PUBLISHER: TechSci Research | PRODUCT CODE: 1364021
PUBLISHER: TechSci Research | PRODUCT CODE: 1364021
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Dubai LPG market overall volume was 216.79 thousand tons in 2022 and is anticipated to project robust growth during the forecast period, with a CAGR of 5.95% owing to government initiatives and energy efficiency considerations.
LPG, an acronym for "liquefied petroleum gas," is a flammable hydrocarbon gas commonly utilized as a fuel for heating, cooking, and powering vehicles. It primarily consists of propane and butane, which are obtained through crude oil refining or natural gas extraction. LPG is stored under pressure in liquid form and vaporizes upon release from a pressurized container. LPG is renowned for its efficiency, versatility, and comparatively clean-burning nature in comparison to other fossil fuels. It finds widespread usage as a cooking fuel in households, particularly in areas lacking natural gas pipelines.
The significant expansion of Dubai's LPG market can be attributed to factors such as economic development, infrastructure investment, government initiatives, energy efficiency considerations, a thriving tourism sector, environmental concerns, and the city's regional commercial prominence. These elements have fostered a conducive environment for the increased adoption and utilization of LPG across diverse sectors, thereby propelling the growth of Dubai's market.
Market Overview | |
---|---|
Forecast Period | 2024-2028 |
Market Size 2022 | 216.79 Thousand Tonnes |
Market Size 2028 | 311.78 Thousand Tonnes |
CAGR 2023-2028 | 5.95% |
Fastest Growing Segment | Residential |
Largest Market | Deira |
The Dubai government is actively promoting the usage of liquefied petroleum gas (LPG), which is expected to drive a significant increase in demand. For instance, HE Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of Energy, announced that the city successfully reduced its carbon emissions by 33% in 2020, surpassing the targets set in the Dubai Carbon Abatement Strategy 2021. This noteworthy achievement highlights Dubai's commitment to reducing carbon emissions and embracing the adoption of LPG. As a result, the market is witnessing rapid growth.
Moreover, the population of Dubai is experiencing rapid growth, resulting in an escalating demand for LPG for cooking purposes. Anticipated growth in the Dubai LPG market can be attributed to the fact that LPG emits fewer emissions compared to gasoline and diesel, making it a more environmentally friendly choice for cooking. Additionally, LPG is a cost-effective fuel, rendering it an economical option for consumers. Recognizing this, the government of Dubai offers subsidies for LPG cylinders, enhancing affordability for consumers, while also providing tax incentives for LPG-powered vehicles. These factors are driving the growth of the market.
Dubai LPG market is segmented based on application, source, cylinder capacity, and region. Based on application, the market is further bifurcated into residential, industrial, agriculture, transportation, and commercial. Based on source, the market is further bifurcated into refinery, associated gas, and non-associated gas. Based on cylinder capacity, the market is further bifurcated into 5kg, 11-12.6kg, 13-14.2kg, 15-16.5kg, 19-29.5kg, and more than 29.5Kg. Based on region, the market is bifurcated into Deira, Bur Dubai, Jebel Ali, Jumeirah, and rest of Dubai.
Major market players in the Dubai LPG market are Emirates Gas LLC, Emirates General Petroleum Corporation, Abu Dhabi National Oil Company for Distribution PJSC, Brothers Gas Bottling & Distribution Co. LLC, Al Mandoos Gas Cylinders Trading LLC, Al Sakhra Gas Distribution LLC, Unigas Technical & Trading Co. L.L.C, Happy Way Gas Trading LLC (H W Gas), Lootah BCGas LLC, Dubai Fuel Supply LLC, and Smart Gas Services L.L.C.
In this report, Dubai LPG market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies present in the Dubai LPG market.
With the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: