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 |
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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.
