Rising Demand in Agriculture & Energy Diversification to Boost UAE LPG Market

UAE Liquified Petroleum Gas Market to Hit $13.7 Billion by 2033, Growing at 5.8% CAGR

WILMINGTON, DE, UNITED STATES, August 13, 2025 /EINPresswire.com/ --

According to a recent report by Allied Market Research, the UAE liquified petroleum gas (LPG) market was valued at $6.6 billion in 2023 and is projected to reach $13.7 billion by 2033, growing at a CAGR of 5.8% from 2024 to 2033.

Liquified Petroleum Gas is a flammable hydrocarbon gas mixture composed mainly of propane and butane. While it exists as a gas at normal temperature and atmospheric pressure, it becomes liquid under moderate pressure. LPG is obtained during natural gas processing and petroleum refining, making it an important energy source for residential, commercial, industrial, and transportation sectors.

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Market Drivers

The UAE LPG market growth is fueled by its versatility, cost-effectiveness, and wide availability. It plays a crucial role in the nation’s energy diversification strategy by providing a reliable fuel source for multiple applications. From household cooking and heating to industrial manufacturing and vehicle fuel, LPG is meeting diverse energy needs efficiently.

However, the market faces challenges. The rapid development of the renewable energy sector in the UAE, particularly solar and wind energy, has introduced strong competition for traditional fuels like LPG. Additionally, high refinery installation costs can hinder expansion.

Despite these challenges, leveraging existing oil and gas infrastructure is enhancing the cost-effectiveness and efficiency of LPG distribution, creating new opportunities for market penetration across the UAE.

Market Segmentation

The UAE liquified petroleum gas market is segmented by source and application.

By Source

Refinery

Associated Gas

Non-Associated Gas

The associated gas segment is projected to grow at the fastest rate, with a CAGR of 6.4% during the forecast period. Associated gas is natural gas found alongside crude oil in underground reservoirs, often containing hydrocarbons such as methane, ethane, propane, and butane.

Government regulations aimed at reducing flaring and promoting efficient gas utilization are driving investment in gas capture and processing technologies. These policies include emission standards, flaring reduction targets, and financial incentives such as subsidies and carbon pricing schemes.

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By Application

Residential

Commercial

Agricultural

Industrial

Transportation

Others

The agricultural segment is forecasted to grow at the fastest pace, with a CAGR of 8.6%. LPG is increasingly used in agriculture for crop drying, pest control, irrigation, and powering machinery. Its clean-burning nature reduces emissions, making it a more environmentally friendly alternative to diesel.

The UAE’s focus on sustainable agriculture and food security has encouraged the adoption of LPG-powered farming equipment. These machines help improve productivity while minimizing environmental impact, aligning with the nation’s strategic goals.

Competitive Landscape

Key players in the UAE liquified petroleum gas market include:

Abu Dhabi National Oil Company (ADNOC)

Al Fanar Gas

Brothers Gas

Dubai Fuel Supply LLC.

Emarat

Emirates Gas LLC

Plumblend

Sharjah National Oil Corporation (SNOC)

Shield Gas Systems

TotalEnergies

Market leaders such as ADNOC, Brothers Gas, Emarat, Emirates Gas LLC, SNOC, and TotalEnergies are actively expanding their distribution networks and investing in infrastructure upgrades to maintain a competitive edge.

Future Outlook

The UAE liquified petroleum gas market is expected to witness sustained growth over the next decade. Key growth factors include:

Expanding agriculture sector adoption of LPG equipment

Regulatory push for reduced gas flaring and improved utilization efficiency

Leveraging oil & gas infrastructure to improve market accessibility

Rising demand in both urban and rural sectors for clean and reliable fuel sources

While renewable energy expansion remains a competitive challenge, LPG’s versatility and infrastructure compatibility will ensure it remains a vital component of the UAE’s energy mix.

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Conclusion

The UAE liquified petroleum gas market is on a strong growth trajectory, expected to more than double in value by 2033. Its wide-ranging applications, environmental benefits in agriculture, and compatibility with existing infrastructure make it a crucial energy source for the nation. As the UAE continues to balance renewable energy adoption with traditional fuels, LPG will remain a key player in supporting energy security, economic growth, and sustainable development goals.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Allied Market Research
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