Italy Liquefied Petroleum Gas (LPG) Market Overview, 2029

Italy has a long history with Liquefied Petroleum Gas (LPG), becoming one of the first European countries to use this versatile energy source in the 1950s. LPG consumption in Italy has fluctuated and evolved significantly during the last few decades. Consumption peaked in 2001, at 1.4 million tonnes. This boom was primarily driven by the low cost of LPG, which made it an appealing option for a variety of sectors and uses across the country. The cultural acceptability and integration of LPG in Italy are significant, as seen by a sizable fleet of automobiles converted from gasoline to LPG. This widespread adoption demonstrates the versatility and popularity of LPG in the Italian market. Furthermore, between 2009-2010, the market saw a major increase in original equipment manufacturer (OEM) sales of LPG vehicles, which was mostly driven by government incentives aimed at encouraging cleaner and more sustainable transportation choices. Italy has the second-largest autogas market in Europe, after only Poland. This information highlights Italy's strong LPG culture and considerable influence in the European Liquefied Petroleum Gas (LPG) market. The popularity of Autogas in Italy demonstrates a widespread acceptance and use of LPG as a viable fuel source for both household and automobile applications. This comparative advantage puts Italy as a major player in the regional LPG industry, demonstrating its strong infrastructure and consumer acceptance of LPG technologies. According to the research report “Italy Liquefied Petroleum Gas (LPG) Market Overview, 2029," published by Bonafide Research, the Italy Liquefied Petroleum Gas (LPG) market is forecasted to reach market size of more than USD 4 Billion by 2029. Growing environmental concerns have pushed LPG to the forefront as a greener alternative to traditional fuels. With increased awareness of the negative impacts of carbon emissions on the environment, both consumers and companies are turning to LPG for its cleaner burning features. This transition opens up a big possibility for market expansion in Italy, where the government is actively supporting alternative fuels to reduce environmental effects. As a result, there is an increasing demand for LPG as a feasible alternative, particularly in industries such as transportation, domestic heating, and industrial processes. Italy's legislative and regulatory landscape have had a significant impact on the trajectory of the country's Liquefied Petroleum Gas (LPG) market. Historically, advantageous tax policies and conversion incentives have fueled the market's expansion. Furthermore, tight regulations ensure that LPG storage, transportation, and utilisation meet safety standards, fostering consumer confidence and faith in the energy source's dependability and safety. In Italy, promotional efforts often focus on the multiple benefits of LPG, such as its low cost, cleaner burning features, and well-established infrastructure. By emphasising these advantages, marketers hope to educate customers and drive increased adoption of LPG in a variety of industries. The emphasis on affordability and environmental sustainability appeals to consumers, particularly in light of growing worries about climate change and air pollution. Furthermore, the emphasis on established infrastructure seeks to reassure consumers about the dependability and accessibility of LPG resources, thereby promoting its usage as a viable energy source.

LPG is utilised across various applications, including domestic, residential, commercial, agricultural, industrial, transportation, refinery, and chemical sectors. In domestic and residential settings, LPG serves as a versatile energy source for heating, cooking, and other household needs, while in commercial applications, it is commonly employed for heating and powering various equipment and appliances. Agriculture relies on LPG for activities such as crop drying, pest control, and greenhouse heating. In industrial settings, LPG finds extensive use in manufacturing processes, space heating, and as a fuel for machinery and equipment. The transportation sector utilises LPG as an alternative fuel for vehicles, offering a cleaner-burning option compared to traditional gasoline or diesel. Within refineries, LPG is produced as a byproduct of the refining process, extracted through techniques such as crude oil distillation, catalytic cracking, and hydrocracking. Additionally, LPG can be sourced from associated gas, which is natural gas co-extracted with crude oil, or from non-associated gas reserves, where it is found independently of crude oil. This diversity in sources ensures a steady supply of LPG for various applications, supporting its widespread use across different sectors while also offering flexibility and resilience in the face of changing market conditions and demands. Established firms now dominate the Italian LPG industry. However, there are prospects for new entrants, especially in specialist industries like bioLPG, which provides a renewable and sustainable alternative to standard LPG. By focusing on innovation and differentiation, new firms can carve out a niche in the market and adapt to changing consumer demands for environmentally friendly energy options. Overall, the Liquefied Petroleum Gas (LPG) market in Italy offers potential opportunities for both established firms and growing businesses, owing to environmental concerns and government programs encouraging the use of alternative fuels. Italy depends heavily on imports to meet a large amount of its LPG (liquefied petroleum gas) requirements. This dependence exposes the country to variations in global production patterns and exploration activity, which can have an impact on LPG availability and cost. Any disruptions or changes in global production levels can have a direct impact on Italy's LPG supply chain, potentially causing price volatility and supply uncertainty. As a result, Italy must continuously monitor worldwide production patterns and exploration activity in order to efficiently control LPG imports and assure a consistent supply for local consumption. The COVID-19 pandemic has most certainly caused temporary losses in certain sections of Italy's Liquefied Petroleum Gas (LPG) market, mainly residential usage, as a result of lockdown measures and economic uncertainty. It is clear that the pandemic has interrupted typical economic operations and consumer behaviours, potentially influencing LPG demand and distribution routes. However, as the situation improves and economies recover, the long-term prospects for Italy's LPG industry remain positive, thanks to continued promotional activities and the country's strong LPG culture. 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.