Butane Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Volume (2025) | 204.82 Million tons |
| Market Volume (2030) | 251.96 Million tons |
| Growth Rate (2025 - 2030) | 4.23% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Butane Market Analysis by Mordor Intelligence
The Butane Market size is estimated at 204.82 Million tons in 2025, and is expected to reach 251.96 Million tons by 2030, at a CAGR of 4.23% during the forecast period (2025-2030).Hydrocarbons serve as key components for residential LPG and petrochemical feedstocks, particularly in ethylene and propylene chains, with Asia-Pacific operators adding world-scale crackers. Normal butane supports winter gasoline blending, while isobutane enhances high-octane alkylate streams. North American shale output boosts natural gas liquids recovery, curbing price spikes and addressing regional tightness, as noted by the Dallas Fed. Digital twins at storage terminals reduce handling losses and optimize ship-loading windows. These factors mitigate crude-linked pricing volatility and drive investments in production, logistics, and downstream conversion assets.
Key Report Takeaways
- By product type, n-butane led with 56.19% of butane market share in 2024; it is also forecast to expand fastest at a 4.94% CAGR through 2030.
- By end-user industry, the residential and commercial segment held 47.19% of the butane market size in 2024, while the engine fuel segment records the highest projected CAGR at 5.03% to 2030.
- By source, natural-gas processing accounted for 61.12% share of the butane market size in 2024 and is poised to grow at a 5.14% CAGR.
- By geography, Asia-Pacific captured 54.18% butane market share in 2024; the region is set to grow the fastest at a 5.28% CAGR through 2030.
Global Butane Market Trends and Insights
Driver Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Growing Demand from the Petrochemical Industry | 1.80% | Global, with APAC core concentration | Long term (≥ 4 years) |
| Increasing Demand from the Metalworking and Construction Industry | 0.60% | North America & EU primarily | Medium term (2-4 years) |
| Growing Usage of Butane in Autogas, a Cleaner Alternative to Gasoline and Diesel | 0.90% | Global, with emerging market focus | Medium term (2-4 years) |
| Increasing Global Consumption of LPG for Cooking and Heating | 1.20% | APAC core, spill-over to MEA and Latin America | Long term (≥ 4 years) |
| Digital Twin Optimization of LPG Storage Logistics | 0.30% | Global, with developed market leadership | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Growing Demand from the Petrochemical Industry
Expanding cracker capacity spurs structural butane uptake, with China’s LPG feedstock pull rising 2.1 million b/d between 2019 and 2024 and more additions scheduled to 2030. The International Energy Agency projects that over half of the 2025 liquids-demand increase will come from NGL feedstocks such as butane. Downstream margins tighten as new plants dilute spreads, pushing operators toward long-term offtake contracts and efficiency measures.
Increasing Demand from the Metalworking and Construction Industry
Industrial users favour butane-fired torches for consistent flame temperatures and lower soot formation, enhancing weld quality and cutting precision. Portable heaters using LPG cylinders support site work in cold climates where the electric supply is unreliable. While electrification gains traction in high-income economies, emerging-market contractors still prefer cost-effective LPG solutions. Growth, therefore, tracks new-build activity in Asia and infrastructure upgrades in Africa. Adoption also hinges on cylinder distribution networks that shorten last-mile logistics, signalling opportunity for midstream players.
Growing Usage of Butane in Autogas, a Cleaner Alternative to Gasoline and Diesel
Autogas vehicles emit less CO₂ and particulates than gasoline units, helping fleet operators comply with tightening standards. Fiscal incentives in Europe keep conversion volumes buoyant, and multi-fuel engine designs ease switching in mixed-use fleets. The maritime sector explores LPG bunkering to curb NOx under IMO 2020 and forthcoming EEXI rules[1]World LPG Association, “Statistical Review 2023,” wlpga.org. Competitively, autogas must defend niches where range and fast refuelling trump battery limitations, including taxi fleets and island transport services. Continued infrastructure build-out and OEM model availability will decide the pace of penetration.
Digital Twin Optimisation of LPG Storage Logistics
Synced physical-virtual models enable operators to predict boil-off, manage stratification, and schedule mixing, enhancing throughput by double-digit percentages in initial deployments. Predictive maintenance flags anomalies earlier, cutting unplanned downtime. Early adopters in Europe and North America report payback within 18-24 months, catalysing wider rollout. Vendors integrate AI algorithms to refine temperature-pressure interdependencies, keeping safety margins intact. Adoption speed will hinge on cybersecurity assurances and workforce reskilling.
