Global butane market size is anticipated to surpass 285 million tons by 2024 owing to its applications in refinery, LPG, and petrochemicals. Rising acceptance of LPG as a domestic fuel coupled with government efforts to provide LPG at subsidized rates to minimize the greenhouse emissions are few of the factors predicted to fuel the industry growth. Furthermore, launch of various programs by the government encouraging LPG use is expected to drive the demand for butane over the coming years.
Butane Market size is expected to exceed 285 million tons by 2024
Butane industry size is estimated to surpass 285 million tons by 2024, growing at a CAGR of around 2.5% over the period of 2018-2024. Growing consumption of LPG as compared to oil based fuels like diesel or gasoline due to its functional, environmental, and cost advantages is anticipated to boost the market growth over the forecast period.
However, water contamination by methyl tert-butyl ether release along with growing demand for ethanol as a gasoline alternative is predicted to challenge the market growth over the coming years.
Butane market is segmented in terms of applications and regions.
Applications segment comprises LPG, refinery, and petrochemicals applications.
Petrochemicals application segment is predicted to record highest gains over 2018-2024
Petrochemicals application is predicted to witness a substantial growth over the forecast timeline owing to the increase in Ethylene capacity in the Middle East resulting in heavy butane demand coupled with expansion of the petrochemical industry across this region.
LPG application segment size worth over USD 50 billion in 2017, is projected to witness a noticeable growth over the forecast timeline owing to heavy demand for heating fuels in cold regions along with the use of LPG as a cooking fuel in Asia Pacific regions. Furthermore, many of the countries in Asia and Europe are using LPG as a transportation fuel and this is predicted to drive the demand for butane over the coming eight years.
Asia Pacific butane market is anticipated to witness a significant growth over 2018-2024
Middle East and North America butane market is projected to witness a noticeable growth over the forecast timeframe due to the growing use of LPG as a feedstock in refineries and chemical factories in the region. Saudi Arabia, Nigeria, UAE, and Qatar are predicted to contribute significantly towards the regional growth.
Asia Pacific butane market share worth over USD 25 billion in 2017, is expected to witness a noticeable growth over the forecast timeline as a result of increase in population along with growing fuel requirements for cooking purpose primarily in rural areas of China and India.
Key industry players include Royal Dutch Shell, Exxon Mobil Corporation, SINOPEC Company, British Petroleum, Chevron Corporation, ConocoPhillips Corporation, Devron Energy Company, and Total S.A Company.