Propane fell to 0.71 USD/Gal on September 18, 2025, down 0.20% from the previous day. Over the past month, Propane's price has risen 5.62%, and is up 10.81% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Propane - values, historical data, forecasts and news - updated on September of 2025.

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US Propane Market Size 2025-2029

The US propane market size is valued to increase by USD 8.42 billion, at a CAGR of 6.6% from 2024 to 2029. Advancements in propane storage and transportation will drive the US propane market.

Major Market Trends & Insights

By End-user - Industrial segment was valued at USD 7.38 billion in 2022
By Grade Type - HD-5 propane segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 64.96 billion
Market Future Opportunities: USD 8.42 billion
CAGR from 2024 to 2029 : 6.6%

Market Summary

Propane, a versatile hydrocarbon fuel, plays a pivotal role in the US energy market, catering to various sectors including residential, commercial, and industrial applications. The market's growth is driven by several factors, including the increasing demand for cleaner and more efficient energy sources and the expanding infrastructure for propane storage and transportation. Recent advancements in propane storage technology have led to the development of larger, more efficient tanks, enabling businesses to store larger quantities of propane on-site. Simultaneously, innovations in transportation methods, such as rail and marine transport, have expanded the reach of propane, making it more accessible to consumers in remote areas.
The emergence of renewable propane, derived from natural gas processing and biomass, adds another dimension to the market. This eco-friendly alternative offers businesses the opportunity to reduce their carbon footprint while continuing to use propane for their energy needs. However, the propane market faces challenges from competitive alternative fuels, such as natural gas and electricity. These fuels offer similar benefits but may be more cost-effective or convenient for some businesses. As a result, propane providers must continue to innovate and adapt to remain competitive. In conclusion, the US propane market is a dynamic and evolving landscape, shaped by advancements in technology, the availability of renewable alternatives, and the competitive pressures of alternative fuels.
Businesses looking to leverage propane as an energy source must stay informed of these trends and adapt to remain competitive.

What will be the Size of the US Propane Market during the forecast period?

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How is the Propane in US Market Segmented and what are the key trends of market segmentation?

The propane in US industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Industrial
  Commercial
  Residential
  Others


Grade Type

  HD-5 propane
  HD-10 propane
  Commercial propane


Type

  Gas
  Liquid


Application

  Heating
  Cooking
  Power Generation
  Motor Fuel
  Industrial Processes
  Others


Geography

  North America

    US

By End-user Insights

The industrial segment is estimated to witness significant growth during the forecast period.

The Propane Market in the US is a dynamic and evolving sector, with demand influenced by various factors. Industrial sectors, particularly manufacturing and construction, drive growth due to their reliance on propane for heating, processing, and other applications. Seasonal weather patterns significantly impact demand, with cold weather increasing the need for propane in industries such as agriculture, food processing, and construction. Propane competes with other energy sources, with price fluctuations shaping demand. For instance, a 10% decrease in propane prices can lead to a 3% increase in demand. Propane is used extensively in residential applications, including grilling, water heating, and heating systems.

Commercial propane delivery, storage capacity expansion, and pipeline infrastructure investments are ongoing activities to meet the evolving needs of the market. Safety, efficiency, and regulatory compliance are crucial considerations, with investments in equipment maintenance, leak detection, and combustion efficiency essential. The propane supply chain involves various transportation methods, including trucking, rail, and pipeline infrastructure. Despite price volatility, the long-term demand for propane is forecasted to remain strong due to its energy density and versatility in various applications, from industrial processes to residential use.

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The Industrial segment was valued at USD 7.38 billion in 2019 and showed a gradual increase during the forecast period.

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Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies

