Propane is a three-carbon alkane with the molecular formula C3H8. It is a gas that is extensively used as a fuel for furnaces, stationary engines, and vehicles in both developed and developing countries. It provides a clean-burning, versatile, and economical source of energy for various residential and commercial uses including heating, cooking, drying, space heating, water heating, backup power, crop drying, process heating, and transportation. The global Propane Market is estimated to be valued at US$ 98.5 Bn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increased usage of propane in residential heating systems is a major driver for the growth of the global propane market. Propane provides affordable heat that is easy to manage and control for residential homes compared to electric heat or fuel oil. It is also considered to be environment-friendly as propane heat burns cleaner than other fossil fuels like coal or oil. Rising awareness regarding the benefits of using propane as an alternative to electric heat and fuel oil among homeowners is fueling the demand for propane residential heating systems across countries. This in turn is propelling the growth of the overall propane market size.
Strength: Propane has a high energy content per unit of volume and is considered a clean source of energy. It is versatile and can be used for numerous residential, commercial and industrial applications.
Weakness: Propane infrastructure is not as developed as for natural gas. Transportation and storage of propane involve safety and environmental risks.
Opportunity: Growing demand for environment friendly fuel for cooking, transportation and other applications is driving demand for propane. In many regions, it can replace electricity and gasoline where natural gas infrastructure is absent.
Threats: Stringent regulations regarding storage and transportation of propane add compliance burden. Substitution threat from renewables and natural gas expansion into new markets.
The Global Propane Market Demand is expected to witness high growth.
Regional Analysis: North America currently dominates the propane market due to early technology adoption and well developed infrastructure in U.S and Canada. In U.S., propane demand is driven by agricultural, residential and commercial sectors. Asia Pacific propane market is expected to grow at fastest pace owing to rising energy needs of growing population and industrialization in China and India.
Key players operating in the propane market are Chevron Corporation, Royal Dutch Shell Plc, Exxon Mobil Corporation, ConocoPhillips, and Reliance Industries Ltd. Exxon Mobil Corporation is the largest producer & seller of propane globally. Chevron Corporation is another major manufacturer and distributor of propane in the United States and other key markets. Royal Dutch Shell Plc is also a major supplier and global distributor of propane.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it