Propane increased 0.10 USD/GAL or 13.33% since the beginning of 2025, 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 March of 2025.

Commercial Grade: Propane used in commercial applications, such as heating, cooking, and industrial processes, accounts for a major market share, catering to businesses and industries. Residential Grade: Propane used for residential heating and cooking purposes plays a significant role in the market, fulfilling the needs of households. Automotive Grade: Propane utilization as an alternative fuel in vehicles is gaining traction due to its cost-effectiveness and reduced emissions, driving demand in the automotive market. Recent developments include: In March 2021, Ferus Natural Gas Fuels and Bluon Energy announced their partnership to develop propane-powered air conditioning systems for commercial and industrial buildings., In February 2021, Generac Power Systems launched a new line of propane-powered generators for residential and commercial customers., In January 2021, Superior Plus Corp. completed its acquisition of Diversified Energy, a propane retailer serving customers in the southeastern United States., In December 2020, Partners LP and DCC LPG announced a partnership to acquire and operate propane terminals and related assets in the United States., In November 2020, Clean Energy Fuels Corp. announced a collaboration with Total S.A. to develop and deploy natural gas and renewable natural gas (RNG) fueling infrastructure in the United States.. Notable trends are: Weather conditions such as cold temperatures and snowfall driving the market growth.

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.

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.

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The Report Covers US Propane Companies and the Market is segmented by end-user industry (residential, commercial, transportation, industrial, and other end-user industries). For each segment, market sizing and forecasts have been done on the basis of volume (kilotons).

The global propane market, valued at $21.24 billion in 2025, is projected to experience robust growth, driven by increasing industrial and commercial demand, particularly in developing economies. A compound annual growth rate (CAGR) of 6.28% from 2025 to 2033 indicates a significant expansion of the market over the forecast period. Key drivers include rising energy consumption across diverse sectors, growing adoption of propane as a cleaner-burning alternative fuel, and its versatility in applications ranging from heating and cooking to industrial processes like plastics manufacturing and agricultural drying. Expanding infrastructure and supportive government policies in several regions also contribute to market growth. However, price volatility linked to crude oil prices and the potential impact of stricter environmental regulations present challenges for market expansion. The market is segmented by end-user (industrial, commercial, residential, others), grade type (HD-5 propane, HD-10 propane, commercial propane), and type (gas, liquid). Major players like Air Liquide SA, BP Plc, and Chevron Corp. are leveraging strategic partnerships, acquisitions, and technological advancements to maintain a strong market position and meet escalating demand. The competitive landscape is dynamic, with companies focusing on optimizing supply chains, enhancing product offerings, and expanding into new geographical markets to capture market share. Residential propane use shows significant growth potential, fueled by the increasing preference for reliable and cost-effective heating solutions, especially in regions with limited access to natural gas networks. The market’s growth trajectory will be significantly influenced by global economic conditions, energy policies, and technological advancements in propane handling and storage. The industrial sector's consumption is expected to remain a substantial growth engine, driven by the expanding manufacturing and processing industries. Growth in developing nations, particularly in Asia and Africa, is likely to be considerably higher than in mature markets, owing to their rapidly growing economies and infrastructure development. While price fluctuations and regulatory changes pose risks, the inherent advantages of propane – its ease of storage, transportation, and efficient combustion – will continue to sustain market growth throughout the forecast period, attracting significant investment in the upstream and downstream sectors of the propane supply chain. The segmentation of the market offers various opportunities for niche players to cater to the specific requirements of different user segments and applications.

The Global Propane Market is segmented by end-user industry (residential, commercial, transportation, industrial, and other end-user industries) and geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for the abovementioned segments in volume (kilotons).

• Epoxy Propane Market Scope:

Global Epoxy Propane Market is estimated to be valued US$ XX.X million in 2019. The report on Epoxy Propane Market provides qualitative as well as quantitative analysis in terms of market dynamics, competition scenarios, opportunity analysis, market growth, etc. for the forecast year up to 2029. The global epoxy propane market is segmented on the basis of type, application, and geography.