The global propane market, valued at approximately $XX million in 2025, is projected to experience robust growth, exhibiting a compound annual growth rate (CAGR) of 4.33% from 2025 to 2033. This expansion is driven by several key factors. Increased demand from the petrochemical industry, particularly for propylene production, fuels significant market growth. Rising adoption of propane as a cleaner-burning alternative fuel in residential and commercial heating, as well as in transportation sectors (autogas), further contributes to the market's expansion. Developing economies, especially in Asia-Pacific, are witnessing rapid industrialization and urbanization, leading to a surge in energy consumption and consequently bolstering propane demand. Technological advancements in propane storage and handling, coupled with improved distribution infrastructure, enhance market accessibility and contribute to overall growth. However, price volatility linked to crude oil prices and the potential impact of alternative energy sources present challenges to sustained growth. Furthermore, stringent environmental regulations in some regions might necessitate investments in emission control technologies, potentially impacting market profitability. Major players like Air Liquide, BP, Chevron, Sinopec, PetroChina, ConocoPhillips, Eni, ExxonMobil, GAIL, Gazprom, Shell, Saudi Aramco, and Suburban Propane are key contributors to the market, leveraging their established infrastructure and distribution networks. Competition is intense, with companies focusing on strategic partnerships, capacity expansions, and technological innovations to maintain market share. Future growth will be shaped by government policies promoting cleaner energy solutions, evolving consumer preferences towards sustainable fuels, and the continuous development of downstream applications for propane derivatives. The market is segmented by various factors including application, region, and distribution channel, offering growth opportunities across multiple segments. The forecast period (2025-2033) anticipates continued expansion, although the pace might fluctuate based on macroeconomic conditions and global energy dynamics. Recent developments include: March 2022: KBR and ExxonMobil Catalysts and Licensing LLC ("ExxonMobil") will collaborate to bring significant advancements to propane dehydrogenation (PDH) technology. Under the collaboration, ExxonMobil's new proprietary catalyst technology will be combined with KBR's proprietary K-PRO Propane Dehydrogenation (PDH) technology to convert propane into propylene., October 2021: Suburban Propane Partners LP announced the extension of its 2020 agreement with U-Haul to provide eco-friendly and renewable propane in California.. Key drivers for this market are: Increase in Demand from the Residential and Transportation Sectors, Demand in the Petrochemical Industry. Potential restraints include: Increase in Demand from the Residential and Transportation Sectors, Demand in the Petrochemical Industry. Notable trends are: Residential Segment to Dominate the Market.

According to Cognitive Market Research, the global Propane market size will be USD 8742 million in 2025. It will expand at a compound annual growth rate (CAGR) of 4.20% from 2025 to 2033.

North America held the market share of around 30% of the global revenue with a market size of USD 2447.76 million in 2025 and will grow at a compound annual growth rate (CAGR) of 2.5% from 2025 to 2033.
Europe accounted for a market share of 25% of the global revenue with a market size of USD 2141.79 million.
APAC held a major market share of 36% of the global revenue with a market size of USD 3147.12 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.6% from 2025 to 2033.
South America has a market share of 4% of the global revenue with a market size of USD 332.20 million in 2025 and will grow at a compound annual growth rate (CAGR) of 4.9% from 2025 to 2033.
Middle East had a market share of 4% of the global revenue and was estimated at a market size of USD 349.68 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2025 to 2033.
Africa had a market share of 3.70% of the global revenue and was estimated at a market size of USD 323.45 million in 2025 and will grow at a compound annual growth rate (CAGR) of 3.8% from 2025 to 2033.
Gas category is the fastest growing Form segment of the Propane industry

Market Dynamics of Propane Market

Key Drivers for Propane Market

Increasing demand for clean energy alternatives to reduce greenhouse gas emissions drives market growth

As environmental concerns over climate change intensify, there is an increasing shift toward clean energy solutions, and propane is seen as an efficient, low-emission alternative to traditional fossil fuels. Propane produces significantly fewer greenhouse gases compared to coal, gasoline, and diesel. As per the International Energy Agency (IEA), the global renewable electricity generation is forecast to climb over 17,000 TWh by the end of the decade, a 90% increase from 2023. Renewables are projected to surpass coal in 2025, and solar PV is expected to become the largest renewable power source globally by 2029, outstripping hydropower. Governments and industries are investing in clean technologies, and propane, being a cleaner-burning fossil fuel, stands out as a suitable option for industries looking to reduce their carbon footprint. This rising demand for cleaner energy fuels the market’s growth by driving investments in propane production, infrastructure, and adoption across various sectors.

https://www.iea.org/energy-system/renewables

Growing use of propane in transportation as a cleaner fuel option

Propane is increasingly being adopted as an alternative fuel in the transportation sector, particularly in fleet operations. It is a cleaner-burning fuel compared to gasoline and diesel, with lower emissions of carbon monoxide, nitrogen oxides, and particulate matter. As per the IEA, in 2021, renewables accounted for 3.9% of total transport energy consumption, with the bulk of this being biofuels (3.5%) and the rest renewable electricity (0.4%) Additionally, propane-powered vehicles benefit from lower fuel costs, making it an attractive option for public transportation, delivery fleets, and other commercial vehicle sectors. The rise of government incentives and environmental policies promoting alternative fuels supports the adoption of propane in transportation, which accelerates its market penetration.

