Propane market to touch $ 145.82 bn by 2022: A report

Rising demand for petrochemical-based products in Asia Pacific is anticipated to propel the market for propane to reach $ 145.82 billion by 2022, according to Transparency Market Research’s new report. As per the report, the global propane market was valued at $ 114.44 billion in 2013 and is likely to reach $ 145.82 billion by 2022, expanding at a CAGR of 3.56 percent between 2014 and 2022.
 
Asia Pacific’s market share in the global propane market is anticipated to increase to 41.39 percent by 2022 from 39.18 percent in 2013, primarily due to rising demand from the petrochemical industries in the region. Furthermore, rapid development of the manufacturing, petrochemical and chemical processing industries in the emerging economies such as India and China is likely to play a major role in fuelling the demand for propane in Asia Pacific. “Significant growth in the other industries in Asia Pacific such as power, infrastructure, hydrocarbons, and automobile manufacturing is expected to boost the demand of propane during the forecast period,” said the Transparency Market Research report.
 
Substantial growth in the industrial sector is augmenting the transportation industry in North America. Growing demand for propane from the petrochemical industry in the MEA is expected to boost the market growth in the region. Surplus supply and cheaper rates of propane in North America have resulted in moderate market growth rate in the region.
 
In terms of applications, the residential segment dominated the global propane market in 2013, which is expected to further increase by 2022. The residential segment has recently entered into a slowdown in the Latin American countries, while the economies of Middle East & Africa are still exhibiting minimal growth.
 
Stringent environmental regulations and less reliable conventional gas sources are expected to be major growth drivers for the propane market in residential applications. Demand for propane as a fuel in the marine industry is expected to grow gradually owing to the introduction of strict environmental norms that compel the usage of clean fuels. Propane emits nearly zero sulfur content and nitrogen oxide during combustion as compared to marine diesel oil.
 
“Owing to its clean form of existence as compared to other oils, demand for propane is rising and expected to grow substantially in the next four to five years. Propane is gradually becoming the primary fuel worldwide, chiefly due to its growing applications in transportation and domestic segments,” said Transparency Market Research in a press release.
 
Rising demand for energy and awareness of global warming would significantly augment the propane market in the next four to five years. Propane is highly-preferred due to its higher calorific value and lower cost as compared to other substitute fuels. Hence, the propane market is likely to witness substantial growth in the next five to six years. With lack of propane retailing infrastructure and lesser number of propane-fuelled vehicles, the demand for propane from the transportation sector is likely to be limited.