The global propane market was worth more than USD xx billion in revenue in 2018 and is expected to cross USD xx billion in 2023, growing at a healthy CAGR of over xx% during the forecast period.
Propane is an aliphatic hydrocarbon produced from natural gas, petroleum refineries and heavy liquid feedstock cracking. It is a major feedstock for producing Propylene. However, the major usage of propane is as fuel for residential or commercial heating and cooking, as an industrial fuel, engine fuel, and other smaller fuel uses (farm, town gas, and refinery). It is also used in making ethylene in limited capacities.
As propane is one of the major fuels for domestic and industrial purposes, demand for fuel is expected to increase the growth of this market. Demand for fuel based markets is actually increasing because of growing population and extra income in developing countries. Rising demand of polypropylene and other copolymers of propylene from various industries such as packaging and construction industry is likely to drive the propylene demand, which in turn will drive propane market. Additionally, demand for ethylene is likely to increase at a greater rate because of an upsurge in demand from end-use markets, which in turn will boost propane demand.
Drivers and Restraints of Propane Market
Growing investments in downstream industries in regions like the Americas and the Middle East are likely to offer tremendous possibilities for propane market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost. In the USA, the shale gas revolution has made the raw material cost much cheaper in the recent past until the global market was flooded with crude oil oversupply.
Propane and its derivatives are exposed to the probability of volatility in supply and price of crude oil and natural gas. Propane has an adverse effect on human body if exposed to it for a longer duration. Its acute toxicity and flammability often make environmental regulatory institutions to implement strict regulations on propane usage. Existing and future regulations concerning the use of propane and its derivatives in end products are likely to hinder the market growth.
Propane Market by Region
The North America was the largest consumer of propane and this pattern is anticipated to continue to be identical over the following few years. Consumption in the USA is showing upward trend because of increase in economic activity and due to abundant reserves of shale gas. Growing demand for fuel, packaging, construction and other industries will drive propane market in the USA. With major production capacities in the USA, the region is likely to grow in terms of global supply capability. Consumption of propane in the Middle East and North East Asia is likely to grow at a significant rate due to demand from fuel, packaging and construction industry. Demand from Europe and South East Asia was low relatively and is likely to stay same in the next few years.
Top players in this market include Ferrellgas Partners, L.P., Lykins Energy Solutions, Marsh LP Gas Company Inc., Suburban Propane Partners, L.P., ThompsonGas and Sparling’s Propane Co. Ltd. among others.
The report covers exhaustive analysis on:
- Global Market Segments
- Global Market Size
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
- In depth summary of parent market
- Altering market characteristics in the industry
- Detailed market segmentation
- Historical and forecast market size in terms of volume and value
- Current industry developments
- Competitive landscape
- Potential and niche segments, regions showing promising growth