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Propane Market Size Size Estimated to Observe Significant Growth by 2027

Feb 24th 2020 at 12:50 AM
Propane Market: Key Highlights
  • The global propane market was valued at ~US$ 72 Bn in 2018, and is anticipated to expand at a CAGR of ~5% during the forecast period.
  • The residential segment accounted for a major share of the global propane market in 2018, owing to the high demand for domestic consumption, especially for space heating and cooking applications.
  • The industrial segment is estimated to expand rapidly during the forecast period, owing to the high demand for propane in metal and plastic industries across the world.
  • Asia Pacific is anticipated to be a high-potential market for propane in the near future, owing to the increase in the demand for domestic fuel in developing economies such as China and India.
Growing Consumption of LPG to Boost Propane Market
  • LPG is a combination of propane, butane, isobutane, and other hydrocarbon gases, with the permissible proportion of propane+butane combination varying from country to country. Liquid petroleum gas (LPG) has emerged as the most essential fuel resource for domestic and industrial applications. LPG plays an important role in heating, burning, and grilling applications, as it provides certain benefits such as high inflammability, low cost, and low carbon emissions over conventional coal fuel. These major factors are projected to boost the global Propane Market Size in the next few years.
  • Increasing LPG consumption, especially in developing economies such as China and India, is attributable to the government focus on increasing the number of LPG consumers, particularly in India. The Government of India has provided subsidy on the purchase of LPG by low-income groups in the country. This factor is likely to boost the propane market in India during the forecast period.
  • Propane is much safer than traditional fuels such as wood and coal, as it can withstand the cold climate of Canada and the U.S. Additionally, the use of LPG offers quick combustion, long lifecycle, and high liquid-to-gas ratio. These benefits of high propane content in LPG make it a favorable choice of fuel for burning and heating applications. This, in turn, is anticipated to drive the demand for propane in several countries during the forecast period.
Request A Sample of Global Propane Market – Industrial Application Likely to Gain Momentum
    • Among the applications, the residential segment constituted a major share of the global Propane Market Size in 2018, owing to the extensive use of propane in domestic cooking, heating, and barbeque grilling in various countries. The segment is expected to expand at a significant CAGR of over 5% from 2019 to 2027. It is anticipated to remain dominant throughout the forecast period.
  • The industrial segment followed the residential segment in the global propane market in 2018. The industrial segment is likely to expand at a more rapid pace as compared to other application segments during the forecast period, due to the high demand for propane for use in heating applications at large volumes in metal and construction industries, and high demand for metal cutting and plastic processing in developing economies.
Chemical & Refinery Application to Expand at a Considerable Pace:
  • In terms of volume, the chemical & refinery application segment held a considerable market share of the global market in 2018. The segment is likely to expand at a CAGR of ~4% from 2019 to 2027.
  • The demand for propane for use in the manufacture of plastics compounds, lubricants, and rubber materials is expected to rise significantly during the forecast period, due to the increasing demand for rubber and plastic products across the globe. The high demand for polymer compounds for use as a raw material in countries such as China, the U.S., and South Korea is anticipated to drive the global propane market during the forecast period.
Asia Pacific Dominates Global Propane Market
  • Asia Pacific emerged as a key region of the global Propane Market Size in 2018. The market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, owing to rapid increase in the number of LPG consumers, and business expansion by metal and petrochemical companies in markets with high growth potential such as India and Southeast Asia.
  • Rise in population, rapid urbanization, and robust economic growth are major macroeconomic drivers expected to propel the demand for propane in the next few years. Several regulatory bodies and major companies across the region are encouraging the usage of LPG to reduce carbon emissions from conventional fuels.
  • In terms of consumption, China is expected to be a major market for propane in Asia Pacific, accounting for~27% of the market share by 2027. This is attributable to the increase in government initiatives for raising the number of consumers of LPG and propane in the country.
Global Propane Market – Key Developments:
  • On March 1, 2019, Ferrellgas acquired Reliable Propane, an independent distributor for Blue Rhino, which delivers propane cylinders to retail partners across the U.S. The company is planning to expand its supply chain network to reach out to customers in various states in less time.
  • On April 2, 2019, UGI Corporation and AmeriGas Partners L.P. announced to have entered into a merger agreement. This agreement would allow UGI to become a fully-owned subsidiary of AmeriGas by acquiring a stake of 69.2 million public units, which were commonly held earlier.
  • On June 4, 2019, Indian Oil Corporation Ltd joined hands with Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) for laying the world’s longest LPG pipeline from Kandla, Gujarat to Gorakhpur, Uttar Pradesh (India).
To obtain all-inclusive information on forecast analysis of Global Market , request a PDF brochure here. Global Propane Market Size: Competition Landscape The global propane market is highly fragmented, with the presence of a large number of global and regional players operating in the market. These players depict a low to medium level of forward integration. High costs of manufacturing, high degree of technical knowledge, and complex separation processes are required to produce propane. These factors are anticipated to reduce the threat of new players in the market. Key players operating in the global Propane Market Size are AmeriGas Propane, Inc., DCC Plc., China Petroleum & Chemical Corporation (SINOPEC), Ferrellgas, Saudi Arabian Oil Co., Gazprom, Air Liquide, GAIL (India) Limited, and Indian Oil Corporation Ltd. Other players operating in the market include Suburban Propane, L.P., Lykins Energy Solutions, Marsh L.P. Gas Co. Inc., Sparlings, and ThompsonGas.
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