by Propane, also known as LPG (liquefied petroleum gas), is a three-carbon alkane which is extensively used as a fuel for heating, cooking, vehicles and various industrial applications. It is used in portable stoves for outdoor cooking and camping, refrigerators and furnaces for various residential and commercial needs. It is also used as automobile fuel in modified vehicles as it emits fewer emissions than petrol. The global propane market is estimated to be valued at US$ 98.5 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of the propane market is the rising adoption of propane as an automotive fuel. Many vehicles are being modified to operate on propane and it provides comparable performance to gasoline at a lower cost which is augmenting its demand from the automotive industry. Propane as a fuel emits 20% fewer greenhouse emissions as compared to gasoline which is encouraging more automobile manufacturers and consumers to choose it over traditional fossil fuels. Moreover, the increasing demand for reliable and affordable energy sources from the construction and industrial sectors is also fueling the adoption of propane as an efficient heating fuel.
SWOT Analysis
Strength: The propane market has seen consistent growth over the past few years. Propane is cost effective and easier to transport via pipelines and trucks compared to gasoline and diesel. It is also a clean burning fuel and emits fewer greenhouse gases than coal or oil. Many industrial sectors and households rely on propane for various applications such as heating.
Weakness: Propane prices tend to fluctuate depending on production and export/import levels. Transporting propane via trucks and rail also has safety concerns. The market is also heavily dependent on a few major players.
Opportunity: Many developing nations are investing in building propane infrastructure to provide access to rural communities. The industrial sector is also shifting from coal and fuel oil to cleaner burning propane. Regulations are pushing for lower carbon emissions which will further boost demand. Development of new applications in transportation can unlock new growth opportunities.
Threats: Strict regulations regarding the transportation and storage of propane adds to operational challenges and costs. Alternative fuels like renewable natural gas and hydrogen pose a long term threat. Changing weather patterns can impact production and supply.
Key Takeaways
The Global Propane Market Share is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to increase from US$ 98.5 billion in 2023 to US$ 161.3 billion by 2030, growing at a CAGR of 7.1%.
Regional analysis: North America currently dominates the global propane market with a share of over 35% in 2023. The US is the largest consumer and producer of propane globally. The Asia Pacific region is expected to see the fastest growth during the forecast period led by countries like India, China and Japan. Growing industrial and residential sectors are driving the demand for cost effective propane in these emerging economies.
Key players: Key players operating in the propane market include Merck KGaA, Thermo Fisher Scientific Inc., Avantor, Inc., Lonza Group Ltd., Bio-Rad Laboratories, Inc., Sartorius AG, Corning Inc., Becton, Dickinson and Company, GE Healthcare, Promega Corporation. These companies are focusing on capacity expansions and new product launches to capitalize on the growth opportunities.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
