Survey reports propane demand to increase globally

Transparency Market Research, a global market intelligence company, released data and facts on the global propane market in 2013. According to 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 compound annual growth rate of 3.56 percent between 2014 and 2022.

Based on the study, Transparency Market Research segmented the propane industry into six types of applications: residential, commercial, industrial, chemical and materials, agricultural, and transportation. The residential segment dominated the global propane market in 2013. 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 also expected to grow gradually, owing to the introduction of strict environmental norms for clean fuel use.

Overall, demand for propane is expected to rise globally over the next four to five years. Propane is highly preferred because of its higher calorific value and lower cost as compared to other alternative fuels. With lack of propane retailing infrastructure, demand for propane from the transportation sector is likely to be limited over the next few years.

Although the residential segment in the propane market experienced an overall increase in 2013, it ran into a slowdown in Latin American countries. Substantial growth in the industrial sector is also augmenting the transportation industry in North America. An increased demand for propane from the petrochemical industry in the Middle East and Africa will also build that segment of the market for that region.

Additionally, the study reports companies such as Ferrellgas Partners LP, Aero Energy, Campora Propane Services and AmeriGas Propane Partners LP are expected to dominate the market in the near future. For more information in the study, it can be viewed or purchased online.