Propane is a hydrocarbon and is sometimes referred to as liquefied petroleum gas (LPG). Propane is produced from both natural gas processing and crude oil refining. Propane gas turns into liquid under pressure. Furthermore, propane is nontoxic, colorless, and virtually odorless and is one of the cleanest burning of all the fossil fuels. Propane is used widely in small domestic heating application as well as in large industrial and manufacturing process. Moreover, propane is commonly used for residential & commercial heating and cooking, motor fuel, as a raw material in petrochemical industry for the production of plastics, fibers and cosmetics.
The global propane market was sized over USD 131.2 billion in 2017. The global propane market is projected to grow with a CAGR 3.17% and 2.75% in terms of value and volume during the forecast period, 2018-2024 and reach USD 163.5 billion by 2024. Rising demand of liquefied propane gas from increasing consumers globally and increasing preference of consumers due to lower cost of propane as compare to other fuel substitutes are the key factors driving the global propane market. Furthermore, rising demand of propane from petrochemical industry for the production of plastics, fibers and cosmetics will also drive the propane market globally over the forecast period. Moreover, huge demand of propane as motor fuel from automobile industry coupled with lower cost as compare to other fuels will also drive the global propane market over the forecast period. However, fluctuations in petroleum and crude oil prices primarily required for processing & refining of propane as well as inadequate infrastructure for retailing of propane and limited awareness of benefits associated with propane among the consumers are the prime factors responsible for restraining the growth of this market. Nevertheless, huge demand of clean fuel from marine industry which in turn increases the demand of propane and use of propane in power generation will bring opportunities to the global propane market. Hence, the global propane market is expected to face the challenges such as transportation, storage and supply.
The report segments the propane market by application and by region. Market segmentation based on application includes residential, commercial, industrial, agricultural, chemical & refinery and transportation. Moreover, residential sub segment is accounted to be the largest application sub segment and is likely to lead the global propane market due to non-toxicity of propane and less emission of carbon during combustion. Among the applications, the industrial and commercial segments together accounted for more than 61% share of the total propane consumed worldwide. The low cost associated with propane is one of the major factors driving the growth in the propane in these applications. Furthermore, no-toxicity and cost effectiveness of the propane is likely to drive its consumption in the residential and agriculture segments. The revenue from agriculture segment is projected to grow at the highest CAGR over the forecast period, among the application segments.
Geographic Coverage and Analysis:
Europe accounted for the largest market share of 30.0% in 2016, closely followed by North America with 28.56% share in 2016. The significant presence of application industries in these regions is one of the primary factors promoting the growth in the propane market in these regions. Furthermore, rapidly growing commercial and industrial sectors in the emerging markets of Asia-Pacific such as China, India are projected to drive the growth in the Asia-Pacific propane market, which is expected to grow at the highest CAGR among the regions. Strong presence of refineries in the Middle East region is likely to drive the demand for propane in the chemical and refineries applications segment over the forecast period.
The global propane market is projected to grow at a steady rate owing to increasing fuel prices. Moreover, the companies operating in this market focus on increasing their production capacities and economies of scales. The leading companies in this market include Marsh LP Gas Company Inc., Lykins Energy Solutions, Sparlingss Propane Co. Ltd., Ferrellgas Partners L.P., ThompsonGas, PteroChina Company Limited, Reliance Industries Ltd., AmeriGas, Shell, British Petroleum, BASF, Sinopec, PDVSA, Valero Energy Corp., ExxonMobil and Evonik.
The report provides deep insights on demand forecasts, market trends and micro and macro indicators. In addition, this report provides insights on the factors that are driving and restraining the demand of propane globally as well as regionally. Moreover, IGR-Growth Matrix analysis given in the report brings an insight on the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter’s five forces analysis and value chain analysis of propane. Moreover, the study highlights current market trends and provides forecast from 2018 to 2024. We also have highlighted future trends in the Propane market that will impact the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight on the market share of the leading players. Additionally, the analysis highlights rise and fall in the market shares of the key players in the market. This report will help manufacturers, suppliers and distributors of the propane market to understand the present and future trends in this market and formulate their strategies accordingly.
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