USD 82.6 billion
Propane Market Size, Share, Growth Analysis, By Form(Gas and Liquid), By Application(Residential Propane, Commercial Propane, and Agricultural Propane), By Grade(HD-5 Propane, HD-10 Propane, and Commercial Propane), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG10D2020 |
Region:
Global |
Published Date: July, 2024
Pages:
242
|Tables:
88
|Figures:
76
Propane Market Insights
Propane Market size was valued at USD 87.71 billion in 2022 and is poised to grow from USD 98.50 billion in 2023 to USD 249.16 billion by 2031, growing at a CAGR of 12.3% in the forecast period (2024-2031).
Propane is an affordable fuel option, as it is frequently lower and steadier in price compared to other fuels. Propane appliances have significantly lower energy consumption and environmental impact than electric ones, which can lead to cost savings on energy bills. In addition, governments of some countries offer financial incentives for adopting environmentally friendly alternative fuels like propane. The factor driving growth of the global propane market is the increasing use of propane for propylene production. Propylene is a key building block for a range of products, including plastics, chemicals, and textiles. Propane is a key feedstock for the production of propylene, which is used in a range of industrial applications. As demand for propylene continues to rise, the demand for propane is also expected to increase. In addition, the global propane market is also benefiting from the rising focus on the development of sustainable energy sources. Governments around the world are implementing policies to encourage the adoption of alternative fuels like propane, in order to reduce reliance on non-renewable resources. Propane is a domestically produced fuel that is readily available and can be used to power a range of applications
However, propane is a versatile and efficient fuel source with numerous advantages, it is not without its drawbacks. One of the primary concerns with propane is the risk of propane poisoning, which can occur if the gas is swallowed or inhaled. Additionally, storing propane tanks and arranging for delivery can be problematic, particularly for those living in small spaces or in areas with difficult access. Therefore, safety must always be a top priority when using propane as a fuel source. One of the key drivers of the global propane market is the rising need for clean-burning fuels. As governments around the world implement stricter environmental regulations, there is a growing focus on reducing carbon emissions and improving air quality. Propane is a low-carbon fuel that burns cleaner than natural gas, fuel oil, diesel, and even electricity. This makes it an attractive alternative for powering homes and businesses, as it can significantly reduce greenhouse gas emissions and other air pollutants.
US Propane Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Residential Propane
Fastest Growth
Residential Propane
Growth Rate
4.8% CAGR
Global Propane Market ($ Bn)
Country Share for North America Region (%)
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Propane Market Segmental Analysis
The global propane market is segmented by form, application, grade of propane, and region. Based on form, the global propane market is segmented into Gas Form and Liquid Form. Based on the Application, the propane market is segmented into Residential Propane, Residential Propane, and Agricultural Propane. Based on the grade, the propane market is segmented into HD-5 Propane, HD-10 Propane, and Commercial Propane. Based on region, the propane market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Propane Market Analysis by Form
By form, the global propane market can be segmented into gas and liquid form. The gas form of propane is typically used for outdoor purposes such as grilling, patio heating, and pool heating. Due to their portability, effectiveness, and strength, propane tanks are frequently utilized in outdoor locations. The gas form of propane is also used as a fuel source for forklifts and other industrial machinery. Additionally, propane appliances have significantly lower energy consumption and environmental impact than electric ones. The gas form of propane is expected to see significant growth in the coming years, driven by a rise in demand for clean-burning fuels.
The liquid form of propane is used in homes and businesses for heating, cooking, and water heating purposes. It is also used for propylene production, a key component in the manufacture of various plastic products. As propane is a low-carbon fuel, it is gaining popularity as an alternative to traditional fossil fuels such as coal and oil. With the rise in environmental concerns and government regulations to reduce carbon emissions, the demand for liquid propane is expected to increase in the coming years. According to recent reports, the liquid form of propane dominates the global propane market, accounting for over 90% of the total market share. The residential and commercial sector is the largest end-user of liquid propane, followed by the industrial sector. The demand for liquid propane in the residential sector is driven by the need for heating, cooking, and water heating purposes.
Propane Market Analysis by Application
By application, the global propane market is segmented into Residential Propane, Commercial Propane, and Agricultural Propane. The Residential Propane segment is expected to hold the largest market share in the forecast period. The use of propane in residential settings is widespread, particularly in regions where natural gas is not available. Residential propane is primarily used for heating homes, cooking food, and heating water. Propane-based appliances are gaining popularity due to their high efficiency and low carbon emissions, which are better than traditional electricity-based appliances. The market for residential propane is expected to grow during the forecast period, driven by the increasing demand for clean-burning fuels.
