Propane is a three-carbon alkane which is primarily used as fuel for heating, cooking, and vehicles. It is widely used in home barbeques, portable stoves, space heaters, clothes dryers, water heaters and off-road vehicles. Propane provides affordable, reliable energy since it is a clean-burning fuel that produces less air pollution than other hydrocarbon fuels.
The global propane market is estimated to be valued at US$ 98.5 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity in off-grid energy applications is estimated to witness high growth in the Global Propane Market Size. Over 780 million people worldwide do not have access to electricity and rely on hazardous fuels like biomass for cooking and lighting purposes. Propane provides an efficient solution to meet their energy needs in an environment-friendly manner. The rise in awareness about propane as a sustainable fuel for decentralized energy systems is expected to drive its adoption in off-grid areas. Emerging economies with large rural population lack sufficient power infrastructure and provide growth opportunities for propane suppliers to provide clean fuel through small-scale LPG distribution networks. This can significantly boost access to modern energy and contribute to socio-economic development goals.
Porter's Analysis
Threat of new entrants: Low due to high capital requirement to setup infrastructure.
Bargaining power of buyers: Moderate as there are many established vendors.
Bargaining power of suppliers: Moderate as propane supply comes from few sources.
Threat of new substitutes: High as natural gas is a major substitute.
Competitive rivalry: Intense due to pricing wars among major players.
SWOT Analysis
Strengths: Growing demand from residential and commercial sectors. Emerging as autocatalyst.
Weaknesses: Price volatility depending on crude oil prices. Supply disrupted during hurricanes.
Opportunities: Increased exports of propane due to lower prices. Adoption in transportation sector.
Threats: Stringent regulations on emissions. Substitution risk from renewable energy.
Key Takeaways
The global propane market is expected to witness high growth. The global propane market is estimated to be valued at US$ 98.5 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030.
North America dominates the global propane market currently owing to high demand from the residential sector and growing exports. Asia Pacific is expected to be the fastest growing market owing to increasing usage of LPG in transportation, power generation, and industrial sectors.
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). Major players are focusing on capacity expansion to leverage opportunities in Asia.
Get More Insights On This Topic: https://www.newswirestats.com/propane-market-forecast-outlook-trend-2023-2030/
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