Market Overview

The market for propane is expected to grow at a CAGR of over 3% during the forecast period. Major factors driving the market studied are the growing demand from the metalworking and construction industries.

  • The harmful effects of propane at higher concentrations are expected to inhibit the growth of the market studied.
  • North America dominated the global market. The largest consumption was witnessed in the United States and Canada.



Key Market Trends

Industrial Segment to Dominate the market

  • Propane is acquired from natural gas and petroleum wells. It is a clean-burning and versatile fuel, categorized as a fossil fuel. It is used in homes, on farms, by business, in industry, transportation, etc.
  • In large-scale applications, propane is used in commercial-grade propane-fueled furnaces and water heaters. Propane-fueled water heaters and furnaces are used in hospitals, warehouses, and manufacturing facilities. Additionally, propane is the smart and dependable option for large buildings with a high demand for energy.
  • The metalworking industries use propane tanks to fuel their cutting torches and other equipment. Propane is also used for soldering, vulcanizing, and other processes that need a ready heat source.
  • Portable propane heaters provide a convenient source of heat for construction and road workers in cold weather.
  • Propane also is used to heat asphalt for highway construction and repairs. Propane heaters at construction sites are used to dry concrete, plaster, and fuel pitch.
  • The focal points of the growth in industrial activities are China, India, and the United States. In addition to this, ASEAN countries, Germany, Russia, and many of the world’s developing economies are experiencing the growth of industrial activities at a quicker pace.
  • As propane is a very low-emission fuel, forklift trucks powered by propane can operate safely inside factories and warehouses.
  • The aforementioned factors are considered to drive the propane market over the forecast period.



North America Region to Dominate the Market

  • North America dominated the global market share. With growing construction activities and the increasing need for clean fuel sources in countries such as united states and Canada, the usage of propane is increasing in the region.
  • The US residential sector’s growth is slower than the non-residential sector. In the country, the growing population is expected to boost the demand for housing. Moreover, about 20 million households are projected to be constructed over the next decade. The US commercial construction sector is expected to witness significant growth in the next few years.
  • According to the US Census Bureau and the US Department of Housing and Urban Development, in August 2019, privately?owned housing units were at a seasonally adjusted annual rate of 1,419,000 (7.7% above the revised July rate of 1,317,000 and 12.0% above the August 2018 rate of 1,267,000). Additionally, single?family housing units and buildings with five units or more were at the rates of 866,000 and 509,000, respectively, in August 2019.
  • Propane is a clean-burning fuel and one of the more reliable and efficient fuel sources. With the growing construction industry, there is a demand for propane in the residential sector.
  • Canada’s construction industry is one of the largest in the North American region, and over the forecast period, it is expected to grow significantly. This is in-turn expected to increases the consumption of propane.
  • Moreover, as propane is clean-burning and one of the more reliable and efficient fuel sources. With the growing construction industry, there is demand for propane in the residential sector, which is in furnaces, water heaters, fireplaces, and patio heaters, ovens and cooktops, fridges and dryers, pool heaters and generators, etc.
  • Hence, from the above-mentioned factors, the demand for propane in North America is expected to rapidly increase over the forecast period.



Competitive Landscape

The global propane market is highly fragmented. The major companies include Exxon Mobil Corporation, BP p.l.c., Royal Dutch Shell PLC, Occidental Petroleum Corporation, and China Petroleum & Chemical Corporation (Sinopec), amongst others.

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