Global Propane Market – Industry Trends and Forecast to 2029

Global Propane Market, By Form (Liquid, Gas), Application (Industrial, Commercial, Residential, Agriculture, Transportation, Chemicals and Refineries, Other) – Industry Trends and Forecast to 2029.

Propane Market Analysis and Size

Propane is a substance used in fuel production using a specific procedure and without being unaware of its properties. It has incredible and high flammability and is easily liquefiable. The depletion of non-renewable resources, such as crude oil, and rising environmental concerns have fuelled research into a variety of innovative sustainable technologies that use bio-based raw materials for production.

Data Bridge Market Research analyses that the propane market which was growing at a value of 76.3 billion in 2021 and is expected to reach the value of USD 132.08 billion by 2029, at a CAGR of 7.10% during the forecast period.  In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Propane Market Scope and Segmentation

Market Definition

Propane is a compressed liquid petroleum gas that is stored in liquid form. The gas is colourless and has no poisonous properties. Propane is odourless; however, a distinct odour is provided on purpose to aid in detection in the event of a pressurized container release or leak. Propane is a by-product of crude oil, natural gas, and petroleum processing. Propane is a member of the group of liquid petroleum gases, including butane, propylene, isobutylene, butadiene, butylene, and various other hydrocarbon gases.

Global Propane Market Dynamics

Drivers

• High adoption of environment safe fuel alternatives

When conventional fuels like diesel and gasoline are burned, they emit a lot of CO2. This raises the total carbon footprint. However, propane is slightly cleaner and emits less COx and SOx. Propane contains 85% less volatile organic matter than diesel. As a result, when compared to conventional fuels, it produces 70% less COx and NOx by-products during combustion. Government agencies are enacting regulations and legislation to encourage the use of lower-emitting COx and NOx fuels. Fuel price increases and natural resource depletion are driving demand for cleaner and greener fuels. Propane engines emit 12% less CO2, 20% less NOX, and 60% less CO2 emissions than gasoline engines. Furthermore, propane engines emit 80% fewer smog-causing hydrocarbon emissions than diesel engines. LNG outperforms crude oil in terms of price, energy content (energy per unit mass), and environmental footprint. This is expected to drive propane demand.

• High demand for LPG connections

Propane is a significant component of LPG. It contributes to approximately 100% of LPG content in several countries. The rise in global population and sharp increase in disposable income, particularly in developing countries like India, are driving up demand for LPG for home energy needs. LPG is a modern energy source that has little environmental impact. It is used in various applications such as agriculture, power generation, heating, cooking, and recreation. The increased extraction of shale gas has increased LPG supply. Initiatives by international and local bodies to encourage end-users to switch from conventional to clean energy sources have increased global LPG consumption.

Opportunities

• Favourable regulations

The overall market is a very exclusive market that is undergoing consolidation. As of the participants and other personas compete against each other, it is a fantastic opportunity for the market. Another opportunity is to follow the government's rules and regulations so that not only the government, but also the consumers become the market's backbone.

Restraints

• Fluctuation in fuel prices

However, fluctuations in petroleum and crude oil prices, as well as the harmful effects of propane at higher concentrations, will act as major constraints for the growth of the propane market from 2022 to 2029. In contrast, insufficient retail infrastructure for propane and inadequate consumer awareness will pose market challenges for mineral oil.

This propane market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the propane market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

COVID-19 Impact on Propane Market

The COVID 19 virus has positively impacted the propane market, as its primary application is in the residential sector. As most families were at home for the majority of the year, consumption of LPG cylinders increased for the most of the year. Consumption of LPG cylinders has increased in major economies around the world. For example, India is the world's second-largest consumer of LPG. According to Oil Market Statistics, domestic LPG sales increased by 10.3% during the fiscal year (April 2020 to February 2021). As a result, the demand for propane in 2020 has increased.'

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Development

• On February 14, 2020 The Egyptian Petroleum Ministry announced the signing of a US$ 2.5 billion contract for developing a lower-quality heavy fuels hydrocracking complex in Assiut, the largest oil refining project to be implemented in Upper Egypt. The Assiut complex would have a capacity of 2.8 million tonnes per year and produce propane and naphtha, which would produce high-octane gasoline.
• In January 2020 As part of India's practise strategy, the Indian Oil Corporation Ltd (IOCL) announced plans to assist Ghana's National Petroleum Authority (NPA) in expanding the country's liquefied petroleum gas (LPG) network.

 Global Propane Market Scope

The propane market is segmented on the basis of type and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Form

• Liquid
• Gas

Application

• Industrial
• Commercial
• Residential
• Agriculture
• Transportation
• Chemicals and Refineries
• Other

Propane Market Regional Analysis/Insights

The propane market is analysed and market size insights and trends are provided by country, form and application as referenced above.

The countries covered in the propane market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific dominated the propane market because of supportive government policies and subsidies, China and India are the major contributors, resulting in increased demand for propane.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Propane Market Share Analysis

The propane market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to propane market.

Some of the major players operating in the propane market are:

• Saudi Arabian Oil Co. (Saudi Arabia)
• Exxon Mobil Corporation (U.S.)
• CNPC (China)
• B.P. p.l.c (U.K.)
• Shell plc (U.K.)
• PDVSA - Petróleos de Venezuela, SA. (Venezuela)
• Gazprom (Russia)
• Chevron Corporation. (U.S.)
• Kuwait Petroleum Corporation (KPC) (Kuwait)
• Petrobras (Brazil)
• LUKOIL (Russia)
• ROSNEFT (Russia)
• Abu Dhabi National Oil Company (UAE)
• China Petrochemical Corporation. (China)
• Petroliam Nasional Berhad (PETRONAS) (Malaysia)
• Eni S.p.A. (Italy)
• ENOC Company (UAE)
• NNPC (Nigeria)
• EGPC (Egypt)
• Equinor ASA (Norway)
• Oil and Natural Gas Corporation (India)
• P.T. Pertamina Gas (Indonesia)