Report

India LPG Cylinder market is anticipated to grow at a steady pace in the forecast period, 2025-2029. The demand for LPG is on the rise in the industrial, residential, and power generation sectors, with the transportation sector showing the most promising growth potential. This upward trend is attributed to a growing public awareness regarding the benefits of using LPG as a replacement for traditional fossil fuels. Developed and emerging nations like India are increasingly adopting clean and sustainable energy sources, further driving the expansion of the LPG market. Technological advancements also contribute to this growth, alongside an increasing number of government initiatives, aimed at educating rural communities about transitioning from LPG to conventional cooking fuels such as kerosene, wood, and coal. These factors are expected to play a crucial role in the industry's overall development.
LPG cylinders serve as a highly efficient fuel source, finding wide-ranging applications in agriculture, recreation, hospitality, construction, sailing, and fishing. They are utilized for water heating, central heating, and cooking, offering an affordable and effective solution for heating off-grid residences.
Growing Demand for Clean Cooking Fuel in The Country
The use of traditional cooking fuels, such as wood, dung, and kerosene, can have many health impacts. These fuels produce smoke that can contain harmful pollutants, such as particulate matter and carbon monoxide. Exposure to these pollutants can increase the risk of respiratory problems, such as asthma and pneumonia. They can also cause other health problems, such as cancer and heart disease. Owing to these disadvantages, the demand for clean cooking fuel in India is growing rapidly. This is due to a number of factors, with government's initiatives to promote the use of clean cooking fuels for poor people, being one of the many.
Clean cooking fuels, on the other hand, do not produce smoke or harmful pollutants. This makes them a much healthier option for cooking. In addition, clean cooking fuels are more efficient than traditional fuels, which means that they can save money on their energy bills. The government of India has been promoting the use of clean cooking fuels through a number of initiatives. These initiatives include the Pradhan Mantri Ujjwala Yojana (PMUY), which provides free LPG connections to poor households.
Growing LPG Consumption & Production in India
The developing utilization and creation of LPG (Liquefied petroleum gas) in India are driven by different elements that add to the extending market. To begin, the government's initiatives and policies have significantly contributed to the growth of LPG consumption. The 2016 launch of the Pradhan Mantri Ujjwala Yojana (PMUY) aimed to provide poor households with free LPG connections. This drive, combined with different plans and endowments, has altogether expanded LPG utilization. Secondly, an increase in LPG consumption has resulted from the growing middle class and urbanization. As additional families change from conventional cooking fuels to LPG utility, the interest/consumption of LPG is growing LPG is an appealing choice for urban households due to its convenience, cleanliness, and safety.
Besides, the public authority's push for cleaner energy sources also boosted the LPG market. India has made efforts to expand its LPG infrastructure, including the construction of additional LPG storage and bottling plants. LPG cylinder availability has increased, and production has increased in both urban and rural areas as a result of this expansion. LPG consumption in India has also increased due to households' increasing disposable income. As livelihoods rise, more families can bear the cost of LPG as a cooking fuel, further driving the interest in LPG chambers.
Overall, the growing consumption and production of LPG in India has been fueled by government initiatives, urbanization, environmental concerns, and rising disposable income. This makes India a significant driver for the growth of the LPG cylinder market.
Increasing Government Programs and Policies are Fueling the Market Growth
Indian authorities of power (ministry of power) carriers are turning their concern to economically possible as well as environmentally friendly, power sources. Among those alternatives, liquid petroleum gas (LPG) is often used by industries since LPG is less harmful for the environment. However, growing economies are actively seeking alternatives. These options embody dispensed era techniques like microgenerators, in addition to renewable power sources, which depend on advanced garage abilities and decreased intermittency in electricity. These factors are pushing the market growth opportunity. In addition, the purchasing power of households plays a crucial role in influencing the demand for LPG cylinders. This impact is particularly pronounced among lower income group families, as they have access to cheaper alternative fuels such as kerosene and fuel wood, often at heavily subsidized rates. To stimulate greater LPG consumption, the government has implemented various initiatives. Particularly, programs like PAHAL by government of India, have been introduced with the objective of providing clean cooking gas connections to impoverished households that traditionally rely on cooking fuels like firewood, coal, and cow-dung.
