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)

Propane fell to 0.72 USD/Gal on July 1, 2025, down 5.66% from the previous day. Over the past month, Propane's price has fallen 2.37%, and is down 13.86% 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 July 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.

The size of the Propane Market was valued at USD 98500 Million in 2023 and is projected to reach USD 27860 Million by 2032, with an expected CAGR of 4.33% during the forecast period. It will turn out to be an important component of the world scene, for it supplies a multi-purpose and clean source of fuel. Propane is a hydrocarbon gas whose properties boast its clean burning and a high level of energy content. Domestic heating, cooking, and industrial processes—agriculture to automotive fuel—are big areas where this fuel is applied. All these different usages can be broadly grouped into commercial propane, residential propane, and chemical-grade propane. The major technologies in propane production are natural gas processing and petroleum refining. The impact of propane is very enormous since it provides an alternative that results in low emission as compared to other fossil fuels. Advantages associated with its use include portability, cost-effectiveness, and its wide application in many sectors. 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: Harmful Effects of Propane at Higher Concentrations, Other Restraints. 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 U.S. Propane Market size was valued at USD 26.62 USD Billion in 2023 and is projected to reach USD 56.64 USD Billion by 2032, exhibiting a CAGR of 11.39 % during the forecast period. Propane is a colorless, odorless, and flammable gas belonging to the paraffin series of hydrocarbons with the chemical formula C3H8. It is kept in tanks as a liquid under pressure and used for heating, cooking, and fueling engines. Propane is differentiated into HD-5 with high purity level for commercial use, HD-10 with propylene content slightly higher than the HD-5 and commercial propane generally used in industries. The advantages include high energy efficiency, lower carbon emission and mobility. Propane has become popular in the recent market in the U. S in residential heating and as a source of fuel for vehicles mainly caused by improvement in propane technology and awareness on the reduction in Green House Gas emissions. Recent developments include: February 2022: AmeriGas Propane, a propane marketer, entered into a partnership with Global Clean Energy Holdings, a vertically integrated renewable fuels company with the purpose of purchasing and distributing renewable liquefied petroleum gas (LPG). Under the agreement, AmeriGas will use its supply and logistics as well as its sales and marketing teams to dispense and market LPG to new and existing customers., August 2022: AmeriGas Propane acquired South Florida Lift Gas, which primarily serves forklift cylinder exchange consumers., September 2021: Kauffman Gas announced the acquisition of Penn-Jersey Propane, a New Jersey-based propane delivery company. This acquisition will spread the excellent service of Kauffman Gas to thousands of people in New Jersey, as well as new modern techniques to make their propane experience seamless.. Key drivers for this market are: Growing Focus on Safety and Organization to Fuel Market Growth. Potential restraints include: High Installation Cost and Maintenance Hamper Market Growth. Notable trends are: Growth of IT Infrastructure to Bolster the Demand for Modern Cable Tray Management Solutions.

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.

The Puerto Rican liquefied petroleum gas (LPG) market totaled less than $X in 2021, approximately reflecting the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption saw a relatively flat trend pattern.

UK Gas fell to 79.13 GBp/thm on July 2, 2025, down 0.36% from the previous day. Over the past month, UK Gas's price has fallen 5.53%, but it is still 3.76% higher than a year ago, 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 July of 2025.

In the first quarter of 2025, the Liquefied Petroleum Gas (LPG) market in the North American region experienced significant price fluctuations, reflecting tight supply conditions, extreme weather events, and changing demand dynamics. A sharp price increase was seen at the beginning of the quarter due to the combined impact of severe winter storms, which heightened demand for heating fuels and led to inventory draws. Propane and butane prices surged, driven by increased consumption, higher crude oil and natural gas prices, and a surge in LPG exports.

The global fuel energy price index stood at 153.15 index points in May 2025, up from 100 in the base year 2016. Figures decreased that month due to lower heating fuel demand and a fall in crude oil 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. Global ramifications of the Russia-Ukraine war The invasion of Ukraine by Russia played a role in the surge of global inflation rates. Notably, Argentina bore the brunt, experiencing a hyperinflation rate of 92 percent in 2022. The war also exerted a significant impact on global gross domestic product (GDP) growth. Saudi Arabia emerged with a notable increase of nearly three percent, as several Western nations shifted their exports from Russia to Middle Eastern countries due to the sanctions imposed on the former.

The LPG market offers various product types:Propane: The most common type of LPG, used for cooking, heating, and transportation.Butane: Similar to propane, but with a slightly higher heating value.LPG Blends: Mixtures of propane and butane, tailored to specific applications and climate conditions. Recent developments include: March 2021:The most recent LPG cutting gas product, specifically created for the metal cutting industry, is launched by Total Oil India Private Ltd. A whole LPG factory in Bangalore, Namakkal, and Madurantacam produces this item. The introduction of this product broadens the company's product line., May 2020:Royal Dutch Shell plc started a sophisticated LNG processing facility in Nigeria. Once the facility is up and running, it will add about 8 million tonnes to the Bonny Island complex's current annual output of 30 million tonnes. The Nigerian National Petroleum Corporation (NNPC) owns 49% of this joint venture along with Royal Dutch Shell plc, Total, 15%, and ENI (10.4%).. Notable trends are: Growing awareness about the benefits correlated to the usage of LPG is driving the market growth.

