Report details global opportunities for the propane market

November 1, 2016 By    

The global opportunity in the propane market is expected to increase from $121.83 billion in 2015 to $145.82 billion in 2022, according to a Transparency Market Research report.

Transparency Market Research serves as a market intelligence company, providing global business information reports and services. The company released the “Propane Market by Application – Global Industry Analysis, Size, Share, Growth Trends and Forecast 2014-2022” report to provide an outlook for the propane industry.

According to the firm, the “huge” capital requirement to enter the propane market will keep the number of new entrants low in the coming years. Companies such as Aero Energy have employed the strategy of expanding its customer base by offering around-the-clock emergency services to customers, the firm says. Also, AmeriGas Propane Inc. will undertake small-scale acquisitions in the near future to increase its portfolio and strengthen its entry in emerging markets.

According to Transparency Market Research, the residential segment is expected to lead and account for about 30 percent of the global propane market by 2022. By 2022, Asia Pacific will likely account for about 41 percent of the global market, the firm adds.

In addition, global warming and an increase in demand for energy are expected to encourage the growth of the global propane market. Propane tends to be preferred because of its lower cost in comparison to substitute fuels, the firm adds. Propane is also poised to be one of the most lucrative energy sources for power generation units, as it is capable of generating enough energy required for operations.

Although propane is clean and economical in the domestic and transportation sectors, challenges await related to transportation, supply and storage, the firm says. Additionally, the limited number of propane-fueled vehicles and propane retailing infrastructure could create a constrained demand for propane from the transportation sector.

Request a sample of the Transparency Market Research report online.

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