The propane industry has more than doubled in the last decade. With increased demand, the expansive production has pushed the overall market size — in the United States and worldwide.
How Big Is the U.S. Propane Market?
- Residential: Homeowners — especially in rural areas — are turning to propane for heating, cooling, cooking and lighting. Experts project this market’s value to reach $15 billion by 2027.
- Commercial: Many restaurants are switching to propane as their fuel of choice for cooking. Lodging establishments are also driving demand by relying on propane for cooking and heating.
- Industrial: Companies are rethinking their approaches to fleet fueling, and propane-powered forklifts enjoy increased use in warehousing.
Market insiders predict an overall 2% compound annual growth rate (CAGR) in America between 2020 and 2028.
How Big Is the Global Propane Market?
The global propane market weighed in at just over 195 million tons in 2016. Current industry experts forecast the worldwide market to gain around 3% CAGR between 2016 and 2027. That translates to an estimated value of $147.7 billion by 2027.
Residential use continues to dominate the market, though experts expect measurable growth in commercial and industrial sectors like:
- Chemical and refinery: With anticipated CAGR just shy of 2%, insiders see the U.S., Canada, China, Japan and Europe as drivers in this segment.
- Transportation: Demand for more efficient and lower-emission fuels spur growth in this sector, especially among transportation by rail.
- Manufacturing: Today’s facilities seek to meet consumer expectations of more sustainable practices. Many are switching to propane for more conservation of natural resources.
The geographic areas with the largest expected growth include India, China and Mexico, especially in the manufacturing and commercial sectors. Growing economies and populations in Eastern Europe are also increasing global use.
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