Propane
is a three-carbon alkane that serves as an important transportation fuel and
petrochemical feedstock. It is commonly used in homes and businesses as a
source of energy for heating, cooking, water heating, garbage disposal, and
clothes drying. Propane powers various vehicles including forklifts, buses, and
trucks. As an energy-dense, versatile fuel, propane produces fewer greenhouse
gas emissions than gasoline or diesel. It has seen growing uptake in forklifts
and other material handling equipment used in warehouses, distribution centers,
and manufacturing facilities where reduced emissions are a key priority.
Convenience stores, supermarkets, and restaurants also rely heavily on propane
for heating, refrigeration, cooking, and other applications. The global propane
market is estimated to be valued at US$ 98.5 billion in 2023 and is expected to
exhibit a CAGR of 7.1% over the forecast period of 2023 to 2030, as highlighted
in a new report published by Coherent Market Insights.
Market Dynamics
Increased demand for cleaner fuel: Stringent emission norms by various
governments worldwide aim to curb air pollution and reduce carbon footprint are
driving the demand for cleaner fuels like propane. Its clean-burning nature
makes it an attractive alternative to gasoline and diesel in various stationary
as well as automotive applications. For example, several states in the US offer
tax incentives and subsidies to encourage the use of propane-powered vehicles
and equipment.
Growing uptake in industrial and commercial sectors: Propane provides
cost-effective and reliable energy for power generation, space heating, process
heating, and other commercial and industrial uses. It has seen increased
adoption in warehouses, distribution centers, manufacturing facilities,
restaurants, hotels, retail establishments, and more due to significant capital
and operating cost savings over electric alternatives. Tightening energy
efficiency and emissions standards are further propelling its demand from
industrial and commercial end-users.
Segment
Analysis
The propane market is dominated by the residential/commercial segment, which
accounts for around 50% of the overall market share. Propane is widely used in
residential areas for heating, cooking and other household utilities. It is a
preferred fuel for heating in homes which are not connected to natural gas
pipelines. The industrial segment is the second largest segment, consuming
propane as an energy source in manufacturing units, agriculture practices like
crop drying, tobacco curing etc. The transportation segment is expected to
witness strong growth due to growing demand of propane for buses, fork lifts
and other vehicles. Propane emits less greenhouse gases as compared to
gasoline, making it an environment-friendly fuel for transportation.
PEST Analysis
Political: Favorable government policies around the world regarding use of
cleaner fuels such as propane is boosting the market growth. Subsidies provided
by various governments on propane equipment is positively impacting the demand.
Economic: Rising disposable income and growing urbanization is fueling the
sales of residential appliances and devices powered by propane. Recovery of
manufacturing industries post COVID-19 pandemic will augment the industrial
sector demand.
Social: Increasing health and environment consciousness among consumers have
driven preferences towards cleaner fuels like propane with relatively lower
emissions.
Technological: Development of more efficient propane powered vehicles, advanced
propane extraction techniques from natural gas and focus on reducing
distribution and transportation costs are expected to provide opportunities
over the coming years.
Key Takeaways
The
Global
Propane Market Share is expected to witness high growth over the
forecast period supported by rising adoption across residential, commercial and
industrial sectors.
From
a regional perspective, the Asia Pacific region currently dominates the global
propane market and is expected to maintain its leading position during the
forecast years. Factors such as rapid industrial growth, rising disposable
income, increasing vehicle fleet and warm climate driving residential demand
are fueling the market growth.
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 companies are focusing on expanding their production
facilities and capabilities to cater to the growing product demand. Strategic
partnerships and acquisitions have been key areas of focus among players to
enhance their presence in regional and global propane markets.
For more insights, Read- https://www.ukwebwire.com/propane-market-growth-demand-and-overview/
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