United Arab Emirates (UAE) Liquefied Petroleum Gas (LPG) Market Overview, 2029

Liquefied Petroleum Gas, or LPG, has long been a household staple in the UAE. Its popularity originates from its convenience and efficiency, which make it the preferred cooking fuel above alternatives such as charcoal. This preference has stood the test of time, with its user base continually increasing in tandem with the growing population. The LPG sector in the UAE is dominated by established players who have a strong market presence. However, the sector's growth trajectory is projected to create opportunities for new entrants, particularly in specialised areas like industrial applications. These new entrants are prepared to capitalise on the rising industry, posing both possibilities and difficulties for established companies. With the introduction of new technology and changing customer needs, the competitive dynamics of the industry are set to undergo substantial modifications in the near future. Emirates Gas made headlines in 2023 when it introduced an LPG-powered vehicle, demonstrating the industry's ability for innovation and adaptation. This move not only demonstrates LPG's adaptability, but also emphasises its importance in tackling current environmental concerns. Furthermore, projections from 2022 show a significant increase in the number of LPG distributors and bottling plants, indicating the market's strong growth trajectory. These advances demonstrate the durability and dynamism of the UAE's LPG business, which is always evolving and expanding in response to shifting market factors. According to the research report “United Arab Emirates Liquefied Petroleum Gas (LPG) Market Overview, 2029," published by Bonafide Research, the United Arab Emirates Liquefied Petroleum Gas (LPG) market is expected to grow with more than 3% CAGR from 2024 to 2029. Several major reasons have contributed to the UAE's Liquefied Petroleum Gas (LPG) market's rapid growth. First, government assistance is critical, with subsidies and efforts actively encouraging LPG use. These measures not only boost adoption, but also help to shape consumer attitudes toward cleaner energy sources. Furthermore, urbanisation and population expansion drive up demand for LPG, particularly in metropolitan areas where availability to clean and reliable cooking fuel is critical. Furthermore, LPG's adaptability extends beyond home use, with applications in a variety of sectors thanks to its clean and efficient heat qualities. Despite its rapid growth, the UAE's LPG sector has significant issues that require attention. The most significant of these difficulties is the safety of LPG storage, handling, and distribution. Ensuring consumer and environmental safety necessitates ongoing efforts and strict compliance with rules. Furthermore, addressing these concerns is critical to maintaining the market's growth trajectory and increasing customer trust. In keeping with its dedication to safety and efficiency, the UAE government has enacted strict laws governing the LPG industry. These laws encompass all aspects, from storage and handling to distribution, with a focus on consumer safety and environmental preservation. Policymakers hope to build confidence in consumers and industry stakeholders by maintaining high standards, as well as ensure the long-term growth of the UAE's LPG sector.

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 by-product 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. Numerous opportunities exist in the UAE's developing industry, particularly in the domain of energy options. One such potential is the conversion to LPG vehicles, as there is a growing demand in environmentally friendly transportation alternatives. LPG (liquefied petroleum gas) is gaining popularity as a potential replacement for traditional fuels, establishing itself as a viable option in the transportation sector. Furthermore, the rise of various sectors in the region is expected to boost LPG demand even higher, particularly for industrial uses. Because the UAE is a net importer of LPG, full trade figures are easily accessible via official publications, allowing for more informed industry decision-making. The United Arab Emirates (UAE) heavily relies on imported liquefied petroleum gas (LPG) to meet its energy requirements. However, the country also relies on indigenous output obtained from refineries and related gas recovered during oil production processes. This dual method ensures a diverse supply chain, which improves the country's energy security. While imports play an important role, domestic production helps to reduce reliance on external sources, providing a more solid basis for supplying LPG demand. In compared to surrounding countries, the UAE is notable for its well-developed LPG infrastructure, which ensures extensive national coverage and accessibility. Despite this advantage, other adjacent countries have larger LPG production capacities, indicating varied degrees of resource richness and infrastructural investment around the area. Nonetheless, the UAE's strong infrastructure benefits distribution efficiency and dependability, bolstering its position as a prominent player in the regional Liquefied Petroleum Gas (LPG) market. Marketing strategies in the UAE's LPG business are mostly focused on safety awareness campaigns and promoting the advantages of LPG as a clean and efficient fuel source. These programs seek to educate consumers and companies on the benefits of utilising LPG while also encouraging safe usage practices to reduce potential dangers. By emphasising its environmental friendliness and versatility, the industry hopes to boost customer confidence and encourage adoption in a variety of sectors, including residential, commercial, and industrial applications. The COVID-19 epidemic originally impacted the UAE's Liquefied Petroleum Gas (LPG) market, with lockdown measures and industrial slowdowns causing a short drop in demand. However, as limitations were relaxed, the market quickly recovered, with demand returning to pre-pandemic levels. This resilience emphasises the importance of LPG as a dependable and adaptable energy source capable of weathering unexpected hurdles and sustaining its growth trajectory in the face of global uncertainty.

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Prashant Tiwari

Research Analyst

Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 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

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By Source • Refinery • Associated Gas • Non-associated Gas 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.