United States Propane Market Size (2024 - 2029)

The US propane market is anticipated to experience growth over the forecast period, driven by increasing demand from the residential and transportation sectors. Despite challenges during the COVID-19 pandemic, the market has shown signs of recovery, reaching pre-pandemic levels. The residential sector remains the most significant end-user, although concerns about the environmental impact of propane at higher concentrations may hinder expansion. Opportunities are expected in power generation, which could further influence the market's scale and scope in the coming years.

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Market Size of United States Propane Industry

United States Propane Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 5.00 %
Market Concentration Low

Major Players

United States Propane Market Major Players

*Disclaimer: Major Players sorted in no particular order

US Propane Market Analysis

During the time frame of the forecast, the US propane market is expected to grow at a CAGR of more than 5%.

During the COVID-19 pandemic, the U.S. propane market had challenges with supply chains; there was more demand for home heating, and demand for commercial and industrial use went down. But as soon as the pandemic was over and the economy reopened, the market started to improve and is estimated to reach a pre-pandemic level in 2023.

  • The increasing demand from the residential and transportation sectors has driven market growth.
  • But the harmful effects of propane at higher concentrations are likely to keep the studied market from growing.
  • Propane usage in power generation will likely provide opportunities for the US propane market over the next five years.
  • Residential is the most dominant end-user segment of the market studied.

US Propane Industry Segmentation

Propane is a three-carbon alkane gas (C3H8). It is stored under pressure inside a tank as a colorless, odorless liquid. The United States propane market report includes segmentation by end-user industry, which includes residential, commercial, transportation, industrial, and other end-user industries. For each segment, market sizing and forecasts have been done on the basis of volume (kilotons).

End-user Industry
Residential
Commercial
Transportation
Industrial
Other End-user Industries
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United States Propane Market Size Summary

The US propane market is poised for significant growth, driven by increasing demand from the residential and transportation sectors. The market experienced challenges during the COVID-19 pandemic, with supply chain disruptions and fluctuating demand across different sectors. However, post-pandemic recovery has seen the market rebounding to pre-pandemic levels. The residential sector remains the dominant end-user, with propane being extensively used for heating, cooking, and other energy needs, particularly in rural areas lacking natural gas services. The market's growth is supported by the rising number of residential units utilizing propane, although efficiency improvements may stabilize future demand volumes.

In the commercial sector, propane is utilized similarly to natural gas, offering a versatile and cost-effective energy source for various applications, including cooking, heating, and backup power generation. Its competitive pricing and environmental benefits make it an attractive option for businesses. The market is partially fragmented, with key players like AmeriGas Propane and Suburban Propane Partners actively expanding their operations through strategic acquisitions. These developments, along with the potential for propane use in power generation, are expected to further bolster the market's growth trajectory over the forecast period.

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United States Propane Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Drivers

      1. 1.1.1 Increase in Demand from Residential and Transportation Sectors

      2. 1.1.2 Demand in the Petrochemical Industry

    2. 1.2 Restraints

      1. 1.2.1 Harmful Effects of Propane at Higher Concentrations

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION

    1. 2.1 End-user Industry

      1. 2.1.1 Residential

      2. 2.1.2 Commercial

      3. 2.1.3 Transportation

      4. 2.1.4 Industrial

      5. 2.1.5 Other End-user Industries

United States Propane Market Size FAQs

The United States Propane Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

AmeriGas Propane, Ferrellgas Partners LP, Suburban Propane Partners LP, Growmark Inc. and CHS Inc. are the major companies operating in the United States Propane Market.

US Propane Market Report Snapshots

US Propane Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)