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

The United States Propane Market is segmented by End-user Industry (Residential, Commercial, Transportation, Industrial, and Other End-user Industries). For each segment, the market sizing and forecasts have been done on the basis of volume (kilotons).

Market Snapshot

Market Summary- United States Propane Market
Study Period: 2017-2027
Base Year: 2021
CAGR: >5 %

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Market Overview

The propane market in the United States is expected to register a CAGR of more than 5% during the forecast period (2022-2027).

The COVID-19 pandemic had a negligible effect on the market. Additionally, the market is projected to grow steadily during the forecast period.

  • The increasing demand from the residential and transportation sectors has been driving the market growth.
  • However, the harmful effects of propane at higher concentrations are likely to hinder the growth of the studied market.
  • The usage of propane in power generation is likely to provide opportunities for the US propane market over the next five years.
  • Residential is the most dominating end-user segment of the market studied.

Scope of the Report

Propane is a three-carbon alkane gas (C3H8). It is stored under pressure inside a tank as a colorless, odorless liquid. The united states propane market report includes segmentation by end-user industry, which includes residential, commercial, transportation, industrial, and other end-user industries. For each segment, the market sizing and forecasts have been done on the basis of volume (kilotons).

End-user Industry
Other End-user Industries

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Key Market Trends

The Residential Segment to Dominate the Market

  • In the residential sector, propane is used for air conditioning, heating water, cooking, refrigerating foods, drying clothes, lighting, and fuelling fireplaces.
  • Propane is used mostly in homes in rural areas that do not have natural gas service, as well as in mobile homes. Millions of homes use propane to meet some of their energy requirements. In the United States, about five million households use propane as their main heating source, and around one-fifth of mobile homes use propane for heating.
  • 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 source of energy for cooking, hot water, and refrigeration.
  • The increasing new residential construction, combined with continuing fuel oil conversions, is expected to offset residential space heating losses to electricity and natural gas, which is leading to slow growth in the number of residential space heating customers through 2025.
  • However, due to improvements in the efficiency of propane use, the demand for propane may stagnate in the future as regards volume.
  • The above-mentioned factors are anticipated to enable the residential segment to dominate the market.
United States Propane Market Volume Share

Competitive Landscape

The US propane market is partially fragmented in nature. Some of the major companies (in no particular order) are AmeriGas Propane, Ferrellgas Partners LP, Suburban Propane Partners LP, Growmark Inc., and CHS Inc., among others.

Recent Developments

  • In July 2021, Contango Oil & Gas agreed to acquire low decline, conventional gas assets in the Wind River Basin of Wyoming, United States, from ConocoPhillips in a USD 67 million cash deal.

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 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

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Degree of Competition

    5. 4.5 Trade Analysis


    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


    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 AmeriGas Propane Inc.

      2. 6.4.2 Chevron Corporation

      3. 6.4.3 CHS Inc.

      4. 6.4.4 ConocoPhillips Company​

      5. 6.4.5 Exxon Mobil Corporation​

      6. 6.4.6 Ferrellgas

      7. 6.4.7 GROWMARK Inc.

      8. 6.4.8 Phillips 66 Company

      9. 6.4.9 Royal Dutch Shell PLC

      10. 6.4.10 Suburban Propane

      11. 6.4.11 Superior Plus Energy Services Inc.

      12. 6.4.12 ThompsonGas

    5. *List Not Exhaustive

    1. 7.1 Usage of Propane in Power Generation

    2. 7.2 Other Opportunities

**Subject to Availability

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Frequently Asked Questions

The United States Propane Market market is studied from 2017 - 2027.

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

AmeriGas Propane, Ferrellgas Partners LP, Suburban Propane Partners LP, Growmark Inc., CHS Inc. are the major companies operating in United States Propane Market.

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