https://www.ren21.net/gsr-2024/modules/energy_demand/03_renewables_in_transport/

Restraint Factor for the Propane Market

Volatility in propane prices due to dependency on oil and natural gas markets hinders market growth

Propane prices are highly influenced by fluctuations in the global oil and natural gas markets, making the market susceptible to price volatility. The interconnectedness with crude oil prices, geopolitical tensions, and natural gas supply disruptions can cause sharp price swings, affecting both consumers and suppliers. This volatility makes propane less predictable as a fuel source for industries and households, potentially limiting its widespread adoption. The uncertainty in pricing could also deter investments in propane infrastructure and technology, slowing overall market growth.

Market Trends in Propane Market

Increasing adoption of propane-powered vehicles for fleet operations

Propane-powered vehicles are becoming more ...

The global fuel energy price index stood at 165.09 index points in July 2025, up from 100 in the base year 2016. Figures decreased that month due to a fall in natural gas prices. The fuel energy index includes prices for crude oil, natural gas, coal, and propane. Supply constraints across multiple commodities The global natural gas price index surged nearly 11-fold, and the global coal price index rose almost seven-fold from summer 2020 to summer 2022. This notable escalation was largely attributed to the Russia-Ukraine war, exerting increased pressure on the global supply chain. Tariffs bring economic uncertainty With the global economy having adjusted to the effects of the Russia-Ukraine war, new uncertainty has emerged due to tariffs imposed by the Trump administration. If these tariffs are fully implemented, global trade could be significantly disrupted, mainly the bilateral trade between the world’s two largest economies. In 2025, import tariffs between China and the United States exceeded 130 percent on both sides, while their tariffs on imports from the rest of the world were around 10 percent. U.S. tariffs on Chinese imported goods reached a high of 134.7 percent in April of that year, while China imposed a 147.6 percent tariff on U.S. goods. Early estimates indicate that the impact of Trump’s proposed tariffs on the U.S. economy could amount to 0.4 percent of GDP, mainly driven by the reduced trade with Mexico, Canada and China.

The average monthly price for natural gas in the United States amounted to **** nominal U.S. dollars per million British thermal units (Btu) in July 2025. By contrast, natural gas prices in Europe were about three times higher than those in the U.S. Prices in Europe tend to be notably higher than those in the U.S. as the latter benefits from being a major hydrocarbon producer. Europe's import reliance European prices for natural gas rose most notable throughout the second half of 2021 and much of 2022, peaking at over ** U.S. dollars per million Btu in August 2022. The sharp rise was due to supply chain issues and economic strain following the COVID-19 pandemic, which was further exacerbated by Russia’s invasion of Ukraine in early 2022. As a result of the war, many countries began looking for alternative sources, and Russian pipeline gas imports to the European Union declined as a result. Meanwhile, LNG was a great beneficiary, with LNG demand in Europe rising by more than ** percent between 2021 and 2023. How domestic natural gas production shapes prices As intimated, the United States’ position among the leaders of worldwide natural gas production is one of the main reasons for why prices for this commodity are so low across the country. In 2024, the U.S. produced more than ************ cubic meters of natural gas, which allays domestic demand and allows for far lower purchasing prices.

UK Gas rose to 81.47 GBp/thm on September 18, 2025, up 2.45% from the previous day. Over the past month, UK Gas's price has risen 6.05%, and is up 3.68% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. UK Natural Gas - values, historical data, forecasts and news - updated on September of 2025.

The average price of propylene amounted to some *** U.S. dollars per metric ton in 2023, down from *** dollars per metric ton one year earlier. Production and uses of propylene Propylene, also known as propene, ranks as the second most-consumed primary petrochemical worldwide, only after ethylene. In 2022, propylene accounted for ** percent of the global primary petrochemical consumption. Most of the propylene produced is used to manufacture polypropylene, one of the most common thermoplastic materials used today. The petrochemical compound is also used extensively as a building block to produce diverse chemicals such as isopropyl alcohol, propylene oxide, acrylonitrile, and acrylic acid. In 2020, the global production capacity of propylene stood at *** million metric tons. Polypropylene market The market volume of polypropylene is forecast to follow an increasing trend during the next years, reaching approximately 100 million metric tons by 2029. Similarly, the market value of the compound is expected to increase by more than ** percent in 2029 in comparison with 2021. Similarly to the development of the price of propylene during the last year, the average price of polypropylene in 2023 showed a small decrease in comparison with 2022.

