Butane Market Overview:
Butane Market size was valued at USD 65.11 Billion in 2021, registering a CAGR of 4.3% during the forecast period (2022-2030), and the market is projected to be worth USD 95.11 Billion by 2030.
A huge amount of total butane is utilized in the manufacturing of liquid petroleum gas (LPG). LPG is utilized across the globe for commercial and residential purposes predominantly for heating and cooking purposes. Additionally, butane is used in the manufacturing of ethylene in the industry of petrochemical and is also an antecedent for the production of butadiene which is a significant raw material for the manufacturing of synthetic rubber. Thus, the growth in the rubber industry is directly proportionate to the growth of the butane market. The rising utilization of butane torches in the manufacturing of glass, the construction industry, and plumbing have increased has played an important role in the market growth of butane. Butane is inexpensive and can be liquified easily.
Based on the market share, the Asia-Pacific region is having more share in the global market of butane. Due to the increasing demand for CNG and LPG in these areas. The factors like the increasing number of vehicles and high population density have raised the demand for fuel in these regions. The middle east market is anticipated to grow at a vital pace as there is a huge number of refineries in these areas.
Market Dynamics:
Butane is a colorless alkane that is highly flammable and starts to transform into liquefied gas after the initiation of vaporization at room temperature. Typically, butane is utilized as a mix of isomers in a wide range of applications. This chemical compound occurs in natural gas, and crude oil and is found in large quantities during the refining process of petroleum that results in the production of gasoline.
Driver:
The demand for butane has significantly augmented as liquified petroleum gas in multiple commercial and automotive fields due to its ability to efficiently emission of carbon dioxide. Furthermore, the growing applications in the petrochemical industry as blending agents in gasoline have accelerated the market growth during the forecast period. The governments of developing nations are predominantly promoting the adoption of liquefied cylinders for residential purposes. Moreover, many subsidies are offered by the nation’s government to increase the consumption of LPG. Additionally, the hotel business is increasing promptly in developing countries due to an increase in population and disposable income. This will increase the growth of the butane market in the forecasting period.
Restraint:
The strong presence of other alternatives like methane is a significant challenge for the market of butane. There is a huge demand for methane in the market which is a natural gas and the availability of this gas in abundance is attracting consumers. This may hamper the market of natural gas. Furthermore, the increasing demand for ethanol as a substitute for gasoline will decline the demand for butane. Additionally, due to its hazardous nature associated with human inhalation, the global butane market is facing strict regulatory rules. The fluctuation of crude oil is also a restraining factor for the growth of the market of butane.
COVID-19 Impact:
The outbreak of the global pandemic COVID-19 severely affected the global butane market. COVID-19 has caused the shutdown of commercial places like malls and restaurants. As a result, the butane demand has dropped all over the globe, thereby affecting the market. Due to the lockdown all over the world, the transportation system has been disrupted significantly impacting the supply chain of butane across the world which has increased the supply–demand gap. Therefore, inefficiency in the supply of raw materials has hampered the growth of the market. The commercial demand for LPG declined as many hospitality and other similar businesses were closed during the strict lockdown. However, the situation is anticipated to improve as the respective nation’s government has relaxed the norms across the globe for the restart of businesses around the world.
Butane Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | 95.11 Billion |
| CAGR (2022-2030) | 4.3% |
| By Source | Natural gas, Refining |
| By Type | n- Butane, Isobutane |
| By Application | Residential/Commercial, Industrial, Engine fuel, Refinery, Chemical feedstock |
| By Geography | North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa |
| Key Players | Saudi Arabian Oil Co. (Saudi Arabia), Exxon Mobil Corporation (U.S.), CNPC (China), BP p.l.c (U.K.), Shell plc (U.K.), PDVSA – Petróleos de Venezuela, SA. (Venezuela), Gazprom (Russia), Chevron Corporation. (U.S.), Kuwait Petroleum Corporation (KPC) (Kuwait), Petrobras (Brazil) |
Market Segmentation:
By Source
Based on the source type the market is segmented into natural gas and refined butane. Butane is derived from natural gas which is extremely abundant across the globe. Naturally formed butane has its largest deposits in Canada. This is found in mud and the bottom of lakes. This gas is proportionately less expensive to produce and mine. Typically, it is a fossil fuel formed over the duration of some million years beneath the earth from the remains of animals, plants, and microorganisms. The natural gas form butane is utilized in lighters, torches, camping portable stoves, etc. Furthermore, refined butane is obtained from the process of crude oil distillation. Butane is the byproduct of crude oil.
By Type
Based on the type segment butane has two types namely n-Butane and Isobutane. Isobutane is anticipated to replace the hazardous chlorofluorocarbons (CFC) which are conventional and earlier utilized as deodorants, propellants, and refrigerants. The fuel gas-utilizing refineries will improve the properties to fuel the growth from 2021 to 2030. Furthermore, the petrochemical sector is anticipated to be the swiftly growing market over the period of forecast. Furthermore, the N-Butane segment holds a huge share of the market of butane in 2022. N-Butane is connected in a straight chain and is molded with gasoline to expand its volatility. It is a by-product of the process of crude oil refining. Whereas isobutane is vitally utilized as an alkylating agent to build various compounds with high octane numbers.
By Application
The application segment is incorporated with industrial, residential/commercial, engine fuel, chemical feedstock, and refinery. The residential and commercial segment is holding the largest share in the recent market trend. Increasing consumption of LPG for business and household purposes propels the market demand. Furthermore, the increase in the population has also raised the dependency on LPG for cooking in emerging nations as these nations cannot avail of gas pipelines network. Additionally, the chemical feedstock segment is the second-largest holder of the butane market. These are utilized to produce many chemicals like maleic anhydride, ethylene, and others. Typically, the engine fuel application is anticipated to gradually decline its market as there is an increase in the adoption of natural gas in the automobile.
By Region
The regional segment includes Asia Pacific, Europe, North America, the Middle East, and Africa, Latin America. The market is dominated by the Asia-Pacific region by occupying 42% of the market share in the period forecast. Developing countries like China and India are the most significant contributors due to supportive subsidies and policies availed by the government that as result has increased the butane demand. Moreover, with the rapid growth in the urbanization of China and India, the demand for LPG is increasing which in turn will increase the demand for butane. North America holds the second-largest share of the market followed by Europe, Africa, and the Middle east. Europe is the largest dependent on the supply of natural gas supply lines in the areas. Furthermore, Russia and Turkey utilize a huge share of butane for engine fuel.
Butane Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and Application launches have accelerated the growth of the Sample Preparation market. Key players in the market include-
- Saudi Arabian Oil Co. (Saudi Arabia)
- Exxon Mobil Corporation (U.S.)
- CNPC (China)
- Gazprom (Russia)
- Chevron Corporation. (U.S.)
- BP p.l.c (U.K.)
- Shell plc (U.K.)
- PDVSA – Petróleos de Venezuela, SA. (Venezuela)
- Kuwait Petroleum Corporation (KPC) (Kuwait)
- Petrobras (Brazil)
Recent developments
- In October 2019, ExxonMobil have signed a primary agreement with the Indian Oil Corporation to innovate and explore advanced models of providing cost-effective or inexpensive natural gas in India.
- In August 2019, CNPC a Chinese-led company discovered a new field where oil is available in South Sudan with recoverable oil which is more than 300 million barrels.
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