The Commercial Propane segment is also expected to witness significant growth during the forecast period. Propane is commonly used in commercial settings such as restaurants, hotels, and hospitals, where large quantities of hot water are required. It is also used for space heating and as a fuel for forklifts, backup generators, and other industrial equipment. The market for commercial propane is expected to be driven by the rising demand for propane as a clean-burning and cost-effective fuel.
The Agricultural Propane segment is also expected to witness significant growth in the forecast period. Propane is widely used in agricultural settings, particularly for crop drying and greenhouse heating. The use of propane in agricultural settings is expected to grow as farmers increasingly look for sustainable and cost-effective ways to heat their facilities and dry their crops. The market for agricultural propane is also expected to benefit from government incentives and regulations promoting the use of clean-burning fuels in agriculture.
Propane Market Analysis by Grade
By grade, the propane market is segmented into HD-5 Propane, HD-10 Propane, and Commercial Propane. HD-5 propane is a high-purity propane that meets specific quality standards set by the American Society for Testing and Materials (ASTM) for use in propane applications such as residential and commercial heating and cooking, engine fuel, and forklift fuel. The HD-5 propane segment held the largest market share in 2022 due to its high purity and low sulfur content, making it an ideal fuel for a variety of applications.
HD-10 propane is a lower-purity grade propane that is typically used in industrial applications, such as forklift fuel, heating, and drying processes. This segment is expected to experience steady growth during the forecast period due to its lower cost compared to HD-5 propane.
Commercial propane is a lower-grade propane that contains more impurities than HD-5 and HD-10 propane. It is primarily used in non-residential applications, such as manufacturing, agriculture, and transportation. This segment is expected to grow steadily during the forecast period due to the increasing demand for propane in commercial applications.
Global Propane Market By Type
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Propane Market Regional Insights
North America dominated the global propane market due to its high consumption and production of propane. The United States is the largest producer and consumer of propane in the world, accounting for more than 50% of the global production. Propane is primarily used for residential heating, cooking, and transportation fuel in North America. The residential sector is the largest consumer of propane in the region, followed by the transportation and commercial sectors. The recent boom in the shale gas industry in the US has resulted in an increase in propane production, leading to a surplus of propane in the market. The surplus has caused the price of propane to decrease, making it a cost-effective alternative to other fuels. The low price of propane has also led to an increase in its usage in various industries, such as agriculture, petrochemicals, and power generation.
Europe is one of the fastest-growing regions in the global propane market due to its increasing demand for propane in the residential and commercial sector. The region is heavily dependent on propane imports, as its domestic production is limited. The Netherlands, Russia, and Norway are the major propane producing countries in Europe, accounting for a significant portion of the region's propane production. The residential sector is the largest consumer of propane in Europe, followed by the commercial and industrial sectors. Propane is primarily used for heating and cooking in the residential sector, while it is used as a fuel for forklifts, buses, and trucks in the commercial sector.
Global Propane Market By Region
- Largest
- Fastest
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Propane Market Dynamics
Propane Market Drivers
High adoption of environmentally safe fuel alternatives
- One of the key drivers of the global propane market is the high adoption of environmentally safe fuel alternatives. With increasing concerns about the adverse effects of carbon emissions on the environment and human health, there has been a significant shift towards cleaner and more sustainable energy sources. Propane is considered to be an environmentally safe alternative to traditional fossil fuels such as gasoline, diesel, and fuel oil due to its lower carbon emissions and reduced environmental impact. Governments and regulatory bodies across the world are promoting the adoption of propane as an alternative fuel source to reduce carbon emissions and meet their climate change targets. This has led to an increase in investments in the development of propane infrastructure, including pipelines, storage facilities, and distribution networks.
High demand for LPG connections
- The high demand for LPG connections is a major driver of the propane market. The demand for LPG connections has been increasing worldwide due to the rising population and the increasing need for clean energy. LPG is a versatile and clean-burning fuel that can be used in various applications such as cooking, heating, and transportation. Moreover, it is a cost-effective and efficient fuel source that offers many benefits compared to other fuels. Many countries are taking initiatives to increase the use of LPG as a clean energy source. For example, the Indian government has launched the Pradhan Mantri Ujjwala Yojana (PMUY) scheme to provide LPG connections to households below the poverty line. The scheme aims to provide free LPG connections to 80 million households by 2022. Similarly, the government of Indonesia has also launched the LPG Conversion Program to promote the use of LPG as a cleaner fuel for cooking and reduce the use of traditional biomass fuels.
