Promotion of Propane as a Clean Fuel Vital for Market Growth

Propane is a clean fuel that is mentioned in the 1990 Clean Air Act and also the 1992 National Energy Policy Act. The increasing popularity of propane as a cleaner gas is fueling its demand in several countries. The efficiency, delivery output, and value of propane-powered home appliances is higher compared to that of other energy resources, Hence, propane is increasingly being used in the residential sector as a substitute fuel, as it releases a lower amount of carbon emissions.

However, the global propane market is facing competition from alternative fuels and many other trends that are suppressing the market. Players in the market need to overcome these challenges to achieve healthy, sustained growth. Let’s look at the key challenges the global propane market is facing.

Browse Market Research Report of Propane Market: 

Evolving with Current Trends

To maintain sustained growth, the global propane market needs to evolve with the shifting market trends. Furthermore, the market needs to maintain its high share in the residential and commercial sectors. However, there are many threats the global propane market needs to address to achieve this. Some of these threats are

  • The use of propane per user has declined substantially,
  • The electric heat pump technology has become more efficient and economical, which is reducing the application of propane in the heating sector
  • The price of propane has substantially increased, and the sale of propane in the housing sector is shrinking.
Leveraging Regional Trends

The trends in the global propane market vary from region to region. This can be challenging for firms that have one rigid approach to penetrate markets. Hence, companies in the global propane market need to create a tailored approach that suits specific regional conditions and requirements of that particular market.

Propane Price

When consumers have access to various forms of energy that offer the same functionality, then price becomes the primary consideration for users. Propane prices need to be made more competitive in order to create more opportunities. Potential consumers will recognize the cost advantages of propane as a fuel if companies market the product as a cost-effective and cleaner fuel. By communicating these benefits effectively, companies can induce consumers to switch from traditional fuels to propane. 

Regulatory Scenario

Propane is a fuel that burns cleaner and has much lower carbon emissions compared to other fuels such as kerosene, fuel oils, and gasoline. On the other hand, compared to natural gas, propane offers a drastically lower contribution to global warming, which makes it preferable over natural gas in many applications. However, these advantages are not recognized widely by decision makers in the present national energy policies. Hence, players in the global propane market, along with other agencies, need to promote the use of propane in regional markets.

Browse Press Release of Propane Market: 
http://www.transparencymarketresearch.com/pressrelease/propane-market.htm

Despite the clear need for more effective marketing, the overall outlook of the global propane market is positive. According to a leading market research firm, the global propane market will expand at a moderate 3.56% CAGR during the forecast period of 2014-2022. By 2022, the global propane market is expected to be worth US$145.82 billion.

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