UAE LPG Market Report 2028: Rising Demand for LPG in Domestic Power Generation and the Oil and Gas Sector Drives Growth
Increasing government initiatives and support for LPG adoption are expected to drive demand in the UAE LPG Market.
According to the TechSci
Research report, "UAE LPG
Market - By Region, Competition Forecast & Opportunities, 2028,"
market growth is predicted during the forecast period due to the increasing
adoption of clean energy sources globally and growing awareness of the benefits
of LPG as a substitute for fossil fuels.
In 2020, LPG demand in the UAE
was 1.5 million tonnes, projected to reach 2.7 million tonnes by 2030 with a
high CAGR. LPG is predominantly used for cooking in the UAE.
Non-associated gas sources
contribute the largest revenue share, with increasing output from unrelated gas
wells driving market expansion. The UAE relies on refineries for gas
production, with significant revenue from both related and unrelated sources expected
to grow substantially.
The residential segment led
the global market in 2022, driven by LPG's affordability, energy efficiency,
and environmental benefits. LPG is also replacing harmful refrigerants,
expanding its applications in commercial and residential sectors, including heating
and ventilation.
Regionally, Dubai is poised to
dominate the market due to high consumption and a growing number of commercial
buildings.
https://www.techsciresearch.com/report/uae-lpg-market/15172.html
Key market players in the UAE LPG Market include:
- Emirates
Gas LLC (Emirates National Oil Company)
- Emirates
General Petroleum Corporation (Emarat)
- ADNOC
Distribution
- Brothers
Gas
- Dubai
Oil & Gas Company LLC
- United
Gas Company LLC
- AD
LPG
- Lootah
BC
- Dubai
Fuel Supply
- Smart
Gas
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The surge in LPG demand across various sectors is driving market growth in the
UAE. Strict government regulations against environmental pollution are also
significant factors fostering expansion from 2021 to 2030. Challenges such as
the increasing use of renewable energy sources and inconsistent domestic LPG
supply hinder industry growth. However, government initiatives promoting LPG
use and rising gas consumption in automobiles present lucrative opportunities
for market players.
"In the foreseeable
future, the UAE's LPG market is expected to thrive. Growing adoption of clean
energy sources worldwide and increasing awareness of the benefits of LPG as an
alternative to fossil fuels are key factors driving market expansion. Government
initiatives to transition rural residents from traditional cooking fuels to
LPG, coupled with technological advancements, will further fuel market
growth," explained Mr. Karan Chechi, Research Director at TechSci
Research.
The report, "UAE LPG
Market By Application, Source, Cylinder Capacity, Region, Competition Forecast
and Opportunities, 2028," assesses the future growth
potential of the market, providing insights on structure, size, share, and
future growth. It aims to offer advanced market intelligence to aid
decision-makers in making informed investment decisions, while also identifying
emerging trends, drivers, challenges, and opportunities in the UAE LPG Market.
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