According to this report, the Australia liquefied petroleum gas market size reached around USD 5.02 billion in 2024. Aided by the increasing demand for cleaner energy alternatives and the growing adoption of LPG in various sectors, such as residential, commercial, and industrial, the market is projected to grow at a CAGR of 3.6% between 2025 and 2034 to attain nearly USD 7.16 billion by 2034.
LPG is primarily composed of propane and butane and is widely used as a fuel for cooking, heating, transportation, and industrial applications due to its efficiency and relatively lower environmental impact compared to other fossil fuels. The increasing awareness surrounding the environmental advantages of using LPG, particularly its lower carbon emissions, is a key driver of the Australia liquefied petroleum gas market expansion. The nation's continued push for sustainable energy solutions and its efforts to reduce greenhouse gas emissions are aligning with the growing popularity of LPG as a cleaner alternative to other traditional fuels.
One of the major factors driving the Australia liquefied petroleum gas market growth is the increasing preference for cleaner and more energy-efficient cooking solutions. LPG is widely used in residential kitchens across the country, particularly in rural and remote areas where natural gas infrastructure may not be available. The ease of use, portability, and cost-effectiveness of LPG make it an ideal choice for Australian households. Additionally, LPG’s ability to provide high levels of heat control during cooking makes it a preferred fuel for both domestic and commercial kitchens. As consumers become more conscious of environmental issues and energy efficiency, the demand for LPG in residential kitchens is expected to continue its upward trajectory.
As per the Australia liquefied petroleum gas market analysis, LPG is also experiencing robust growth in the commercial and industrial sectors in Australia. In commercial settings, LPG is commonly used for heating, hot water systems, and cooking, especially in the hospitality industry. The growing demand for energy-efficient heating systems and the continued shift towards renewable and low-carbon energy sources are likely to increase the adoption of LPG in commercial buildings. Additionally, industries such as manufacturing, construction, and agriculture rely on LPG for various applications, including heating, powering equipment, and as a feedstock for chemical processes. The versatility of LPG in meeting the diverse energy needs of these industries ensures its continued demand across multiple sectors.
Another significant Australia liquefied petroleum gas market trend is the transportation sector's increasing reliance on LPG as an alternative to traditional fuels like gasoline and diesel. LPG-powered vehicles are gaining popularity in Australia due to their cost-effectiveness, lower emissions, and reduced environmental impact. With the increasing global focus on reducing the carbon footprint of transportation, LPG is becoming a viable solution for both private and commercial vehicle fleets. Moreover, government incentives and policies promoting cleaner and more sustainable fuel options have further supported the adoption of LPG-powered vehicles in Australia.
The growing adoption of LPG in the transportation sector due to its compatibility with existing infrastructure is boosting the Australia liquefied petroleum gas market revenue. LPG refuelling stations are already widespread across Australia, and the infrastructure required to support LPG-powered vehicles is well-established. This infrastructure, combined with the relative affordability of LPG compared to other alternative fuels, positions LPG as an attractive choice for consumers and businesses alike. Furthermore, the development of new technologies in LPG engines is expected to improve fuel efficiency and reduce emissions, further boosting the market's growth potential.
In addition to its widespread use in domestic, commercial, and transportation sectors, LPG is also emerging as a valuable energy source in the industrial and agricultural sectors. In industries such as mining, agriculture, and manufacturing, LPG is used for various purposes, including heating, powering machinery, and drying agricultural products. Its portability and ability to provide high energy output make it an ideal fuel for off-grid locations and remote operations where access to natural gas may be limited. The Australian mining and agricultural industries, in particular, are expected to remain significant contributors to LPG demand as they continue to prioritise energy-efficient solutions that can reduce operational costs.
The increasing role of LPG in Australia's energy transition, supported by the country's efforts to reduce its reliance on coal and other high-emission energy sources, is positively influencing the Australia liquefied petroleum gas market dynamics. The Australian government has made significant commitments to decreasing carbon emissions and enhancing sustainability within the energy sector. In this context, LPG is viewed as a cleaner and more efficient fuel source, particularly for residential and industrial heating and cooking. With the nation's ongoing focus on energy diversification and the promotion of low-emission alternatives, LPG is expected to play a key role in achieving Australia's energy goals.
