Butane Market to Reach USD 251.96 Million tons by 2030, Driven by Growing LPG Demand and Petrochemical Applications - Mordor Intelligence

Mordor Intelligence has published a new report on the Butane Market offering a comprehensive analysis of trends, growth drivers, and future projections.
Introduction

According to a 2025 report on the butane market by Mordor Intelligence, the market size is estimated at USD 204.82 Million tons in 2025 and is expected to reach USD 251.96 Million tons by 2030, growing at a CAGR of 4.23% during the forecast period.

The butane market [https://www.mordorintelligence.com/industry-reports/butane-market?utm_source=abnewswire] play a crucial role in the global energy and petrochemical sectors. Butane is widely used as a component of liquefied petroleum gas (LPG) for cooking and heating, as well as a feedstock in the petrochemical industry to produce products like butadiene and isooctane.

Key Trends in the Butane Market

Rising Demand for LPG in Emerging Economies The demand for butane as a major component of liquefied petroleum gas (LPG) is growing rapidly, especially in developing countries. Governments in Asia-Pacific and Africa are promoting LPG usage for cooking and heating to reduce reliance on traditional biomass, which is driving consistent consumption.

Increased Use in Petrochemical Feedstocks Butane is increasingly used as a feedstock in petrochemical production, particularly for producing butadiene, ethylene, and maleic anhydride. The expansion of global petrochemical capacities, driven by strong demand for plastics and synthetic rubber, is supporting this trend.

Seasonal Fluctuations in Demand Patterns Demand for butane varies seasonally due to its blending with propane to adjust LPG volatility for different climates. This winter and summer adjustment process ensures reliable fuel supply and creates predictable consumption peaks.

Infrastructure Development for Storage and Transportation Significant investments are being made in expanding butane storage, terminal, and transportation infrastructure. This includes pipelines and shipping facilities in Asia-Pacific and the Middle East, enhancing trade efficiency and market access.

Market Segmentation

By Type

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N-Butane N-Butane is widely used in the petrochemical industry as a feedstock for producing butadiene and other derivatives. It is also blended into motor gasoline to improve fuel volatility, particularly in colder climates.

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Isobutane Isobutane is primarily used in the production of isooctane through alkylation, which is essential for manufacturing high-octane gasoline. It is also used as a refrigerant (R-600a) and in aerosol propellants due to its low toxicity and effective thermodynamic properties.

By Source

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Natural Gas A significant portion of butane is obtained during natural gas processing. As natural gas is extracted, butane is separated along with other natural gas liquids, providing a clean and efficient source for industrial and domestic applications.

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Refining Butane is also produced as a byproduct during crude oil refining processes. It is recovered during the distillation and catalytic cracking operations in refineries and is then utilized in applications such as LPG blending and gasoline production.

By End-user Industry

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Residential/Commercial In this segment, butane is primarily used as a component of liquefied petroleum gas (LPG) for cooking, heating, and fuel purposes. Its clean-burning properties and cost-effectiveness make it a preferred energy source in households and commercial establishments worldwide.

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Industrial (Including Chemical Feedstock) The industrial segment utilizes butane extensively as a feedstock in petrochemical processes to produce chemicals such as butadiene and ethylene. It is also used in refineries for gasoline blending and in other industrial operations where its flammability and volatility are beneficial for production processes.

By Geography

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Asia-Pacific Dominates global butane demand due to extensive LPG usage in countries like India, China, and Southeast Asia, supported by rising urbanisation and industrial growth.

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North America Significant consumption driven by refinery operations, petrochemical feedstock requirements, and LPG applications.

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Europe Maintains steady demand, with butane utilized in LPG blending and petrochemical manufacturing across multiple industries.

Major Players

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Exxon Mobil Corporation A top-tier global energy company with integrated refinery, petrochemical, and natural gas liquids (NGLs) operations. Exxon Mobil plays a key role in gasoline blending and petrochemical feedstock production

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China Petrochemical Corporation (Sinopec) A Chinese state-owned giant with significant refining capacity. Sinopec extracts butane as part of its crude processing and supplies it regionally and internationally.

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Shell PLC With diversified energy assets, Shell recovers butane from both refining and NGL streams and uses it across LPG, gasoline blending, and petrochemicals.

: https://www.mordorintelligence.com/ja/industry-reports/butane-market?utm_source=abnewswire

Conclusion

The butane market is positioned for steady growth in the coming years, supported by rising demand for LPG in residential and commercial sectors and its vital role as a petrochemical feedstock. With consumption driven by emerging economies in Asia-Pacific and consistent refinery operations in North America and Europe, market players are focusing on strengthening their supply chains, ensuring safety compliance, and expanding storage and transportation infrastructure

Industry Related Reports

Maleic Anhydride Market : [https://www.mordorintelligence.com/industry-reports/global-maleic-anhydride-market-industry?utm_source=abnewswire] The Maleic Anhydride Market is segmented by product type (including unsaturated polyester resin, 1,4-butanediol, lubricant additives, and others), raw material (n-butane and benzene), physical form (solid such as flake or Prill, and molten), end-user industry (construction, automobile, food and beverage, and others), and geography (Asia-Pacific, North America, Europe, South America, and Middle East & Africa).

US Industrial Gas Market: The US Industrial Gas Market is segmented by product type (including nitrogen, oxygen, carbon dioxide, hydrogen, helium, argon, ammonia, methane, propane, butane, and other product types) and by end-user industry (such as oil and gas, energy and power, petrochemical and chemical manufacturing, medical and pharmaceutical, food and beverage, metal manufacturing and fabrication, transportation, and others).

For More information: https://www.mordorintelligence.com/industry-reports/united-states-industrial-gas-market?utm_source=abnewswire

Russia Oil and Gas EPC Market: [https://www.mordorintelligence.com/industry-reports/russia-oil-and-gas-epc-market?utm_source=abnewswire] The Russian Oil and Gas EPC Market is segmented by sector into upstream, midstream, and downstream. Market size and forecasts for each of these segments are presented in terms of revenue (USD billion).

About Mordor Intelligence: Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

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