LPG cylinders are pressurized containers and transport liquefied petroleum gas (LPG). LPG is a flammable hydrocarbon gas that is extracted from natural gas or crude oil. It is a non-renewable resource. There are two types of LPG, propane and butane. A type of fuel called naphtha is the primary feedstock in manufacturing LPGs. The most common form of storing propane is in a steel pressure vessel with an internal volume capacity ranging from 1,000 to 100,000 gallons (3,785 to 378,540 liters) with a cylindrical shape measuring 12 inches (30 cm) in diameter by 60 inches (152 cm) high.
They come in a variety of sizes, from small canisters that fit in the trunk of a car to large tanks that can be used to fuel a home or business.
Initially the distribution network of these companies was continued to urban areas only but with the rapid change in the living conditions of the society, the requirement of LP gas is increasing very steeply. Now with the opening of LP Bottling Plants in the private sector undertakings the demand of LPG cylinder will keep on growing. Furthermore, to give more impetus to the rural population recently it has been announced to supply small size cylinders of 5 Kg capacities to the rural population. The demand of LPG cylinders will also be in the upward position with the continuity of DBC system to the consumer by the distribution companies.
The demand and supply balance is in favor of demand which will continue to outstrip supply. LPG is a good substitute for petrol in spark ignition engines. Its clean burning properties in a properly twined engine give reduced exhaust emissions, extended lubricant and spark giving rise to the demand of LPG cylinders.
Uses and Application
LPG cylinders are used in a variety of settings, including domestic, commercial and industrial. They can be used for cooking, heating and refrigeration, as well as other applications. When starting an LPG cylinders business, it is important to consider the different uses and applications of LPG cylinders. For example, LPG cylinders may be used for home cooking by using them as a stove or to provide hot water. Commercial and industrial purposes may include using them as fuel in welding torches or heaters.
LPG cylinders are also a popular choice for caravans and motorhomes due to their portability. LGP cylinders are also used in many industries, such as construction, agriculture and automotive.
LPG cylinders are used in a wide range of applications, including:
1. Domestic,
2. Commercial and
3. Industrial.
Indian Market
The liquefied petroleum gas (LPG) market is expected to grow at a CAGR of over 3.5% during the forecast period of 2022-2027. The major drivers for the growth of the market are the ever-increasing population and the consequent rise in demand for energy, government initiatives to promote the use of clean energy, and the growing preference for LPG cylinders over other forms of energy.
The market is also being driven by the increasing number of women in the workforce and the growing middle-class population. However, the high cost of LPG cylinders and the lack of infrastructure are some of the challenges faced by the market. There is an imbalance between the demand and supply side.
The primary driver of the market is the increasing consumption of LPG and the supporting initiatives from the government to increase the usage of cleaner fuel. However, the expanding penetration of Piped Natural Gas (PNG) for households and the Compressed Natural Gas (CNG) for vehicles as an alternative to LPG is expected to restrain the LPG market growth. Further, the LPG storage is a challenging factor. The domestic LPG usually comes in cylinders, which doesn't provide a continuous supply service and its highly flammable and heavier that has a high tendency to catch fire in case of any leakage, which is expected to hinder the market growth during the forecast period.
The Indian market for LPG cylinders is currently booming. With the government's recent push to promote the use of clean cooking fuel, more and more people are making the switch to LPG. This has created a huge demand for LPG cylinders, which is expected to continue growing in the coming years.
Industry Major Market Players:
1. Luxfer Gas Cylinders
2. Hexagon Composites ASA
3. Worthington Cylinders
4. Dragerwerk AG & Co KGaA
5. Time Technoplast
6. Faber Industries P.A.
7. Beijing Tianhai Industry Co
8. Ullit
