Propane Market Report 2025

The propane market size has grown strongly in recent years. It will grow from $90.32 billion in 2024 to $96.07 billion in 2025 at a compound annual growth rate (CAGR) of 6.4%. The growth in the historic period can be attributed to increasing energy demand, expanding petrochemical industry, residential and commercial use, industrial applications, agricultural sector demand.

The propane market size is expected to see strong growth in the next few years. It will grow to $125.3 billion in 2029 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to increased focus on clean energy, growth in Autogas applications, global economic growth, expansion of propane export markets, transition in residential heating. Major trends in the forecast period include growing importance in off-grid energy, expanding international trade, advancements in propane technologies, increased focus on sustainable energy, market penetration in emerging economies.

The rising consumption of LPG is anticipated to drive the growth of the propane market in the future. LPG, or liquefied petroleum gas, is a type of liquid fuel used for various applications, including powering vehicles. It mainly consists of propane and butane and is commonly utilized for heating, cooking, and transportation. As the demand for LPG grows, so does the demand for propane. For instance, in September 2024, Argus, a UK-based provider of price information and consultancy services, reported that EU gas consumption rose from 1,578 PJ in January 2023 to 1,734 PJ in January 2024, reflecting an upward trend in gas consumption over the year. Therefore, the increasing consumption of LPG is propelling the growth of the propane market moving forward.

The expanding automotive industry is poised to propel the growth of the propane market in the foreseeable future. Encompassing numerous organizations involved in the design, manufacture, and maintenance of motor vehicles, the automotive sector sees propane as a preferred fuel for fleet vehicles such as buses, taxis, and delivery trucks due to its cost-effectiveness and environmental advantages. Notably, the European Automobile Manufacturers' Association (ACEA) reported a global production of 85.4 million motor vehicles in 2022, marking a 5.7% increase from 2021. Hence, the burgeoning automotive industry is a key driver for the propane market.

Major companies in the propane market are concentrating on technological advancements, such as propane dehydrogenation, to improve the efficiency of propylene production and meet the rising demand for petrochemical feedstocks. Propane dehydrogenation is a chemical process that converts propane into propylene by removing hydrogen from the propane molecules, often using a catalyst to enhance efficiency and selectivity. For example, in April 2024, Clariant AG, a Switzerland-based specialty chemical company, introduced its latest innovation, the CATOFIN 312 catalyst, specifically designed for propane dehydrogenation. This catalyst boasts improved selectivity and an extended lifespan of up to 20%. It is expected to significantly boost productivity, potentially generating an additional $20 million in profits for a standard 600 KTA PDH facility over its operational life. In conjunction with this launch, Clariant also unveiled its digital service platform, CLARITY™, which offers customers real-time data and advanced monitoring tools to optimize plant performance across various metrics.

Major companies in the propane market are actively developing innovative products to gain a competitive advantage. Mitsubishi Electric, a Japan-based electronics company, launched the Ecodan heat pump in November 2023. Operating on propane (R290) as a refrigerant, this heat pump delivers a higher Coefficient of Performance (COP). The use of propane as a natural refrigerant enables the heat pump to achieve elevated flow temperatures and produce hot water even at lower external air temperatures, expanding its applicability compared to conventional devices.

In March 2022, Superior Plus Corp., a Canada-based diversified business company, acquired Kamps Propane, Inc., and Kiva Energy, enhancing its presence in California. Kamps Propane, Inc. is a U.S.-based energy company, while Kiva Energy is a U.S.-based provider of propane gas. This acquisition strengthens Superior Plus Corp.'s position and service capabilities in the propane market.

Major companies operating in the propane market include Chevron Corporation, China Petroleum & Chemical Corporation, China National Petroleum Corporation, Conoco Phillips Petroleum Company, Eni SpA, Exxon Mobil Corporation, Gazprom International Limited, TotalEnergies SE, Air Liquide SA, GAIL Limited, Saudi Arabian Oil Co., Shell plc, AmeriGas Propane Inc., CHS Inc., Ferrellgas Partners LP, Growmark Inc., Phillips 66 Company, Superior Plus Energy Services Inc., ThompsonGas LLC, Securing Energy for Europe GmbH, Modern Welding Co. of Kentucky Inc., Arcosa Tank LLC, Bergquist Inc., Blue Rhino Corporation, Flame King YSN Imports Inc., Manchester Tank & Equipment Co., Advanced Air Systems Inc., Quality Manufacturing Group, Rutherford Equipment Inc., Suburban Manufacturing Inc., Trinity Industries Inc., Viking Cylinders LLC, Westmor Industries LLC, Worthington Industries Inc.

Asia-Pacific was the largest region in the propane market in 2024. The regions covered in the propane market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the propane market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Propane is a highly combustible gas derived from crude petroleum and natural gas, primarily used as an energy source and in the chemical industry. It is a colorless and odorless gas at standard temperature and pressure, and it can be easily compressed into a liquid form for storage and transportation.

The main forms of propane are in liquid and gaseous states. Liquid propane is a form that can be pressurized and stored in tanks, transitioning into a liquid state under compression. Propane is classified into various grades, including HD-5 propane, HD-10 propane, and commercial propane, with applications spanning industrial, commercial, residential, agricultural, transportation, chemicals and refineries, and various other sectors.

The propane market research report is one of a series of new reports that provides propane market statistics, including propane industry global market size, regional shares, competitors with a propane market share, detailed propane market segments, market trends and opportunities, and any further data you may need to thrive in the propane industry. This propane market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The propane market consists of sales of methane, ethane, butane, and heavier hydrocarbons. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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