Propane Market Restraints
Fluctuation in fuel prices
- One of the major challenges faced by the propane market is the fluctuation in fuel prices. The prices of propane are subject to market dynamics and are influenced by various factors such as supply-demand imbalances, changes in crude oil prices, and geopolitical tensions. As propane is primarily derived from crude oil, any fluctuations in the crude oil market can significantly impact the price of propane. Furthermore, the transportation and distribution costs of propane are relatively high due to its low density, which adds up to the final cost of propane. The fluctuating prices of propane can create a financial burden on end-users and discourage them from using propane as a fuel source. Industries that rely heavily on propane, such as agriculture and construction, may face difficulties in managing their budgets and operations due to price fluctuations. This can lead to a decrease in demand for propane and affect the overall growth of the propane market.
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Propane Market Competitive Landscape
The global propane market is highly competitive with several players operating in the market. The market players are focusing on research and development to improve the quality of propane and increase its applications. The companies are also investing in marketing and advertising to increase awareness among consumers about the benefits of using propane. The market players are adopting various strategies such as mergers and acquisitions, partnerships, and collaborations to expand their market presence. Moreover, companies are also expanding their production capacities to meet the growing demand for propane. The market players are also focusing on developing new and innovative propane-based products to cater to the increasing demand from various end-use industries.
Propane Market Top Player’s Company Profiles
- ExxonMobil Corporation
- BP plc
- Royal Dutch Shell plc
- Chevron Corporation
- Phillips 66
- Total SA
- ConocoPhillips
- China Petroleum & Chemical Corporation (Sinopec)
- Indian Oil Corporation Limited
- Valero Energy Corporation
- National Iranian Oil Company (NIOC)
- Reliance Industries Limited
- Pemex
- Gazprom
- Petrobras
- Kuwait Petroleum Corporation
- Nigerian National Petroleum Corporation (NNPC)
- Repsol
- Rosneft Oil Company
- Liquefied Petroleum Gas Suppliers Association (LPGSA)
Propane Market Recent Developments
- In January 2022, Sinopec, a Chinese state-owned oil and gas company, announced plans to increase its production of propane by 10% in 2022 to meet growing demand in the domestic market.
- In December 2021, Saudi Aramco, a Saudi Arabian national petroleum and natural gas company, announced that it had signed a Memorandum of Understanding with a South Korean company to explore the development of a propane dehydrogenation plant in Saudi Arabia.
- In November 2021, the Canadian company Pembina Pipeline Corporation completed its acquisition of Inter Pipeline Ltd, which included Inter Pipeline's ownership of a propane dehydrogenation and polypropylene facility in Alberta, Canada.
- In October 2021, UGI Corporation, a US-based distributor and marketer of energy products, completed its acquisition of Mountaineer Gas Company, a natural gas distribution company that also distributes propane.
- In September 2021, the US Department of Energy announced $17.5 million in funding for research and development projects focused on reducing emissions from the propane industry.
Propane Key Market Trends
- Increasing use of propane as an alternative fuel in the transportation sector is one key trend in the global propane market. Propane-powered vehicles emit fewer greenhouse gases and air pollutants compared to gasoline or diesel-powered vehicles. According to a report by the Propane Education & Research Council, propane autogas emits 18% fewer greenhouse gases and up to 96% fewer particulate matter emissions compared to gasoline. In addition, propane autogas engines have a longer lifespan and require less maintenance than gasoline or diesel engines. The trend towards using propane as an alternative fuel in the transportation sector is being driven by government regulations to reduce emissions and improve air quality, as well as the cost savings associated with using propane as a fuel. Many fleet operators, including school districts, municipal governments, and private companies, have already made the switch to propane-powered vehicles, and the trend is expected to continue in the coming years.
Propane Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global propane market analysis, the market is expected to experience significant growth during the forecast period due to various drivers such as the high adoption of environment-safe fuel alternatives, and high demand for LPG connections. However, the market also faces certain challenges such as fluctuating fuel prices and the risk of propane poisoning, which can hamper its growth. The market is segmented based on form, application, and grade, with the residential propane application segment dominating the market share. The Asia-Pacific region is expected to witness significant growth in the forecast period, driven by the high demand for LPG connections and the increasing use of propane in industries such as transportation and chemical.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 87.71 billion |
| Market size value in 2031 | USD 249.16 billion |
| Growth Rate | 12.3% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Propane Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Propane Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Propane Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Propane Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Propane Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Propane Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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