Global Butane Market Size, Share, Opportunities, And Trends By End-user Industry (Residential, Industrial, Engine Fuel, Refinery, Others), By Source (Natural Gas, Refining), And By Geography - Forecasts From 2025 To 2030

The butane market is valued at USD 75.947 billion in 2025 and is projected to grow at a CAGR of 4.31% over the forecast period.

The butane market’s growth is attributed to its increasing application in making liquid petroleum gases (LPG) and the corresponding use of LPG for domestic demand. Increasing adoption of LPG as a domestic fuel in emerging economies of Asia Pacific, such as India and China, where it is one of the largest imported commodities, and the means of government subsidies will remain a key driving factor for the growing demand for butane.

• According to the World Integrated Trade Solution (WITS), the global import of butanes was 41.52 million metric tons in 2023. The top importers of liquefied butanes were India, China, Indonesia, the European Union, and Morocco.
• In Egypt, the government supplied around 3.6 million tons of butane gas, and Petrogas filled 310 million cylinders through 49 filling stations in fiscal year (FY) 2023/24. The government company Petrogas has 3,067 distribution centers.

What are the drivers of the butane market?

• Increasing demand from the construction industry

The construction and building industry worldwide is showing a significant pace of growth and development. One of the primary reasons for this industry's expansion is the growing global urbanization. This includes constructing parks, hospitals, hotels, restaurants, houses, buildings, etc., for a large urban population.

A construction site has several uses for energy, including cutting, welding, roofing, and drying. To carry out the tasks, reliable fuel is essential. This can be a mixture of hydrocarbons such as propane and butane, LPG, a popular fuel.

Besides the increase in the construction industry, according to Eurostat, in the European Union, building construction increased by 1.1% compared from 2022 to 2023, and civil engineering increased by 4.1%. Countries with significant increases are Romania, Poland, and Belgium, which are the top countries showing considerable growth in the region. This increase in the construction industry indicates an overall increase in raw materials for inputs, including the butane market.

The butane market is segmented into five regions worldwide:

By geography, the butane market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries.

The Asia Pacific region is expected to see notable growth in the butane market due to its increasing demand for household consumption.

In India, LPG refers to both liquefied propane and butane or mixtures. The number of LPG connections has grown significantly, from 14.52 crore in 2014 to over 32.73 crore as of August 1, 2024, including 10.33 crore PMUY connections. This increasing demand for household consumption will increase the need for butane in the country.

North America is expected to have a significant market share for butane products. The major applications of butane are in different industries, especially in the United States, such as aerosols, foam extrusion, packaging, cabinet heaters, etc.

Butane Market Restraints:

• The price fluctuation in the butane in the international market is a major challenge to the market's growth. The concerns over regional oversupply emerged at the end of the 2023 winter season. The regional butane demand dropped due to the transition to summer-grade gasoline, which limits the amount of butane that can be blended.

Product Offerings in the Butane Market:

• Butane Gas 250 Gms by Ashish Chemical– A Butane gas can of 250 grams is a versatile usage gas that belongs to the alkane family. It can be utilized in portable camping stoves, lighters, and torches. Due to its low boiling point, butane remains a liquid even when compressed. It is a colorless and odorless gas.
• Butane 99.0%- Linde plc. offers butane 99.0% AS UOM=WT% with Educator & Helum Pad. It is a cryogenic liquid. The material is kept in a high-pressure aluminum-style cylinder: a 20LB, 2000PSIG, CGA 510.

