Propane Market - Forecast(2023 - 2028)

Report Code: CMR 78626 Report Format: PDF + Excel

Propane Market Overview

Propane market size is forecast to reach US$90.3 billion by 2027, after growing at a CAGR of 4.3% during 2022-2027. The use of propane for various industrial processes, large-scale applications such as water heaters, and commercial-grade propane-fuelled furnaces, which are utilized in the warehouse, hospitals, and manufacturing facilities, is driving the growth of the propane market. Metal processing industries are also dedicated consumers of propane to fuel their soldering, vulcanizing equipment, and cutting torches, which is anticipated to propel the propane market growth. The propane market is excessively driven by the rapidly rising propane engine fuel, that is liquified petroleum gas market in the forecast period. Moreover, in recent years the growing use of propane as a cooking and grilling fuel, similar to butadiene, butylene, and isobutylene, is driving the market growth of propane. 

COVID-19 Impact

The COVID-19 outbreak widely affected the agriculture, industrial, and transportation industries. Economies of each industry got impacted and resulted in stagnation of activities across the sectors that use propane. Due to the lockdown norms, the manufacturing process of various products in these sectors decreased due to the non-functioning of the production plants. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2020, motor vehicle production declined by 22% in Europe, and 20% in America. However, once the agriculture and transportation activities get back on track and start functioning fully, by 2022, the propane market is estimated to incline. 

Report Coverage

The report: “Propane Market Report – Forecast (2022 - 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the propane industry.

By Grade Type: HD-5 Propane, HD-10 Propane, Commercial Propane, and Others.
By Form: Liquid, Vapour, and Others.
By Application: Fuel, Plastics, Heating, Cooking, Refrigeration, Drying, and Others.
By End Use Industry: Residential (Independent homes, Row homes, Large-apartment buildings), Commercial (Hospitals and Healthcare Infrastructure, Educational Institutes, Hotels and Restaurants, Banks and Financial Institutions, Airports, Hyper and Super Market, Shopping-Malls, Others), Industrial (Manufacturing Plants, Industrial Plants, Warehouses, Others), Transportation (Aerospace, Marine, Automotive, Others), Chemical, Agriculture, and Others.
By Geography: North America (U.S.A., Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East and Africa).

Key Takeaways

 Figure: Asia-Pacific Propane Market Revenue, 2021-2027 (US$ Billion)

Propane Market

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Propane Market Segment Analysis – By Grade Type

The HD-5 propane segment held the largest share in the propane market in 2021. HD-5 grade propane is known as consumer-grade propane. It is the highest-grade propane available as compared to HD-10 propane, commercial propane, and others. HD-5 means that the propane is suitable to be utilized as an engine fuel. HD-5 specification propane consists of a minimum of 90% propane, a maximum of 5% propylene, and other remainder gases such as isobutane, butane, methane, and others. The highest quality propane means that the propane holds to the specification needs to sell and label as HD-5 propane. Thus, with the growth of the HD-5 propane segment, the market for propane will further rise over the forecast period. 

Propane Market Segment Analysis – By End-Use Industry

The residential segment held the largest share in the propane market in 2021 and is expected to grow at a CAGR of 4.7% during 2022-2027. In the residential sector, propane is utilized for air conditioning, cooking, refrigerating foods, heating water, drying clothes, fueling fireplaces, and lighting. Propane is used generally in houses in rural areas and also in mobile homes, that do not have natural gas service and to meet some of their energy requirements. The growth in the real estate sector owing to the growth in residential units has increased the demand for propane. For instance, according to the government of Canada, in 2021, for the Rapid Housing Initiative to support the urgent housing needs of vulnerable Canadians, the government invested US$1.5 billion, to provide adequate affordable housing. Additionally, a minimum of 4,500 new affordable units was also added to Canada's housing supply. Thus, the increasing investments by the government for housing people will drive the demand for propane during the forecast period. 

Propane Market Segment Analysis – By Geography

The Asia-Pacific region dominated the propane market with a share of 42.1% in the year 2021. The Asia Pacific region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for propane in developing countries such as China, Japan, India, and South Korea. The residential requirement for propane for household cooking has increased substantially. The Asia Pacific dominates the propane market owing to the rising growth and increasing investments in housing projects. For instance, according to Invest India, in 2021, a total of 91.5 lakh houses were grounded for construction and 53 lakh houses were completed, out of 1.14 Cr sanctioned houses. Additionally, with the increasing levels of pollution, the demand for propane in the Asia Pacific region is notably surging. In China, the auto-gas market has developed primarily to curb pollution, with an initiation of various local programs encouraging the utilization of alternative fuel, which is positively impacting the market growth for propane. Thus, the rising investments in the residential sector and the clean fuel requirement will drive the propane market growth in the forecast period.

