The market for propane in the United States is expected to grow at a CAGR of more than 4.52% globally during the forecast period. The increasing demand from residential and transportation sectors has been driving the market growth.
- However, the harmful effects of propane at higher concentrations and the COVID-19 outbreak are likely to hinder the growth of the studied market.
- The usage of propane in power generation is likely to provide opportunities for the united states propane market over the next five years.
- Residential is the most dominating end-user segment of the market studied.
Key Market Trends
Residential Segment to Dominate the market
- In the residential sector, propane is used for air conditioning, heating water, cooking, and refrigerating foods, drying clothes, lighting, and fuelling fireplaces.
- Propane is used mostly in homes in rural areas that do not have natural gas service, as well as in mobile homes. Millions of homes use propane to meet some of their energy requirements. In the United States, about five million households use propane as their main heating source and around one-fifth of mobile homes use propane for heating.
- The average residential propane tank holds between 500 and 1,000 gallons of liquid fuel. Millions of backyard cooks use propane-powered gas grills for cooking. Moreover, recreational vehicles usually have propane-fueled appliances, giving them a portable source of energy for cooking, hot water, and refrigeration. People often use propane for outdoor cooking, and because of its portability, it is especially popular with campers and mobile homeowners.
- The increasing new residential construction, combined with continuing fuel oil conversions, is expected to offset residential space heating losses to electricity and natural gas, which is leading to slow growth in the number of residential space heating customers through 2025.
- However, due to improvements in the efficiency of propane use, demand for propane may stagnate in the future as regards volume.
- The above-mentioned factors are anticipated to drive the demand for propane from residential sector during the forecast period.
The United States propane market is partially fragmented in nature. Some of the major companies are AmeriGas Propane, Ferrellgas Partners LP, Suburban Propane Partners LP, Growmark Inc., and CHS Inc. amongst others.
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