Key developments in the Butane market:

The major leaders in the Global Butane Market are BP plc, Chevron Phillips Chemical Company LLC, China Petrochemical Corporation, Exxon Mobil Corporation, and Linde plc, among others. These players implement growth strategies such as product launches, mergers, acquisitions, etc., to gain a competitive advantage. For Instance,

• In November 2024, Butane Energy Limited and the Nigerian Content Development and Monitoring Board (NCDMB) partnered to promote a cleaner and more cost-efficient cooking source in Nigeria. The Filling Plant was the second after the commissioning of another 100MT LPG Storage and Bottling Plant in Kabukawa Katsina as a part of a joint venture. The venture is to establish five such facilities in Northern Nigeria with a combined storage capacity of 1,000MT. Kano LPG Storage and Bottling Plant in Kano State will be commissioning in the first quarter of 2025. The construction work on another in Bauchi is at an advanced stage. Abuja will be next in line.
• In August 2024, Cepsa agreed to sell a liquefied gas subsidiary (Gasib) in Spain and Portugal to Abastible, a subsidiary of Chilean Empresas Copec. The agreement included maintaining the sale of butane, propane, and autogas under the Cepsa brand. As well as synergies for the production and distribution of products at service stations. This is the first major European investment by Abastible, a Liquefied Gas leader in Chile, Colombia, Ecuador, and Peru and a subsidiary of Empresas Copec.
• In July 2024, Enterprise Products Partners L.P. will be expanding its project along the Houston Ship Channel in response to customer demand for natural gas liquids export capacity. At the Enterprise Hydrocarbons Terminal, the company would be adding refrigeration capacity that increases propane and butane export capabilities by approximately 300,000 barrels per day. The expansion would increase loading rates for propane and butane while making additional capacity available for propylene exports. The expanded service is expected to begin by the end of 2026.
• In November 2022,  SHV Energy and US-based GTI Energy partnered to further develop a process for commercial-scale production of renewable propane and butane. The process was a novel technology for producing renewable propane and butane (bioLPG) from bioethanol. The process can deliver propane and butane as the primary products. This was a significant improvement on current commercial processes. The process can bring substantial volumes of this clean-burning renewable fuel to the market.

The collaboration of GTI Energy, SHV Energy, with Drochaid Research Services, a contract research organization, SHV Energy, developed a pathway to a renewable propane production process. The method identified a viable way to convert bioethanol into renewable propane. The process also yields a valuable co-product of aromatic molecules, a key component in sustainable aviation fuels.

The Butane Market is segmented and analyzed as below:

• By End-user Industry
  • Residential
  • Industrial
  • Engine Fuel
  • Refinery
  • Others
• By Source
  • Natural Gas
  • Refining
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Rest of the Middle East and Africa
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Rest of Asia-Pacific

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.1.1. Rising demand in the petrochemical industry

4.1.2. Increasing demand from the construction industry 

4.1.3. Increasing use of butane in deodorants

4.2. Market Restraints

4.2.1. Fluctuation in prices

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. BUTANE MARKET BY END-USER INDUSTRY

5.1. Introduction

5.2. Residential

5.3. Industrial

5.4. Engine Fuel

5.5. Refinery

5.6. Others

6. BUTANE MARKET BY SOURCE 

6.1. Introduction

6.2. Natural Gas

6.3. Refining 

7. BUTANE MARKET BY GEOGRAPHY

7.1. Global Overview

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Rest of South America

7.4. Europe

7.4.1. United Kingdom

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Spain

7.4.6. Rest of Europe

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. United Arab Emirates

7.5.3. Rest of the Middle East and Africa

7.6. Asia-Pacific

7.6.1. China

7.6.2. India

7.6.3. Japan

7.6.4. South Korea

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Indonesia

7.6.8. Rest of Asia-Pacific

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. BP plc

9.2. Chevron Phillips Chemical Company LLC

9.3. China Petrochemical Corporation

9.4. ConocoPhillips Company

9.5. Dow

9.6. Exxon Mobil Corporation

9.7. Linde plc

9.8. Merck KGaA

9.9. Shell plc

9.10. TotalEnergies

9.11. Ashish Chemical

9.12. Butane Energy Limited

BP plc

Chevron Phillips Chemical Company LLC

China Petrochemical Corporation

ConocoPhillips Company

Dow

Exxon Mobil Corporation

Linde plc

Merck KGaA

Shell plc

TotalEnergies

Ashish Chemical

Butane Energy Limited