Propane Market Drivers

Increasing demand for Propane in Transportation Industry

The mixture of propane and butane is utilized as a fuel in internal combustion engines in automotive and also in generators. The propane market has witnessed the growing demand in recent years, owing to an increase in liquified petroleum gas (LPG) fueled vehicles. Propane is one of a group of LPG, along with the others including propylenebutadienebutane, butylene, and isobutylene. For the fossil fuels such as gasoline and diesel, propane is increasingly becoming a preferred substitute owing to its low carbon content. The demand for propane is rising as it is excessively available, stable, and cost-effective, as compared to other energy sources. The growing demand for propane as an alternative transportation fuel, due to its affordability, safety, and clean-burning qualities, is nourishing the market growth. Moreover, the accessibility of new light and medium heavy-duty propane vehicles is surging the demand for propane as an alternative fuel. In recent years the rising production of automotive has further raised the demand for propane. For instance, according to Organisation Internationale des Constructeurs d'Automobiles (OICA), in Brazil, motor vehicle production increased from 23,87,967 units in 2018 to 24,48,490 units in the year 2019. Similarly, in Malaysia, the production of motor vehicles increased from 5,20,526 units in 2018 to 5,34,115 units in the year 2019. Additionally, according to the International Trade Administration (ITA), in China, the government anticipates automobile manufacturing to reach 35 million by 2025. Thus, increasing automotive production will require more propane, which will drive the growth of the propane market during the forecast period.

Surging Demand for Propane in the Agriculture Sector

The agriculture sector uses propane for their requirements such as irrigation pumps, generators, dryers, and any agricultural equipment that can be run on oil, can utilize propane. Propane is a good fuel source for all types of agricultural vehicles such as lawnmowers, forklifts, tractors, delivery trucks, and others. Propane costs less to operate per mile, requires less vehicle servicing, and burns cleaner. The increasing growth in the agriculture industry is driving the market for propane. For instance, according to the Indian Brand Equity Foundation (IBEF), by 2022, India is expected to have achieved the lofty goal of doubling farm income. Increased investment in agricultural infrastructure, such as irrigation facilities, warehousing, and cold storage, is expected to boost India's agriculture sector in the upcoming years. Thus, with the growth of the agriculture industry, the propane market will further rise over the forecast period.

Propane Market Challenges

The Propane being a Depleting Fossil Fuel Will Hamper the Market Growth

Propane is a clean-burning fossil fuel, thus, availability is the main concern in the propane market. It is largely extracted and recovered from the depleting levels of non-renewable natural reservoirs. The supply and availability of propane are interrelated to the supply and availability of petroleum; therefore, it cannot be utilized as a substitute when there is a paucity in petroleum. Since, propane is depleting the price for propane is also increasing further due to its limited availability. For instance, according to U.S. Energy Information Administration (EIA), the U.S. residential propane price has increased from 2.295 Dollars per Gallon in 2021 to 3.024 Dollars per Gallon in 2022. Thus, the depleting levels of non-renewable natural resources will create hurdles for the propane market's growth.

Propane Market Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies players adopt in the propane markets. Propane top 10 companies include:

  1. AmeriGas Propane, Inc.
  2. DCC Plc
  3. China Petroleum & Chemical Corporation (SINOPEC)
  4. Ferrellgas
  5. Saudi Arabian Oil Co.
  6. Gazprom
  7. Air Liquide
  8. GAIL (India) Limited
  9. Indian Oil Corporation Ltd
  10. Superior Plus and Others

Recent Developments

  • In December 2021, Superior Plus Corp. acquired Hopkins Propane and a North Carolina propane distributor Mountain Energy Gas (“Mountain Energy”), to grow its business in the markets of the Michigan and North Carolina.
  • In July 2021, Superior Plus Corp. announced the acquisition of the Kamps Propane, Inc., High Country Propane, Inc., Pick Up Propane, Inc., Kiva Energy, Inc., Competitive Capital, Inc. and Propane Construction and Meter Services.
  • In November 2021, DCC Propane LLC of Lisle, Illinois, acquired Affordable Propane Gas in Fort Morgan, Colorado, to strengthen its presence in Colorado. 

