Dublin, June 24, 2021 (GLOBE NEWSWIRE) -- The "Butane Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The Butane market size was estimated at over 148.39 million tons in 2020 and the market is estimated to witness a CAGR of over 6%, over the forecast period (2021-2026).
Butane market has been positively effected due to COVID 19 virus, as its major applications goes in Residential sector. For most part of the year, all families were at home, due to which the consumption of LPG cylinders has spiked for most part of the year. Major economies accross the world has witnessed a boom in the consumption of LPG cylinders. For example, India is the second largest LPG consumer in the world. According to Oil Mnistery, the sales in the domestic LPG sales have registerd a growth of 10.3 % during the fiscal year (April 2020 to February 2021). This inturn has boosted the demand for Butane market in 2020.
Over the long term, one of the major factors driving the market studied is the rising demand from petrochemical industries. Increasing R&D in the field of renewable sources is expected to affect the growth of the market studied, negatively. The increasing use of butane in power generation is likely to act as an opportunity in the future. Asia-Pacific dominated the world market, with the largest consumption generated from China and India. Middle East region is the prominent exporter of butane especially to Asia-Pacific.
Key Market Trends
Industrial segment to be one of the Fastest Growing
Butane is a highly flammable, colorless, and easily liquefied gas. Butane is a fossil fuel and is used in homes, on farms, in industry, transportation, etc.
Butane is used as LPG, refrigerant, lighters, and aerosols. It is also used to fuel the cutting torches and other equipment. Due to its ability to efficiently compress, gas canisters are an excellent choice for storing butane.
The application of butane in LPG is expected to increase the market of butane during the forecast period.
LPG is used as industrial fuel (in solution heating processes) and it is also used in centralized heating solutions, both for domestic, as well as industrial premises. Some other industries that rely mostly on LPG are food processing and paper industries. It is also used to produce electrical energy by running turbines. It has a lesser damaging impact on the atmosphere and environment and is more energy-efficient.
The paper and food processing industries are the top-most industries that heavily rely on LPG. It also has a major role in the plastic industry and is used in making explosives.
Owing to the enormous scope of butane in the industrial sector, the butane market is expected to grow substantially during the forecast period.
Asia-Pacific Region to Dominate the Market
Asia-Pacific dominated the global market share. It is the dominant region in the automobile industry. Automakers have invested hugely in developing diverse automobiles that run on alternative fuels. Some of them are gasoline (Iso-butane), CNG, etc.
These advanced technology vehicles are being introduced for sale at a rapid rate. Different technologies are being introduced, and the automakers are developing a range of automobiles that run on different fuels.
After the relaxation of the lockdown, Due to the growing transportation activities and increasing need for clean fuel sources in countries, such as China and Japan, the usage of butane is increasing in the region.
According to the Indian Oil Ministry, India holds the second largest LPG active consumers in the world and growing at a rate of 15%, followed by China, factors such as this are increasing the scope for the usage of butane in the region.
Indian LPG demand is growing significantly in the recent years due to the cleaner fuel push by the Government of India. Due to which in 2019 around 7 million tons of butane was imported in 2019, making India the largest importer of butane.
According to Petroleum Planning and Analysis Cell managed by Ministry of Petroleum and Natural Gas of India, the consumption in LPG has increased in India in the fiscal year 2020-21 by 5.2% with a consumption of 23.1 million tonnes and in the fiscal year 2019-2020 the consumption stood around 21.9 million tonnes. The LPG in India is expected to forecast a CAGR of 7.2% thus boosting the butane market during the forecast period.
Owing to the abovementioned factors, the increasing demand for butane is expected to increase exponentially in the Asia-Pacific region, during the forecast period.
The butane market is highly fragmented in nature with the presence of both international players and local players in the individual countries. The major companies include Exxon Mobil Corporation, BP, Shell International B.V., Chevron Phillips Chemical Company LLC, and Merck KGaA, among others.
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Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1.1 Rising Demand in Petrochemical Industry
4.1.2 Increasing Demand from Metal Working and Construction Industry
4.2.1 Increasing R&D in the Field of Renewable Sources
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5 MARKET SEGMENTATION
5.1 End-user Industry
5.1.2 Industrial ( including Chemical Feed Stock)
5.1.3 Engine Fuel
5.1.5 Other End-user Industries
5.2.1 Natural Gas
188.8.131.52 South Korea
184.108.40.206 Rest of Asia-Pacific
5.3.2 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
5.3.4 South America
126.96.36.199 Rest of South America
5.3.5 Middle-East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 South Africa
220.127.116.11 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.2 Chevron Phillips Chemical Company LLC
6.4.3 China Petroleum & Chemical Corporation
6.4.4 ConocoPhillips Company
6.4.6 Exxon Mobil Corporation
6.4.8 Merck KGaA
6.4.9 Shell International B.V.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Increasing Usage of Butane in Power Generation
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