In terms of production, Australia is well-positioned to meet the growing demand for LPG. The country has a well-developed LPG production infrastructure, with major facilities located in key areas such as Queensland, New South Wales, and Victoria. Australia is also a significant exporter of LPG, with a strong presence in the Asia Pacific region, where demand for the fuel is rising due to its affordability and environmental benefits. The continued expansion of Australia’s LPG production capacity and export potential is expected to further bolster the Australia liquefied petroleum gas market development, both domestically and internationally.
While the market in Australia is expected to continue growing, challenges remain. One of the key challenges is the potential fluctuation of global LPG prices, which can affect consumer demand and profitability for businesses in the industry. Additionally, increasing competition from other clean energy alternatives, such as natural gas and electricity, could pose challenges to the Australia liquefied petroleum gas market expansion. However, LPG's unique advantages, including its cost-effectiveness, lower emissions, and widespread availability, are expected to mitigate these challenges and ensure its continued growth.
In conclusion, the Australia liquefied petroleum gas market is poised for continued expansion as demand for cleaner energy sources increases across residential, commercial, and industrial sectors. The growing preference for energy-efficient solutions, the adoption of LPG in the transportation sector, and Australia's push toward sustainability all contribute to the market’s positive outlook.
With robust infrastructure, favourable government policies, and increasing awareness of LPG's environmental benefits, the market is expected to continue its growth trajectory, making it a key player in the country’s energy landscape. As Australia continues to evolve towards a low-carbon economy, LPG’s role as a cleaner, versatile, and cost-effective fuel will remain integral to meeting the nation’s energy needs.
LPG is primarily composed of propane and butane and is widely used as a fuel for cooking, heating, transportation, and industrial applications due to its efficiency and relatively lower environmental impact compared to other fossil fuels. The increasing awareness surrounding the environmental advantages of using LPG, particularly its lower carbon emissions, is a key driver of the Australia liquefied petroleum gas market expansion. The nation's continued push for sustainable energy solutions and its efforts to reduce greenhouse gas emissions are aligning with the growing popularity of LPG as a cleaner alternative to other traditional fuels.
One of the major factors driving the Australia liquefied petroleum gas market growth is the increasing preference for cleaner and more energy-efficient cooking solutions. LPG is widely used in residential kitchens across the country, particularly in rural and remote areas where natural gas infrastructure may not be available. The ease of use, portability, and cost-effectiveness of LPG make it an ideal choice for Australian households. Additionally, LPG’s ability to provide high levels of heat control during cooking makes it a preferred fuel for both domestic and commercial kitchens. As consumers become more conscious of environmental issues and energy efficiency, the demand for LPG in residential kitchens is expected to continue its upward trajectory.
As per the Australia liquefied petroleum gas market analysis, LPG is also experiencing robust growth in the commercial and industrial sectors in Australia. In commercial settings, LPG is commonly used for heating, hot water systems, and cooking, especially in the hospitality industry. The growing demand for energy-efficient heating systems and the continued shift towards renewable and low-carbon energy sources are likely to increase the adoption of LPG in commercial buildings. Additionally, industries such as manufacturing, construction, and agriculture rely on LPG for various applications, including heating, powering equipment, and as a feedstock for chemical processes. The versatility of LPG in meeting the diverse energy needs of these industries ensures its continued demand across multiple sectors.
Another significant Australia liquefied petroleum gas market trend is the transportation sector's increasing reliance on LPG as an alternative to traditional fuels like gasoline and diesel. LPG-powered vehicles are gaining popularity in Australia due to their cost-effectiveness, lower emissions, and reduced environmental impact. With the increasing global focus on reducing the carbon footprint of transportation, LPG is becoming a viable solution for both private and commercial vehicle fleets. Moreover, government incentives and policies promoting cleaner and more sustainable fuel options have further supported the adoption of LPG-powered vehicles in Australia.
The growing adoption of LPG in the transportation sector due to its compatibility with existing infrastructure is boosting the Australia liquefied petroleum gas market revenue. LPG refuelling stations are already widespread across Australia, and the infrastructure required to support LPG-powered vehicles is well-established. This infrastructure, combined with the relative affordability of LPG compared to other alternative fuels, positions LPG as an attractive choice for consumers and businesses alike. Furthermore, the development of new technologies in LPG engines is expected to improve fuel efficiency and reduce emissions, further boosting the market's growth potential.
