Europe LPG Market Size, Share, and COVID-19 Impact Analysis, By Source (Refinery, Associated Gas, and Non-Associated Gas), By Application (Commercial, Chemical, Industrial, Auto Gas, and Others), and Europe LPG Market Insights, Industry Trends, Forecast to 2035

Europe LPG Market Size Insights Forecasts to 2035

• The Europe LPG Market Size Was Estimated at USD 36.4 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of Around 4.58% from 2025 to 2035
• The Europe LPG Market Size is Expected to Reach USD 59.6 Billion by 2035

According to a research report published by Spherical Insights & Consulting, The Europe LPG Market Size is Anticipated to Reach USD 59.6 Billion by 2035, Growing at a CAGR of 4.58% from 2025 to 2035. The market is driven by the rising use of LPG as an alternative fuel in the transportation industry in the region. With the growing demand for vehicles with a low total cost of ownership, the demand for LPG-fuelled vehicles is rising.

Market Overview

The Europe LPG Market consists of a process that includes producing flammable hydrocarbon mixtures that contain propane and butane and distributing these mixtures to users who need them. Vehicle fuel LPG is known by the names Autogas and GLP. The system delivers extreme thermal energy through direct heat for industrial processes that require operations such as melting, extrusion and molding and annealing. In Europe, people use the major heating and cooking application in rural areas because it serves as a dependable and efficient replacement for heating oil and electricity.

Dacia announced 2026 powertrain updates across five models: their LPG flex-fuel hybrid 4×4 system serves as the world-first for Dacia's Duster and Bigster models, while they introduce Hybrid 155 for their Jogger, an automatic LPG gearbox for the Sandero range, and a new 24.3 kWh LFP battery for the Spring. The investment of EUR 750 million includes the SAF/HVO production unit and two green hydrogen production facilities.

OMV Petrom, which operates as Southeastern Europe's largest integrated energy producer, has initiated the building process for its sustainable aviation fuel and renewable energy facility at the Petrobrazi refinery. The UK government needs to keep existing gas boilers safe in rural areas, according to industry groups who want to convert them into renewable liquid gas systems. Algeria has eliminated the tax exemption for autogas vehicles, which had supported sector growth for more than ten years, because the government now wants to increase LPG availability for export purposes.

Report Coverage

This research report categorises the European LPG market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Europe LPG market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Europe LPG Market.

Driving Factors

The LPG market in Europe is driven by LPG serving as a bridge fuel, which replaces carbon-heavy coal and heating oil, according to its growing adoption. The sales of LPG-powered vehicles increased by 10% during 2025 because Dacia and other brands provided vehicles with lower CO2 emissions at affordable prices. Europe has shifted its LPG supply sources to U.S. imports and Norwegian shipments since the Russian LPG ban took effect in late December 2024 and January 2026.

Restraining Factors

The LPG market in Europe is restrained by European buyers experiencing price instability because crude oil and feedstock prices demonstrate high price fluctuations while geopolitical risks increase. The highly flammable nature of LPG requires the development of specialized storage and transportation systems, which need expensive and constant maintenance.

Market Segmentation

The Europe LPG market share is categorised into source and application.

• The associated gas segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The Europe LPG Market is segmented by source into refinery, associated gas, and non-associated gas. Among these, the associated gas segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The growth of the segment is driven by the oil industry, which generates its vast production volume through the extraction and processing of crude oil, which occurs throughout major oil-producing areas both inside Europe and in other regions. The region's dependence on imported crude oil creates a situation where gas-based LPG products from associated gas reserves become accessible for domestic use.

• The chemical segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.   

Based on application, the Europe LPG Market is segmented into commercial, chemical, industrial, auto gas, and others. Among these, the chemical segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The chemical industry application segment held 42.3% of the Europe LPG market share in 2024. LPG, which consists of propane and butane, plays an essential role as a feedstock for petrochemicals production, which requires these substances to create various products such as polymers, solvents and synthetic materials. The development of propane dehydrogenation plants has progressed during the last few years through improvements that increased the capacity of these facilities to transform LPG into useful chemical intermediates.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Europe LPG market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• TotalEnergies SE
• BP PLC
• SHV Energy
• UGI International
• TotalEnergies SE
• ExxonMobil Corporation
• DCC plc
• GASPOL
• Equinor
• Shell plc
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the Europe, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Europe LPG Market based on the below-mentioned segments:

Europe LPG Market, By Source

• Refinery
• Associated Gas
• Non-Associated Gas

Europe LPG Market, By Application

• Commercial
• Chemical
• Industrial
• Autogas
• Others