Europe market was valued at US$ XX.X million in 2018 and is projected to reach US$ XX.X million in 2029, and register a CAGR of X.X% during the forecast period, according to a new Market.us (Prudour Research) study. Read More

The Propane Market size was valued at USD 98.50 USD Billion in 2023 and is projected to reach USD 221.87 USD Billion by 2032, exhibiting a CAGR of 12.3 % during the forecast period. The propane market is the particular economic environment in which propane, i. e., a superbly useful hydrocarbon gas, is bought and sold. Propane covers the residential, commercial, industrial, and agricultural sectors crosswise. It perform the function of a clean-burning fuel for heating, cooking and generating electrical power for millions of household appliances. Furthermore, it finds use in industrial processes, transportation, and for static electricity in aerosol sprays. Propane is a form of a liquefied gas (LPG) mainly constituted of propane and butane. At the moment, propane is enjoying an upsurge in demand which can be attributed to the increasing popularity of propane as a clean alternative to conventional fuels on the market. As things move towards using more renewable energy and going green, the propane market is in line to witness increasing growth opportunities ahead. Recent developments include: November 2023 - State-run oil and gas giants, Bharat Petroleum Corporation (BPCL) and Gas Authority of India (GAIL) signed a 15-year contract for the supply of propane, a critical petrochemical feedstock. The propane will be supplied to GAIL’s propane dehydrogenation (PDH)-polypropylene (PP) project in Usar, Maharashtra., February 2023 - Shell completed the acquisition of Nature Energy, a Renewable Natural Gas (RNG) producer from agricultural, industrial, and household waste. This acquisition, announced in November 2022, would increase Shell's ability to help customers decarbonize and accelerate its transition to net-zero emissions., December 2022 - BP completed the acquisition of Archaea Energy Inc., a leader in Renewable Natural Gas (RNG), marking a milestone in the growth of BP's strategic bioenergy business. The deal would help expand BP's presence in the U.S. biogas industry, improving its ability to support its customers' decarbonization goals. Furthermore, it would help BP in moving closer to reducing the average life cycle carbon intensity of the energy products it sells., November 2022 - ConocoPhillips and TotalEnergies completed the joint acquisition of Hess Libya Waha Ltd., which increased these companies interest in the Waha Concession by 4.1% to 20.4%., September 2022 - BP announced that it completed the acquisition of EDF Energy Services, expanding BP’s presence in the U.S. Commercial & Industrial (C&I) retail power and gas business. The acquisition would offer new opportunities for improved integrated lower-carbon energy solutions for customers through integration (C&I) with other BP businesses and capabilities that can support decarbonization goals.. Key drivers for this market are: Adoption of Propane in Recreational Vehicles to Reduce Carbon Footprint to Drive the Market Growth. Potential restraints include: Availability of Alternatives Such as Bio-propane May Hinder the Market Growth. Notable trends are: Increasing Focus on Energy Efficiency and Clean Burning Fuel to Create Market Opportunities.

Forecast: Import of Liquefied Propane to Italy 2023 - 2027 Discover more data with ReportLinker!

Explore the Propane Global Market Report 2025 Market trends! Covers key players, growth rate 6.9% CAGR, market size $125.3 Billion, and forecasts to 2033. Get insights now!

The market size of the Epoxy Propane Market is categorized based on Type (Epoxy Propane ? 99%, Epoxy Propane < 99%, ) and Application (Chemical Intermediates, Solvents, ) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

This report provides insights into the market size and forecasts the value of the market, expressed in USD million, across these defined segments.

• Global Arabia Epoxy Propane Market

The report on Arabia Epoxy Propane Market offers in-depth analysis of market trends, drivers, restraints, opportunities etc. Along with qualitative information, this report includes the quantitative analysis of various segments in terms of market share, growth, opportunity analysis, market value, etc. for the forecast years. The global arabia epoxy propane market is segmented on the basis of type, application, and geography.

