United Kingdom LPG Market Insights Forecasts to 2033

• The Market Size is Growing at a CAGR of 12.82% from 2023 to 2033
• The U.K. LPG Market Size is Expected to Hold a Significant Share by 2033

The United Kingdom LPG Market Size is Expected to Hold a Significant Share by 2033, growing at a CAGR of 12.82% from 2023 to 2033.

Market Overview

Liquefied petroleum gas, or LPG, is an odorless, colorless liquid that turns into a gas very quickly. Commercial liquefied petroleum gas (LPG) is a combination of propane and butane. It originates from natural gas or petroleum. LPG is first liquefied for transportation before being vaporized for use as a heating fuel, engine fuel, or feedstock in the petrochemical or chemical industries. For process and space heating, cooking, and automobile propulsion, LPG (either butane or propane) is often delivered and stored as a liquid. It is categorized as very flammable and as a carcinogen and mutagen if it contains more than 0.1% butadiene. LPG is delivered in cylinders at comparatively low pressure to residential users. The majority of LPG generated is used as a raw material for chemical industries, while the remainder is used in central heating systems. Portable heaters, gas fireplaces, gas cooktops, and gas barbecue grills are all frequently powered by LPG.

Report Coverage

This research report categorizes the market for the UK LPG market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom LPG market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the U.K. LPG market.

Driving Factors

The market for liquefied petroleum gas (LPG) is mostly driven by environmental concerns and the clean energy transition. Increased public awareness of environmental issues, particularly those about air quality and greenhouse gas emissions, has prompted a movement toward cleaner energy source. As a cleaner-burning fuel than other fossil fuels like coal and oil, this has boosted the adoption of LPG. Liquid Gas UK, representing the LPG business in the UK, has announced a new ambition to transition to 100% bioLPG by 2040. BioLPG, which is now available on the UK market, reduces CO2 emissions more than existing LPG, and the sector has announced efforts to decarbonize. With up to a 90% decrease in carbon emissions.

Restraining Factors

UK refineries supplied the majority of domestic LPG, but this has been progressively reducing since the early 2010s due to a combination of underinvestment, underperformance, and closures. Production declined to 1.5 million tonnes in 2023, from 2.9 million tonnes in 2011.

Market Segmentation

The United Kingdom LPG market share is classified into source and end use.

• The non-associated gas segment is expected to hold a significant market share through the forecast period.    

The United Kingdom LPG market is segmented by source into associated gas, non-associated gas, and refinery. Among these, the non-associated gas segment is expected to hold a significant market share through the forecast period. As a result of higher LPG production from unrelated gas wells. Additionally, several industrial applications' growing demand for LPG is anticipated to fuel market expansion. Regional variations exist in fuel sources.

• The residential/commercial segment is anticipated to hold a significant share of the United Kingdom LPG market during the forecast period.       

Based on the end use, the United Kingdom LPG market is divided into agriculture, residential/commercial, industrial, transportation, and petrochemical & refinery. Among these, the residential/commercial segment is anticipated to hold a significant share of the United Kingdom LPG market during the forecast period. Government programs and incentives that are aimed at promoting products as the main substitute for conventional fuels including coal and wood are important drivers of this market's expansion. In the chemical and related sectors, it serves as a raw ingredient for the production of plastics.    

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the UK LPG market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Calor Gas Ltd
• Flogas Britain Ltd
• BP Gas
• Shell Gas
• Total Gas & Power Ltd
• Energas Ltd
• Countrywide Farmers
• AvantiGas ON Ltd
• Wesfarmers Kleenheat Gas Pty Ltd
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In April 2023, The Pierce field in the UK Central North Sea was modified by Shell U.K. Ltd., a subsidiary of Shell plc, to allow gas production after it had only produced oil for many years. Consequently, field operations have now fully resumed. Pierce is a joint venture between Ithaca Energy (UK) Limited (74.48%) and Shell Companies (92.52 % operator).

Market Segment

This study forecasts revenue at the UK, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the United Kingdom LPG Market based on the below-mentioned segments:

United Kingdom LPG Market, By Source

• Associated Gas
• Non-associated Gas
• Refinery

United Kingdom LPG Market, By End Use

• Agriculture
• Residential/Commercial
• Industrial
• Transportation
• Petrochemical & Refinery