Sign in

Propane Market Estimated To Witness Growth Due To Rising Industrial And Agricultural Application

Propane Market Estimated To Witness Growth Due To Rising Industrial And Agricultural Application

Propane is a three-carbon alkane with the molecular formula C3H8. It is a colorless gas that is liquid under pressure and at low temperatures. Propane is widely used as fuel for various commercial and residential purposes such as cooking, water heating, space heating, engine heating, lighting, and agricultural assistance. It is also used as an aerosol propellant, refrigerant, and solvent. Additionally, propane is used by farmers to operate irrigation equipment, grain dryers, tractors, and forklifts. The global propane market is estimated to be valued at US$ 113.48 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rising industrial and agricultural application is one of the major drivers estimated to boost the growth of the global propane market over the forecast period. Propane is widely used as fuel for various agricultural equipment such as tractors, grain dryers, forklifts, and irrigation equipment. It is also used by farmers to power drying equipment required for drying harvested grains. Additionally, propane is used in various industrial applications such as metal cutting and welding, engine operation, and material handling equipment. The use of propane as fuel in various agricultural and industrial processes is increasing significantly, which is expected to drive the market growth during the forecast period. Moreover, increasing demand for liquefied petroleum gas in residential sector is also projected to fuel the growth of the global propane market over the projected timeframe.

SWOT Analysis

Strength: The propane market has grown significantly due to its wide applications across various industries such as residential, commercial, agricultural, and industrial sectors. Propane is cost-effective and easily transportable, making it a preferred fuel choice. It produces less greenhouse gas emissions as compared to other fossil fuels.

Weakness: Fluctuating crude oil prices affect the overall prices of propane. Changes in government policies and regulations regarding fuel emissions can impact the demand for propane. Transportation of propane in bulk requires special infrastructure and safety practices, adding to operational costs.

Opportunity: Rising energy demand from emerging economies provides opportunities for propane suppliers to expand market presence. Growing adoption of auto-gas as an alternative vehicular fuel will drive future consumption. Development of hybrid fuel technologies combining propane with renewable sources can boost sustainable applications.

Threats: Strict environmental norms favoring cleaner fuels threaten the demand for propane. Substitution by natural gas and other green fuels poses competitive challenges. Geopolitical risks in major production regions can create supply uncertainties.

Key Takeaways

The global Propane Market Growth is expected to witness high growth over the forecast period driven by increasing energy needs across residential, commercial, industrial, and transportation sectors. The market size is projected to reach US$ 113.48 Bn by 2024, growing at a CAGR of 14%.

Regional analysis: North America currently dominates the global propane market owing to well-established infrastructure and widespread distribution networks. The Asia Pacific region is anticipated to be the fastest growing market led by countries like China and India experiencing rapid industrialization and infrastructure growth.

Key players: Key players operating in the propane market are Chevron Corporation (U.S.), Royal Dutch Shell Plc (U.K.), Exxon Mobil Corporation (U.S.), ConocoPhillips (U.S), and Reliance Industries Ltd. (India). These companies are focusing on capacity expansion and product innovations to strengthen market position.

For more insights, read- https://www.newsstatix.com/propane-market-trends-size-and-share-analysis/

For more details on the report, Read- https://cmiinfopiece.blogspot.com/2024/01/navigating-landscape-comprehensive.html

Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more