The global Arabia Epoxy Propane market is estimated to be US$ XX.X Mn in 2019 and is projected to increase significantly at a CAGR of x.x% from 2020 to 2028. Read More

The global propane market is valued at USD 98.5 billion. This valuation is driven by its widespread use across residential, commercial, and industrial applications, with robust demand from petrochemical feedstock industries.

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Natural Gas Liquids (NGLs) Market Size 2025-2029

The natural gas liquids (ngls) market size is forecast to increase by USD 21.5 billion at a CAGR of 6.7% between 2024 and 2029.

The market is experiencing significant growth driven by increasing demand for natural gas in power generation and the expansion of the petrochemical industry. NGLs, which include ethane, propane, butane, and pentane, are essential feedstocks in the production of petrochemicals, plastics, and other industrial products. This trend is particularly prominent in regions with abundant shale gas resources, such as North America. However, the market growth is not without challenges. Growing environmental concerns, particularly with regard to greenhouse gas emissions, are leading to increased regulatory scrutiny and pressure on the industry to reduce its carbon footprint. Additionally, the shift towards renewable energy sources is expected to impact the demand for NGLs in power generation. Companies in the NGLs market must navigate these challenges while capitalizing on opportunities in the petrochemical industry and exploring new applications for NGLs in areas such as transportation fuels and chemical feedstocks. Effective operational planning and strategic partnerships will be crucial for companies seeking to remain competitive in this dynamic market.

What will be the Size of the Natural Gas Liquids (NGLs) Market during the forecast period?

Request Free SampleThe Natural Gas Liquids (NGL) market encompasses the production, processing, and consumption of hydrocarbon components, specifically ethane, propane, butane, isobutane, and pentanes plus, derived from the natural gas stream. These hydrocarbons possess various chemical compositions and applications, including as feedstocks for petrochemical plants, vehicle fuel, natural gasoline, and as components in industrial processes such as energy recovery and heavy industries. NGL markets have experienced significant growth due to the increasing drilling of liquids-rich resources and the incentives offered by crude oil prices. The carbon and hydrogen content of NGLs make them valuable alternatives to crude oil in various applications. For instance, ethane is used to produce ethylene, a primary building block for plastics and other chemicals. Propane is utilized as an automotive fuel, while butane and isobutane are used as fuel components in combustion engines. The expanding urbanization and industrialization in emerging economies have further fueled the demand for NGLs. Despite the growth, the NGL market faces challenges in transportation infrastructure development and the availability of liquids-rich resources. The market's size and direction remain dynamic, with ongoing exploration and production activities shaping its future.

How is this Natural Gas Liquids (NGLs) Industry segmented?

The natural gas liquids (ngls) 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. ApplicationIndustrialResidentialCommercialProductPropaneButanePentaneEthaneGeographyNorth AmericaUSCanadaMiddle East and AfricaIranQatarUAEEuropeNorwayRussiaAPACAustraliaChinaSouth America

By Application Insights

The industrial segment is estimated to witness significant growth during the forecast period.Natural Gas Liquids (NGLs), specifically ethane and propane, hold significant importance in the petrochemical sector due to their role as essential feedstocks. In the production of ethylene, propylene, and butadiene, which are fundamental building blocks for various chemicals and plastics, NGLs play a pivotal role. Propane and butane are widely used as heating fuels for residential and industrial applications, and as vehicle fuel in areas with limited natural gas access or as part of LPG for cooking and heating. NGLs contribute significantly to refining processes. Ethane is used in ethane cracking plants to produce ethylene, while propane and butane are key components in the production of petrochemicals and refinery feedstocks. NGLs are transported through various means, including gas pipelines, tanker transport, rail transport, and truck transport, and are stored in underground and aboveground facilities. NGL infrastructure includes gas processing plants, fractionation plants, export terminals, and import terminals. The NGL market is driven by the demand for petrochemicals, energy sector growth, and increasing urbanization and industrialization in emerging economies. NGL production capacity is expected to increase, with demand forecast to follow suit, due to the expanding energy and chemical industries. The NGL supply chain includes natural gas extraction, hydrocarbon processing, and transportation infrastructure development.

Get a glance at the market report of share of var

The GCC propane market size is projected to exhibit 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.