Bio-LPG Market: Current Analysis and Forecast (2023-2030)

Report Description

The Bio-LPG Market is expected to grow at a strong CAGR of 27.9% during the forecast period. This is mainly owing to the government’s requirements to reduce carbon emissions and promote cleaner fuel globally. Moreover, favorable government policies, regulations, and investments in achieving climate change goals are driving the Bio-LPG Market during the forecast period. While multiple production pathways are under development, nearly all bio-LPG produced today is a byproduct of vegetable and waste-based oil feedstocks that undergo hydrotreatment to make hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF). The bio-LPG yield from this process is typically between 3 percent and 10 percent.

One of the biggest markets is Europe and most of the volumes of Bio-LPG products are mainly consumed in the European market, a result of the intensification of refinery modernization processes and the launch of new projects for biofuel production. The largest of these is the Neste plant in Rotterdam, the Netherlands, which can produce up to 40,000 tonnes of bio-LPG per year. The European market is also supplied by a number of other bio-refiners in large quantities, such as the Ecobenz catalytic bioethanol plant in Poland (22.5 kt/year). Outside of Europe, a Bio-LPG production facility in Singapore and a demonstration project in Japan offer the potential to establish supply chains in Asia.

Some of the major players operating in the market are British-Dutch Shell, Italian Eni, French Total Energies, Finnish Neste, Swedish Preem, AvantiGas¸ Repsol, Irving Oil, Renewable Energy Group, Inc., and SHV Energy.

Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Feedstock, the Residual/Waste segment held a dominating share of the market in 2022”

Based on feedstock, the Bio-LPG market is divided into residual/waste, oil, and other segments. The Residual/Waste segment acquired a majority share in the Bio-LPG market and is expected to showcase a substantial growth rate during the forecast period. The feedstock required for a given production pathway is critical to its business rationale, impacting process viability, operating costs and the breakeven price of the investments. Feedstock availability for each process, Required research and development investment and time to market, and Efficiency of the commercialized technology are the main factors affecting the market for each feedstock.

Bio-LPG Market Report Coverage

“Amongst End-User, the Commercial segment held a dominating share of the market in 2022”

Based on End-User, the Bio-LPG market is divided into residential and commercial segments. The commercial segment acquired a majority share in the Bio-LPG market and is expected to showcase a substantial growth rate during the forecast period. Although the residential segment captured a majority share in the LPG market, the Bio-LPG market is in its initial phase and is usually available for commercial use. The major driver for the Bio-LPG market is the promotion of cleaner fuel with government incentives for these commercial enterprises. The low availability of bio-LPG is the major restraint for the residential segment not having a majority share in the Bio-LPG market.

“Europe dominated the Bio-LPG market in 2022”

Europe acquired the largest share in the Bio-LPG market and is expected to witness an influential CAGR in the forecasted period. It is mainly owing to a large number of Bio-LPG operational projects taking place in Germany, Italy, France, and the UK. Moreover, favorable government policies, regulations, and investments in achieving climate change goals are driving the Bio-LPG Market during the forecast period. The key players in this market are leading energy companies, including the British-Dutch Shell, Italian Eni, French Total Energies, Finnish Neste, Swedish Preem. Majority of these companies have their production facilities located in Europe. The European market also receives significant volumes of product from a number of other bio-refineries, including the Ekobenz catalytic bioethanol plant (22.5 thousand tons/year) in Poland. Incentives for the development of the bioLPG market in Europe are the need to achieve the target share of renewable fuels at 40% in the structure of final consumption in accordance with the requirements of the European Commission’s Fit for 55 programs; the prospect of extending the European ETS to the housing sector by 2025.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The global Bio-LPG market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the Bio-LPG Market Analysis (2023-2030)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global Bio-LPG market were the three major steps undertaken to create and analyze the adoption of Bio-LPG in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Bio-LPG market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Bio-LPG market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Bio-LPG market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as Feedstock, and End-User. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Bio-LPG market. Further, we conducted factor analysis using dependent and independent variables such as Feedstock, and End-User of the Bio-LPG market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Bio-LPG market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Bio-LPG market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2030 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the Bio-LPG market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global Bio-LPG market in terms of technology offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Bio-LPG market. data was split into several segments & sub-segments post studying various parameters and trends in the areas of Feedstock, and End-User in the global Bio-LPG market.

The main objective of the Global Bio-LPG Market Study

The current & future market trends of the global Bio-LPG market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the Bio-LPG market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of Feedstock, and End-User.
• Define and analysis of the regulatory framework for the Bio-LPG industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the Bio-LPG market for the major regions
• Major countries of regions studied in the report include Asia Pacific, Europe, North & South America, and the Rest of the World
• Company profiles of the Bio-LPG market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry

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