Propane is a three-carbon alkane widely used as fuel for equipment used in various industries. Propane is supplied in pressurized gas cylinders or in liquid form to provide heating or power equipment. It is a clean-burning fuel and emits lower greenhouse gases as compared to gasoline or diesel. The global propane market is driven by rising demand from petrochemical industry for uses such as feedstock for ethylene and propylene production. 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 key trends:
Growth in petrochemical industry is propelling the propane market. Propane is majorly used in petrochemical industry as feedstock for producing ethylene and propylene which are further converted into plastics, resins and other petrochemical products. Rising plastic consumption across industries such as packaging, construction and automotive is augmenting the demand for ethylene and propylene. According to Coherent Market Insights analysis, the global petrochemicals market is expected to grow at 5.8% CAGR during the forecast period. Hence, growth in petrochemical industry is expected to drive the demand for propane over the forecast period.

SWOT Analysis

Strength: Propane has a high energy density which makes it a cost-effective fuel for various applications like vehicles, heating and generator sets. It is a clean-burning fossil fuel which produces less greenhouse gas emissions and other pollutants as compared to gasoline or diesel.

Weakness: Propane is expensive to transport due to its gaseous state under normal temperature and pressure conditions. This increases the delivery and infrastructure costs. The storage and handling of propane also requires special safety precautions.

Opportunity: Increasing adoption of propane-powered vehicles and equipment in developing countries is expected to boost the market demand. Rising focus on reducing vehicular emissions through low-emission fuels like propane can open new growth avenues.

Threats: Stringent regulations regarding vehicular emissions and promotion of electric vehicles by governments worldwide poses a major threat to propane consumption in the transportation sector. Growing popularity of alternative clean fuels is also a challenge for the propane market.

Key Takeaways

The Global Propane Market Share is expected to witness high growth. The market size is projected to reach US$ 148.2 Bn by 2030 from US$ 98.5 Bn in 2023, registering a CAGR of 7.1% during the forecast period.

Regional analysis: North America currently dominates the global propane market and is expected to maintain its leading position throughout the forecast period. Favorable government policies promoting the usage of propane in transportation and heating applications are supporting the market growth in the region. The Asia Pacific propane market is projected to be the fastest-growing regional market between 2023 and 2030, driven by robust demand from China, India and other developing economies.

Key players: Key players operating in the propane market are 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 leading propane suppliers are focusing on capacity expansion and new product launches to strengthen their market position and meet the growing demand worldwide. Partnerships and collaborations are another key strategy adopted by prominent industry players.

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