Production of Fiberglass Transparent LPG Cylinder

February 5, 2021February 4, 2021 EIRI Team

Brief Overview of the LPG Industry

LPG is an efficient energy source. The global LPG market size was estimated to be $116.41 billion in 2019. It is likely to grow at a healthy CAGR of 4.4% during the period 2020-2027. Governments globally are pushing for the adoption of more efficient and cleaner energy sources over fossil fuels. This has led to greater adoption of LPG, especially in developing countries. Growing population and their increasing energy needs, combined with the government’s efforts to promote cleaner energy sources are the major drivers in the global LPG industry. 60-70% of the cooking and heating are done in India using LPG.

Global governments are not only positioning LPG as a cooking source but also promoting them for industrial applications. It is widely being used in many developing countries as a fuel for vehicles. This helps to reduce the dangerous carbon emissions that are detrimental to the environment. Running LPG fueled vehicles is much cheaper compared to conventional fuels. Lucrative government subsidies and initiatives to promote LPG as a substitute for fossil fuels have driven its demand and application. In addition to the conventional cooking applications, LPG is also being used for commercial/residential ventilating and heating purposes. This sector is likely to be valued above $6.81 million by 2027.

The total market demand for LPG stood at 331.29 million tons in 2020. It is expected to increase to 417.11 million tons by 2027. Europe dominated the LPG market with a share of 28.5% in 2019. India has emerged as a major LPG importer. It imports from the US and the Middle East to meet its domestic fuel usage. Many summits like COP21 are being conducted globally by many countries to reduce carbon emission levels. This has driven the global LPG industry as a means for cleaner and more efficient fuel.

Future Scope and Demand

Gas cylinders are used for storing the LPG above air pressure. Conventional LPG cylinders are made of steel. However, they are heavier, and you cannot see the LPG levels remaining in the cylinder. Manufacturers are now making composite transparent LPG cylinders made from fiberglass. They are made from polyethylene, molded inner lining, fiberglass, and resin for superior strength and durability. Over time, they can replace the traditional steel LPG cylinders.

The global composite LPG cylinder market was valued at $601 million in 2018 and is likely to reach $921 million by 2024. This is an impressive CAGR of 7% over the period. Composite LPG cylinders are more durable, non-corrosive, lightweight, and explosion-proof. It is a high-pressure cylinder made from fiberglass placed in a plastic body. Manufacturing these composite LPG cylinders is a complex process and is costlier than making the traditional steel LPG cylinders.

The Asia Pacific region is expected to depict a high demand for composite LPG cylinders. Residential applications are likely to dominate the demand for composite LPG cylinders. This is also due to the attractive subsidies provided by governments in some countries.