Contact Us
CMI Logo

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.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

Subscribe Newsletter

Kindly subscribe for our latest news & articles.