Market Overview

The global propane market was valued at 187.5 Million Tons in 2024 and is expected to reach 252.8 Million Tons by 2033, growing at a CAGR of 3.4% from 2025 to 2033. Asia Pacific dominates with over 51.2% market share in 2024. Key drivers include rising industrial applications, increasing energy demand, geopolitical supply dynamics, and a shift towards cleaner energy sources. 

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Propane Market Key Takeaways

• The global propane market size was valued at 187.5 Million Tons in 2024.
• The market is estimated to grow at a CAGR of 3.4% during 2025-2033.
• Asia Pacific held the largest share at over 51.2% in 2024.
• The United States accounted for around 85.60% of the total North America market in 2024.
• Residential segment leads with around 50.8% share in 2024.
• Government incentives and increasing adoption in vehicles and agriculture are key growth drivers.

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Market Growth Factors

The propane market is really taking off, driven by a growing global appetite for clean and efficient energy sources. People are increasingly swapping out traditional fossil fuels for propane, which is great because it produces fewer greenhouse gases. This shift is particularly noticeable in agriculture, where propane is used for things like crop drying and irrigation, further boosting its demand. Plus, the rise of propane-powered vehicles and the latest portable heating and cooking gadgets are opening up even more possibilities for its use. 

Government incentives that encourage the use of liquefied petroleum gas (LPG) and supportive regulations aimed at clean energy transitions are playing a big role in this market's growth. Urbanization and industrialization are also key players, driving up propane consumption around the globe, especially in major regions like the United States, which enjoys a steady supply thanks to its rich shale gas reserves.

On the industrial side, the demand from the petrochemical sector is pushing growth as propane is used as a feedstock for making chemicals, plastics, and other materials. Its versatility for heating, cooking, generating hot water, and powering forklifts and machinery is also a major factor in its popularity. Additionally, geopolitical events, fluctuations in crude oil prices, climate conditions, and efforts by suppliers to optimize their supply chains all have a significant impact on how the market operates.

Market Segmentation

By Form:

• Liquid: Known as LPG, it is portable and easy to store, preferred in residential, commercial, and industrial settings. For example, China produced 291.61 million mt of LPG and related fuels, showing a 3.9% year-on-year increase.
• Gas: Propane gas is widely used for heating, cooking, and industrial processes due to high energy efficiency and clean combustion, ideal for off-grid and versatile residential and commercial applications.

By Grade:

• HD-5 Propane: Leading in market share due to high purity, minimum 90% propane content, and suitability for residential heating, cooking, automotive fuel, and agriculture. It meets stringent quality standards, supporting environmental regulations and making it a premium-grade propane.

By End Use Industry:

• Residential: Holding around 50.8% market share in 2024, driven by energy efficiency, environmental responsibility, and applications like space/water heating, cooking, and backup power. Propane is crucial in areas lacking natural gas infrastructure.

Regional Insights

Asia Pacific dominates the propane market with over 51.2% share in 2024. This is driven by industrialization, urbanization, and economic growth in countries like China and India. The region sees expanding LPG distribution networks and infrastructure investment. For instance, Indian Oil Corporation plans to increase LPG bottling capacity by nearly 53% to meet demand, with investments of USD 43-46 Million in Northeast India.

Recent Developments & News

In November 2024, U-Haul expanded propane refills and autogas services at new locations. Superior Plus Corp., a major North American distributor, authorized a share repurchase under its Normal Course Issuer Bid. In November 2023, BPCL signed a 15-year propane supply agreement with GAIL for a PDH-PP plant in Maharashtra. The West Virginia DHHR provided supplemental propane heating payments for winter 2023-24. Tankfarm secured USD 23 Million in a Series-B round to expand its propane delivery footprint across 37 states.

Key Players

• Air Liquide S.A.
• BP plc
• Chevron Corporation
• China National Petroleum Corporation
• China Petroleum & Chemical Corporation
• ConocoPhillips Company
• Eni S.p.A.
• Evonik Industries AG
• Exxon Mobil Corporation
• GAIL (India) Limited
• Gazprom
• Indian Oil Corporation Ltd.
• Royal Dutch Shell plc
• Saudi Arabian Oil Co.
• TotalEnergies SE.

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