Yojana have significantly boosted LPG adoption, replacing traditional fuels with cleaner alternatives. The region's growth is also supported by increased petrochemical capacity and rising vehicle production, which drives domestic butane demand. The market remains highly fragmented, with major players like Exxon Mobil, BP, and Shell actively participating in strategic acquisitions to enhance their market presence.

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Butane Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Drivers

      1. 1.1.1 Rising Demand in Petrochemical Industry

      2. 1.1.2 Increasing Demand from Metal Working and Construction Industry

    2. 1.2 Restraints

      1. 1.2.1 Increasing R&D in the Field of Renewable Sources

      2. 1.2.2 Other Restraints

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION (Market Size in Volume)

    1. 2.1 End-user Industry

      1. 2.1.1 Residential/Commercial

      2. 2.1.2 Industrial ( including Chemical Feed Stock)

      3. 2.1.3 Engine Fuel

      4. 2.1.4 Refinery

      5. 2.1.5 Other End-user Industries

    2. 2.2 Source

      1. 2.2.1 Natural Gas

      2. 2.2.2 Refining

    3. 2.3 Geography

      1. 2.3.1 Asia-Pacific

        1. 2.3.1.1 China

        2. 2.3.1.2 India

        3. 2.3.1.3 Japan

        4. 2.3.1.4 South Korea

        5. 2.3.1.5 Rest of Asia-Pacific

      2. 2.3.2 North America

        1. 2.3.2.1 United States

        2. 2.3.2.2 Canada

        3. 2.3.2.3 Mexico

      3. 2.3.3 Europe

        1. 2.3.3.1 Germany

        2. 2.3.3.2 United Kingdom

        3. 2.3.3.3 Italy

        4. 2.3.3.4 France

        5. 2.3.3.5 Rest of Europe

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of South America

      5. 2.3.5 Middle East & Africa

        1. 2.3.5.1 Saudi Arabia

        2. 2.3.5.2 South Africa

        3. 2.3.5.3 Rest of Middle East & Africa

Butane Market Size FAQs

The Butane Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)

Merck KGaA, Exxon Mobil Corporation, Chevron Phillips Chemical Company LLC, BP plc and Shell plc are the major companies operating in the Butane Market.

Butane Market Report Snapshots

Butane Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)