Butane Market Size, Share, Growth Analysis, By Type(Isobutane, and N-butane.), By Application(Liquefied petroleum gas LPG, petrochemicals, refinery, and others), By Region - Industry Forecast 2024-2031

Butane Market size was USD 108.43 billion in 2022 and is projected to rise from USD 112.88 billion in 2023 to reach USD 155.67 billion by 2031, by exhibiting a CAGR of 4.10% during the forecast period (2024-2031).

The nature of competition for the butane market is likely to get more intensified with the increase in number of participants. Significant strategies such as technology launches, acquisitions, and investments on R&D are important strategies for players in the butane market. 'Exxon Mobil Corporation', 'British Petroleum (BP) plc', 'Royal Dutch Shell plc', 'Sinopec', 'Chevron Corporation', 'China National Petroleum Corporation (CNPC)', 'Total SA', 'ConocoPhillips Company', 'Lukoil', 'Eni S.p.A.', 'China Petroleum & Chemical Corporation (Sinopec)', 'PetroChina Company Limited', 'Gazprom', 'Marathon Petroleum Corporation', 'Phillips 66', 'Valero Energy Corporation', 'Hess Corporation', 'Occidental Petroleum Corporation', 'PTT Public Company Limited', 'SK Innovation', 'In March 2024, Trading and Exploitation Company (Tradex), specializing in the marketing of petroleum products, initiated an international tender process to recruit a supplier for 66,000 commercial butane 12.5kg gas cylinders and 600 cylinders of 50 kg each, equipped with a valve and level indicator.', 'In November 2023, Spartan Delta Corp. announced the completion of a series of asset acquisitions in the West Shale Basin Duvernay for aggregate cash consideration of approximately $25 million and preliminary 2024 guidance. ', 'In May 2023, Trimac Transportation acquired Transport Sylvain Lasalle, a provider of bulk pressure transportation services in Eastern Canada, the company announced Thursday. The Joliette and St. Hyacinthe, Quebec-based company is a leading carrier of propane and butane gas for end users and distribution sites.'

A growing number of government subsidy initiatives in China, India and Indonesia aimed at forward LPG over other fossil fuels are supporting the growth of the market. In 2016, the Indian government started the Pradhan Mantri Ujjwala Yojana (PMUY) program, through which it aimed to distribute 50 million LPG cylinders to families below the poverty line. The Indonesian government began the Kerosene to LP Gas Conversion Programme in order to encourage the use of LP gas and avoid the use of kerosene as cooking fuel among households in the region. The Indonesian government distributed the 3 kg refillable LPG cylinders along with the stove to the household under the scheme.

Butane and isobutane are both commonly used as aerosols products, such as deodorants. A few years ago, Chlorofluorocarbons were used in a particular product. These chemicals have been found to deplete the ozone layer, and so strict environmental regulations have been put in place to limit their use. Butane has an advantage over other alternatives. It is expensive and easily liquified.

Asia Pacific accounted for the largest share in the butane market in 2022.Countries such as India, China, Bangladesh, Indonesia and others are contributing significantly to this regional market revenue. The economies of these countries are growing rapidly, and their demand for LPG is increasing. Other businesses that use chemicals, such as hoteliers and chemical manufacturers, may also find these products useful. The outbreak of the Covid-19 has dented the LPG demand in 2020. The demand for LPG dropped in Bangladesh by 40%in just one month, after the imposition of lockdown restrictions. China also reported a lower import of propane during the lockdown restrictions. It reported a 17% fall in propane imports in March 2020.