After two years of decline, the Belarusian propylene glycol market increased by 64% to $1.7M in 2024. Over the period under review, consumption recorded a relatively flat trend pattern. Over the period under review, the market reached the maximum level at $4.2M in 2021; however, from 2022 to 2024, consumption failed to regain momentum.

For the third consecutive year, the Turkish propylene glycol market recorded decline in sales value, which decreased by -4% to $232M in 2024. Overall, the total consumption indicated a mild increase from 2012 to 2024: its value increased at an average annual rate of +1.8% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption decreased by -32.1% against 2021 indices.

The Nigeria oil and gas midstream market is expected to grow from a value of XX million in 2025 to XX million by 2033, exhibiting a CAGR of XX% during the forecast period. The growth of the market can be attributed to the increasing demand for oil and gas in the country, as well as the government's focus on developing the midstream sector. The market is segmented into three sectors: transportation, storage, and terminal. The transportation sector is expected to account for the largest share of the market, followed by the storage and terminal sectors. Some of the major drivers of the market include the increasing demand for oil and gas in Nigeria, the government's focus on developing the midstream sector, and the growing number of oil and gas projects in the country. Some of the key trends in the market include the increasing use of technology to improve the efficiency of midstream operations, the development of new midstream infrastructure, and the growing adoption of renewable energy sources. Some of the restraints in the market include the high cost of developing midstream infrastructure, the regulatory challenges associated with the oil and gas industry, and the security concerns in the country. The Nigeria oil and gas midstream market is expected to grow from $12.3 billion in 2021 to $18.5 billion by 2026, at a CAGR of 7.1%. The growth of the market is primarily driven by the increasing demand for natural gas and the development of new gas infrastructure. Key Findings The market is concentrated with the top five players accounting for over 60% of the market share. The market is characterized by a number of innovations, including the development of new technologies for gas transportation and storage. The impact of regulations on the market is expected to be significant, as the government is expected to introduce new regulations to promote the development of the gas industry. The product substitutes for natural gas include coal, diesel, and renewable energy sources. The end user concentration is high, with the power sector being the largest consumer of natural gas. The level of M&A in the market is expected to be moderate, as the major players are expected to focus on organic growth. Trends The key market insights include the increasing demand for natural gas, the development of new gas infrastructure, the impact of regulations, and the product substitutes for natural gas. The market is expected to be driven by a number of factors, including the increasing demand for natural gas, the development of new gas infrastructure, and the impact of regulations. The product substitutes for natural gas include coal, diesel, and renewable energy sources. The end user concentration is high, with the power sector being the largest consumer of natural gas. The level of M&A in the market is expected to be moderate, as the major players are expected to focus on organic growth. Key Region The key regions in the market are the Niger Delta region, the South-South region, and the South-West region. The Niger Delta region is the largest producer of natural gas in Nigeria, and is home to a number of major oil and gas companies. The South-South region is also a major producer of natural gas, and is home to a number of gas-fired power plants. The South-West region is a major consumer of natural gas, and is home to a number of major gas-fired power plants. Key Segments The key segments in the market are the transportation segment, the storage segment, and the terminal segment. The transportation segment is the largest segment in the market, and is responsible for the transportation of natural gas from the production fields to the consumer markets. The storage segment is responsible for the storage of natural gas in underground storage facilities. The terminal segment is responsible for the processing of natural gas into LNG and LPG. Product Insights The key products in the market are natural gas, LNG, and LPG. Natural gas is the most important product in the market, and is used as a fuel for power generation, industrial processes, and cooking. LNG is a liquefied form of natural gas that is used for the transportation of natural gas over long distances. LPG is a liquefied form of propane and butane that is used as a fuel for cooking and heating. Report Coverage & Deliverables The report provides a comprehensive overview of the Nigeria oil and gas midstream market. The report covers the following segments:

Transportation: This segment includes the transportation of natural gas from the production fields to the consumer markets. Storage: This segment includes the storage of natural gas in underground storage facilities. Terminal: This segment includes the processing of natural gas into LNG and LPG. The report also provides a detailed analysis of the key drivers, challenges, and opportunities in the market. The report also provides a comprehensive forecast of the market until 2026.

