Table of Contents
Overview
New York, NY – July 21, 2025 – The Global Butane Market is experiencing steady growth, driven by rising demand across various sectors. Valued at USD 94.0 billion in 2024, the market is projected to reach USD 143.2 billion by 2034, growing at a CAGR of 4.3% from 2025 to 2034.
In 2024, Gasoline Crude Oil commanded a leading 57.1% share in the “By Type” segment of the Butane Market. This dominance stems from the heavy reliance on gasoline and crude oil as primary sources for butane extraction. In 2024, Liquid Petroleum Gases (LPG) held a substantial 47.2% share in the “By Application” segment of the Butane Market.
Key Takeaways
- Global Butane Market is expected to be worth around USD 143.2 billion by 2034, up from USD 94.0 billion in 2024, and grow at a CAGR of 4.3% from 2025 to 2034.
- Gasoline and crude oil account for 57.1% of the butane market, reflecting refining demand trends.
- Liquid Petroleum Gases (LPG) represent 47.2% of the butane market, driven by household and commercial usage.
- Asia-Pacific held a dominant 46.2% share in the global butane market.
How Growth is Impacting the Economy
The Butane Market’s robust growth significantly impacts global economies. In Asia-Pacific, countries like India and China see increased LPG consumption, reducing reliance on traditional fuels like wood, boosting rural economies, and improving energy access. This shift creates jobs in LPG distribution and infrastructure, with India’s LPG connections rising by 2024.
In North America, shale gas expansion drives butane production, supporting the petrochemical industry, which accounts for global production. However, volatile crude oil prices challenge profitability. The market’s growth fosters economic diversification in the Middle East, enhancing refining capacities and export revenues. These dynamics stimulate investment, employment, and energy security across regions.
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Strategies for Businesses
Businesses in the butane market should focus on strategic partnerships to secure stable supply chains, as evidenced by the global butane supply contracted in 2025. Investing in low-emission technologies, like high-efficiency burners, can meet regulatory demands and enhance sustainability. Expanding into emerging markets, such as Africa and the Asia-Pacific region, where LPG demand is rising annually, presents significant growth opportunities. Additionally, diversifying applications, such as bio-based butadiene production, can mitigate risks from fossil fuel transitions. Companies should also leverage data-driven market analysis to optimize pricing and sourcing strategies.
Report Scope
| Market Value (2024) | USD 94.0 Billion |
| Forecast Revenue (2034) | USD 143.2 Billion |
| CAGR (2025-2034) | 4.3% |
| Segments Covered | By Type (Gasoline, Crude Oil, Natural Gas, Isobutane, Others), By Application ((Liquid Petroleum Gases (LPG)(Residential/Commercial, Chemical/Petrochemical (Industrial, Auto Fuel, Refinery, Others))), Petrochemicals, Refineries, Others) |
| Competitive Landscape | British Petroleum, Chevron Corporation, China National Petroleum Corporation (CNPC), ConocoPhillips, Devron Energy Corporation, Ecopetrol S.A., Exxon Mobil Corporation, Gazprom PJSC, Indian Oil Corporation Limited, Linde AG, Marathon Petroleum Corporation, Petrobras, PetroChina Company Limited, Phillips 66, Repsol S.A., TotalEnergies SE, Valero Energy Corporation |
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Key Market Segments
By Type Analysis: Gasoline Crude Oil
In 2024, Gasoline Crude Oil commanded a leading 57.1% share in the “By Type” segment of the Butane Market. This dominance stems from the heavy reliance on gasoline and crude oil as primary sources for butane extraction. The robust infrastructure and extensive refining capabilities for gasoline production facilitate seamless butane extraction as a byproduct.
High gasoline demand in transportation and industrial applications ensures a steady crude oil supply, supporting consistent butane production. The cost-effectiveness and efficiency of extracting butane from crude oil align with existing refining processes, minimizing the need for additional investments.
By Application Analysis: LPG
In 2024, Liquid Petroleum Gases (LPG) held a substantial 47.2% share in the “By Application” segment of the Butane Market. Butane’s prominence as a key LPG component drives its widespread use in domestic cooking, heating, and small-scale industrial applications. LPG’s clean-burning properties, portability, and convenience make it a preferred energy source.
Particularly in regions without natural gas infrastructure. Butane’s integration into LPG enhances combustion efficiency and stabilizes pressure within the gas mixture, sustaining demand across urban and rural markets. The ease of storing and transporting LPG cylinders further amplifies butane’s utility.
Regional Analysis
In 2024, the Asia-Pacific region led the global butane market, securing a 46.2% share with a market value of USD 43.4 billion. This leadership stems from robust demand in residential, commercial, and industrial sectors, fueled by population growth and urbanization in emerging economies. The region’s strong manufacturing base and increasing LPG consumption further solidify its dominance.
North America maintains a notable market share, driven by advanced refining infrastructure and steady demand for butane in petrochemicals and fuel blending. In Europe, the market is supported by environmental policies promoting cleaner fuels and widespread household use of butane. The Middle East & Africa region leverages its abundant natural gas resources to enhance production and export capabilities.
Latin America experiences moderate growth, primarily due to domestic energy demands and ongoing infrastructure development. Asia-Pacific remains the cornerstone of the global butane market, excelling in both market share and absolute value, with its rising consumption and favorable supply dynamics reinforcing its pivotal role.
Recent Developments
1. British Petroleum (BP)
- BP has expanded its butane production capacity by upgrading refineries in the U.S. and Europe, focusing on cleaner LPG applications. The company is investing in bio-butane research to align with net-zero goals. A recent partnership with a European energy firm aims to enhance butane supply for residential heating.
2. Chevron Corporation
- Chevron has increased butane exports from its U.S. Gulf Coast facilities, capitalizing on rising Asian demand. The company is optimizing butane blending in gasoline to meet octane requirements. Chevron also launched a pilot project for renewable butane from biofeedstocks.
3. China National Petroleum Corporation (CNPC)
- CNPC is boosting butane output at its refineries to meet domestic LPG demand. The company signed a long-term supply deal with a Middle Eastern producer to stabilize butane imports. CNPC is also testing butane-based petrochemical feedstocks.
4. ConocoPhillips
- ConocoPhillips is leveraging its U.S. shale assets to increase butane production for export markets. The company introduced a new butane storage facility in Texas to improve supply chain efficiency. It is also exploring butane’s role in hydrogen production.
5. Devron Energy Corporation
- Devron Energy has secured contracts to supply butane for Latin American LPG markets. The company is investing in modular butane extraction technology for smaller refineries. A recent partnership aims to develop butane-powered generators for off-grid applications.
Conclusion
The Butane Market’s growth, driven by LPG and petrochemical demand, is reshaping energy and economic landscapes. It supports job creation, energy access, and industrial growth, particularly in Asia-Pacific and the Middle East. Businesses can thrive by adopting sustainable technologies and targeting emerging markets. Despite challenges like crude oil price volatility, the market’s future remains promising, bolstered by innovation and supportive policies. Butane’s role as a cleaner fuel ensures its relevance in a transitioning energy sector.
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