In addition to its widespread use in domestic, commercial, and transportation sectors, LPG is also emerging as a valuable energy source in the industrial and agricultural sectors. In industries such as mining, agriculture, and manufacturing, LPG is used for various purposes, including heating, powering machinery, and drying agricultural products. Its portability and ability to provide high energy output make it an ideal fuel for off-grid locations and remote operations where access to natural gas may be limited. The Australian mining and agricultural industries, in particular, are expected to remain significant contributors to LPG demand as they continue to prioritise energy-efficient solutions that can reduce operational costs.
The increasing role of LPG in Australia's energy transition, supported by the country's efforts to reduce its reliance on coal and other high-emission energy sources, is positively influencing the Australia liquefied petroleum gas market dynamics. The Australian government has made significant commitments to decreasing carbon emissions and enhancing sustainability within the energy sector. In this context, LPG is viewed as a cleaner and more efficient fuel source, particularly for residential and industrial heating and cooking. With the nation's ongoing focus on energy diversification and the promotion of low-emission alternatives, LPG is expected to play a key role in achieving Australia's energy goals.
In terms of production, Australia is well-positioned to meet the growing demand for LPG. The country has a well-developed LPG production infrastructure, with major facilities located in key areas such as Queensland, New South Wales, and Victoria. Australia is also a significant exporter of LPG, with a strong presence in the Asia Pacific region, where demand for the fuel is rising due to its affordability and environmental benefits. The continued expansion of Australia’s LPG production capacity and export potential is expected to further bolster the Australia liquefied petroleum gas market development, both domestically and internationally.
While the market in Australia is expected to continue growing, challenges remain. One of the key challenges is the potential fluctuation of global LPG prices, which can affect consumer demand and profitability for businesses in the industry. Additionally, increasing competition from other clean energy alternatives, such as natural gas and electricity, could pose challenges to the Australia liquefied petroleum gas market expansion. However, LPG's unique advantages, including its cost-effectiveness, lower emissions, and widespread availability, are expected to mitigate these challenges and ensure its continued growth.
In conclusion, the Australia liquefied petroleum gas market is poised for continued expansion as demand for cleaner energy sources increases across residential, commercial, and industrial sectors. The growing preference for energy-efficient solutions, the adoption of LPG in the transportation sector, and Australia's push toward sustainability all contribute to the market’s positive outlook.
With robust infrastructure, favourable government policies, and increasing awareness of LPG's environmental benefits, the market is expected to continue its growth trajectory, making it a key player in the country’s energy landscape. As Australia continues to evolve towards a low-carbon economy, LPG’s role as a cleaner, versatile, and cost-effective fuel will remain integral to meeting the nation’s energy needs.
Market Segmentation
The market can be divided based on source, application, and region.Market Breakup by Source
- Associated Gas
- Non-Associated Gas
- Refinery
Market Breakup by Application
- Refinery and Petrochemical
- Industrial
- Agriculture
- Commercial
- Residential
- Transportation
- Others
Market Breakup by Region
- New South Wales
- Victoria
- Queensland
- Australian Capital Territory
- Western Australia
- Others
Competitive Landscape
The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia liquefied petroleum gas market. Some of the major players explored in the report are as follows:- BP Australia Pty Limited
- Shell Australia Pty Limited
- BOC Australia
- Elgas Ltd.
- Coregas Pty Ltd
- Others
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Asia Pacific Liquefied Petroleum Gas Market Overview
6 Australia Liquefied Petroleum Gas Market Overview
7 Australia Liquefied Petroleum Gas Market by Source
8 Australia Liquefied Petroleum Gas Market by Application
9 Australia Liquefied Petroleum Gas Market by Region
10 Market Dynamics
11 Trade Data Analysis (HS Code - 271111)
13 Competitive Landscape
Companies Mentioned
- BP Australia Pty Limited
- Shell Australia Pty Limited
- BOC Australia
- Elgas Ltd.
- Coregas Pty Ltd
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 145 |
| Published | March 2025 |
| Forecast Period | 2025 - 2034 |
| Estimated Market Value ( USD | $ 5.21 Billion |
| Forecasted Market Value ( USD | $ 7.16 Billion |
| Compound Annual Growth Rate | 3.6% |
| Regions Covered | Australia |
| No. of Companies Mentioned | 5 |
