The propane market is projected to reach USD 9.5 billion gallons by 2023 rapidly at a CAGR of 4% throughout the forecast 2022 - 2030.
The propane market is projected to grow by USD 9.5 billion gallons by 2023 rapidly at a CAGR of 4% throughout the forecast 2022 - 2030. Propane is a hydrocarbon gas that is flammable in nature. Through pressure, this gas is liquid for various industrial applications. It is a liquefied petroleum gas that is clean and efficient. It is both a liquid and gaseous product that is used for cooking and vehicles. The residential and commercial use of this product is high. There are various alternatives for propane in the chemicals market. However, it has low density than its alternative chemicals.
Low boiling point is the crucial feature of the product. Due to this, the usage of this product is high in portable stoves. It is gas that can easily vaporize that makes is suitable for portable stoves that cook barbeques. Recreation vehicles have high usage of the propane. The rising infarsyurce in many regions is creating demand for the propane gases.
Today, automotive sector has investment fof the propane market. They have widespread use across the world due to its low emission a sustainable energy. Today, the production of propane is massive in many regions. It is creating exceptional awareness for the product in developing markets. Expansion in the fuels market misleading to a positive impact on the propane market. The growing trends in the market will create high propane market value.
Outbreak of covid 19 is causing plenty of effects on the global industries. There is high spread of virus in the industrial sector. High labour and production activities remain a hotspot for virus spread. Due to this, safety measures are taken in many markets and their production facilities. The propane market is facing challenges during this period. The impact of COVID-19 has significantly reduced propane demand from.
End-user such as businesses, commercial, transportation and industry have less demand for the market. Due to the increasing use of liquefied petroleum gas (LPG) the demand in residential sector. The impact of the pandemic is high that has decreased crude prices. Drop in oil and gas output, is limiting propane supplies in all major countries. In upcoming years, the need for propane will grow more in many regions. Further, demand and investment from the developed regions is expected to grow in the market. All these factors create positive growth post covid 19.
The rising governmental support is a crucial demand driving factor of propane industry. Investments from various governments are surging demand for the propane. Clean and sustainable energy is essential in growing markets. The conventional petroleum can emit carbon emissions. Due to this, the investments for the propane market are increasing by developing regions.
Asia pacific regions have increased need for clean energy. China alone investment more than billions of dollars on the propane market. It leads to high demand for the product in the forecast period. Further, Propane is used for other important applications. Air conditioning, heating water, cooking and refrigeration, drying are some of the residential applications. These operations increase the demand for the product in residences.
Propane is used in rural areas that as no access to natural gas. Also, mobile homes use propane. Propane is used in millions of homes to meet some of their energy needs. More than five million households in the United States use propane. They are primary heating source and about one-fifth of mobile homes use propane as well. All these trends in the makret will create high demand for propane in the forecast period.
Demand for marine exports will create high propane market growth opportunities. Marine coast shipments are increasing upto 77%. Regions such as Canada are increasing their marine exports. These growing shipments increase the usage of propane.
In the upcoming years, these marine coast operations are higher both in North America and Asia pacific. These coast operations will have immense usage of the propane. All these factors will create exceptional growth opportunities in marine market. Investments in the market are high for propane. Due to this, large amount of propane fuels will be adopted in the market.
The average propane tank in residences carries more than 1,000 gallons of liquid propane. Gas grills powered by propane are used by millions of outdoor cooks. The storage and usage in residential areas will contribute to higher development in these markets. Furthermore, propane-fueled appliances are common in recreational RVs will boost growth. Providing a portable energy source for cooking, hot water, and refrigeration increases the usage.
Residential space heating losses to electricity and natural gas are will rise. By increased new residential building and continued fuel oil conversions and outdoor cooking practices will create high growth opportunities in the market.
Raw material price volatility is affecting the growth of the market. Propane is a combination of many markets. Crude oil and other fuels are facing high market fluctuations. It is increasing the raw material price volatility in the propane market.
The United States and other key investors are facing issues in production due to raw material price. In the pandemic, supply chain disruptions are affecting demand. The rising raw material inconsistencies will hinder production of this market. Low inventories and raw material price is a restraining factor that can affect growth in forecast period.
High cost of the propane is a challenging factor of the makret. Propane is cheaper than its alternatives. However, it is a petroleum based liquid that can have high cost. Especially, developing nations have hesitation to adopt this technology in large scale. Propane is a biodegradable gas.
However, using it in portion is necessary. Overusing propane can affect the environment. It can lead to carbon emissions. Due to higher concentration of propane use some regions have restrictions. The restriction on production and usage can cause decline in the production. Also, environmental conscious users may prefer less harmful alternatives.
The propane market trends is stable in the forecast period. There are plenty of factors that lead to growth in the market. Fuel applications of the propane are facing high demand. Domestic use of the propane as fuel is leading to high growth. The usage of cylinder propane is a crucial driver of the market.
Rising governmental support is encouraging the growth of this market. Residential houses and spaces are using this product in portable stoves. Restraining factors of the market are raw material prices in the market. Also, high cost of propane is a declining factor of the market. The expansion of the marine exports will create profitable development in propane market.
Asia pacific is the leading regional player with propane market shares. The demand in the region is surging due to the use of propane in households. Also, the automotive sectors play a crucial role to boost growth in the market.
Asia Pacific is the largest auto gas market, Thailand. China auto gas business is substantially growing due to municipal programmes promoting. The surging need for clean energy is impacting the growth of the makret in Asia pacific region. India and Japan are other countries in the region with high demand for propane.
There are few key players in the competitive landscape with plenty of initiatives. Market expansions, acquisitions, mergers and collaborations are crucial strategies in the competitive landscape. All these developments will create a favourable impact on the market.
Global Propane Market Share, by Type, 2017 (%)
Source: MRFR Analysis
The regional propane market is fragmented into Asia pacific, Europe and North America. Asia pacific has a surging demand for propane. The commercial and industrial use of the product is increasing demand in the forecast period. Propane in automotive sector is gaining more traction.
Also, the development and production of propane in chain is booming. North America is the next largest propane market. Investments are massive in the region. Also, developments and innovations in the makret are surging. Residential gas segment holds the highest shares in propane. Europe is the next largest market with higher expansion. Rising production of propane will create growth. Middle East and Africa are developing regions having high demand for propane.
The key players of the propane market are
|Market Size||2030: 9.5 Billion gallons|
|CAGR||2030: 4% CAGR|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By end-use industry, and region.|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Ferrellgas (US), Royal Dutch Shell plc (Netherlands), Exxon Mobil Corporation (US), Chevron Corporation (US), Equinor ASA (Norway), Eni SpA (Italy), ConocoPhillips Company (US), Chesapeake (US), Anadarko Petroleum Corporation (US), and Canadian Natural (Canada)|
|Key Market Opportunities||The global propane market is deterred by the volatile prices of crude oil.|
|Key Market Drivers||Need for a clean source of fuel in residential and commercial applications is the major driver of the global propane market.|
The global propane market demand can exceed 9.5 billion gallons by 2030.
Need for a clean source of fuel in residential and commercial applications is the major driver of the global propane market.
The global propane market is deterred by the volatile prices of crude oil.
APAC can command a high demand share in the global propane market owing to massive need for polypropylene (PP) across industries.
Equinor ASA, Chevron Corporation, Eni SpA, Chesapeake, Ferrellgas, Royal Dutch Shell plc, Canadian Natural, Anadarko Petroleum Corporation, Exxon Mobil Corporation, and ConocoPhillips Company are major players of the global propane market.
The growth rate of propane market is 4% for the forecast period.