How Big Is the Butane Market | Trends 2031

Q: How big was the butane market in 2024?

The butane market was estimated at USD 88 billion in 2024.

Q: What is the projected size of the butane market by 2031?

The butane market is expected to reach USD 127 billion by 2031, growing at a CAGR of 5.5%.

Q: What is driving the growth of the butane market?

Demand for LPG, clean fuels, petrochemicals, and increased energy needs in emerging economies are driving growth.

Q: What are the main applications of butane?

LPG blending, petrochemical feedstock, refrigerants, aerosol propellants, and portable fuel uses are the main application of butane.

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Code: MTA5451

Publication Date: Jul 2025

What is the size of the Butane Market?

According to 6Wresearch internal database and industry insights, the Global Butane Market was estimated at USD 88 billion in 2024 and is projected to reach USD 127 billion by 2031, growing at a CAGR of 5.5% during the forecast period 2025–2031.

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Due to increasing demand for liquefied petroleum gas (LPG), petrochemicals, and clean-burning fuels in residential, industrial, and transportation sectors, the market is predicted for growth in the upcoming years.

Key Growth Factors of the Butane Market

Rising demand for LPG as a clean cooking and heating fuel
Growing usage of butane in the petrochemical industry for ethylene and butadiene production
Increased adoption of butane as a refrigerant and aerosol propellant
Expanding urbanization and energy consumption in emerging economies
Government initiatives promoting cleaner fuel alternatives

Butane Market Trends

Butane market is experiencing a positive shift with strong trends which include the shift toward use in LPG blending and in petrochemical feedstock applications. In both domestic and industrial sectors, the demand is rising, particularly in Asia-Pacific. The market is being advanced in gas extraction and refining technologies are making butane supply more cost-efficient and reliable. Moreover, its usage in aerosol sprays, portable stoves, and lighters continues to sustain steady growth in consumer markets.

Emerging Developments in the Butane Market

Butane market is navigating new developments with increasing research into bio-based and synthetic butane alternatives to align with sustainability goals. The market is witnessing investments in advanced refining infrastructure and gas separation units to improve output quality and efficiency. Further, butane is being explored for its role in low-emission transportation fuels and in small-scale power generation in off-grid areas.