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Butane Market (Application - LPG, Petrochemicals, Refineries, and Others): Global Industry Analysis, Trends, Size, Share and Forecasts to 2026

  • Published : August, 2020

  • Rep Id : CM0011

  • Category : Chemicals & Materials

  • Status : Published

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.


Market Insight

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.

 

Segment Covered

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.

 

Companies Profiled:

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.

 

Report Highlights:

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.


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