Liquified Petroleum Gas Market size was valued at USD 101.73 billion in 2021 and is poised to grow from USD 106 billion in 2022 to USD 147.32 billion by 2030, growing at a CAGR of 4.2% in the forecast period (2023-2030).

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

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.

Naphtha rose to 551.44 USD/T on July 2, 2025, up 2.19% from the previous day. Over the past month, Naphtha's price has risen 2.68%, but it is still 21.85% lower than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Naphtha - values, historical data, forecasts and news - updated on July of 2025.

The average monthly price for natural gas in the United States amounted to **** nominal U.S. dollars per million British thermal units (Btu) in May 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 2023, the U.S. produced more than ************ cubic meters of natural gas, which allays domestic demand and allows for far lower purchasing prices.

In 2024, the Sri Lankan propylene glycol market was finally on the rise to reach $1.6M for the first time since 2021, thus ending a two-year declining trend. Overall, consumption showed pronounced growth. As a result, consumption reached the peak level of $2.9M. From 2022 to 2024, the growth of the market failed to regain momentum.

The Gas Engines Market size was valued at USD 4.75 USD Billion in 2023 and is projected to reach USD 7.22 USD Billion by 2032, exhibiting a CAGR of 6.16 % during the forecast period. A gas engine is a kind of internal combustion engine that makes use of gas as its fuel source, usually natural gas or propane. These machines are often used across the board to provide power in multiple industries e. g. , power generation, transportation, and industrial equipment. Gas engines utilize the explosion process, in which the fuel-air combination is ignited inside the cylinders and then chemical energy is changed into mechanical energy, which in turn produces the necessary power. These components are things like cylinders, pistons, spark plugs, and a fuel delivery system. Last few decades witnessed a significant change in the choice of gas engines over the previous diesel ones because of less emissions and cost-effectiveness of gas engines. This trend clearly depicts the fact that new avenues for natural gas engine utilization lay ahead in a variety of branches, such as their use in the renewable energy harnessing as well as decentralized power generation. Gas engines consist of essential elements such as cylinders, pistons, a combustion chamber, and a fuel delivery system. They commonly utilize fuels like natural gas, methane, propane, or biogas due to their widespread availability, lower emissions compared to conventional fossil fuels, and sometimes, their cost-effectiveness In electricity generation, gas engines are frequently utilized in combined heat and power (CHP) systems or cogeneration plants. These systems harness the heat generated during combustion to produce steam or hot water, optimizing energy efficiency by utilizing residual heat for heating or industrial applications. Recent developments include: November 2022: Wärtsilä signed a 5-year Operation & Maintenance (O&M) agreement and EPC (engineering, procurement, and construction) contract with Tamilnadu Petroproducts Limited (TPL), which is a world-class heavy chemical and Linear Alkyl Benzene manufacturer and part of AM International, Singapore. Under the contract, Wärtsilä will supply its 34SG gas engines to a gas-fuelled 15.5 MW captive power plant in Chennai, India. The partnership is aligned with the sustainable manufacturing and eco-friendly modernization targets in India. , November 2022: Rolls-Royce and EasyJet completed the ground test of the project to run a modern aero engine on hydrogen, which is considered a new milestone in the aviation industry. The test was performed on a converted Rolls-Royce AE 2100, which is a regional aircraft engine. It is a significant step showing hydrogen could be the future zero-carbon aviation fuel and is also a vital part of the decarbonization strategy of Rolls-Royce and EasyJet., November 2022: Global investment firm Mutares SE & Co. KGaA successfully acquired Siemens Energy Engines S.A.U. and related assets. Mutares completed the acquisition of diesel and gas fuel engine manufacturer Siemens Energy Engines, which will now operate under the name Guascor Energy., September 2021: Caterpillar Inc. announced its new offering of a Cat generator set named Cat G3516H, which is featured to operate on 100% hydrogen as well as renewable green hydrogen. This generator set has an output of 1250 kW and 50 - 60 Hz for primary and load management applications.. Key drivers for this market are: High Reliability and Efficiency of Gas Engines Compared to Other Fuel Engines to Fuel Market Growth. Potential restraints include: Operation Challenges Due to Gas Engine Oil Formulation to Hamper Market Growth . Notable trends are: Ongoing Advancements in Gas Engine Technology to Boost Market Expansion.

US School Bus Market size was valued at USD 7.9 Billion in 2024 and is expected to reach USD 14.6 Billion by 2032, growing at a CAGR of 7.9% from 2025 to 2032.

Key Market Drivers

Rising Student Population: The rising student population drive the US school Bus market. With total public-school enrollment expected to reach 52.1 million kids by 2025, a 3% increase from 2021, demand for school transportation services would increase. This increase demands fleet extension to accommodate additional students. School districts will invest on new buses, boosting market development.

Aging School Bus Fleet: The aging school bus fleet boost the US school Bus market. With 33% of buses over ten years old and an average fleet age of 9.3 years, there is an obvious need for replacement. Each year, approximately 40,000 new school buses are required to maintain fleet efficiency. This replacement demand prompts school districts to upgrade their fleets.