by Propane offers several advantages like ease of transportation, compact storage and efficient combustion. As an industrial fuel and petrochemical feedstock, it is used across applications like agricultural, residential and commercial sectors. The global Propane Market is estimated to be valued at US$ 98.5 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising industrial applications of propane such as feedstock for petrochemicals and as fuel is one of the key trends driving the growth of propane market. Propane is widely used as feedstock for the production of ethylene and propylene which are basic building blocks for various chemicals and plastics. The increasing demand for plastics and chemicals from end use industries like automotive, packaging and construction is fueling the demand for propane. Furthermore, propane is also used as an industrial fuel in forklifts, furnaces and other heavy equipment. The growing industrial sector especially in emerging economies of Asia Pacific and Central and South America is contributing to the increasing demand for propane from industrial applications.
Segment Analysis
The global propane market is segmented by application into residential, commercial, agricultural, petrochemical & refinery and industrial. The residential segment dominates the market owing to wide usage of propane in household activities such as heating, cooking and lighting. The residential segment accounted for over 30% of the global propane market share in 2023.
Key Takeaways
The Global Propane Market Share is expected to witness high growth on account of rapid industrialization and increasing demand from the residential sector in developing economies.
Regional analysis: The Asia Pacific region dominates the global propane market and is expected to grow at the fastest rate during the forecast period. This is attributed to growing demand for LPG from residential and commercial sectors in developing countries such as China and India. The region accounted for over 35% of the global propane market share in 2023.
Key players operating in the propane market are Merck KGaA, Thermo Fisher Scientific Inc., Avantor, Inc., Lonza Group Ltd., Bio-Rad Laboratories, Inc., Sartorius AG, Corning Inc., Becton, Dickinson and Company, GE Healthcare, Promega Corporation. These players are focused on adopting various organic and inorganic growth strategies such as mergers & acquisitions, new product launches, and collaborations to strengthen their global presence. For instance, in 2022, Merck KGaA acquired Existent, Inc., a US-based bioprocess development and manufacturing organization, to expand its capabilities in cell and gene therapy.
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Source: Coherent Market Insights, Public sources, Desk research
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