While fossil fuel sources like natural gas, oil and coal garner most of the attention and headlines, propane is becoming an increasingly popular option. Also referred to as liquified petroleum gas (LPG), propane offers a cleaner and safer fuel alternative when heating homes and businesses, powering equipment, cooking food, washing clothes and performing many other essential tasks.
How Much Propane Is in the World?
Unlike other resources experiencing dwindling availability, propane is abundant in markets throughout the world. In 2021, the global propane volume reached 164.3 million tons. The United States is the leading propane exporter and produces approximately 90% of its supply domestically.
How Fast Is the Propane Industry Growing?
The combination of accessibility, availability and environmentally friendly properties has ignited the growth of the global propane industry. This trend is likely to continue in the foreseeable future as homeowners, businesses, government agencies and other organizations seek to reduce their dependence on coal, gas and oil.
The fact that approximately 50% of the U.S. population now resides in a state with comprehensive carbon emissions regulations or pending legislation may also make propane a more attractive energy source.
By some estimates, the global propane market could reach 212.8 million tons by 2027. If this expected increase occurs, the compound annual growth rate (CAGR), which measures the average growth over a specified time frame, would be 4.1%.
What Is the Future of Propane?
The outlook for the global propane industry is promising in the U.S. and various overseas markets. For instance, recent economic developments in some areas of Asia Pacific could make the region the fastest-growing propane consumer in the coming years. In India, increasing demand in the commercial and industrial sectors may result in a CAGR of 10% or more.
Other nations expected to ramp up their propane consumption include:
- United Kingdom
Propane consumption should experience a relatively even split among several markets between 2022 and 2027. Propane for residential, commercial and transportation use should each have a 25% share of the market, with all other sectors combining for the remaining 25%.
Learn More About the Global Propane Industry
At Fisk Tank Carrier, we provide custom propane tank service and installation trucks to solve our customers’ propane transportation needs. We can provide valuable insight into the growth of the propane industry and how it impacts your business. Contact us to learn more today.