Global Butane Market – Industry Trends and Forecast to 2029

Butane Market Analysis and Size

Butane is widely used as a mixture of isomers in various applications which propel its market growth during the forecast period of 2022 to 2029. Most prominently butane is used in the form of liquefied petroleum gas (LPG) in household and commercial applications.

Data Bridge Market Research analyses that the butane market which was growing at a value of 7.96 million in 2021 and is expected to reach the value of USD 11.85 million by 2029, at a CAGR of 5.10% during the forecast period.  In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Butane Market Scope and Segmentation

Market Definition

Butane is an alkane family hydrocarbon with four carbon atoms attached. Butanes can be one of two structural isomers, n-butane (normal butane), isobutene, or a mixture of the two. Butane is a colourless gas that is flammable and easily liquefied. Butane has a density of approximately 575 kg per cubic metre at 15 degrees Celsius, making it heavier than air. Butane has a boiling point of roughly -1 degree Celsius and a flash point of approximately -40 degree Celsius.

Global Butane Market Dynamics

Drivers

• Government subsidies program is fetching market growth

Butane demand is being driven by the increasing demand for LPG in various automotive and commercial fields and the ability to emit minimal carbon dioxide. A distinct factor indicates that the growing number of government initiatives for subsidies in places such as China, India, and Indonesia to promote the use of LPG over other fossil fuels will drive butane demand. Similarly, the increased adoption of natural gas vehicles in places such as Germany, the United States, India, and others due to government support will increase demand for butane. Other environmental factors, such as the daily high rise in the cost of fossil fuels, government rules, regulations, and norms, are also driving the butane market so well.

• High application in petrochemical industry

Butane's next major application is in the petrochemical industry. It is used as a feedstock to produce a wide range of petrochemicals, including primary petrochemicals like ethylene and downstream petrochemicals like butadiene (a key raw material for the production of synthetic rubber). Butanes are also used as a blending agent in gasoline in refineries. Butane is also used as a fuel in cigarette lighters and as a propellant in aerosol sprays such as deodorants.

Opportunities

• Favourable regulations

The overall market is a very exclusive market that is undergoing consolidation. As of the participants and other personas compete against each other, it is a fantastic opportunity for the market. Another possibility is to follow the government's rules and regulations so that not only the government, but also the consumers, become the market's backbone.

Restraints

• Ground water contamination

Groundwater contamination due to methyltert-butyl ether (MTBE) leakage will stymie market growth. Furthermore, the growing popularity of ethanol as a gasoline substitute may reduce butane demand. Due to the high incidence of human health hazards associated with inhaling this gas, the global butane market must adhere to stringent regulatory standards. The Environmental Protection Agency's (EPA) strict mandates on additives and fuels have resulted in a ban on the use of MTBE in gasoline blending. This is done to address the issue of groundwater contamination.

This butane market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the butane market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

COVID-19 Impact on Butane Market

The COVID 19 virus has positively impacted the butane market, as its primary application is in the residential sector. As most families were at home for most of the year, consumption of LPG cylinders increased for most of the year. Consumption of LPG cylinders has increased in major economies around the world. For example, India is the world's second largest consumer of LPG. According to Oil Market Statistics, domestic LPG sales increased by 10.3% during the fiscal year (April 2020 to February 2021). As a result, the demand for Butane in 2020 has increased.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Development

• On February 14, 2020 The Egyptian Petroleum Ministry announced the signing of a US$ 2.5 billion contract for developing a lower-quality heavy fuels hydrocracking complex in Assiut, the largest oil refining project to be implemented in Upper Egypt. The Assiut complex would have a capacity of 2.8 million tonnes per year and would also produce butane and naphtha, which would be used in the production of high-octane gasoline.
• In January 2020 As part of India's practice strategy, the Indian Oil Corporation Ltd (IOCL) announced plans to assist Ghana's National Petroleum Authority (NPA) in expanding the country's liquefied petroleum gas (LPG) network.

 Global Butane Market Scope

The butane market is segmented on the basis of type and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Gasoline Crude Oil
• Natural Gas
• Isobutane
• Others

Application

• LPG
• Residential
• Commercial
• Others
• Petrochemical Refineries

Butane Market Regional Analysis/Insights

The butane market is analysed and market size insights and trends are provided by country, type and application as referenced above.

The countries covered in the butane market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific dominated the butane market because of supportive government policies and subsidies, China and India are the major contributors, resulting in increased demand for butane. The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Butane Market Share Analysis

The butane market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to butane market.

Some of the major players operating in the butane market are:

• 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)
• LUKOIL (Russia)
• ROSNEFT (Russia)
• Abu Dhabi National Oil Company (UAE)
• China Petrochemical Corporation. (China)
• Petroliam Nasional Berhad (Malaysia)
• Eni S.p.A. (Italy)
• ENOC Company (UAE)
• NNPC (Nigeria)
• EGPC (Egypt)
• Equinor ASA (Norway)
• Oil and Natural Gas Corporation (India)
• P.T. Pertamina Gas (Indonesia)

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