by The propane market is growing due to its increasing demand from the residential and commercial sectors for various applications like heating, cooking, transportation among others. Propane is used as an alternative fuel in vehicles, buildings and various other industries. It provides cost-effective energy while emitting fewer emissions compared to other fossil fuels. The wide range of industrial applications in construction, mining, agriculture, and transportation industries are also driving its adoption.
The global propane market is estimated to be valued at US$ 98.5 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the Global Propane Market Size is the growing adoption in residential and commercial sectors for various heating and cooking applications. Propane provides an efficient and affordable heating fuel for homes, businesses as well as agricultural operations. The demand is increasing from smaller businesses and farms which are actively shifting from fuel oil or kerosene to propane for potential cost savings and environmental benefits. Furthermore, the development of combined heat and power (CHP) systems that can generate electricity along with heating from propane is also driving its adoption in commercial establishments and industries.
Porter’s Analysis
Threat of new entrants: Low- High capital investment required for storage and delivery infrastructure makes it difficult for new players to enter.
Bargaining power of buyers: High- presence of several supplier provide options to buyers.
Bargaining power of suppliers: Low- Large buyers can negotiate lower prices due to sizeable offtake.
Threat of new substitutes: High- Alternatives like natural gas and electricity also provide heating/cooking fuel.
Competitive rivalry: High- Intense competition among major established players to increase market share.
Key Takeaways
The global propane market is expected to witness high growth. The global propane market is estimated to be valued at US$ 98.5 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030.
Asia Pacific region is expected to dominate the global propane market owing to presence of large economies like China and India which are forecast to witness high demand growth for propane over the forecast period.
Key players related content comprises Key players operating in the propane market are Chevron Corporation (U.S.), Royal Dutch Shell Plc (U.K.), Exxon Mobil Corporation (U.S.), ConocoPhillips (U.S), Reliance Industries Ltd. (India). Chevron Corporation and Royal Dutch Shell Plc are the largest players in the global propane market and are focused on capacity expansion initiatives to meet the growing demand worldwide.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
