A recent report published by
Infinium Global Research on the butane market provides an in-depth analysis of
segments and sub-segments in the global as well as regional butane market. The
study also highlights the impact of drivers, restraints, and macro indicators
on the global and regional butane market over the short term as well as long
term. The report is a comprehensive presentation of trends, forecasts, and dollar
values of the global butane market. According to the report, the global butane
market is projected to grow at a CAGR of 5.3% over the forecast period of 2020-2026.
Butane is not a greenhouse gas and
does not affect the ozone layer due to which it has become a replacement
material for chlorofluorocarbons (CFCs) acting as the propellant in aerosol
deodorants. It is highly flammable, colorless, heavier than air, and easily
liquefied. It is one of the most commonly used propellants for cooking and
heating purposes. Butane is mainly used as LPG in residential and commercial
purposes for heating and cooking purposes. There are numerous uses for butane gas,
including in fridges, lighters, and aerosols.
LPG emerged as the foremost
application in the global butane market. The rising LPG adoption on account of
subsidies offered by governments mainly in countries such as India and China is
projected to drive butane demand for LPG. The rising demand for liquid
petroleum gas (LPG) for various applications from residential and commercial
sectors is the key factor driving the growth of the global butane market.
Moreover, the use of butane as a petrochemical feedstock for producing ethylene
and other derivates are also driving the growth of the butane market.
Additionally, butane is also used as a feedstock component for the production
of base petrochemicals as a component of gasoline in steam cracking, as well as
as a fuel for cigarette lighters. However, volatility in crude oil prices and
stringent government regulations on environmental sustainability may hamper the
growth of the butane market. Rapid industrialization and the growing need for
capacity expansions of refineries in emerging economies like India and China
are likely to bring more opportunities to the butane industry. The increasing
needs for energy supply in automotive sectors as well as the rising focus on
technological developments are anticipated to offer lucrative opportunities to
the butane market over the forecast period. The concern over the spread of
coronavirus affected the butane market. The sudden COVID-19 crisis and the
control measures introduced by the government have moderately affected due to
which key players are focusing on keeping the business floating. However, gas
production, supply, and maintenance has been listed as an essential service by
the government due to booming demand from the residential and commercial
sector. These companies require permission to continue their operation during
such a pandemic. Manufacturers are focusing on the scale back their production
and deliver their essential services with a limited staff to maintain minimum
contact. LPG cylinder key players are witnessing a significant drop in demand
for petroleum products. Due to the sudden pandemic outbreak, the major
restriction on transportation and the temporary shutdown of workplaces impacted
the demand that fell by 50%.
Geographically, Asia Pacific held
the largest share in the butane market in 2019. China and India are the key
revenue generator in the Asia Pacific butane market. Factors such as rapid
urbanization, increasing demand for gas from refineries and chemical processing
units will drive the growth of the Asia Pacific butane market. Rapid expanding
construction and the automotive industry in emerging countries such as China
and India propel market growth. Additionally, butane-heavy LPG household use in
Southeast Asia will contribute to Asia’s pull of global butane molecules. North
America is anticipated to hold the second-largest share of the butane market.
The US is the major key revenue generator owing to the rising demand for
natural gas liquids and supportive government regulations.
The report on the global butane market
covers segments such as application. On the basis of application, the
sub-markets include LPG, petrochemicals, refineries, and others.
The report provides profiles of
the companies in the market such as Valero Energy Corporation, Sinopec Group,
Exxon Mobil Corp., Chevron Corp., British Petroleum, ConocoPhillips Inc., Royal
Dutch Shell PLC, Total S.A, China National Petroleum Corp., and Praxair.
The report provides deep insights
into the demand forecasts, market trends, and micro and macro indicators. In
addition, this report provides insights into the factors that are driving and
restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis
given in the report brings an insight into the investment areas that existing
or new market players can consider. The report provides insights into the
market using analytical tools such as Porter's five forces analysis and DRO
analysis of the butane market. Moreover, the study highlights current market trends
and provides forecasts from 2020-2026. We also have highlighted future trends in
the market that will affect the demand during the forecast period. Moreover,
the competitive analysis given in each regional market brings an insight into
the market share of the leading players.