The market for Bio LPG is expected to grow at a CAGR of around 47.1% from 2020 to 2027 and expected to reach the market value of around US$ 60.4 Bn by 2027.
Bio LPG is sustainable, renewable as it is made from a blend of waste, residues, and sustainably sourced materials. It's an eco-propane chemically identical to LPG and also compatible with all LPG products. It’s a gaseous fuel that comes from production processes using renewable and organic feedstock. Moreover, Bio LPG can be blended at any rate and still be used in existing infrastructure and appliances which helps distributors and consumers as they don't need to change or upgrade their equipment or appliances to switch to a renewable energy solution.
The increasing demand for liquefied petroleum gas in the industrial sector across the globe and especially in emerging economies is driving the market growth. The rising environmental issues including high carbon emission and climate change are supporting the demand and production of Bio LPG in the market. The liquefied petroleum gas (LPG) is preferable over oil as it is cleaner as well as it releases less CO2 per unit than oil and coal. Additionally, made from sustainably sourced and technically approved raw materials, and more than 60% is derived from waste and residues is the factor boosting the growth in the market. The changed investment flow from developed nations to developing nations due to low infrastructure and labor costs is further supporting the market growth. Rapid industrialization, urbanization, increasing discretionary income, and rising adoption of LPG in residential and transportation sectors are further bolstering the market growth.
On the other hand, uncertainty associated with the reimbursement policies and government subsidies are likely to limit the growth to an extent over the forecast timeframe from 2020 to 2027.
Regional Instance of Global Bio LPG Market
In Europe, Bio LPG is increasingly coming to market as a direct renewable replacement for LPG in growing volumes. Most of the largest companies have defined 100% renewable targets in the region. LPG has a carbon intensity of around 70-80 percent lower than oil and can be used in existing LPG infrastructure, appliances, and storage units, which is a factor allowing a cost-effective pathway to de-carbonization for industrial and commercial businesses. The UK is one of the first major countries in the world that has developed a legally binding net zero emissions target. To reach this target by 2050, the country will require substantial emission reduction efforts across the economy, in a limited timeframe.
Asia Pacific is projected to exhibit fastest growth over the forecast period from 2020 to 2027
Asia Pacific is anticipated to exhibit the fastest growth with major CAGR (%) over the forecast timeframe from 2020 to 2027. The developing infrastructure and rising focus towards the use of eco-friendly energy sources can help in the reduction of emissions. The major economies of the region including Japan, China, Australia, and India are the major contributors to the regional market value. Additionally, the rising focus of major players in the region, particularly to take advantage of available opportunities is additionally proliferating the regional market value. Cleaner fuels like LPG and bioLPG support businesses in reducing emissions along with regulatory compliance. Especially, agricultural, commercial, and industrial sector companies use high-carbon fossil fuels such as oil, LPG, and Bio LPG, these can deliver lasting emission reductions. Moreover, this can be attained with cost-efficiency while maintaining brand messaging.
Key Market Players
The players profiled in the report include AvantiGas, Diamond Green, ENI, Irving Oil, Neste, Preem AB, Renewable Energy Group, Inc., Repsol, and SHV Energy among others.
Market By Feedstock
Market By End-User
Market By Geography
Middle East & Africa
The market for bio LPG is expected to reach a market value of around US$ 60.4 Bn by 2027.
The bio LPG market is expected to grow at a CAGR of around 47.1% from 2020 to 2027.
The segments by feedstock in the bio LPG market include bio-oil, sugar, and others.
The increasing demand for liquefied petroleum gas in the industrial sector, rising environmental issues including high carbon emission and climate change, made from sustainably sourced and technically approved raw materials and more than 60% is derived from waste and residues, changed investment flow from developed nations to developing nations due to low infrastructure and labor cost, rapid industrialization, urbanization, increasing discretionary income, and rising adoption of LPG in residential and transportation sectors are some of the major drivers of the global bio LPG market.
AvantiGas, Diamond Green, ENI, Irving Oil, Neste, Preem AB, Renewable Energy Group, Inc., Repsol, and SHV Energy among others are some of the prominent players in the market.
Europe has shown significant interest in the bio LPG market in the historic period from 2016 to 2019.
Asia Pacific is expected to be the fastest growing market over the forecast period