Global Butane Market Size, Share, Growth Analysis, By Type(Isobutane, and N-butane.), By Application(Liquefied petroleum gas LPG, petrochemicals) - Industry Forecast 2023-2030

Butane Market size was valued at USD 103.96 billion in 2021 and is poised to grow from USD 108.43 billion in 2022 to USD 149.28 billion by 2030, growing at a CAGR of 4.1% in the forecast period (2023-2030).

Butane is commonly used as a mixture of isomers in various applications, with the two primary isomers being n-butane and isobutane. This colorless, flammable gas can be easily liquefied and is heavier than air, with a density of around 575 kg per cubic meter at 15 degrees Celsius. Its boiling point is approximately -1 degrees Celsius, and the flash point is around -40 degrees Celsius.

Butane is typically extracted from gas processing plants located near crude oil or natural gas reserves. Additionally, it can be obtained as a byproduct of crude oil production and refining processes. During crude oil refining in a refinery, butanes are also produced as by-products. The refining process involves fractionating crude oil in a tower, separating various end products such as gasoline, diesel, jet fuel, and lubes at different temperature levels or crude cuts.

Top-down and bottom-up approaches were used to estimate and validate the size of the Butane Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Butane Market Segmental Analysis

The Butane market is segmented on the basis of type, application, and region. The type segment is further sub-segmented into the isobutene, and n-butane. Based on classification by application, the market is grouped into liquefied petroleum gas (LPG), petrochemicals, refinery, and others. Geographically, the global market is widespread into North America, South America, Europe, Asia Pacific and MEA.

Driver

The market for LPG (liquefied petroleum gas) is being supported by increasing government subsidy initiatives in countries like China, India, and Indonesia, promoting the use of LPG as a cleaner alternative to other fossil fuels. Notably, in 2016, the Indian government launched the Pradhan Mantri Ujjwala Yojana (PMUY) program, which aimed to distribute 50 million LPG cylinders to economically disadvantaged families. In Indonesia, the government introduced the Kerosene to LP Gas Conversion Programme, encouraging households to switch from kerosene to LPG as a cooking fuel. Under this scheme, households were provided with 3 kg refillable LPG cylinders and stoves. These government initiatives have played a pivotal role in driving the growth of the LPG market in these regions and advancing the use of cleaner energy sources.

Restraints

The forecast period for the butane market may face challenges due to groundwater contamination caused by methyl tert butyl ether (MTBE). Additionally, the growing popularity of ethanol as a gasoline alternative could potentially impede the demand for butane. To ensure the safety of people, the butane market must adhere to stringent regulatory norms since butane can be harmful if inhaled, leading to various safety concerns associated with its usage. These factors may pose obstacles to the market's growth and necessitate measures to address environmental and safety issues related to butane.

Market Trends

Butane and isobutane are widely utilized in aerosol products, including deodorants. In the past, Chlorofluorocarbons (CFCs) were commonly used in certain products, but their detrimental impact on the ozone layer led to the implementation of strict environmental regulations to restrict their use. As a more favorable alternative, butane offers advantages due to its cost-effectiveness and easy liquefaction properties. These characteristics make butane an attractive choice for aerosol products, enabling manufacturers to comply with environmental regulations while maintaining product effectiveness and affordability.