San Francisco, 03 January 2019; According to a report by Grand View Research, Inc., global propane market is projected to reach USD 106.9 billion by 2025. Growing need for clean burning fuels due to strict regulations is expected to propel demand for propane in the coming years. Increasing use of propane in propylene and ethylene production is also anticipated to impel its demand over the forecast period (from 2018 to 2025). Moreover, its usage in agriculture, commercial, and residential sectors will drive the market further. Rising demand for highly efficient fuels in automotive sector will also augment market growth. Manufacturers have now started focusing on Good Manufacturing Practices (GMP) to enhance operational efficiency and preserve natural resources. This is also likely to contribute to the market development over the next few years.
On the other hand, the advent of alternatives, such as Liquefied Natural Gas (LNG), natural gas, and Liquid Petroleum Gas (LPG), can hamper market growth. However, growing population and industrialization, especially in emerging regions, which has led to increased investments in manufacturing sector by federal governments will fuel market expansion. The global propane market has been segregated on the basis of end-use and region. Based on end-use, the market can be further categorized into commercial, residential, transportation, agriculture, industrial, and chemical, and refineries. In 2016, industrial emerged as the leading segment and accounted for 37.7% of total revenue. Rapid expansion of metal manufacturing sector, particularly in Middle Eastern and Asian economies, will drive the segment further.
Low labor and operating costs in Asia Pacific region can support the segment growth in this region. Regional segmentation includes Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. Asia Pacific region is predicted to witness the fastest CAGR over the forecast period. High GDP growth rate and rapid industrialization in countries, such as China and India, are expected to spur the region’s growth. In addition, consumption of propane gas in India is estimated to grow at CAGR of 10% on account of rising demand from commercial and industrial sectors. In 2016, Europe led the market and accounted for 29.8% of the overall revenue share. Strong economic growth, especially in Eastern Europe, can impel regional growth. High standard of living and growing population can further stimulate the regional market growth.
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Increasing use of propane in various residential applications, such as for refrigerating foods and feeding fireplaces, can also propel regional development. Moreover, increasing use of propane-based grills can further augment market expansion in this region. In North America, the market is predicted to grow well over the forecast period attributed to easy availability of raw material and huge reserve of shale gas. Rising adoption of Recreational Vehicles (RVs) equipped with appliances running on propane can also boost product demand over the coming years. Moreover, increasing number of restaurants using propane gas for cooking purposes can boost regional market in future. Some of the leading companies in the global market for propane are Royal Dutch Shell, Exxon Mobil, Statoil ASA, Chevron Corp., and ConocoPhillips. Most of these companies invest in M&A activities to expand their business and product portfolio to gain competitive edge over others.
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials, and healthcare.
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