The global natural gas liquid market is expected to grow in the forecast period due to increasing petrochemical industry investment. Natural gas can be used as a substitute of coal to produce energy, which in the absence of carbon will decrease net carbon dioxide emissions.

Natural Gas Liquid Market, Analysis:

Natural Gas Liquids (NGL) are elements of natural gas in the form of liquids and are isolated from the gas cycle. Natural gas liquid is a non-renewable hydrocarbon used as the energy source for heating, cooking, and generating electricity. In addition, increasing demand for automotive goods from both OEM and other markets, including tires, flooring, matting, and belts, is likely to fuel the global NGL market.

Technological advancements are expected to drive the global natural gas liquid market:

Significant progress in technologies such as horizontal drilling and hydraulic fracturing, which involve the use of high-pressure water or liquids to extract gas has resulted in the increase of NGL production. In fact, NGLs provide extra income source for many natural gas producers that can help broaden their revenues. This factor is estimated to drive the market growth in the forecast period.

Decline in crude oil prices is anticipated to restrain the growth of the global natural gas liquid market:

Extraction of NGL has a significant relationship to crude oil prices. Oil, coal, and pharmaceutical producers widen their products to include NGLs to reduce loosing revenue as the selling price of crude declines. Decline in crude oil prices has a negative impact on the global NGL market and this may hamper the market growth in future. 

Rising investments is anticipated to create enormous opportunities for the global natural gas liquid market:

Expanding investment in renewable energy sources powered by issues over fuel diversification and changing regulatory policies for energy transformation will pose lucrative opportunity for the global natural gas liquid market. For instance, the Texas Clean Fleet Program enables natural gas liquid manufacturers to withdraw the diesel cars indefinitely from the road and to substitute them with alternative fuel vehicles. In addition, the rising need of natural gas liquid to support the domestic demand, improved energy efficiency of natural gas liquid, and to achieve self-sufficiency of the liquid will further enhance growth opportunities for the market.

Natural Gas Liquid Market, by Product:

Ethane natural gas will be the most lucrative till 2025

By product, the global natural gas liquid market is divided into ethane, propane, butane, and pentane plus. Amongst these, ethane natural gas is anticipated to dominate the market shares due to growing usage of ethylene by the petrochemical industry and developing large-scale crackers of ethylene.

Natural Gas Liquid Market, by Applications:

Petrochemical feedstock will be the most lucrative till 2025

By applications, the global natural gas liquid market is classified into petrochemical feedstock, space heating, and blend stock. Out of these, petrochemical feedstock is anticipated to dominate the market shares due to increasing investment towards industrial sector development. In addition, increasing demand for polyethylene, synthetic rubber, and polypropylene for fabrication of tires, plastics, and numerous other products will boost the petrochemical feedstock segment.

Natural Gas Liquid Market, by End-Users:

Petrochemical plants refineries are estimated to be the highest growing till 2025

By end-users, the global natural gas liquid market is segmented into residential sector, petrochemical plants refineries, and industries. Amongst these, petrochemical plants refineries segment is anticipated to dominate the market shares because of the increasing demand for ethane, propane, and butane applications across petrochemical industries.

Natural Gas Liquid Market, by Region:

North America region will have lucrative opportunities for the market investors

The global natural gas liquid market is analyzed across North America, Europe, Asia-Pacific, and LAMEA regions. North America dominates the market shares and is expected to lead in the forecasted period. This is due to the rapid growth of the natural gas industry, low prices of natural gas liquids, and the increasing reliance on foreign countries for energy imports.

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Key Participants in the Global Natural Gas Liquid Market:

Merger & acquisition and advanced product development are the frequent strategies followed by the market players

Some of the key players in the global natural gas liquid market are Exxon Mobil Corp., Chesapeake Energy Corp., BP plc, Range Resources Corp., Royal Dutch Shell PLC, SM Energy Co., ConocoPhillips, Swift Energy Co., Statoil ASA, Linn Energy Inc., and others.

Inorganic growth strategies are preferred by market players to expand to local markets. The major players in the natural gas liquid market are placing more emphasis on merger & acquisition and advanced product growth. This are the regular techniques that existing organizations pursue. To focus more on industry leader competition research, the study discusses the Porter's five-force model.

Source: Research Dive Analysis