Global Propane Market Expected to Reach 252.8 Million Tons by 2033 - IMARC Group

Global Propane Market Statistics, Outlook and Regional Analysis 2025-2033

The global propane market size reached 187.5 Million Tons in 2024, and it is expected to reach 252.8 Million Tons by 2033, exhibiting a growth rate (CAGR) of 3.4% from 2025 to 2033.

The rising emphasis on technology-enabled solutions underscores investments in unique platforms to improve distribution networks and customer experience, which is augmenting the market. Expanding service footprints and implementing modern technologies are changing distribution efficiency and accessibility over extensive regions. For example, in September 2023, Tankfarm, the tech-enabled propane distribution platform, announced the closure of a USD 23 Million Series-B round, led by prominent family offices and existing investors. The capital was allocated for customer acquisition, further development of Tankfarm’s patent-pending technology platform, and expanding its national propane delivery footprint, which spanned 37 states and over 400 locations. 

Moreover, government initiatives provide financial assistance for residents to manage propane heating expenses, maintaining energy affordability and accessibility. These activities are aimed at supporting needy communities in maintaining vital heating despite increased energy needs and shifting fuel prices. For instance, in November 2023, the West Virginia Department of Health and Human Resources (DHHR) announced a supplemental payment to assist eligible residents with propane heating expenses for the 2023-24 winter season. Furthermore, key players are working on increasing production efficiency and expanding applications to meet industrial, residential, and transportation demands. Efforts are being made to incorporate renewable propane and modern technology to meet global sustainability goals. Additionally, the increasing demand for propane in industrial and domestic heating creates huge income prospects for manufacturers. Also, propane-powered systems are becoming more popular among companies and families due to their low cost and environmental benefits. For example, the growing need for renewable propane in Europe reflects this transition, with TotalEnergies and Neste partnering on bio-propane production. This collaboration reinforces the region's commitment to decreasing carbon footprints while fulfilling the increasing requirement for sustainable energy in a variety of industries, including transportation and industry.

Global Propane Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia-Pacific accounted for the largest propane market share, on account of the accelerating pace of industrialization, urbanization, and economic development.

North America Propane Market Trends:

The market in North America is being pushed by increased auto-gas usage among fleet vehicles. For example, U.S. school districts are extensively using propane-powered buses, which is backed by incentives to cut emissions and operational costs, demonstrating the region's emphasis on sustainable mobility. Furthermore, according to the United Nations Data, natural gas liquids from the United States accounted for around 151,604 metric tons, the world's highest.

Europe Propane Market Trends:

To fulfill severe emissions standards, Europe favors renewable propane production. For example, TotalEnergies developed bio-propane in France, which is made from renewable raw materials, in line with the EU's decarbonization ambitions and rising demand for greener energy sources. The European Union’s commitment to minimizing carbon emissions has further fueled the adoption of propane as part of the region’s energy transition. Moreover, countries like France, Germany, and Italy are seeing growing demand for auto-gas, as propane-powered vehicles offer a more environmentally friendly and cost-effective option compared to gasoline and diesel vehicles.

Asia-Pacific Propane Market Trends:

Propane usage for domestic cooking and heating is rapidly increasing in Asia Pacific, thereby exhibiting a clear dominance in the region. For instance, India's Pradhan Mantri Ujjwala Yojana initiative, which subsidized LPG connections, considerably increased propane consumption in rural homes. Apart from this, the elevating investments in constructing propane infrastructure are augmenting the market. For example, Indian Oil Corp. (IOC) announced plans to construct three new plants in Northeast India to increase its LPG bottling capacity by nearly 53% annually by 2030 to meet the growing demand in the region. 

Latin America Propane Market Trends:

Propane is widely used in agriculture in Latin America. For example, Brazil employs propane-powered irrigation systems, reflecting the region's emphasis on energy efficiency and environmentally friendly agricultural techniques. Additionally, propane’s role in heating and cooking is expanding, especially in rural areas and countries with colder climates, such as Argentina and Chile.

Middle East and Africa Propane Market Trends:

The Middle East and Africa region promotes propane export growth. For example, Saudi Aramco's deals with Asian clients demonstrate the company's objective of strengthening propane supply chains by utilizing the region's large natural gas reserves. A major trend in the region is the increased use of propane in sectors, such as residential heating, cooking, and transportation, particularly in countries like Saudi Arabia, the UAE, and South Africa.

Top Companies Leading in the Propane Industry

Some of the leading propane market companies include 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., and TotalEnergies SE, among many others. For example, in March 2024, TotalEnergies and China Petroleum and Chemical Corporation signed a Heads of Agreement (HoA) to jointly develop a sustainable aviation fuel (SAF) production unit at a SINOPEC's refinery in China. This facility aims to produce 230,000 tons of SAF annually, processing local waste and residues.

Global Propane Market Segmentation Coverage

• On the basis of the form, the market has been bifurcated into liquid and gas. The liquid form is preferable for transportation and storage, while the gas form is utilized for heating and energy purposes.
• Based on the grade, the market is categorized into HD-5 propane, HD-10 propane, and commercial propane. HD-5's high purity makes it suitable for domestic heating and autogas. HD-10 has industrial applications, and commercial propane is favored for large-scale energy requirements in agriculture and industries.
• On the basis of the end use industry, the market has been divided into residential, commercial, transportation, and others. Among these, residential exhibits a clear dominance in the market. Propane's rising popularity in the residential sector is driven by its distinctive advantages and contributions to modern life.

Browse IMARC Related Reports on Propane Market:

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