New York City, 29 January 2019: The worldwide
Butane Market is was worth USD 66 billion in 2017 and is forecasted to grow at a
CAGR of 7.3 % from 2018 to 2026.
Liquified petroleum gas is nothing but a
form of butane that is used in commercial as well as residential heating and
cooking operations. Its market dynamics are directly proportional to the supply
and demand scenario of the oil and gas industry. Increasing application of LPG
and market penetration among rural areas of the developing nations is major
driving factor. It also adds to eliminating dependency on wood and an
incomplete combustion that eventually leads to greater amount of carbon dioxide
released to the atmosphere.
As considered to be an economical fuel
type, its growing demand from commercial applications has been the major
driving source. Rising rural area consumer income along with economic
development in many emerging or developing countries has added to its
consumption figures in the recent past years. Growing penetration of LPG has
eventually led to a decrease in fraction of deforestation.
Petrochemical is another potential
industry for butane use as it is a major fuel for petrochemical production. Increasing
demand for petrochemical products from almost every industry such as the
commodity products including plastics has been creating additional demand every
year. Petrochemical commodity products is directly proportional to the globally
increasing population, it urbanization, rising purchasing power of consumers,
development in material sciences.
The product has several other uses in
chemical and petrochemical production. Few of the other uses of the product
include as an engine fuel, industrial heating & drying applications etc.
Production of shale gas and tight oil
extraction in the U.S. offers competitive advantage for production of butane
compared to its production from conventional oil & gas in any other geography.
This is owing to its geographical competitive advantage and a more developed
and a completely efficient pipeline infrastructure in the country for its
transportation.
Competitive
Landscape and Key Vendors
Asia Pacific butane
market is the largest regional industry globally. China is the leading butane
market in the region. Favorable regulatory policies and several tax benefits offered
in nations including India and few others in the Southeast region are driving
the market growth. In addition to this, increasing LPG penetration in these
countries, growing urbanization, the developing petrochemical industry in
China, India, Japan etc. are among the primary driving forces of the regional
butane market.
Some of the major
multinational industry participants include British Petroleum, Exxon Mobil
Corporation, Royal Dutch Shell, China National Petroleum Corporation (CNPC), Total
S.A., and China Petroleum and Chemical Corporation (SINOPEC).
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