Natural Gas Liquid Market Analysis | 2023-2028

Market Insights

The natural gas liquid market was estimated at USD 8.3 billion in 2022 and is likely to grow at a CAGR of 7.20% during 2023-2028 to reach USD 12.73 billion in 2028.

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Market Dynamics

Introduction

Natural Gas Liquids (NGLs) are hydrocarbons that are separated from natural gas during processing. NGLs include a variety of liquid hydrocarbons, such as ethane, propane, butane, and pentane. These liquids are typically found in underground reservoirs along with natural gas and are extracted along with the gas through drilling. The composition of NGLs can vary depending on the location where they are extracted, but they generally consist of light hydrocarbons that have a lower boiling point than crude oil. Ethane, propane, butane, and pentane are the most common NGLs, with each having different uses and properties.

Market Drivers

The factors affecting the market for natural gas liquid include demand for petrochemical use, domestic and industrial usage, and clean energy. The market is also affected by the reduced prices of natural gas, which has shifted focus to NGL, which is more valuable. Further, shale gas and oil have offered a diverse and more adaptable supply of feedstocks to the petrochemical industry to improve the market outlook. However, it has certain threats that include competition from renewable energy, which is getting cheaper than natural gas and NGLs. This trend is fueled by factors such as environmental conservation and the quest to cut down on carbon footprints, thus moving away from the use of fossil-based energy.

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Key Players

The following are some of the key players in the natural gas liquid market:

• Canadian Natural Resources
• Chevron Corporation
• Eni S.p.A.
• Exxon Mobil Corporation
• Gazprom
• Petrobras
• Range Resources Corporation
• Riveria Resources, Inc.
• Rosneft
• Royal Dutch Shell PLC.

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

By Product Type

"Ethane accounts for the largest market share."

The market is segmented as ethane, propane, butane, and pentane plus. Ethane is estimated to account for the lion’s share of the market during the forecast period. Its growing use in the petrochemical industry, development of large-scale ethylene crackers as a feedstock to produce ethylene, and growing investments in downstream industries are expected to drive the growth of the segment in the coming years.

Butane, on the other hand, is expected to register significant growth in the market over the forecast period. Factors such as its high replacement potential, wide applications across various sectors, reduced carbon footprints, and growing LPG demand are expected to fuel the segment's growth over the forecast period.

By Application Type

"Petrochemical feedstock accounts for the largest market share."

The market is bifurcated into petrochemical feedstock, space heating, blendstock, and others. Petrochemical feedstock held a market share of more than 45% in 2022 and is estimated to be the largest share of the market during the forecast period. Increasing focus on environmental protection, coupled with continuous evaluation of alternative fuel adoption, is likely to boost the overall industry growth in the coming years.

Furthermore, increasing investments toward developing the industrial sector, as well as growing demand for synthetic rubber, polyethylene, and polypropylene for the manufacture of plastics, tires, and other products, is expected to drive the natural gas liquid market growth over the forecast period.

Also, the market for space heating is expected to grow at a significant rate. Growing focus on clean energy sources, as well as rising demand for effective and energy-efficient systems, is expected to fuel the market growth. The growing population and increasing awareness of sustainable building solutions are likely to accelerate the growth of the market in the years to come.

Regional Insights

"North America accounted for the largest market share."

North America is estimated to be the leading region in the market during the forecast period, with the U.S. being the growth engine of the region. Major factors such as the rapid development of the shale gas industry, decreasing reliance on foreign countries for energy imports, and low prices of natural gas liquids are expected to drive regional market growth during the forecast period. Furthermore, fluctuations in currency exchange rates, supply cost efficiencies, and product monetization all contribute to an optimistic outlook for industry growth over the forecast period.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s natural gas liquid market realities and future market possibilities for the forecast period of 2023 to 2028. After a continuous interest in our natural gas liquid market report from the industry stakeholders, we have tried to further accentuate our research scope to the natural gas liquid market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors

Market Segmentation

This report studies the market, covering a period of 12 years of trends and forecasts. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The natural gas liquid market is segmented into the following categories:

By Product Type

• Ethane
• Propane
• Butane
• Pentane Plus

By Application Type

• Petrochemical Feedstock
• Space Heating
• Blendstock
• Others

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.