Propane Global Market Report 2024

The propane market size has grown strongly in recent years. It will grow from $84.99 billion in 2023 to $90.92 billion in 2024 at a compound annual growth rate (CAGR) of 7.0%. The growth observed in the historical period can be attributed to factors such as the increasing demand for energy, expansion of the petrochemical industry, use in residential and commercial settings, applications in various industries, and demand from the agricultural sector.

The propane market size is expected to see strong growth in the next few years. It will grow to $115.14 billion in 2028 at a compound annual growth rate (CAGR) of 6.1%. The anticipated growth in the forecast period can be attributed to an increased focus on clean energy, the growth of autogas applications, global economic expansion, the expansion of propane export markets, and the transition in residential heating methods. Major trends expected in the forecast period include a growing importance in off-grid energy solutions, expanding international trade in the propane market, advancements in propane technologies, an increased focus on sustainable energy practices, and market penetration in emerging economies.

The anticipated rise in LPG consumption is set to drive the growth of the propane market in the future. LPG, or liquefied petroleum gas, is a form of liquid fuel used for various applications, including powering vehicles. Comprising primarily propane and butane, LPG serves as a fuel source for heating, cooking, and transportation. As the demand for LPG increases, so does the demand for propane. For example, as reported by the Energy Information Administration (EIA) in August 2021, U.S. LPG exports saw an 11% increase from 1,889 barrels per day in 2020 to 2,113 barrels per day in 2021. Additionally, U.S. Liquefied petroleum gas consumption reached 1387.32 thousand barrels per day in 2021. Consequently, the escalating LPG consumption is a driving force behind the projected growth of the propane market.

The expanding automotive industry is poised to propel the growth of the propane market in the foreseeable future. Encompassing numerous organizations involved in the design, manufacture, and maintenance of motor vehicles, the automotive sector sees propane as a preferred fuel for fleet vehicles such as buses, taxis, and delivery trucks due to its cost-effectiveness and environmental advantages. Notably, the European Automobile Manufacturers' Association (ACEA) reported a global production of 85.4 million motor vehicles in 2022, marking a 5.7% increase from 2021. Hence, the burgeoning automotive industry is a key driver for the propane market.

Technological advancements represent a significant trend gaining traction in the propane market, with companies adopting new technologies to maintain their market positions. Nevada Nano, a U.S.-based company specializing in high-performance, low-cost silicon MEMS gas sensors, introduced the Molecular Property Spectrometer (MPS) R-290 Propane sensor in April 2021. This sensor employs advanced technology to accurately detect and quantify propane concentrations in real-time, offering a reliable and cost-effective solution for monitoring propane leaks and ensuring safety in industrial and commercial settings.

Major companies in the propane market are actively developing innovative products to gain a competitive advantage. Mitsubishi Electric, a Japan-based electronics company, launched the Ecodan heat pump in November 2023. Operating on propane (R290) as a refrigerant, this heat pump delivers a higher Coefficient of Performance (COP). The use of propane as a natural refrigerant enables the heat pump to achieve elevated flow temperatures and produce hot water even at lower external air temperatures, expanding its applicability compared to conventional devices.

In March 2022, Superior Plus Corp., a Canada-based diversified business company, acquired Kamps Propane, Inc., and Kiva Energy, enhancing its presence in California. Kamps Propane, Inc. is a U.S.-based energy company, while Kiva Energy is a U.S.-based provider of propane gas. This acquisition strengthens Superior Plus Corp.'s position and service capabilities in the propane market.

Major companies operating in the propane market report are Chevron Corporation, China Petroleum & Chemical Corporation, China National Petroleum Corporation, Conoco Phillips Petroleum Company, Eni SpA, Exxon Mobil Corporation, Gazprom International Limited, Royal Dutch Shell plc, TotalEnergies SE, Air Liquide SA, Evonik Industries AG, GAIL Limited, Saudi Arabian Oil Co., Shell plc, AmeriGas Propane Inc., CHS Inc., Ferrellgas Partners LP, Growmark Inc., Phillips 66 Company, Superior Plus Energy Services Inc., ThompsonGas LLC, Securing Energy for Europe GmbH, Modern Welding Co. of Kentucky Inc., Arcosa Tank LLC, Bergquist Inc., Blue Rhino Corporation, Flame King YSN Imports Inc., Manchester Tank & Equipment Co., Advanced Air Systems Inc., Quality Manufacturing Group, Rutherford Equipment Inc., Suburban Manufacturing Inc., Trinity Industries Inc., Ventower Industries LLC, Viking Cylinders LLC, Westmor Industries LLC, Worthington Industries Inc.

Asia-Pacific was the largest region in the propane market in 2023. The regions covered in the propane market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the propane market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main forms of propane are in liquid and gaseous states. Liquid propane is a form that can be pressurized and stored in tanks, transitioning into a liquid state under compression. Propane is classified into various grades, including HD-5 propane, HD-10 propane, and commercial propane, with applications spanning industrial, commercial, residential, agricultural, transportation, chemicals and refineries, and various other sectors.

The propane market research report is one of a series of new reports that provides propane market statistics, including propane industry global market size, regional shares, competitors with a propane market share, detailed propane market segments, market trends and opportunities, and any further data you may need to thrive in the propane industry. This propane market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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