Driving Forces The key driving forces in the market include the increasing demand for natural gas, the development of new gas infrastructure, and the impact of regulations. The increasing demand for natural gas is driven by the growing population of Nigeria and the increasing demand for power generation. The development of new gas infrastructure is driven by the government's efforts to promote the development of the gas industry. The impact of regulations is driven by the government's efforts to promote the development of the gas industry. Challenges and Restraints The key challenges and restraints in the market include the lack of infrastructure, the high cost of gas, and the security concerns. The lack of infrastructure is a major challenge in the market, as it limits the transportation and storage of natural gas. The high cost of gas is a major restraint in the market, as it makes it difficult for consumers to afford natural gas. The security concerns are a major challenge in the market, as they make it difficult for companies to invest in the development of the gas industry. Emerging Trends The key emerging trends in the market include the development of new technologies, the increasing use of renewable energy sources, and the development of new gas markets. The development of new technologies is driven by the need to improve the efficiency of the gas industry. The increasing use of renewable energy sources is driven by the need to reduce the carbon footprint of the gas industry. The development of new gas markets is driven by the need to expand the market for natural gas. Growth Catalysts The key growth catalysts in the market include the increasing demand for natural gas, the development of new gas infrastructure, and the impact of regulations. The increasing demand for natural gas is driven by the growing population of Nigeria and the increasing demand for power generation. The development of new gas infrastructure is driven by the government's efforts to promote the development of the gas industry. The impact of regulations is driven by the government's efforts to promote the development of the gas industry. Leading Players The leading players in the Nigeria oil and gas midstream market include: Shell PLC, DuPort Midstream Company Limited, Chevron Nigeria Limited, Phillips Oil Co Nigeria Ltd, Eni SpA, Nigerian National Petroleum Corporation Significant Developments

September 2022: A memorandum of understanding (MOU) was signed between the National Nigerian Petroleum Company Limited (NNPC) and the Moroccan Office of Hydrocarbons and Mines (ONHYM) for the development of the Nigeria-Morocco gas pipeline project (NMGP) linking Nigeria to Morocco, which also aims to supply natural gas to West Africa and Europe. The project passes through 13 African countries along the Atlantic coast and supplies the landlocked states of Niger, Burkina Faso, and Mali. It is expected to supply more than 5,000 billion cubic meters of natural gas to Morocco. January 2022: Nigeran company Asiko Energy started construction of a dual LPG and LNG terminal in Ijora, Lagos State, Nigeria. Besides being the first land-based LNG receiving terminal in Africa, the terminal was expected to also be the first dual liquefied gas terminal in Nigeria. This facility was anticipated to have a full containment LNG storage tank, as well as a storage capacity of 5,000 tonnes of LPG and propane, which will enable it to receive, store, and distribute LPG, propane, butane, and LNG. Recent developments include: September 2022: A memorandum of understanding (MOU) was signed between the National Nigerian Petroleum Company Limited (NNPC) and the Moroccan Office of Hydrocarbons and Mines (ONHYM) for the development of the Nigeria-Morocco gas pipeline project (NMGP) linking Nigeria to Morocco, which also aims to supply natural gas to West Africa and Europe. The project passes through 13 African countries along the Atlantic coast and supplies the landlocked states of Niger, Burkina Faso, and Mali. It is expected to supply more than 5,000 billion cubic meters of natural gas to Morocco., January 2022: Nigeran company Asiko Energy started construction of a dual LPG and LNG terminal in Ijora, Lagos State, Nigeria. Besides being the first land-based LNG receiving terminal in Africa, the terminal was expected to also be the first dual liquefied gas terminal in Nigeria. This facility was anticipated to have a full containment LNG storage tank, as well as a storage capacity of 5,000 tonnes of LPG and propane, which will enable it to receive, store, and distribute LPG, propane, butane, and LNG.. Key drivers for this market are: 4., Favorable Government Initiatives4.; Increasing Adoption of Solar Energy. Potential restraints include: 4., Rising Adoption of Alternative Clean Energy. Notable trends are: Transportation Sector to Dominate the Market.

After two years of decline, the Iraqi propylene glycol market increased by 12% to $72M in 2024. Over the period under review, the total consumption indicated buoyant growth from 2012 to 2024: its value increased at an average annual rate of +6.3% over the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption decreased by -18.3% against 2021 indices.

In 2024, the Chilean propylene glycol market was finally on the rise to reach $5.7M for the first time since 2021, thus ending a two-year declining trend. Over the period under review, consumption, however, showed a noticeable decrease. As a result, consumption reached the peak level of $10M. From 2022 to 2024, the growth of the market remained at a lower figure.