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| Propane Market |
Propane is a three-carbon alkane that is widely used as a fuel for portable and motor applications. It offers more energy content per gallon compared to gasoline and is a cost-effective alternative for off-grid and backup power solutions. Propane is used in residential, commercial, and industrial sectors for heating, cooling and cooking needs. It plays a vital role in powering equipment for applications across agriculture, construction, mining, and maritime sectors. The global propane market is estimated to be valued at US$ 113.48 Bn in 2024 and is expected to exhibit a CAGR of 14.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing demand for propane in portable applications is expected to present
lucrative opportunities for market growth over the forecast period. Portable
propane equipment such as camping stoves, patio heaters, and generators provide
an affordable and convenient power source for outdoor recreational activities
and off-grid operations. The rising trend of outdoor recreational activities
and increasing popularity of glamping is expected to boost the demand for
propane equipment. Moreover, propane generators are gaining traction as
reliable backup power systems for homes, businesses, telecom towers and
critical infrastructure during power outages. The growing preference for
propane over traditional fossil fuels owing to its diverse applications and
environmental friendly nature is anticipated to augment the market expansion of
propane over the forecast period.
Porter’s Analysis
Threat of new entrants: Low as the propane market is well established and
capital intensive to build infrastructure required for production and
distribution of propane. However, smaller players can enter through acquisition
or partnering with existing players.
Bargaining power of buyers: Moderate as large buyers have better negotiation
power due to bulk buying though propane is an essential energy source without
close substitutes. Suppliers have to cater to buyers to sustain business.
Bargaining power of suppliers: Moderate to high for large integrated suppliers
as production involves capital intensive assets and supply contracts are for
long term. Smaller suppliers have less negotiation power.
Threat of new substitutes: Low as propane competes mainly with other fossil
fuels like natural gas and electricity for residential and commercial uses
without close green substitutes currently.
Competitive rivalry: High as the market is dominated by few large players
competing on pricing, reliability of supply and expansion to newer markets and
segments.
SWOT Analysis
Strengths: Growing applications in residential, commercial, industrial and
transportation sectors. Established production and distribution infrastructure.
Weaknesses: Volatility in crude oil prices impacts production costs. Seasonal
demand and dependency on weather conditions.
Opportunities: Shift towards cleaner fuels drives demand. Rural electrification
in developing nations boosts off-grid applications.
Threats: stringent emission norms favor alternatives like natural gas.
increasing adoption of renewable energy affects long term prospects.
Key Takeaways
The global Propane
Market Growth size was valued at
US$ 113.48 Bn in 2024 and is projected to reach US$ 161.23 Bn by 2031,
registering a CAGR of 14% during the forecast period. The growing applications
in residential sector for space and water heating is a major driver globally.
Regional
analysis indicates North America dominated nearly 35% of the global market in
2024 due to large scale shale gas production and established distribution
network. Asia Pacific is expected to be the fastest growing region during the
forecast period led by rising LPG consumption in China, India and other
southeast Asian countries for domestic and transportation needs coupled with
expanding pipeline infrastructure.
Key players
operating in the propane market are Chevron Corporation, Royal Dutch Shell Plc,
Exxon Mobil Corporation and ConocoPhillips. These players are investing
significantly in capacity expansions and strategic collaborations to venture
into new geographical markets and application areas.
For more insights, read- https://www.pressreleasebulletin.com/propane-market-share-and-demand-analysis/
For more details on the
report, Read- https://cmiinfopiece.blogspot.com/2024/01/navigating-landscape-comprehensive.html
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