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.
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:
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
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.
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.