all report title image
  • To Be Published : Feb 2024
  • Code : CMI2760
  • Formats :
      Excel and PDF
  • Industry : Bulk Chemicals

The global propane market size is projected to reach US$ 107 billion by 2025, and register CAGR of 4.5% over the forecast period (2019 - 2027).

Market Overview

Propane is a flammable hydrocarbon gas that originates during the process of petroleum refining and natural gas processing. The gas is usually compressed into a liquid state at low pressure and stored in LPG (Liquid Petroleum Gas) tanks, gas cylinders, or steel cylinders. Propane finds primary application as a fuel for cooking, heating, in refrigeration, and automobiles. Propane is a colourless and odorless gas that belongs to a class of LP gases such as butane, propylene, isobutylene, and other mixtures. Owing to its low boiling point, it can be stored easily, which in turn makes it transportable and a popular substitute for natural gas for heating and generation of electricity. Furthermore, it can be used to electrify trucks, buses, motor boats, and trains due to its cost effectiveness, ability to provide more torque in heavy vehicles, and low fuel consumption.

Market Taxonomy:

On basis of product type, the global Propane market is segmented into:

  • Purity 98%
  • Purity 99%
  • Others

On basis of End-user Industry, the global Propane market is segmented into:

  • Residential
  • Agriculture
  • Commercial
  • Industrial
  • Chemicals and Refineries
  • Others

Market Dynamics

Propane is garnering high demand from end use industries such as oil and gas, chemical, manufacturing, and automobile. According to the Propane Education & Research Council, after gasoline and diesel, propane is the third most commonly used fuel in vehicles across the globe. Moreover, over 180,000 vehicles on U.S. roads run on propane, and it powers over 440,000 forklifts. According to the same source, over 12 million vehicles around the world use propane. Due to its easy transportability, propane is widely used to provide off-the-grid refrigeration. Additionally, the U.S. Environmental Protection Agency approved propane as a replacement refrigerant owing to its mild impact on the environment compared to other refrigerants. Propane is also a key fuel for hot air balloons, and the main flammable gas in the soldering process.

Propane is a lot denser than natural gas, and tends to collect near the floor or other low spaces. Excessive inhalation of propane can cause hypoxia, and result in cardiac arrest. Furthermore, owing to its dense texture, propane can leak into enclosed areas and pose as a fire hazard. For propane to explode, it needs to collect in enclosed spaces, which makes it highly unsuitable for certain applications such as a fuel for powering boats. Such factors are expected to restrain its demand over the forecast period.

Market Outlook

Asia Pacific is expected to be the fastest growing market and account for the largest market share, owing to rapid industrialization and increasing gross domestic product (GDP) of emerging economies such as India and China. Additionally, regions such as Latin America, Africa, and the Middle East are witnessing significant economic growth which is estimated to benefit the market in the regions. Recovery from the economic slump in Europe and North America is also expected to have a positive impact on the global propane market. The oil and gas industry in India, China, and Brazil is undergoing rapid expansion as a result of increasing demand for oil and gas for residential purposes, as well as large number of automobile users in the region. Presence of key players in the region is also likely to favour the market growth as they are focusing more on exploring their market potential by extending their footprint in untapped markets all over the world.

Key Players

Some of the primary player in the global propane market are British Petroleum, PetroChina Company Limited, AmeriGas, Chevron Corporation, Volero Energy Corporation, Shell Oil Company, Sinopek, Exxon Mobile, and Evonik.

Key Developments:

  • In April 2019, UGI Corporation and AmeriGas Partners, L.P. entered into a merger agreement under which UGI will fully consolidate its ownership of AmeriGas, the nation’s largest retail propane marketer, by acquiring the 69.2 million publicly held common units it does not already own.
  • In Aug 2018, PetroChina Corporation Limited showcased its ability to successfully take lead on a major overseas oil development. The company obtained a sub-contractor petroleum production license for the Halfaya oil field in Southeast Iraq. It was also stated that this Halfaya oil field will be pumping out 400,000 barrels of crude per day, along with gases such as propane.
  • In June 2003, subsidiaries of Valero Energy Corporation and Valero L.P. have entered into a five-year agreement with MGI Supply Limited, a subsidiary of Pemex-Gas y Petroquimica Basica, to supply and ship 5,000 barrels per day (BPD) of propane to Northern Mexico.

View Our Licence Options

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Customize Now

Want to Buy a Report but have a Limited Budget?

We help clients to procure the report or sections of the report at their budgeted price. Kindly click on the below to avail

Request Discount

Reliability and Reputation

DUNS Registered
DMCA Protected


Reliability and Reputation


Reliability and Reputation


Joining thousands of companies around the world committed to making the Excellent Business Solutions.

View All Our Clients
trusted clients logo