Propane Market Size, Share | Growth Outlook [2023-2030]
Fortune Business Insights
Updated 6 min read
Fortune Business Insights
Environmental Benefits of Propane to Foster Global Propane Market Growth. Rising Demand for Low Emission Sustainable Fuel to Spur Market Opportunities: Fortune Business Insights™
Pune, April 27, 2023 (GLOBE NEWSWIRE) -- According to Fortune Business insights in a report, titled “Propane Market Size, Share and Global Trend by Application (Residential, Commercial, Industrial, Agriculture, Transportation, Chemicals), And Geography Forecast Till 2026.”, The advantage of propane gas as a convenient and eco-friendly gas is fueling its demand among users, The increasing demand for low emission sustainable fuel in the automotive and transportation sector is contributing to growth of the global propane market,
Key Industry Developments
In May 2019, Altagas is achieved a new milestone by opening its Ridley Propane Export Terminal facility in British Columbia. This will be the first marine export facility for propane in Canada.
In Jan 2019, NGL Energy Partners has announced to purchase wholesale propane business of DCP Midstream. According to the agreement, NGL will have 100% ownership of 5 propane rail terminals which is operated by subsidiary company of DCP; Gas Supply Resources.
Numerous Applications of Eco-friendly Propane Gas Will Contribute to Growth
The propane market, on the basis of application, is segmented into commercial, residential, industrial, agriculture, transportation, and chemicals. Propane is primarily used for residential purposes such as air conditioning, cooking, heating water, and refrigerating foods, lighting, dry clothes, and fueling fireplaces. Houses that utilize propane as main energy sources usually have large propane tanks outside of their house holding 500 and 1000 gallons of liquid fuel.
The industrial sector usually utilizes propane-driven fleet vehicles and forklifts. Industries also utilize propane for the purpose of vulcanizing, soldering and other processes that require a heat source. Propane is also a valuable feedstock for the chemical industry; nearly half of the propane used today is as a raw material for making plastic bags, rubber, nylon, pharmaceuticals, and other products. Millions of commercial establishments, including hotels and restaurants, depend on propane for heating, cooling, and other uses. Farmers use propane fueled equipment to dry crops, control pests, and operate a variety of farm equipment. The demand for low emission sustainable fuel in the automotive and transportation sector is driving the propane molecule industry. Burning propane produces less greenhouse gas emissions than other types of fuel, this factor is further driving the propane industry.
COVID-19 Impact:
The outbreak of the COVID-19 pandemic has negatively impacted various business sectors across the world. Various impositions like lockdown, social distancing and ban on imports & exports have impacted the production and distribution of various goods and services, which were considered as non-essential by the governments
ALTAGAS, a North American energy infrastructure company announced the opening of Ridley Island Propane Export Terminal (RIPET), in British Columbia. RIPET authorizes AltaGas to leverage the power of assets along with the energy value chain.
The new marine export facility is expected to contribute significantly to the growth of the global propane market. Factors such as gas gathering and processing, fractionation and export to liquids handling in the facility will fuel demand. The facility also delivers access to premium overseas markets, where the demand for propane is high. This will in turn, boost the global propane market.
Acquisitions between companies to acquire propane businesses are also fostering the growth of the global propane market. for instance, NGL Energy Partners has announced to purchase wholesale propane business of DCP Midstream. According to the agreement, NGL will have 100% ownership of 5 propane rail terminals which is operated by a subsidiary company of DCP; Gas Supply Resources.
Propane Market Segmentation
By Type
· Bottom Supported Rigs Platform Jack Up · Floaters Rigs Semi-Submersible Drill Ship
By Depth of Water
· Shallow Water · Deepwater · Ultra Deepwater
By Geography
· North America (USA and Canada) · Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe) · Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific) · Latin America (Brazil, Mexico and Rest of Latin America) · Middle East & Africa (South Africa, GCC and Rest of Middle East & Africa)
Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
Comprehensive insights into the regional developments.
List of major industry players.
Key strategies adopted by the market players.
Latest industry developments such as product launches, partnerships, mergers, and acquisitions.
Regional Insights:
Increasing Electricity Generation in North America Will Support Market Growth
Geographically, the global propane market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is predicted to dominate the global propane market owing to the wide use of propane gas for water heaters, air conditioners, pest controls, and generation of electricity in the region. The US is one of the highest exporter and producer of propane gas all over the world; recent discoveries in oil and natural gas processing from the U.S are fostering growth in North America.
In Europe, the traditional markets for propane are the off-grid consumer for space heating and cooling. In Asia-pacific, the economic growth along with rising population are the prime factors which are fueling demand for LPG in countries like India and China and enabling growth of the propane market. In addition, Gulf Cooperation Council has also planned to explore new untraditional sources of feedstock for chemicals industry projects in Algeria and Nigeria for increasing petrochemical industries. GCC has also planned to explore new untraditional sources of feedstock for producing chemicals. This factor is predicted to boost the propane market in the region.
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