Propane Market is Estimated to Witness High Growth Owing to Growing Demand for Clean Fuel

 
Propane Market

Propane is a type of liquefied petroleum gas that is used as a fuel for heating, cooking, vehicles and various industrial processes. It is considered to be a clean source of energy with very less pollution during combustion as compared to fuels like coal and petrol. Propane has applications across various sectors like residential, commercial, industrial and transportation. Residential sector utilizes propane for purposes like space heating, water heating and cooking. Commercial sector employs propane mainly for cooking. Industries use it as a fuel for forklifts, boilers and other heat processes. Transportation sector is gradually adopting propane to power vehicles and forklifts owing to its clean burning properties.


The global propane market is estimated to be valued at US$ 98.5 Bn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Growing demand for cleaner fuels from transportation sector is estimated to present lucrative growth opportunities for propane market. With rampant pollution from petroleum based fuels, many countries are promoting usage of alternative clean fuels like propane and CNG for vehicles. They provide numerous incentives and subsidies for owners to convert their fleet to gas. This is encouraging wider adoption of gas vehicles which utilize propane as fuel. As transportation sector looks to reduce its carbon footprint, demand for propane as auto fuel is expected to rise significantly over coming years. If key players actively tap into this opportunity, propane market can witness exponential growth rates through 2030.

Porter’s Analysis
Threat of new entrants: High capital requirements and stringent regulations acts as a barrier for new players entering the market. Bargaining power of buyers: Moderate bargaining power due to availability of substitutes like natural gas and competitive prices. Bargaining power of suppliers: High reliance on a few suppliers for propane results in high bargaining power. Threat of new substitutes: Rise of natural gas threatenes propane market. Competitive rivalry: The presence of large players results in high competition in the market.

SWOT Analysis
Strength: High energy density and portable nature increase its use in transportation. Weakness: Flammable nature requires strict safety regulations. Opportunity: Rising demand for cleaner fuel and increasing LPG vehicle fleet expansion present opportunities. Threats: stringent emission standards and shifting preference towards electric vehicles pose threats.

Key Takeaways
The Global Propane Market Demand is expected to witness high growth.

Regional Analysis: The North America region dominates the propane market currently due to high production and usage. The Asia Pacific region is expected to grow at the fastest rate due to rising demand from industrial and residential sectors in developing countries like India and China.

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), Reliance Industries Ltd. (India). The market is fragmented with the presence of large established players. Companies are focusing on expanding their production facilities and distribution network to leverage growth opportunities.

For more insights, Read- https://www.pressreleasebulletin.com/propane-market-growth-demand-and-overview/

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