Market Size of India Liquified Petroleum Gas (LPG) Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 3.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Liquified Petroleum Gas (LPG) Market Analysis
The liquefied petroleum gas (LPG) market is expected to grow at a CAGR of over 3.5% during the forecast period of 2022-2027. The Covid-19 pandemic has led to a temporary ban on imports & exports and the manufacturing and processing activities across the industries, which decreased the demand for LPG from the consumers. The LPG market is driven by the domestic, industrial, automobile, and commercial business sectors in India. The primary driver of the market is the increasing consumption of LPG and the supporting initiatives from the government to increase the usage of cleaner fuel. However, the expanding penetration of Piped Natural Gas (PNG) for households and the Compressed Natural Gas (CNG) for vehicles as an alternative to LPG is expected to restrain the LPG market growth. Further, the LPG storage is a challenging factor. The domestic LPG usually comes in cylinders, which doesn't provide a continuous supply service and its highly flammable and heavier that has a high tendency to catch fire in case of any leakage, which is expected to hinder the market growth during the forecast period.
- LPG extracted from natural gas is expected to have a considerable growth during the forecast period due to the government's focus on raising the natural gas share in the energy mix to 15% by 2030 from around 6.7% in 2021.
- The new demand hubs being created, such as rural LPG households and the favorable scenario for AutoLPG, are expected to create immense opportunities for the LPG players to look for M&A and capacity enhancement in the future.
- The increasing demand for LPG, on account of government efforts to adopt the usage of cleaner fuel, is expected to drive the market during the forecast period.
India Liquified Petroleum Gas (LPG) Industry Segmentation
The Indian Liquified Petroleum Gas (LPG) Market report includes:
| Source of Production | |
| Crude Oil | |
| Natural Gas Liquids |
| Application | |
| Residential & Commercial | |
| Industrial | |
| Autofuels | |
| Other Applications |
India Liquified Petroleum Gas (LPG) Market Size Summary
The Indian LPG market is poised for growth, driven by increasing consumption across domestic, industrial, automobile, and commercial sectors. Government initiatives to promote cleaner fuel usage are a significant catalyst for this expansion. However, the market faces challenges from the growing adoption of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) as alternatives to LPG, which could restrain its growth. Additionally, the storage and safety concerns associated with LPG, particularly its flammability and the limitations of cylinder-based supply, pose challenges to market expansion. Despite these hurdles, the market is expected to benefit from the government's focus on enhancing the natural gas share in the energy mix, which is anticipated to boost LPG production from natural gas.
The demand for LPG in India has been on the rise, supported by government initiatives like the Pradhan Mantri Ujjwala Yojana, which aims to provide clean cooking fuel to rural and underserved households. This has led to a significant increase in the number of domestic LPG customers and distributors, as well as the establishment of more bottling plants across the country. The market is moderately consolidated, with major players such as Indian Oil Corporation Ltd., Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited leading the charge. Investments in expanding LPG infrastructure, such as Indian Oil Corp's plans to increase bottling capacity in Northeast India, are expected to further drive market growth during the forecast period.
India Liquified Petroleum Gas (LPG) Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast, in USD billion, till 2027
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1.3 LPG Production and Consumption Trends in India, till 2021
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1.4 Import and Export Statistics of LPG in India till, 2021
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1.5 LPG Active Domestic Customers (in Lakh) by Region in India, 2021
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1.6 Number of LPG Distributors by Region in India, 2021
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1.7 Recent Trends and Developments
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1.8 Government Policies and Regulations
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1.9 Market Dynamics
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1.9.1 Drivers
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1.9.2 Restraints
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1.10 Supply Chain
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1.11 PESTLE Analysis
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2. MARKET SEGMENTATION
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2.1 Source of Production
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2.1.1 Crude Oil
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2.1.2 Natural Gas Liquids
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2.2 Application
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2.2.1 Residential & Commercial
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2.2.2 Industrial
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2.2.3 Autofuels
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2.2.4 Other Applications
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India Liquified Petroleum Gas (LPG) Market Size FAQs
What is the current India Liquified Petroleum Gas (LPG) Market size?
The India Liquified Petroleum Gas (LPG) Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)
Who are the key players in India Liquified Petroleum Gas (LPG) Market?
Indian Oil Corporation Ltd., Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Reliance Petroleum Ltd and TotalEnergies SE are the major companies operating in the India Liquified Petroleum Gas (LPG) Market.
