Propane is a three-carbon alkane which is often used as fuel in transportation, especially in rural areas and developing countries. It is used for cooking and heating in commercial kitchens and households. Propane is a clean-burning fuel that produces less air pollution than gasoline or diesel. The growing foodservice industry and increasing number of restaurants are driving the demand for propane as a fuel in commercial kitchens for cooking purposes.
The global Propane Market is estimated to be valued at US$ 98.5 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing use of propane in commercial kitchens is one of the key trends driving the propane market. With rising disposable incomes and changing lifestyles, the foodservice industry is expanding at a rapid pace globally. A large number of quick service and casual dining restaurants are cropping up which is increasing the demand for propane from these commercial kitchens as it is cost-effective and efficient for cooking on a large scale. Propane provides a clean and reliable source of energy for commercial cooking and is easy to transport and has a higher energy density than competing fuels. These advantages are boosting its adoption in the food industry.
SWOT Analysis
Strength: Global Propane Market Size has high energy density and emits less carbon dioxide as compared to other fossil fuels. It is cost effective and portable option for residential and commercial use.
Weakness: Propane is derived from fossil fuels and contributes to greenhouse gas emissions. Storage and distribution of liquified propane requires specialized infrastructure and safety protocols.
Opportunity: Growth in commercial sectors such as agriculture fuel and transportation will drive the demand for propane. Rising adoption of propane powered vehicles provides new growth opportunities.
Threats: Stringent government regulations regarding greenhouse gas emissions can hamper the demand. Shift towards renewable energy resources poses threat to long term growth of propane market.
Key Takeaways
The global propane market is expected to witness high growth. The market size is forecasted to reach US$ 98.5 Bn by 2024, growing at a CAGR of 14% during the forecast period.
Regional analysis comprises- North America dominates the global propane market with largest consumption and production. USA is the leading market for propane due to widespread usage in residential and commercial sectors. Asia Pacific region is expected to be the fastest growing market supported by increasing demand from China, India and other developing countries.
Key players related content comprises- Key players operating in the propane market are Chevron Corporation (U.S.), Royal Dutch Shell Plc (U.K.), Exxon Mobil Corporation (U.S.), ConocoPhillips (U.S), Reliance Industries Ltd. (India). Chevron Corporation and Royal Dutch Shell Plc hold leading market share due to large production capacity and global distribution network.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
