Butane market growth is driven by rising demand for liquefied petroleum gas
Global Butane Market size is predicted to surpass 266 million tons with projected gains higher than 2.8%. Rising LPG (liquefied petroleum gas) demand due to its acceptance as domestic fuel, specifically in APAC and Africa, is projected to promote global industry trends. Governments all across the globe are encouraging its usage to reduce greenhouse emissions and coal dependency. They are providing subsidy on LPG to promote its usage as domestic fuel.
Butane market price trend is projected to soften during forecast timeline due to crude oil movement. Rising use of auto gas due to operational cost advantages as compared to oil based fuels like gasoline is projected to promote industry demand. It possesses high energy ingredients and burns easily as compared to other fuels. Use of auto gas as fuel is growing rapidly during past few years owing to ecological advantages.
However, pollution of underground water due to leakage of methyl tert-butyl ether along with growing demand for ethanol as a replacement for gasoline is anticipated to hinder growth of global butane market in future.
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Global butane market is segmented into various applications like LPG, refinery and petrochemicals.
LPG segment was biggest and contributed higher than $121 billion for 2014. Rising demand for heating fuel in cold locations along with use of fuel for cooking purposes in APAC is anticipated to promote demand of butane for LPG production. Furthermore, most of the Asian and European nations have been accepting LPG as transportation fuel.
Global butane industry is segmented into geographical locations like North America, MENA, Latin America, APAC and Europe.
APAC, led by India and China butane market, contributed key industry share and produced revenue about $57.1 billion for 2014. Increase in population and growing requirement for energy, specifically in rural areas of China and India for cooking is projected to stimulate the demand for butane.