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1. Propane Market- Market Overview
    1.1 Definitions and Scope
2. Propane Market - Executive Summary
    2.1 Key Trends by Grade Type
    2.2 Key Trends by Form
    2.3 Key Trends by Application
    2.4 Key Trends by End Use Industry
    2.5 Key Trends by Geography
3. Propane Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Propane Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Propane Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Propane Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Propane Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Propane Market – By Grade Type (Market Size -US$ Million/Billion)
    8.1 HD-5 Propane
    8.2 HD-10 Propane
    8.3 Commercial Propane
9. Propane Market – By Form (Market Size -US$ Million/Billion)
    9.1 Liquid
    9.2 Vapour
10. Propane Market – By Application (Market Size -US$ Million/Billion)
    10.1 Fuel
    10.2 Plastics
    10.3 Heating
    10.4 Cooking
    10.5 Refrigeration
    10.6 Drying
    10.7 Others
11. Propane Market – By End Use Industry (Market Size -US$ Million/Billion)
    11.1 Residential
        11.1.1 Independent homes
        11.1.2 Row homes
        11.1.3 Large apartment buildings
    11.2 Commercial
        11.2.1 Hospitals and Healthcare Infrastructure
        11.2.2 Educational Institutes
        11.2.3 Hotels and Restaurants
        11.2.4 Banks and Financial Institutions
        11.2.5 Airports
        11.2.6 Hyper and Super Market
        11.2.7 Shopping Malls
        11.2.8 Others
    11.3 Industrial
        11.3.1 Manufacturing Plants
        11.3.2 Industrial Plants
        11.3.3 Warehouses
        11.3.4 Others
    11.4 Transportation
        11.4.1 Aerospace
        11.4.2 Marine
        11.4.3 Automotive
            11.4.3.1 Passenger Cars
            11.4.3.2 Light Commercial Vehicles
            11.4.3.3 Heavy commercial Vehicle
        11.4.4 Others
    11.5 Chemical
    11.6 Agriculture
    11.7 Others
12. Propane Market - By Geography (Market Size -US$ Million/Billion)
    12.1 North America
        12.1.1 USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Netherlands
        12.2.6 Spain
        12.2.7 Russia
        12.2.8 Belgium
        12.2.9 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zeeland
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 Rest of the World
        12.5.1 Middle East
            12.5.1.1 Saudi Arabia
            12.5.1.2 UAE
            12.5.1.3 Israel
            12.5.1.4 Rest of the Middle East
        12.5.2 Africa
            12.5.2.1 South Africa
            12.5.2.2 Nigeria
            12.5.2.3 Rest of Africa
13. Propane Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Propane Market – Industry/Segment Competition Landscape Premium
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Global Level - Major companies
    14.3 Market Share at Country Level - Major companies
    14.4 Market Share by Key Geography - Major companies
    14.5 Market Share by Key Application - Major companies
    14.6 Market Share by Key Product - Major companies
15. Propane Market – Key Company List by Country Premium Premium
16. Propane Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"

