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

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.