Propane Global Market Report 2026

Propane is a highly combustible gas derived from crude petroleum and natural gas, primarily used as an energy source and in the chemical industry. It is a colorless and odorless gas at standard temperature and pressure, and it can be easily compressed into a liquid form for storage and transportation.

The main forms of propane are in liquid and gaseous states. Liquid propane is a form that can be pressurized and stored in tanks, transitioning into a liquid state under compression. Propane is classified into various grades, including HD-5 propane, HD-10 propane, and commercial propane, with applications spanning industrial, commercial, residential, agricultural, transportation, chemicals and refineries, and various other sectors.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the propane market by affecting costs of imported storage tanks, cylinders, transport equipment, and processing infrastructure. Industrial and commercial users in North America are most affected due to cross-border propane trade, while Asia-Pacific faces cost volatility in import-dependent regions. These tariffs are impacting pricing stability and supply contracts. However, they are also encouraging domestic propane production, infrastructure investment, and regional energy self-sufficiency.

The propane market research report is one of a series of new reports from The Business Research Company that provides propane market statistics, including propane industry global market size, regional shares, competitors with a propane market share, detailed propane market segments, market trends and opportunities, and any further data you may need to thrive in the propane industry. This propane market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The propane market size has grown strongly in recent years. It will grow from $94.77 billion in 2025 to $100.89 billion in 2026 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to expansion of oil and gas extraction activities, growth in residential heating demand, increasing use in industrial furnaces, rising adoption in agricultural drying, availability of propane distribution infrastructure.

The propane market size is expected to see strong growth in the next few years. It will grow to $130.52 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing demand for low-emission fuels, rising adoption in transportation fleets, expansion of off-grid energy solutions, growing use in chemical feedstock applications, increasing focus on energy diversification. Major trends in the forecast period include increasing use of propane as cleaner fuel, rising adoption in industrial heating applications, growing demand from agricultural operations, expansion of propane autogas vehicles, enhanced focus on energy security.

The increasing LPG consumption is expected to propel the growth of the propane market going forward. LPG, or liquefied petroleum gas, is a type of liquid fuel primarily composed of propane and butane, commonly used for heating, cooking, and transportation. As LPG demand rises, the demand for propane similarly increases. For instance, in September 2024, according to Argus, a UK-based provider of price information and consultancy services, EU gas consumption rose from 1,578 PJ in January 2023 to 1,734 PJ in January 2024, indicating a steady upward trend. Therefore, increasing LPG consumption is driving the growth of the propane market.

Major companies in the propane market are focusing on technological advancements such as propane dehydrogenation to enhance propylene production efficiency and meet growing petrochemical feedstock demand. Propane dehydrogenation is a chemical process that converts propane into propylene by removing hydrogen from propane molecules, typically using a catalyst to improve efficiency and selectivity. For instance, in April 2024, Clariant AG, a Switzerland-based specialty chemical company, introduced the CATOFIN 312 catalyst for propane dehydrogenation, offering enhanced selectivity and an extended lifespan of up to 20%. This catalyst is projected to significantly boost productivity, potentially adding up to $20 million in profits for a standard 600 KTA PDH facility over its operational life. Alongside this, Clariant launched its digital service platform, CLARITY(TM), providing real-time data and advanced monitoring tools to optimize plant performance.

In May 2025, Alliance Energy Services, a US-based provider of propane supply, distribution, and logistics solutions, acquired 18 propane terminals from NGL Energy Partners for an undisclosed amount. This acquisition enables Alliance Energy Services to expand its infrastructure and geographic reach, strengthen distribution capacity, and enhance supply security across key markets. NGL Energy Partners is a US-based provider of natural gas liquids infrastructure and logistics, including storage, transportation, and wholesale propane terminal services.

Major companies operating in the propane market are Exxon Mobil Corporation,Chevron Corporation,BP plc,Shell plc,TotalEnergies SE,ConocoPhillips,Eni S.p.A.,Saudi Aramco,Gazprom,Lukoil,Sinopec Group,PetroChina Company Limited,Phillips 66,Valero Energy Corporation,Marathon Petroleum Corporation,Reliance Industries Limited,ADNOC,Equinor ASA,Repsol S.A.,Petrobras

Asia-Pacific was the largest region in the propane market in 2025. The regions covered in the propane market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the propane market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The propane market consists of sales of methane, ethane, butane, and heavier hydrocarbons. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Propane Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses propane market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for propane ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The propane market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Form: Liquid; Gas
• 2) By Grade: HD-5 Propane; HD-10 Propane; Commercial Propane
• 3) By Application: Industrial; Commercial; Residential; Agriculture; Transportation; Chemicals And Refineries; Other Applications
• Subsegments:
• 1) By Liquid Propane: Refrigerated Liquid Propane; Pressurized Liquid Propane; Bulk Liquid Propane
• 2) By Gaseous Propane: Pipeline-Supplied Gaseous Propane; Bottled Gaseous Propane; On-Site Regasified Propane
• Companies Mentioned: Exxon Mobil Corporation;Chevron Corporation;BP plc;Shell plc;TotalEnergies SE;ConocoPhillips;Eni S.p.A.;Saudi Aramco;Gazprom;Lukoil;Sinopec Group;PetroChina Company Limited;Phillips 66;Valero Energy Corporation;Marathon Petroleum Corporation;Reliance Industries Limited;ADNOC;Equinor ASA;Repsol S.A.;Petrobras
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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