May 28, 2024
Propane Market

Propane Market Propelled By Increased Demand For Cleaner Fuel

The propane market comprises of fuels that are popularly used in various industries owing to their clean combustion and cost effectiveness. Propane is a liquefied petroleum gas that produces fewer emissions and is considered to be a cleaner alternative to gasoline and diesel. It is widely utilized in industries like transportation, agriculture, residential, commercial and autogas. The global propane market is estimated to be valued at US$ 113.48 Billion in 2024 and is expected to exhibit a CAGR of 14.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key Trends:

The increased demand for cleaner fuels across industries is one of the major trends driving the growth of the propane market. Propane produces lesser greenhouse gases as compared to gasoline and diesel making it an environment-friendly fuel. With stringent emission norms and focus on reducing carbon footprint, industries are shifting towards propane to power their equipment and machinery. It is also cost effective for applications like barbecuing, residential heating and commercial cooking. The affordability along with clean attributes is boosting the adoption of propane globally.

SWOT Analysis

Strength: Propane possesses higher combustion efficiency and produces less greenhouse gases and particulate emissions compared to gasoline or diesel. It is a affordable fuel.

Weakness: Propane infrastructure and distribution network needs further development to reach all areas. Storage of propane requires high-pressure tanks.

Opportunity: Rising demand from residential sector for portable grills, patio heaters, etc. Increasing use of propane in transportation sector as an alternative fuel.

Threats: Stringent emission norms may impact demand. Fluctuations in crude oil prices affect propane prices. Electric vehicles gaining prominence.

Key Takeaways

The global Propane Market Growth is expected to witness high growth.

Regional analysis:

North America dominates the global propane market currently due to high consumption. Asia Pacific propane market is expected to register fastest growth over the forecast period due to growing residential sector and usage of propane in transportation in countries like China and India.

Key players operating in the propane market are Chevron Corporation (U.S.), Royal Dutch Shell Plc (U.K.), Exxon Mobil Corporation (U.S.), ConocoPhillips (U.S), Reliance Industries Ltd. (India). The key players are focusing on capacity expansion and strategic partnerships to strengthen market position and cater to increasing demand. Strategic mergers and acquisitions are also expected to aid industry participants to enhance production and distribution facilities.

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it