Propane Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Propane Market is Segmented by End-user Industry (Residential, Commercial, Transportation, Industrial, and Other End-user Industries) and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for the abovementioned segments in volume (kilotons).

Market Snapshot

Propane Market Size
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: >4 %
Propane Market Key Players

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Market Overview

The propane market was valued at over 150 million ton in 2021 and is projected to register a CAGR greater than 4% during the forecast period 2022-2027.

Owing to the COVID-19 pandemic, the demand for propane from end-user industries, including commercial, transportation, and industry, had declined drastically. However, the demand from the residential sector increased for liquefied petroleum gas (LPG) owing to the rise in usage during the pandemic-induced lockdown. The pandemic’s impact and lower crude prices, plus a decline in oil and gas production, are reducing propane supplies from all major basins.

· In the short term, factors such as the increasing demand from various end-user industries, such as industrial, construction, and petrochemical, are likely to drive market growth.

· The harmful effects of propane at higher concentrations are expected to inhibit the market’s growth.

· The usage of propane in power generation is expected to act as an opportunity for the market.

· Asia-Pacific dominated the global market. The largest consumption was witnessed in China and India.

Scope of the Report

Propane is a flammable hydrocarbon gas that is liquefied through pressurization and is commonly used as fuel for heating, cooking, hot water, and vehicles. The propane market is segmented by end-user industry and geography. By end-user industry, the market is segmented into residential, commercial, transportation, industrial, and other end-user industries. The report also covers the size and forecasts for the market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

End-user Industry
Other End-user Industries (Agriculture)
South Korea
Rest of Asia-Pacific
North America
Rest of Europe
South America
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Residential Segment to Dominate the Market

· In the residential segment, propane is used for air conditioning, heating water, cooking and refrigerating foods, drying clothes, lighting, and fueling fireplaces.

· Propane is used mostly in homes in rural areas that do not have natural gas service and mobile homes. Millions of homes use propane to meet some of their energy requirements.

· In the US, about 12 million households use propane as their primary heating source, and around one-fifth of mobile homes use propane for heating. In the first week of February 2022, the value of residential propane stood at USD 2.825/gallon, according to the US Energy Information Administration (EIA).

· Homes that use propane as the primary energy source have a large propane tank outside the house that stores propane under pressure as a liquid. Propane dealers deliver propane to residences in trucks, filling the tanks several times a year as per the requirement.

· The average residential propane tank holds between 500 and 1,000 gallons of liquid fuel. Millions of backyard cooks use propane-powered gas grills for cooking. Moreover, recreational vehicles usually have propane-fueled appliances, giving them a portable energy source for cooking, hot water, and refrigeration. People often use propane for outdoor cooking, and because of its portability, it is especially popular with campers and mobile homeowners.

· However, due to improvements in propane usage efficiency, the demand, in terms of volume for propane, may be stagnant in the future.

· The increasing new residential construction, combined with continuing fuel oil conversions, is expected to offset residential space heating losses to electricity and natural gas and lead to slow growth in the number of residential space heating customers through 2027.

· The abovementioned factors are anticipated to drive the demand for propane from the residential sector during the forecast period.

Propane Market Share

China to Dominate the Asia-Pacific Market

· China is the world's largest propane consumer, with an estimated share of about 20%. To suffice the huge domestic demand, China imported 14.8 million metric ton of propane in 2020, according to the ITC trade map. The major factor attributed to the rise in propane imports in the nation is the increased demand from propane dehydrogenation or PDH plants.

· Domestic LPG production rose 8% Y-o-Y to 44.48 million ton in 2020, which accounted for 70% of total apparent demand, as per GAC data. The country's LPG imports fell 4.7% over the same period to 19.65 million ton, while exports totaled 947,984 ton, resulting in net imports of 18.7 million ton, meeting the balance of 30% of total apparent demand.

· China represents one of the largest autogas markets in Asia-Pacific. The autogas market in China developed largely due to local programs to promote alternative fuels to tackle the worsening problem of air pollution in the nation.

· According to the China Association of Automobile Manufacturers, the total deliveries of new energy vehicles stood at 3.51 million units in 2021. The China Passenger Car Association expects NEV passenger car sales to increase in 2022 to over 5.5 million from a previous expectation of 4.8 million.

· Overall, the market for propane in China is projected to increase at a rapid rate post recovery from the COVID-19 pandemic during the early forecast period.

Propane Market Growth

Competitive Landscape

The global propane gas market is fragmented in nature, owing to the presence of a huge number of natural gas producers around the world. Major oil companies, such as Gazprom, China Petroleum & Chemical Corporation, ExxonMobil, Saudi Arabian Oil Co. (Saudi Aramco), and Shell PLC, lead the market in terms of production of propane, owing to their vast production outputs of natural gas at several facilities around the world.

Recent Developments

  • · In October 2021, Suburban Propane Partners LP announced the extension of its 2020 agreement with U-Haul to provide eco-friendly and renewable propane in California.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Drivers

      1. 4.1.1 Increase in Demand from the Residential and Transportation Sectors

      2. 4.1.2 Demand in the Petrochemical Industry

    2. 4.2 Restraints

      1. 4.2.1 Harmful Effects of Propane at Higher Concentrations

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Technological Snapshot

    6. 4.6 Trade Analysis

  5. 5. MARKET SEGMENTATION (Market Size in Volume)

    1. 5.1 End-user Industry

      1. 5.1.1 Residential

      2. 5.1.2 Commercial

      3. 5.1.3 Transportation

      4. 5.1.4 Industrial

      5. 5.1.5 Other End-user Industries (Agriculture)

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      2. 5.2.2 North America

        1. US

        2. Canada

        3. Mexico

      3. 5.2.3 Europe

        1. Germany

        2. UK

        3. Italy

        4. France

        5. Rest of Europe

      4. 5.2.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. Saudi Arabia

        2. South Africa

        3. Rest of Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share **/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Saudi Aramco

      2. 6.4.2 BP PLC

      3. 6.4.3 Chevron Corporation

      4. 6.4.4 ConocoPhillips Company

      5. 6.4.5 Eni SpA

      6. 6.4.6 Exxon Mobil Corporation

      7. 6.4.7 Gazprom

      8. 6.4.8 Shell PLC

      9. 6.4.9 China Petroleum & Chemical Corporation (Sinopec)

      10. 6.4.10 China National Petroleum Corporation (PetroChina)

      11. 6.4.11 Total

      12. 6.4.12 Air Liquide

      13. 6.4.13 GAIL (India) Limited

      14. 6.4.14 Suburban Propane

    5. *List Not Exhaustive

    1. 7.1 Usage of Propane in Power Generation

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Frequently Asked Questions

The Propane Market market is studied from 2017 - 2027.

The Propane Market is growing at a CAGR of >4% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Exxon Mobil Corporation, China Petroleum & Chemical Corporation., Gazprom, Saudi Arabian Oil Co., Shell Plc are the major companies operating in Propane Market.

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