The Global Butane Market is expected to be valued at USD 158.37 Billion in 2027 from USD 90.47 Billion in 2019, registering a CAGR of 7.2% through the forecast period. The increasing pace of urbanization, increasing levels of disposable incomes, the rapid expansion of the automotive sector, and the augmented capacities of refineries in emerging economies are supporting the growth of the butane market in the projected timeframe.
Butane is a flammable, colorless, and liquefiable gas. It is an extensively used fossil fuel, predominantly used in farms, homes, industries, and transportation, among others. It is used as liquefied petroleum gas (LPG), refrigerant, aerosols, and lighters, among other applications. Butane gas is primarily stored in gas canisters as it can be quickly and easily compressed.
The Asia Pacific region dominated the market share in the global butane market owing to an established automotive industry in the region. The automotive manufacturers are developing vehicles that use alternative fuel sources, such as isobutane, CNG, and others. Rapid advancement in technology to develop alternative fuels is driving the market growth. The expansion of the transportation sector and the growing demand for clean energy sources in APAC countries such as China and Japan are further driving the usage and application of butane in the region. However, increasing volatility in crude oil prices and implementation of stringent regulations are key factors restraining the market growth.
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Key Highlights from Report:
- Butane can be extricated from gas processing units located near crude oil or natural gas reservoirs. Butane is generally the by-product of crude oil production and refining.
- The market demand is predominantly driven by the increasing demand for LPG in the automotive, residential and commercial sectors owing to its attribute of minimal carbon dioxide emission. LPG is also used as an industrial fuel and in centralized heating systems in both residential and industrial facilities.
- Butane can also be used to produce electricity through turbines and has a minimal detrimental effect on the environment. Butane is energy efficient and is also extensively used in the paper and food industry.
- Iso-butane is predominately used in refineries as an additive for gasoline such as petrol. The chemical is processed to generate alkylate via alkylation. Isobutane is used as a significant constituent in the preparation of isooctane that is used to boost octane rating and anti-knock attributes of gasoline. The use of isobutane in refineries and petrochemical industries is projected to bolster market growth.
- Major companies of the market include Devron Energy Corporation, Valero Energy Corporation, Chevron Corporation, China National Petroleum Corporation (CNPC), British Petroleum, Energy Corporation of America, Conocco Phillips Inc., Exxon Mobil Corporation, Royal Dutch Shell Plc., and Sinopec Group, among others.
- The Indonesian government initiated the Kerosene to LPG Conversion Program to encourage the adoption of LPG in households as a cooking fuel instead of kerosene. Under the scheme, nearly 3kgs of refillable LPG cylinders and stoves were distributed by the government to the nation’s households.
For the purpose of this report, Reports and Data has segmented the Global Butane Market on the basis of type, applications, end-user, and region:
Type Outlook (Revenue, USD Billion; Volume, Kilo Tons; 2017-2027)
- N-butane
- Isobutane
Application Outlook (Revenue, USD Billion; Volume, Kilo Tons; 2017-2027)
- Liquefied petroleum gas (LPG)
- Refineries
- Petrochemicals
- Others
End-User Outlook (Revenue, USD Billion; Volume, Kilo Tons; 2017-2027)
- Industrial
- Transportation
- Agriculture
- Residential
- Refrigerant
- Others
Regional Outlook (Revenue, USD Billion; Volume, Kilo Tons; 2017-2027)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- Italy
- France
- BENELUX
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Rest of APAC
- Latin America
- Brazil
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- U.A.E.
- South Africa
- Rest of MEA