Australia Liquefied Petroleum Gas (LPG) Market Overview, 2029

LPG, or Liquefied Petroleum Gas, has a long and established presence in Australia. Its story began in the mid-20th century as a readily available and transportable fuel source, particularly for regional and remote areas where natural gas pipeline infrastructure was limited. Initially, LPG found favor in households for cooking and heating, but its versatility soon saw it adopted for industrial applications like forklift fuel and commercial food service. By the late 1990s, LPG emerged as a popular choice for powering vehicles, offering a cleaner and more cost-effective alternative to gasoline. Australia's vast geography and dispersed population continue to make LPG a vital source of energy, particularly in regional and remote areas. However, consumption trends are shifting. While there's a steady demand for stationary applications like home heating and cooking, the allure of LPG vehicles has waned. Government incentives for cleaner technologies like electric vehicles and the closure of LPG conversion workshops have dampened consumer enthusiasm. According to the research report "Australia Liquefied Petroleum Gas (LPG) Market Overview, 2029," published by Bonafide Research, the Australian Liquefied Petroleum Gas (LPG) market is expected to grow with more than 3.50% CAGR from 2024 to 2029. Despite these challenges, the Australian Liquefied Petroleum Gas (LPG) market remains active due to several key drivers. Firstly, the established infrastructure for LPG distribution, with a network of filling stations and reliable supply chains, is a significant advantage. Additionally, LPG offers a cost-effective solution for many applications, particularly in off-grid situations where alternative options are limited. Furthermore, LPG appliances tend to be robust and have a long lifespan, appealing to budget-conscious consumers. The future of the Australian Liquefied Petroleum Gas (LPG) market faces significant headwinds. The environmental impact of LPG use is a growing concern, with stricter regulations and a push for cleaner energy sources. The decline in LPG vehicle conversions further restricts market growth. Additionally, fluctuating global LPG prices and competition from natural gas expansion in some areas pose challenges for the industry's long-term stability.

In the Australian Liquefied Petroleum Gas (LPG) market, segmentation by application reveals distinct usage patterns across various sectors. In the domestic sphere, LPG serves as a cornerstone, catering to households nationwide, especially in rural and remote regions where natural gas access is limited. Its applications span from cooking to water heating and space heating, with seasonal fluctuations, particularly during winter, driving up demand for space heating purposes. Agriculture constitutes another pivotal market segment, leveraging LPG's cleanliness and efficiency for powering irrigation pumps, greenhouses, and crop drying equipment, while also ensuring precise temperature control in brooders and poultry houses for optimal animal rearing conditions. Meanwhile, the industrial sector significantly contributes to the Liquefied Petroleum Gas (LPG) market, employing it in diverse processes such as metalworking, food processing, asphalt production, and brick manufacturing, with specific industry demands subject to economic shifts and regional specializations. In transportation, LPG, known as autogas, occupies a niche role, offering a cost-effective and eco-friendly alternative for select vehicles like taxis, forklifts, and fleet operations, with government incentives and infrastructure development shaping its growth trajectory. Furthermore, within refineries and the chemical industry, LPG serves critical roles, acting as a feedstock for petrochemical production and as a raw material in various manufacturing processes, its demand closely tied to the overall health of these sectors. When segmented by source, the market distinguishes between refinery LPG, associated gas, and non-associated gas, with refinery LPG being a significant contributor, albeit susceptible to global crude oil price fluctuations, while associated and non-associated gases offer different levels of stability and exploration costs, influencing overall pricing and supply security dynamics. The Australian Liquefied Petroleum Gas (LPG) market operates under a strict framework of policies, regulations, and certifications designed to ensure public safety, environmental protection, and fair competition. Key regulatory bodies like the Australian Competition and Consumer Commission (ACCC) and the Department of Industry, Science, Energy and Resources (DISER) oversee the market, with state-based regulations adding further complexity. Policies like the Australian Gas Code (AGC) mandate safety standards for LPG installations and appliances, while certification schemes like the Scheme for Appliances and Equipment - Gas (SAEG) ensure all LPG appliances comply with these standards. Additionally, restrictions on the import and use of specific LPG types exist, with a focus on environmental impact and potential hazards. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029

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Prashant Tiwari

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Aspects covered in this report • Liquefied Petroleum Gas (LPG) market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Application • Domestic • Agriculture • Industrial • Transportation • Refinery • Chemical By Source • Refinery • Associated Gas • Non-associated Gas

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The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Liquefied Petroleum Gas (LPG) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.