South America LPG Market Size, Share, and COVID-19 Impact Analysis, By Source (Refinery, Associated Gas, Non-Associated Gas), By Application (Residential/Commercial, Chemical, Industrial, Autogas, Refinery, Others), By Supply Mode (Packaged, Bulk, On-site), and South America LPG Market Insights, Industry Trends, Forecast to 2035.

South America LPG Market Insights Forecasts to 2035

• The South America LPG Market Size Was Estimated at USD 493.1 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 8.64% from 2025 to 2035
• The South America LPG Market Size is Expected to Reach USD 1227.3 Million by 2035

According to a research report published by Spherical Insights & Consulting, The South America LPG Market Size is anticipated to reach USD 1227.3 Million by 2035, Growing at a CAGR of 8.64% from 2025 to 2035. The market is driven by increasing adoption of LPG as a cleaner and versatile energy source for cooking, heating, and transportation, and rising demand for LPG in the petrochemical industry for use as a feedstock.

Market Overview

The market involves production, distribution and consumption of LPG which exists as a flammable gas mixture that contains mainly propane and butane and serves as fuel for heating, cooking, and vehicle operation. The fuel supplies process heating needs combined with drying and melting requirements and steam generation needs, which support both manufacturing and food processing operations. The industrial segment generated the highest revenue in 2024. Governments in countries like Bolivia and Chile promote LPG as a lower-emission alternative to petrol and diesel for passenger and commercial vehicles.

The ANOVA company, which tracks 1.8 million tanks in 80 different countries, uses Brazil as its main location for business expansion due to the country's growing liquefied petroleum gas (LPG) market and its willingness to implement Internet of Things (IoT) technologies. Brazil aims to increase its domestic gas production because the country wants to lower consumer costs.

Brazil launched its LPG clean cooking subsidy program in September 2025 to provide cooking fuel access to more than 15 million low-income families who will use the program during its first month. Terpel opened its first AutoLPG station in Cali and its fifth station throughout Colombia in 2024. The new opening will enable LPG users to experience economic savings that range between 35% and 38% while they achieve identical power and performance results to gasoline engines.

The average for 2022, based on 12 countries, was 42.99 thousand barrels per day. Brazil recorded the highest production with 235.05 thousand barrels per day. For decades, the Argentinian government limited both the production and pricing of domestic LPG while enforcing a requirement for local suppliers to sell their products at a government-established export parity price, which the government disclosed every month.

Report Coverage

This research report categorises the South America 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 South America 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 South America LPG market.

Driving Factors

The LPG market in South America is driven by the residential and commercial sectors show extensive usage of LPG. The population size limits Brazil's ability to adopt modern heating systems because people continue to depend on traditional methods which include firewood. Brazil's LPG demand will increase between 4 and 8% this year because of two factors, which are the Gas do Povo subsidy program for low-income households and the country's economic growth, according to data from the Brazil LPG association Sindigas and the state-owned research institute Epe.

Restraining Factors

The LPG market in South America is restrained by the residential market which faces its strongest competition from biomass which serves as its most important rival. The market depends on imported products which makes it vulnerable to both worldwide price changes and interruptions in supply chains. The high costs of cylinders and specialized stoves function as a major obstacle that prevents many consumers from making purchases.

Market Segmentation

The South America LPG market share is categorised into source, application and supply mode.

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

The South America LPG market is segmented by source into refinery, associated gas, non-associated gas. Among these, the non-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 company's establishment of its market position through its dependable services and efficient operations which produce less environmental pollution because customers increasingly demand sustainable solutions and cleaner-burning fuels. The LPG market mainly relies on non-associated gas which exists separately from oil reservoirs as its primary source.

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

Based on application, the South America LPG market is segmented into residential/commercial, chemical, industrial, autogas, refinery, others. Among these, the residential/commercial segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The segmental growth is driven by LPG usage for cooking and heating, and portable energy needs make it the most common fuel for residential applications throughout the market. The clean-burning nature of the product, with its easy-to-use features and widespread availability, has made it the top choice for residential customers.

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

The South America LPG market is segmented by supply mode into packaged, bulk, on-site. Among these, the packaged 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 packaged LPG supply mode, which delivers LPG through the distribution of smaller containers which include cylinders and tanks, to serve residential, commercial and small-scale industrial applications. The residential market uses LPG cylinders for cooking and heating which makes this product a key factor that drives the LPG market.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South America 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                                                                                                     

• Easigas Ltd
• Oryx Energies
• TotalEnergies Marketing South Africa
• GoGas
• EPG Gas Distributors
• LNG Hub
• Carbonado Energy
• Egoli Gas
• My Gas Ltd
• MOOV Fuel and Lubricants
• 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 South America, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the South America LPG Market based on the below-mentioned segments:

South America LPG Market, By Source

• Refinery
• Associated Gas
• Non-Associated Gas

South America LPG Market, By Application

• Residential/Commercial
• Chemical
• Industrial
• Autogas
• Refinery
• Others

South America LPG Market, By Supply Mode

• Packaged
• Bulk
• On-site