Propane is Expected to be Flourished by Increased Demand for Cleaner Fuel

Propane Market 


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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