Propane Market Report 2026

The propane market size has grown strongly in recent years. It will grow from $94.77 billion in 2025 to $100.89 billion in 2026 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to expansion of oil and gas extraction activities, growth in residential heating demand, increasing use in industrial furnaces, rising adoption in agricultural drying, availability of propane distribution infrastructure.

The propane market size is expected to see strong growth in the next few years. It will grow to $130.52 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing demand for low-emission fuels, rising adoption in transportation fleets, expansion of off-grid energy solutions, growing use in chemical feedstock applications, increasing focus on energy diversification. Major trends in the forecast period include increasing use of propane as cleaner fuel, rising adoption in industrial heating applications, growing demand from agricultural operations, expansion of propane autogas vehicles, enhanced focus on energy security.

The increasing LPG consumption is expected to propel the growth of the propane market going forward. LPG, or liquefied petroleum gas, is a type of liquid fuel primarily composed of propane and butane, commonly used for heating, cooking, and transportation. As LPG demand rises, the demand for propane similarly increases. For instance, in September 2024, according to Argus, a UK-based provider of price information and consultancy services, EU gas consumption rose from 1,578 PJ in January 2023 to 1,734 PJ in January 2024, indicating a steady upward trend. Therefore, increasing LPG consumption is driving the growth of the propane market.

Major companies in the propane market are focusing on technological advancements such as propane dehydrogenation to enhance propylene production efficiency and meet growing petrochemical feedstock demand. Propane dehydrogenation is a chemical process that converts propane into propylene by removing hydrogen from propane molecules, typically using a catalyst to improve efficiency and selectivity. For instance, in April 2024, Clariant AG, a Switzerland-based specialty chemical company, introduced the CATOFIN 312 catalyst for propane dehydrogenation, offering enhanced selectivity and an extended lifespan of up to 20%. This catalyst is projected to significantly boost productivity, potentially adding up to $20 million in profits for a standard 600 KTA PDH facility over its operational life. Alongside this, Clariant launched its digital service platform, CLARITY™, providing real-time data and advanced monitoring tools to optimize plant performance.

In May 2025, Alliance Energy Services, a US-based provider of propane supply, distribution, and logistics solutions, acquired 18 propane terminals from NGL Energy Partners for an undisclosed amount. This acquisition enables Alliance Energy Services to expand its infrastructure and geographic reach, strengthen distribution capacity, and enhance supply security across key markets. NGL Energy Partners is a US-based provider of natural gas liquids infrastructure and logistics, including storage, transportation, and wholesale propane terminal services.

Major companies operating in the propane market are Exxon Mobil Corporation,Chevron Corporation,BP plc,Shell plc,TotalEnergies SE,ConocoPhillips,Eni S.p.A.,Saudi Aramco,Gazprom,Lukoil,Sinopec Group,PetroChina Company Limited,Phillips 66,Valero Energy Corporation,Marathon Petroleum Corporation,Reliance Industries Limited,ADNOC,Equinor ASA,Repsol S.A.,Petrobras.

Asia-Pacific was the largest region in the propane market in 2025. The regions covered in the propane market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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