Natural Gas Liquids Market: Clean Energy, Green Energy

The global natural gas liquids market size accounted for USD 15,500 million in 2024 and is expected to exceed around USD 27,500 million by 2034, growing at a CAGR of 5.9% from 2025 to 2034.

Natural Gas Liquids Market Report Highlights

• By region, Asia Pacific dominated the natural gas liquids market in 2024 with the highest revenue share.
• By region, North America is expected to grow fastest during the forecast period.
• By application, the industrial segment held a dominant presence in the market in 2024.
• By application, the commercial segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By product, the ethane segment accounted for a considerable share of the market in 2024.
• By product, the propane segment is set to experience the fastest rate of market growth from 2025 to 2034.

Industry Valuation and Growth Rate Projection

The natural gas liquids market refers to the production, distribution, and application of natural gas liquids (NGLs) are hydrocarbons in the same family of molecules as natural gas and crude oil, composed exclusively of carbon and hydrogen. Pentane, isobutane, butane, propane, and ethane. There are many uses for natural gas liquids (NGLs), spanning nearly all sectors of the economy. Natural gas liquids (NGLs) are components of natural gas that are separated from the gas state in the form of liquids. NGLs refer to the components of natural gas that become when cooled to -126°C. Gas liquids are gas vibrate and move freely at high speeds. Liquid vibrates, moves about, and slides past each other. Solid vibrate but generally do not move from place to place.

Natural gas liquids (NGLs) are hydrocarbons that exist in a vapor phase under downhole pressures and temperatures, and temperatures and accompany the natural gas production out of a well. Natural gas liquids (NGLs) do not only reduce greenhouse gas emissions but also air pollutants. The rapid growth of cities is focusing attention on the environment and health impacts associated with air pollution from electricity generation when power plants are located close to urban centers. Applications of NGLs can vary widely and include fuels, plastics, heating, and cooking.

Rising demand for natural gas liquids in refineries and petrochemical plants is driving the growth of the natural gas liquids market. Isobutane (C4H10) is generally used as refinery feedstock and petrochemical feedstock. The end products are alkylated for refrigerants and gasoline. Natural gas liquids (NGLs) are also called petroleum feedstock due to they can be converted into several materials for the petrochemical industry. NGLs are key components of the petroleum industry, striking a fine balance between the oil and natural gas markets.

Petroleum products are fuels made from crude oil and the hydrocarbons contained in natural gas. Petroleum products can also be made from coal, natural gas, and biomass. Liquefied petroleum gas (LPG) consists mainly of propane (C3H8) with other hydrocarbons, like butylene, propylene, and butane, in many mixtures. The components of liquefied petroleum gas (LPG) are gases at normal temperatures and pressures.

The rising use of natural gas liquids in cooking and burned space heat is driving the natural gas liquids market. The most popular gas that we use for cooking is LPG (liquefied petroleum gas). It is a mixture of hydrocarbons, butane, and propane. LPG has properties including it is heavier than air, so easy to accumulate in low-lying areas, highly flammable, economical, has excellent heating capacity, undergoes complete combustion, can be liquefied at moderate pressure, and it is colorless, non-toxic, and odorless gas. It is safe to use, economical, and easily available. It has a high calorific value.

NGLs have many uses of natural gas liquids including space heating, cooking, and blending. Natural gas heats people’s homes using space heaters, furnaces, and boilers. There are many types with options to buy oil, propane, natural gas, and electricity-powered appliances. The common fuel used in heating homes is natural gas. Natural gas furnaces may be called central heating systems, are equipped with a turbine and air vents to generate heated air, which can be delivered through registers and windscreens.

Suitable government initiatives driving the growth of the natural gas liquids market. A government initiative is a specific action or proposal undertaken by government officials or agencies to address a particular issue, achieve a specific goal, or implement a new policy or program. The government has a major role in the efficacy of a functioning society. Governments ensure that citizens do not encroach on the rights of others. They also ensure that citizens follow the rules and regulations which have been instituted by the state.

According to a report published by the U.S. Energy Information Administration, Natural Gas Consumption by End Use,