After its initiation, the scheme has effectively reached over 80 million Ujwala beneficiaries, resulting in an average per capita consumption of over 3 LPG refills per year. This transformative scheme has positively influenced the adoption of LPG cylinders among first-time users, bringing about a significant change in the lives of households that were previously reliant on traditional cooking fuels. Therefore, there has been a substantial increase in the demand for LPG cylinders from households, owing to which, the market is expected to register a high CAGR in the forecast period.
Pradhan Mantri Ujjwala Yojana (PMUY) Support Market Growth
In 2022, LPG bottling capacity across the northern region in India amounted to around 6.8 million metric tons per annum. Overall, the bottling capacity across the Nation stood at approximately 21.5 million metric tons per annum (MTA). Companies involved in the LPG cylinder market in India, launched smaller package sizes to cater to specific market demands. As of government's efforts to support economically disadvantaged families, a scheme named Pradhan Mantri Ujjwala Yojana (PMUY) is implemented that allows them to exchange their 14 kg LPG cylinder for a 5 kg cylinder. This scheme offers many reliabilities and flexibility, enabling consumers to switch between the two-cylinder sizes as per their requirements. Additionally, consumers have been given the opportunity to avail themselves of a PMUY scheme where they can access two 5 kg cylinders. These initiatives have greatly enhanced affordability for a significant number of consumers residing in Tier 3 cities and rural areas. To further assist consumers, special subsidiary loans have been made available, with LPG market players deferring the repayment period for one year or until the consumer has obtained six LPG refills, whichever comes first. These factors are propelling the market growth in the forecast period.
Convenience and Safety Driving the India LPG Cylinder Market
The LPG cylinder market in India is largely driven by convenience and safety concerns. First and foremost, LPG cylinders provide households with unparalleled convenience. They offer fuel for cooking that is safe, effective, and simple to use. The laborious process of gathering coal or firewood, which can be time-consuming and physically demanding, is unnecessary with LPG. Cooking becomes more convenient and effective because LPG cylinders make it easier to store, handle, and prepare solid fuels. In addition, LPG provides constant heating, making it possible for consumers to control the flame and adjust cooking temperatures as necessary.
Secondly, household safety is a top priority, and LPG cylinders provide a number of safety features. Pressure regulators are built into these cylinders to control gas flow and prevent accidents caused by too much pressure. Additionally, modern LPG cylinders come with mechanisms for detecting leaks, such as gas leak detectors and safety valves built in. These highlights give an additional layer of security and assist with forestalling incidents brought about by gas spills. The security guidelines and guidelines executed by specialists further improve the general wellbeing of LPG chambers.
The convenience, effectiveness, and bother free nature of LPG cooking have brought about a huge shift from customary cooking powers. The demand for LPG cylinders continues to rise, driving the expansion of the LPG cylinder market in India. More and more households are recognizing the convenience and safety advantages of LPG cylinders.
Market Segmentation
India LPG Cylinder Market is segmented based on Material Type, Cylinder type, Application, Size, and Region. Based on Material Type, the market is segmented into Glass Fiber Composites, Metal, and Others. Based on Cylinder type, the market is segmented into Metal and Composites. Based on Application, the market is segmented into Residential/Consumer-use, Power & Utilities, and Transport/Auto-fuel. Based on Size, the market is divided into 0 to 5 Kg, 6 to 10 Kg, and 11 Kg & Above. Based on region, the market is segmented into West India, North India, South India, and East India.
Market Players
Major market players in the India LPG Cylinder Market are Indian Oil Corporation. Limited, Bharat Petroleum Corporation Limited, Haldia Petrochemicals Ltd (HPL), Gujarat Gas Limited, Maharashtra Natural Gas Limited, Shv Energy Private Limited, Aegis Logistics Limited, Confidence Petroleum India Limited, Time Technoplast Limited, Prestige Feed Mills Ltd.
Report Scope:
In this report, the India LPG Cylinder Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
� India LPG Cylinder Market, By Material Type:
o Glass Fiber Composites
o Metal
o Others
� India LPG Cylinder Market, By Cylinder Type:
o Metal
o Composites
� India LPG Cylinder Market, By Application:
o Residential/Consumer-use
o Power & Utilities
o Transport/Auto-fuel
� India LPG Cylinder Market, By Size:
o 0 to 5 Kg
o 6 to 10 Kg
o 11 Kg & Above
� India LPG Cylinder Market, By Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India LPG Cylinder Market.
Available Customizations:
India LPG Cylinder market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
� Detailed analysis and profiling of additional market players (up to five).