Restraint Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Volatility in raw-material prices | -0.8% | Global | Short term (≤ 2 years) |
| Availability of fuel alternatives | -0.5% | North America, EU | Medium term (2-4 years) |
| Limited infrastructure in emerging markets | -0.4% | MEA, LatAm, parts of APAC | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Volatility in Raw Material Prices
Butane’s close linkage to crude and natural gas indices exposes users to rapid swings that complicate procurement budgets. Lower crude leads to softer NGL pricing, but sudden ethane weakness heightens co-movement with butane, increasing hedge complexity. The US producer-price index dropped from 210.934 in January 2025 to 144.296 in April 2025, a 32% slide that unsettled inventory planning. Price risk discourages greenfield capacity in capital-scarce zones and channels investment into flexible logistics that arbitrage regional spreads.
Availability of Fuel Alternatives
Electrification in space-heating and mobility, plus pilot hydrogen trucking corridors, erode incremental butane demand in OECD markets. The Energy Transitions Commission’s net-zero pathway shows fossil-gas demand must fall steeply after 2030, pressuring LPG growth prospects[2]Energy Transitions Commission, “Fossil Fuels in Transition,” energy-transitions.org. Yet remote mines, island grids, and cold-weather fleets still value LPG energy density. The outlook, therefore, points to selective displacement rather than complete substitution.
Segment Analysis
By Product Type: n-Butane Dominance Drives Market Growth
n-Butane held 56.19% of the butane market size in 2024 and posts the fastest 4.94% CAGR to 2030. Winter-grade gasoline necessitates higher normal-butane blend ratios to meet Reid-vapor-pressure limits, securing consistent off-take from refiners. Petrochemical players integrate normal butane into steam crackers oriented toward C₄ extraction streams that switch flexibly between butadiene and raffinate production.
Note: Segment shares of all individual segments available upon report purchase
By Source: Natural-Gas Processing Leads Supply Growth
Natural-gas processing contributed 61.12% to the butane market share in 2024 and is projected to expand at a 5.14% CAGR. North American shale liquids richness drives this leadership; US butane production climbed 20% year-on-year to 0.7 million b/d in 2024. Midstream players invest in deep-cut cryogenic plants that enhance NGL extraction efficiency, and new fractionators at Mont Belvieu debottleneck export flows. Refinery-sourced butane registers slower growth because global crude-throughput increases lag gas-processing expansions. Yet, policy-driven gasoline specification shifts, such as the 2025 Midwest EPA rule, temporarily boost refinery recovery of normal butane.
By End-User Industry: Residential Dominance Meets Engine-Fuel Upside
Residential and commercial users controlled 47.19% of the butane market size in 2024 by virtue of widespread LPG cylinder adoption for cooking and space heating. Government subsidies in India, Indonesia, and Brazil stabilise refill rates and lift per-household consumption. Volumes show high stickiness due to brand loyalty and distribution depth. Conversely, engine-fuel demand records the strongest 5.03% CAGR through 2030 as tax incentives and clean-air zones broaden autogas uptake in Europe and selected Asian urban clusters. The maritime pivot to LPG bunkering adds another leg of growth, especially for coastal carriers constrained by IMO sulfur caps.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Asia-Pacific commanded 54.18% butane market share in 2024 and sustained the fastest 5.28% CAGR. China’s steam-cracker wave continues to pull US NGL cargoes, accounting for 56% of Chinese LPG imports in 2024.
North America remains the supply powerhouse, with ample shale-derived output feeding rising export volumes. The US shipped roughly 500 thousand b/d of butane in 2024, routing 41% to Asia and 36% to Africa. Europe presents a balanced picture: forward-looking climate policy checks demand growth, but legacy petrochemical assets keep baseline offtake steady.
The Middle East leverages advantaged feedstock to sustain petrochemical expansions, while Africa and South America see incremental cylinder penetration supported by subsidy frameworks in Colombia and Nigeria.
Competitive Landscape
Global supply is moderately fragmented. Supermajors such as Saudi Aramco and Shell anchor upstream production. Geographic diversification emerges as a hedge: US exporters expand terminal footprints on the Gulf Coast, while Middle-East NOCs invest in Asian downstream partnerships to anchor volumes.
Butane Industry Leaders
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Exxon Mobil Corporation
-
China Petrochemical Corporation
-
Shell
-
Saudi Arabian Oil Co.
-
BP plc
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Saudi Aramco has reduced its official selling price for butane in June by USD 20 per ton, setting it at USD 570 per ton. This marks a downward adjustment in the monthly pricing.
- February 2025: Bharat Petroleum Corporation Limited signed a one-year purchase agreement with Equinor India Pvt. Ltd. covering propane and butane cargoes.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the global butane market as all bulk sales of n-butane and isobutane, quantified in million tons, that move from natural-gas processing plants or crude-oil refineries into end uses such as LPG blending, petrochemical feedstock, motor-fuel additives, and direct heating or cooking.