LIST OF TABLES

1.Global MARKET SEGMENTATION Market 2019-2024 ($M)
1.1 End-user Market 2019-2024 ($M) - Global Industry Research
1.1.1 Transportation Market 2019-2024 ($M)
1.1.2 Residential Market 2019-2024 ($M)
1.1.3 Agriculture Market 2019-2024 ($M)
1.1.4 Commercial Market 2019-2024 ($M)
1.1.5 Industrial Market 2019-2024 ($M)
1.1.6 Chemicals and Refineries Market 2019-2024 ($M)
2.Global COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
2.1 Mergers Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Global Industry Research
3.Global MARKET SEGMENTATION Market 2019-2024 (Volume/Units)
3.1 End-user Market 2019-2024 (Volume/Units) - Global Industry Research
3.1.1 Transportation Market 2019-2024 (Volume/Units)
3.1.2 Residential Market 2019-2024 (Volume/Units)
3.1.3 Agriculture Market 2019-2024 (Volume/Units)
3.1.4 Commercial Market 2019-2024 (Volume/Units)
3.1.5 Industrial Market 2019-2024 (Volume/Units)
3.1.6 Chemicals and Refineries Market 2019-2024 (Volume/Units)
4.Global COMPETITIVE LANDSCAPE Market 2019-2024 (Volume/Units)
4.1 Mergers Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 (Volume/Units) - Global Industry Research
5.North America MARKET SEGMENTATION Market 2019-2024 ($M)
5.1 End-user Market 2019-2024 ($M) - Regional Industry Research
5.1.1 Transportation Market 2019-2024 ($M)
5.1.2 Residential Market 2019-2024 ($M)
5.1.3 Agriculture Market 2019-2024 ($M)
5.1.4 Commercial Market 2019-2024 ($M)
5.1.5 Industrial Market 2019-2024 ($M)
5.1.6 Chemicals and Refineries Market 2019-2024 ($M)
6.North America COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
6.1 Mergers Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Regional Industry Research
7.South America MARKET SEGMENTATION Market 2019-2024 ($M)
7.1 End-user Market 2019-2024 ($M) - Regional Industry Research
7.1.1 Transportation Market 2019-2024 ($M)
7.1.2 Residential Market 2019-2024 ($M)
7.1.3 Agriculture Market 2019-2024 ($M)
7.1.4 Commercial Market 2019-2024 ($M)
7.1.5 Industrial Market 2019-2024 ($M)
7.1.6 Chemicals and Refineries Market 2019-2024 ($M)
8.South America COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
8.1 Mergers Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Regional Industry Research
9.Europe MARKET SEGMENTATION Market 2019-2024 ($M)
9.1 End-user Market 2019-2024 ($M) - Regional Industry Research
9.1.1 Transportation Market 2019-2024 ($M)
9.1.2 Residential Market 2019-2024 ($M)
9.1.3 Agriculture Market 2019-2024 ($M)
9.1.4 Commercial Market 2019-2024 ($M)
9.1.5 Industrial Market 2019-2024 ($M)
9.1.6 Chemicals and Refineries Market 2019-2024 ($M)
10.Europe COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
10.1 Mergers Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Regional Industry Research
11.APAC MARKET SEGMENTATION Market 2019-2024 ($M)
11.1 End-user Market 2019-2024 ($M) - Regional Industry Research
11.1.1 Transportation Market 2019-2024 ($M)
11.1.2 Residential Market 2019-2024 ($M)
11.1.3 Agriculture Market 2019-2024 ($M)
11.1.4 Commercial Market 2019-2024 ($M)
11.1.5 Industrial Market 2019-2024 ($M)
11.1.6 Chemicals and Refineries Market 2019-2024 ($M)
12.APAC COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
12.1 Mergers Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Regional Industry Research
13.MENA MARKET SEGMENTATION Market 2019-2024 ($M)
13.1 End-user Market 2019-2024 ($M) - Regional Industry Research
13.1.1 Transportation Market 2019-2024 ($M)
13.1.2 Residential Market 2019-2024 ($M)
13.1.3 Agriculture Market 2019-2024 ($M)
13.1.4 Commercial Market 2019-2024 ($M)
13.1.5 Industrial Market 2019-2024 ($M)
13.1.6 Chemicals and Refineries Market 2019-2024 ($M)
14.MENA COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
14.1 Mergers Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Regional Industry Research

LIST OF FIGURES

1.US Propane Market Revenue, 2019-2024 ($M)
2.Canada Propane Market Revenue, 2019-2024 ($M)
3.Mexico Propane Market Revenue, 2019-2024 ($M)
4.Brazil Propane Market Revenue, 2019-2024 ($M)
5.Argentina Propane Market Revenue, 2019-2024 ($M)
6.Peru Propane Market Revenue, 2019-2024 ($M)
7.Colombia Propane Market Revenue, 2019-2024 ($M)
8.Chile Propane Market Revenue, 2019-2024 ($M)
9.Rest of South America Propane Market Revenue, 2019-2024 ($M)
10.UK Propane Market Revenue, 2019-2024 ($M)
11.Germany Propane Market Revenue, 2019-2024 ($M)
12.France Propane Market Revenue, 2019-2024 ($M)
13.Italy Propane Market Revenue, 2019-2024 ($M)
14.Spain Propane Market Revenue, 2019-2024 ($M)
15.Rest of Europe Propane Market Revenue, 2019-2024 ($M)
16.China Propane Market Revenue, 2019-2024 ($M)
17.India Propane Market Revenue, 2019-2024 ($M)
18.Japan Propane Market Revenue, 2019-2024 ($M)
19.South Korea Propane Market Revenue, 2019-2024 ($M)
20.South Africa Propane Market Revenue, 2019-2024 ($M)
21.North America Propane By Application
22.South America Propane By Application
23.Europe Propane By Application
24.APAC Propane By Application
25.MENA Propane By Application