Propane fell to 0.65 USD/Gal on October 10, 2025, down 3.90% from the previous day. Over the past month, Propane's price has fallen 7.97%, and is down 8.51% 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 October of 2025.

The Propane Market Report is Segmented by Source (Refinery, Associated Gas, Non-Associated Gas, and Bio-Propane), End-User Industry (Residential, Commercial, Industrial, Transportation, and More), Distribution Channel (Bulk Delivery, Cylinder Distribution, and More), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Volume (tons).

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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 size was valued at 187.5 Million Tons in 2024. Looking forward, IMARC Group estimates the market to reach 252.8 Million Tons by 2033, exhibiting a CAGR of 3.4% during 2025-2033. Asia Pacific currently dominates the market, holding a significant market share of over 51.2% in 2024. The market is primarily driven by rising industrial applications, the escalating energy demand, supply dynamics influenced by crude oil prices and geopolitical events, and the increasing transition to cleaner energy sources.

The global propane market is expected to grow in the forecast period of 2025-2034 at a CAGR of 4.00%.

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.

Propane Market - Global Industry Insights, Size, Share, Trends, Outlook, and Opportunity Analysis

Discover the Global Propane Market's growth: Expected to hit USD 97.78 billion by 2032, with a 6.27% CAGR from 2026-32. Market size was USD 67.87 billion in 2025.

Get the latest insights on price movement and trend analysis of Propane in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

The global Propane market size reached USD 81.40 Billion in 2021 and is expected to reach USD 122.64 Billion in 2030 registering a CAGR of 4.7%. Propane industry report classifies global market by share, trend, growth and based on form, grade, end-use, and region | Liquefied Petroleum Gas (LPG)

View weekly updates and historical trends for US Residential Propane Price. from United States. Source: Energy Information Administration. Track economic …

The size of the US Propane Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of > 5.00% during the forecast period. Propane is made up of hydrogen and carbon atoms. It’s well known for reduced environmental effect as compared to other fossil fuels. Propane market in the United States has been experiencing steady growth due to increased demand from home, business, farm and factory uses. Propane is commonly used for home heating, water heating, and cooking, particularly in rural locations where natural gas infrastructure is limited. It is also popular in commercial applications, where it is used for space heating, cooking, and backup power generation. Propane's status as a cleaner-burning fuel, generating less pollutants than gasoline, diesel, and coal, is encouraging its use as industry strive to meet stricter environmental laws and minimize their carbon footprints. Furthermore, the development and acceptance of renewable propane—derived from sustainable sources such as biomass and waste—is gaining traction, providing the same benefits as conventional propane but with a substantially lower carbon footprint. The use of propane as a fuel for vehicles is also increasing due to lower costs and lower greenhouse gas emissions compared to traditional fuels, which is contributing to the growth of the market. Recent developments include: December 2022: Suburban Propane Partners, L.P. acquires assets for the production of renewable natural gas ("RNG") from Equilibrium Capital Group. The collaboration was developed to serve as a long-term growth platform for the identification, development, and management of further RNG projects, resulting in the acquisition of two biogas facilities that were already in operation., August 2022: AmeriGas has just acquired a forklift cylinder exchange in the state of Florida. This purchase will allow the company to increase its presence and reach in the rapidly expanding Florida market. AmeriGas will be able to continue its expansion in South Florida because of the outstanding opportunity presented by this acquisition.. Key drivers for this market are: Increase in Demand from Residential and Transportation Sectors, Demand in the Petrochemical Industry. Potential restraints include: Harmful Effects of Propane at Higher Concentrations. Notable trends are: The Residential Segment to Dominate the Market.

Propane Market was valued at USD 83.26 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.35% through 2029.

Market Research Intellect's Propane Market Report highlights a valuation of USD 102.56 billion in 2024 and anticipates growth to USD 134.50 billion by 2033, with a CAGR of 3.5% from 2026–2033.Explore insights on demand dynamics, innovation pipelines, and competitive landscapes.

The GCC propane market size reached 3.6 Million Tons in 2024. Looking forward, IMARC Group expects the market to reach 5.4 Million Tons by 2033, exhibiting a growth rate (CAGR) of 4.53% during 2025-2033. The growing demand for reliable backup power during electricity disruptions, increasing focus on maintaining sustainability and reducing environmental impact, and rising need to reduce dependency on foreign energy sources and enhance energy security represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the GCC propane market report, along with forecasts at the regional and country levels for 2025-2033. Our report has categorized the market based on form, grade, and end use industry.

Graph and download economic data for Propane Prices: Mont Belvieu, Texas (WPROPANEMBTX) from 1992-07-03 to 2025-10-03 about mont belvieu, propane, commodities, and USA.

Propane Market Outlook

According to our latest research, the Global Propane Market size was valued at $95.6 billion in 2024 and is projected to reach $135.2 billion by 2033, expanding at a robust CAGR of 3.9% during the forecast period from 2024 to 2033. The primary driver fueling the global propane market’s expansion is the increasing adoption of propane as a clean-burning, versatile fuel across diverse end-use industries, including residential heating, industrial processing, transportation, and agriculture. This shift is being propelled by growing environmental awareness, stringent emissions regulations, and the cost-effectiveness of propane compared to other fossil fuels, making it a preferred choice for both developed and emerging economies.

Regional Outlook

North America currently dominates the global propane market, accounting for the largest share in terms of both volume and value. In 2024, the region contributed over 38% of the global market revenue, underpinned by a mature energy infrastructure, advanced distribution networks, and a high rate of propane adoption in residential, commercial, and industrial sectors. The United States, in particular, benefits from abundant shale gas resources, which have significantly increased propane production. Furthermore, supportive government policies, ongoing investments in storage and transportation logistics, and the region's focus on energy security have solidified North America’s position as the leading market for propane. The presence of established players and a robust export market, especially to Asia and Latin America, further enhances the region’s market dominance.

The Asia Pacific region is projected to be the fastest-growing market for propane, registering a remarkable CAGR of 5.6% between 2024 and 2033. This rapid growth is attributed to rising urbanization, expanding middle-class populations, and increasing demand for cleaner fuel alternatives in countries such as China, India, and Southeast Asian nations. Significant investments in infrastructure development, coupled with government initiatives aimed at reducing reliance on coal and promoting liquefied petroleum gas (LPG) usage, are accelerating propane adoption. The burgeoning chemical and petrochemical industries in the region are also major consumers of propane, utilizing it as a feedstock for various applications. Moreover, strategic partnerships and joint ventures with global propane suppliers are enabling local players to secure reliable supply chains and meet surging demand.

Emerging economies in Latin America, the Middle East, and Africa are witnessing steady growth in propane consumption, albeit at a slower pace compared to North America and Asia Pacific. In these regions, the adoption of propane is often challenged by underdeveloped distribution networks, limited consumer awareness, and regulatory uncertainties. However, localized demand is being driven by rural electrification programs, government subsidies for clean cooking fuels, and the gradual shift away from traditional biomass and kerosene. Policy reforms and international collaborations aimed at improving energy access and sustainability are expected to create new growth avenues in these markets, provided that infrastructure and supply chain challenges are effectively addressed.

Report Scope

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 United States propane market size is projected to exhibit a growth rate (CAGR) of 2.39% during 2025-2033. The growing focus of various industries to lower their carbon footprint and minimize greenhouse gas emissions, rising energy demand in commercial and residential areas, and increasing demand for cleaner-burning fuels in various sectors represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the United States propane market report, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on form, grade, and end use industry.

View weekly updates and historical trends for US Wholesale Propane Price. from United States. Source: Energy Information Administration. Track economic da…