Butane Market Size Worth USD 96.02 Billion by 2034 | CAGR: 4.6%

The global butane market size is expected to reach USD 96.02 billion by 2034, according to a new study by Polaris Market Research. The report “Butane Market Size, Share, Trends, Industry Analysis Report: By Application (LPG, Petrochemicals, Refineries, and Others) and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Butane is a natural gas liquid and a refinery product, typically derived from crude oil refining and natural gas processing. It exhibits properties such as easy liquefication and high flammability, making it increasingly used in fuel manufacturing and blending. It is also widely used in petrochemical production.

The increased demand for LPG, which has butane as its key component, primarily fuels the butane market growth. Higher consumer income and rural development in several nations have increased awareness and shifted consumer preferences toward the use of LPG cylinders in residential applications. The use of LPG has reduced dependency on forest products for combustion purposes. LPG is also used widely in many developed countries for fuel and residential applications.

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Favorable regulatory policies and government subsidies have also significantly contributed to the rising LPG consumption, thereby having a favorable impact on the butane market expansion. In countries such as India, the government subsidizes LPG cylinders based on the number of cylinders per household. Furthermore, several schemes have been introduced to provide LPG access to rural consumers. All these parameters have collectively contributed to the increased consumption of butane.

Key Highlights of Butane Market Report

• Based on application, the LPG segment dominated the market with a revenue share of 72.5% in 2024. The rising consumption of LPG as a fuel for heating and cooking purposes in commercial and residential applications and the growing demand for auto fuel due to the increasing use of cars and other vehicles for daily commutes drive the robust growth of the segment.
• Based on application, the petrochemicals segment is projected to witness the fastest growth from 2025 to 2034. The increasing utilization of petrochemicals in applications such as medical equipment, detergent, tires, plastics, and fertilizers is projected to influence the growth of the segment.
• Asia Pacific dominated the butane market with a revenue share of 39.4% in 2024. The presence of supportive government policies and subsidies in countries such as India and the growth of end-use industries drive higher consumption of butane in the region.
• North America is anticipated to witness significant growth from 2025 to 2034. The rapid advancement of the shale revolution in the US and the development of new hydrocarbon gas liquid facilities along the Gulf Coast are key contributors to the regional market growth.
• China National Petroleum Corporation (CNPC), British Petroleum, Chevron Corporation, Valero Energy Corporation, Exxon Mobil Corporation, Proton Gases India Pvt. Ltd., Conocco Phillips Inc., Linde AG, TotalEnergies, Praxair, Devron Energy Corporation, Perenco, and Royal Dutch Shell plc. are a few of the key players in the market.

Polaris Market Research has segmented the butane market report on the basis of application and region:

By Application Outlook (Revenue – USD Billion, 2020–2034)

• LPG
  • Residential/Commercial
  • Chemical/Petrochemical
  • Industrial
  • Auto Fuel
  • Refinery
  • Others
• Petrochemicals
• Refineries
• Others

By Regional Outlook (Revenue – USD Billion, 2020–2034)

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Netherlands
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Malaysia
  • South Korea
  • Indonesia
  • Australia
  • Rest of Asia Pacific
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Israel
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Mexico
  • Brazil
  • Argentina
  • Rest of Latin America

Butane Market Report Scope