DUBLIN, Dec. 14, 2023 /PRNewswire/ — The “UAE LPG Market Competition Forecast & Opportunities, 2028” report has been added to ResearchAndMarkets.com’s offering.
UAE LPG Market is anticipated to reach a value of $2.47 billion by 2028, up from $1.56 billion in 2022, growing at CAGR of 8%
UAE’s LPG market is anticipated to develop in the next years because of the rising demand for clean cooking fuels in both rural and urban households. Liquefied petroleum gas production in the United Arab Emirates totaled over 587 thousand metric tonnes in 2019. In UAE, 70.3 million metric tonnes of refined petroleum products were produced overall. There are various commercial and industrial applications that will continue to be the main drivers of the LPG market growth in UAE.
Increasing Government Initiatives and Support for LPG Adoption to Aid Market Dynamics
UAE’s demand for LPG has grown significantly in recent years. UAE’s LPG consumption increased by 5% from the previous fiscal year (2019-20) to 27.6 million metric tonnes in 2020-21.
During the projected period, it is anticipated that this tendency would continue and intensify, mostly as a result of the nation’s supportive government measures. There are around 30.5 crore active LPG residential users in UAE as of April 2022, up from 14.9 crore customers in 2015. The number of home LPG consumers in the nation has significantly increased. Similarly, the number of LPG distributors in UAE increased from slightly under 9686 in 2010 and 15930 in 2015 to 25269 in April 2022.
Additionally, during the past few years, UAE has seen an increase in LPG bottling factories. The number of LPG bottling plants reached 202 in 2021, according to the Petroleum and Planning & Analysis Cell (PPAC), as the nation’s demand for LPG continued to climb. These changes have enabled UAE to increase its LPG coverage from about 56.2% in 2015 to 99.8% in 2021. During the forecast term, a comparable situation is anticipated to persist.
Increasing Utilization of LPG in Transportation as an Alternative Fuel to Augment Growth
Liquefied petroleum gas for automobiles, usually referred to as LPG or Autogas, is a typical fuel for vehicles. Auto gas is the non-blended alternative to conventional oil-based transport fuels like gasoline and diesel that is most widely used.
Over the past two decades, auto gas consumption has continuously risen, hitting a record high of 27.1 million tonnes in 2019 with an increase of 1% over the previous year. However, demand has recently fallen, in part as a result of increased fuel efficiency and a decline in the fleet of autogas vehicles in a number of significant regions.
Increasing Emphasis on Utilization of BioLPG
Propane produced from renewable feedstocks such plant and vegetable waste are known as bioLPG, renewable propane, or bio propane. Hence, bioLPG is a fuel that burns cleanly and has little effect on air quality. It is also a low-carbon alternative to switching from oil and coal in the business sector and has a long-term place in the energy mix.
Creating a healthy market for liquefied petroleum gas can serve as a springboard for a gradual switchover to bioLPG, a chemically indistinguishable but limitless variant of conventional LPG. BioLPG may be used in current LPG appliances and storage units and has a carbon intensity that is roughly 70-80% lower than that of oil, providing an economical route to decarbonization for commercial and industrial enterprises.
Rising demand for LPG in Domestic Power Generation and the Automobile Sector
The automotive industry has undergone a significant transition that is fuelling market expansion. A typical type of clean, low-carbon transportation fuel is LPG. It is kept in inflated cylindrical cylinders and utilized in construction, sailing, hospitality, and agriculture.
The business is also being driven by advances in the technology of natural gas extraction and purification. LPG production from natural gas is substantially higher than LPG production from crude oil. The gases and liquids present in natural gas, which are extracted from the earth’s crust and used to create LPG, include propane and butane. Natural gas accounts for the majority of the LPG produced in Dubai, with crude oil refinery producing the remaining percentage.
For instance, the UAE contributed 1.4% of the world’s natural gas output in 2020 by producing 55.4 billion cubic meters of gas. During Dubai‘s busiest summer months, natural gas usage is used to generate domestic power, reflecting the high-power requirements of cooling and air conditioning equipment. 2020 will see Qatari imports and domestic production meet all of the UAE’s natural gas needs. Qatar supplied the UAE with 20.2 billion cubic meters of natural gas.
Increasing Awareness of Green and Clean Energy
Both urbanization and industrialization have dramatically increased recently throughout the country. The flow of investment in Dubai has changed from wealthy nations to emerging regions due to lower labor and infrastructure expenses.
Investments in urbanization and industrialization have expanded, raising household income as well as the disposable income of the population’s middle- and lower-classes. Because of the use of liquefied petroleum gas in the residential and transportation sectors, market growth is anticipated in the future.
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the UAE LPG Market.
- Emirates Gas LLC (Emirates National Oil Company)
- Emirates General Petroleum Corporation (Emarat)
- ADNOC Distribution
- Brothers Gas
- Dubai Oil & Gas Company LLC
- United Gas Company LLC
- AD LPG
- Lootah BC
- Dubai Fuel Supply
- Smart Gas
Report Scope:
UAE LPG Market, By Application:
- Residential
- Industrial
- Commercial
- Agriculture
- Transportation
UAE LPG Market, By Source:
- Refinery
- Associated Gas
- Non-Associated Gas
UAE LPG Market, By Cylinder Capacity:
- 5kg
- 11-12.6kg
- 13-14.2kg
- 15-16.5kg
- 19-29.5kg
- More Than 29.5Kg
UAE LPG Market, By Region:
- Dubai
- Abu Dhabi
- Sharjah
- Rest of UAE
For more information about this report visit https://www.researchandmarkets.com/r/p3aqkt
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SOURCE Research and Markets
