Jan 22, 2020 (Heraldkeepers) -- Global Propane Market Overview
Propane is a flammable hydrocarbon gas, which is produced in the process of petroleum refining and natural gas processing. The gas is usually compressed into a liquid state at a low pressure and stored in LPG (Liquid Petroleum Gas) tanks, gas cylinders, or steel cylinders. Propane finds extensive application as an efficient fuel for cooking, heating, refrigeration, and automobiles. Being a colorless, odorless gas, propane originates from a class of LP gases, such as butane, propylene, isobutylene, and other mixtures. This gas can be easily stored as it has a low boiling point. This, in turn, makes it transportable in nature and a highly useful substitute for natural gas, employed in the processes of heating and electricity generation. Furthermore, this gas has other significant uses, including electrification of trucks, buses, motor boats, and trains. Being a highly cost-effective material, propane provides more torque to heavy vehicles, and allows for low fuel consumption.
Global Propane Market - Drivers & Restraints
The global propane market value is projected to reach US$ 107 billion by 2027, exhibiting a CAGR of 4.5% over the forecast period. Propane has been garnering high demand from a plethora of end-use industries, including oil & gas, chemical, manufacturing, and automobiles. The Propane Education and Research Council reported that propane, following the lead of gasoline and diesel, has turned out to be the third most commonly used fuel for vehicles across the globe. Moreover, around 180,000 vehicles on U.S. roads run on propane, and the gas is said to power around 440,000 forklifts. According to the same source, more than 12 million vehicles worldwide use propane. Propane is widely used for the purpose of off-the-grid refrigeration, mainly owing to its easy transportability. Additionally, the U.S. Environmental Protection Agency (EPA) gave approval for propane as a replacement refrigerant, as it does not produce any severe effects on the environment in comparison to other refrigerants. Moreover, besides functioning as the main flammable gas in various soldering processes, propane is an important fuel for hot air balloons.
On the contrary, propane is way denser than natural gas, and tends to collect near the ground or other low surfaces. Excessive inhalation of propane could lead to hypoxia and cardiac arrest. The gas has a dense texture, due to which it might possibly leak into enclosed areas and pose a major fire hazard. Since propane is sometimes prone to explosion, it is highly unsuitable for certain applications such as a fuel for powering boats. However, the abovementioned factors are predicted to restrict the global propane market development during the forecast timeframe.
Global Propane Market - Regional Segmentation
The Asia Pacific propane market is estimated to be the fastest growing regional market, with the largest global market share. The regional market growth can be attributed to rapid industrialization, along with escalating gross domestic product (GDP) of the emerging economies, including India and China. In addition, regions such as Latin America, Africa, and the Middle East, are currently witnessing fast-paced economic growth, which would potentially cater to market growth in these regions.
With significant improvement in Europe and North America after a major economic downfall, the propane market across these regions is expected to grow over the following years. Moreover, the oil & gas industry across India, China, and Brazil has been witnessing rapid expansion as a result of augmenting demand for oil and gas for domestic purposes in these regions. Thus, the presence of some leading companies in these regions is likely to favor the market growth, as the companies are deeply focused on exploring their market potential by extending their footprint across many of the world's untapped markets.
Key Players in the Global Propane Market
Some of the recognized players in the global propane market are British Petroleum, PetroChina Company Limited, AmeriGas, Chevron Corporation, Volero Energy Corporation, Shell Oil Company, Sinopek, Exxon Mobile, and Evonik.
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