PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1720033
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1720033
Liquefied Petroleum Gas Storage Market size was valued at US$ 83,019.43 Million in 2024, expanding at a CAGR of 2.01% from 2025 to 2032.
Liquefied Petroleum Gas (LPG) Storage refers to the containment and safekeeping of propane, butane, or their mixtures in specialized facilities before the Source of Production or use. LPG is stored under high pressure or low temperatures to maintain its liquid state, ensuring safe handling and transportation. Depending on the volume and application, storage facilities include above-ground and underground tanks, spheres, cylinders, and refrigerated terminals. Large-scale storage is essential for industrial, residential, and commercial sectors, ensuring a steady supply. Safety measures such as pressure relief systems, leak detection, and fire suppression are crucial to prevent hazards due to LPG's flammability.
Liquefied Petroleum Gas Storage Market- Market Dynamics
Rapid urbanisation and the rising demand for clean and efficient fuel sources to propel market demand
The growth of the liquefied petroleum gas (LPG) storage market is driven by rapid urbanisation and the rising demand for clean and efficient fuel sources to minimise environmental impact. Governments worldwide are introducing policies and initiatives to enhance LPG accessibility, which plays a pivotal role in industry expansion. Increasing energy consumption, fueled by urban population growth and rising fuel demand across industries, accelerates market development. Government subsidies and incentives promoting LPG adoption, particularly in regions reliant on biomass for cooking, are shaping industry trends. Additionally, the expansion of storage infrastructure, advancements in materials, and the integration of digital monitoring systems enhance operational efficiency. The widespread use of LPG in industrial applications, such as manufacturing, refining, and petrochemicals, along with its growing adoption in the automotive sector, further strengthens the market outlook.
Liquefied Petroleum Gas Storage Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 2.01% over the forecast period (2025-2032)
Based on storage type segmentation, pressurized tanks was predicted to show maximum market share in the year 2024
Based on Source of Production segmentation, Natural Gas Liquids was the leading application in 2024
On the basis of region, North America was the leading revenue generator in 2024
The Global Liquefied Petroleum Gas Storage Market is segmented on the basis of Storage type, Application, Source of Production, and Region.
The market is divided into two categories based on storage type: Pressurized tanks, Refrigerated tanks. The pressurized tanks segment is expected to lead the market in 2024. These tanks play a crucial role in the safe storage and efficient distribution of LPG, maintaining it in a liquid state under pressure to ensure high energy density and ease of transportation. Their ability to store large volumes in a compact space makes them ideal for residential and industrial applications, reinforcing market growth. Additionally, the integration of advanced features such as enhanced insulation, corrosion-resistant materials, and monitoring systems is set to drive the adoption of pressurized tanks further.
The market is divided into two categories based on source of production: Crude Oil and Natural Gas Liquids. Natural gas liquid dominates global LPG production due to its significantly higher yield than crude oil refining. When extracted from the earth's crust, natural gas contains a mix of hydrocarbons, including propane and butane, which are separated to produce LPG. In contrast, crude oil contributes a smaller share of LPG as a byproduct of refinery processing. North America, particularly the United States, leads in LPG production from natural gas liquids (NGLs). In 2021, the U.S. accounted for 151,604 metric tons of NGLs, the highest globally, with a 4.2% increase from 2020. According to the BP Statistical Review of World Energy 2022, global natural gas liquids production reached 12,047 thousand barrels per day in 2021, growing at 2.2% annually. This upward trend highlights the increasing reliance on natural gas as the primary source of LPG, driven by technological advancements, infrastructure expansion, and abundant reserves.
Liquefied Petroleum Gas Storage Market- Geographical Insights
The market is divided into five regions: North America, Europe, Asia Pacific, Latin America, Middle East and Africa. North America leads the LPG storage market due to its dominant role in global production. In 2021, the region accounted for approximately 1,980,085 thousand barrels per day of natural gas liquids (NGL) production, with a substantial portion allocated to LPG production. The United States and Canada are key producers and exporters, leveraging abundant natural gas reserves and advanced extraction technologies. Mexico's contribution through crude oil refineries further strengthens North America's position as a significant LPG-producing hub. The region's robust infrastructure, extensive storage facilities, and export capabilities solidify its dominance in the LPG storage market.
Companies in the LPG storage market adopt several strategies to maintain their competitive edge. Technological advancements play a significant role in maintaining competitiveness within this market. Companies are integrating automated monitoring systems, IoT-enabled sensors, and AI-driven predictive maintenance to enhance safety, reduce operational costs, and minimise downtime. Sustainability initiatives are also gaining traction, with firms exploring low-emission storage solutions and carbon capture technologies to align with global environmental regulations. Additionally, strategic partnerships and mergers allow companies to strengthen their market presence. Collaborations with energy firms, logistics providers, and government entities help secure long-term contracts and ensure steady demand. Diversification of services, such as offering value-added solutions like bulk LPG Source of Production, pipeline integration, and digitalised supply chain management, further enhances competitiveness. By focusing on infrastructure development, technology adoption, sustainability, and strategic alliances, companies in the LPG storage market continue to reinforce their market leadership.
In October 2022, Maire Tecnimont S.p.A. announced that its leading subsidiary, Tecnimont S.p.A., secured an EPC contract from SONATRACH's Direction Centrale Engineering & Project Management for the construction of an LPG extraction plant within the Rhourde El Baguel oil and gas treatment complex in northeastern Algeria. The contract is valued at approximately USD 380 million.