Scope exclusion: downstream chemicals derived from butane, portable cartridge gases, and specialty aerosol blends lie outside this assessment.
Segmentation Overview
- By Product Type
- n-Butane
- Iso-butane
- By Source
- Natural Gas
- Refining
- By End-user Industry
- Residential/Commercial
- Industrial (Including Chemical Feedstock)
- Engine Fuel
- Refinery
- Other End-user Industries
- By Geography
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia-Pacific
- North America
- United States
- Canada
- Mexico
- Europe
- Germany
- United Kingdom
- France
- Italy
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East and Africa
- Saudi Arabia
- South Africa
- Rest of Middle-East and Africa
- Asia-Pacific
Detailed Research Methodology and Data Validation
Primary Research
We interview refinery planners, LPG marketers, and petrochemical procurement leads across Asia-Pacific, North America, Europe, and the Middle East. The conversations confirm throughput assumptions, seasonal draw-down ratios, and average selling prices, while short surveys with distributors validate household penetration rates in emerging economies.
Desk Research
Mordor analysts begin with public datasets that anchor physical supply, such as the EIA International Energy Statistics, OPEC Annual Statistical Bulletin, UN Comtrade shipment codes 271112 and 271113, and IEA World Energy Balances. Trade association briefs from the World LPG Association, refinery yield data in Hydrocarbon Processing, and company 10-K filings enrich regional split-ups. Paid databases like D&B Hoovers and Dow Jones Factiva help verify producer capacities, contract awards, and price spreads in real time.
These tier-one sources map production, imports, and demand pools before any modeling starts. Many additional documents are screened to cross-check anomalies and clarify definitions, although they are not exhaustively listed here.
Market-Sizing & Forecasting
A top-down supply reconstruction converts country-level production and net trade into an apparent consumption baseline for 2025. Results are then challenged with selective bottom-up markers, sampled refinery butane yields, LPG retail volumes, and average spot prices to tighten totals. Key variables injected into the model include NGL output growth, refinery utilization, LPG subsidy programs, petrochemical capacity additions, currency adjusted ASPs, and winter-summer demand coefficients. A multivariate regression is applied to forecast volumes through 2030, and scenario analysis fills data gaps where bottom-up samples are thin.
Data Validation & Update Cycle
Outputs pass a two-layer peer review, variance checks against independent price and flow indicators, and a senior analyst sign-off. Reports refresh annually, with mid-cycle updates triggered by material policy shifts or supply disruptions.
Why Our Butane Baseline Commands Reliability
Published estimates often differ because firms mix value and volume metrics, include derivatives, or lock forecasts to dated exchange rates.
Key gap drivers here are mixed scope definitions, varied refresh cadence, and distinct ASP progression methods that tilt revenue-based models upward or downward relative to Mordor's physically grounded approach.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| 204.82 million tons (2025) | Mordor Intelligence | - |
| USD 112.9 billion (2023) | Global Consultancy A | Uses revenue not tonnage and omits autogas demand |
| USD 94.0 billion (2024) | Trade Journal B | Blends butane derivatives and applies average 2024 crude price without quarterly resets |
| USD 83.54 billion (2025) | Industry Association C | Aggregates commercial, medical, and technical purity grades, creating a wider scope |
These comparisons show that when scope, units, and update cadence vary, headline figures swing widely. By centering on physical flows, aligning variables to verified plant data, and refreshing every year, Mordor Intelligence offers decision-makers a balanced baseline they can trace and reproduce with confidence.
Key Questions Answered in the Report
What is the projected growth rate of the butane market to 2030?
The global butane market is forecast to grow at 4.23% CAGR, reaching 251.97 million tons in 2030.
Which region will contribute most to butane demand growth?
Asia-Pacific leads both volume and growth, already holding 54.18% share in 2024 and expected to expand at 5.28% CAGR through 2030.
Why does n-butane dominate product-type sales?
N-Butane meets winter gasoline vapor-pressure specifications and feeds expanding petrochemical crackers, giving it a 56.19% share and the fastest 4.94% CAGR.
How are price swings affecting market participants?
The butane producer-price index fell 32% between January and April 2025, prompting producers and traders to increase hedging and secure flexible contracts.
What end-use segment shows the fastest growth?
Engine-fuel applications, including autogas vehicles and LPG-fueled ships, are projected to grow at a 5.03% CAGR to 2030 thanks to environmental regulations and fuel-cost advantages.
What is the current value of the butane market?
The butane market size is expected to reach 204.82 million tons by 2025.
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