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The pressure pumping market is estimated to grow by USD 5.56 billion at a CAGR of 3.49% between 2022 and 2027. The rising investments in oil and gas E&P activities, driven by the recovery in oil prices and the need to replace declining reserves, are driving market growth by increasing exploration and drilling activities. The increasing global rig activity, driven by the exploration of new reserves and the development of existing ones, is also boosting market expansion. Additionally, the increasing focus on unconventional oil and gas E&P activities, such as shale gas and tight oil, is driving demand for new technologies and driving market growth. Overall, these factors are driving the growth of the oil and gas E&P market and driving innovations in the sector.
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This report extensively covers market segmentation by type (hydraulic fracturing, cementing, and others), application (horizontal well and vertical well), and geography (North America, Middle East and Africa, Europe, APAC, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth of the hydraulic fracturing segment will be significant during the forecast period. Hydraulic fracturing is the process of injecting a pressurized mixture of water, sand, and chemicals into the bedrock formation. The process helps in creating new fractures in the rock and increasing the size of the old ones. Hydraulic fracturing eases the drilling process and also helps in rejuvenating presumed empty wells.
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The hydraulic fracturing segment was valued at USD 22.93 billion in 2017. Using pressure pumping services for hydraulic fracturing has various advantages. For instance, it reduces asphalt deposition in the wells, increases the effective drainage area, and reduces the required number of wells necessary to drain an area. These factors are expected to drive the growth of the market in focus during the forecast period.
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North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US is one of the largest refiners and consumers of crude oil globally. The US and Canada are the major adopters of oil and gas drilling activities in North America. Major oil and gas companies in Canada are increasing unconventional E&P activities by exploring the oil sands in Duvernay and Montney formations to compete with the US shale plays. Canada is the second largest adopter of unconventional oil and gas drilling in North America, as large oil and gas companies are investing in unconventional E&P activities in Canada.
The rise in the number of active rigs in North America, supported by the increase in oil and gas consumption, will fuel the growth of oil and gas production. The increase in E&P activities and large investments being made toward such activities will support the growth of the water-based drilling and completion fluids market in North America during the forecast period.
The market plays a crucial role in various industries, including power generation, transportation, and household activities, as well as in wastewater treatment plants. With the increasing demand for water and the scarcity of this vital resource, pressure pumping technologies are essential for efficient water management. Technological breakthroughs, such as electric-powered fracturing pumps and real-time data analytics powered by artificial intelligence, are revolutionizing the industry. Pressure pumping is particularly important in exploration and production operations, especially in shale gas and hydraulic fracturing operations. As environmental concerns grow, the industry is focusing on sustainable solutions to minimize the impact of chemicals in fracturing fluids and to ensure responsible operations, especially in environmentally sensitive areas like the Arctic region. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising investments in oil and gas E&P activities are notably driving market growth. Urbanization and industrialization in developing nations are expected to drive up liquid fuel consumption, with countries like China and India being among the world's largest fuel consumers. This trend underscores the importance of strategic activities, investments, technological breakthroughs, real-time data analytics, and artificial intelligence in managing and optimizing liquid fuel consumption in these regions. To meet this rising demand, major oil and gas companies are investing in new Energy and Power (E&P) projects. In 2021, global investment in upstream oil and gas projects, totaling USD 367 billion, increased by approximately 10% compared to 2020, largely due to growth in the US shale sector. Key players like Chevron Corporation, Exxon Mobil Corporation, and ConocoPhillips Company are ramping up investments and planning Strategic Activities in shale, a trend likely to continue in the coming years, fueling market growth.
The use of supercritical carbon dioxide in shale gas fracking is the key trend in the market. Hydraulic fracturing, also known as fracking, is a well-stimulating process that uses huge amounts of water, sand, and chemicals to open the pores of the rock formation, creating a path for crude oil and natural gas to flow into the well. A large amount of freshwater is required to carry out hydraulic fracturing in wells. Shale gas formations require fracking of the sedimentary rock to release natural gas into the well.
Non-aqueous fracking fluids like supercritical carbon dioxide have been successfully tested as a replacement for water. By injecting carbon dioxide through pressurized pumps into shale rock instead of water, this technology decreases the dependence on millions of gallons of freshwater. The use of supercritical carbon dioxide will lead to increased gas production while lowering the environmental impact. This is a major technological innovation in oilfield services and will greatly help reduce water consumption for fracturing activities. This trend is expected to drive the growth of the market in focus during the forecast period.
The risk associated with drilling activities is the major challenge impeding market growth. Though hydraulic fracturing has advantages that support increased oil and gas production, it is not free from environmental concerns related to methane leaks and water pollution during fracking. It is a potential threat to the entire process.
Violation of laws or international mandates due to oil spillage or any oil-related products into the environment entails penalties. These penalties vary significantly at regional as well as international levels. Therefore, oil and gas upstream companies increased their focus on safety.
Health concerns among individuals exposed to the drilling environment are another challenge for drilling activities. Inhaling the vapors or allowing direct contact with the drilling fluids can lead to severe health issues, as drilling fluids contain a mixture of chemicals. Thus, environmental and health concerns during drilling can hinder the growth of E&P activities in the oil and gas industry. This will directly affect the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Pressure Pumping Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
SPP Pumps Ltd. - The company operates under one segment. Under this segment, the company is involved in the manufacturing of centrifugal pumps and systems. The company offers pressure pumping solutions that specialize in jetting, paint removal, and rust removal, but can be useful to a huge variety of applications, especially if the mobility of the unit is a factor.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing significant growth due to various factors such as gas and oil consumption, population expansion, and developing economies. As primary energy demand rises, so does the need for efficient water and wastewater plants. Technologies like rotating impellers and output valves are crucial for operations in this sector. The market benefits from tax breaks and subsidies, enabling infrastructure development spending in emerging markets. Companies focus on collaboration and offering cost-effective items for the upstream oil and gas sector. Advanced solutions like artificial lift and enhanced hydraulic fracturing systems cater to the evolving needs of the industry, ensuring efficient production optimization and formation evaluation.
The market is crucial for addressing challenges like water scarcity and rising water needs in various industries. It plays a vital role in tight oil production and the extraction of unconventional resources. As oil and gas deposits become more challenging to access, advanced oil and gas exploration techniques rely on pressure pumps for efficient operations. Companies offering exploration and production activities focus on innovative directional drilling and diverse product lines to meet the industry's demands. Technologies such as hydrocarbon detection and geological data management are integral for successful operations. Well building, stimulation, and intervention services are essential for maintaining well integrity and optimizing production. The market also offers solutions for well-bore placement and sand control, along with services like well completion, testing, and interpretation to ensure operational efficiency. Integrated project management services further enhance the sector's productivity and sustainability.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.49% |
Market growth 2023-2027 |
USD 5.56 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.91 |
Regional analysis |
North America, Middle East and Africa, Europe, APAC, and South America |
Performing market contribution |
North America at 31% |
Key countries |
US, Canada, United Arab Emirates, Saudi Arabia, and China |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Baker Hughes Co., Calfrac Well Services Ltd., Danfoss AS, Flowserve Corp., Halliburton Co., ITT Inc., KAMAT GmbH and Co. KG, KSB SE and Co. KGaA, LEWA GmbH, MAXIMATOR GmbH, NOV Inc., Patterson UTI Energy Inc., RPC Inc., Sam Turbo Industry Pvt. Ltd., Schlumberger Ltd., SPP Pumps Ltd., Sulzer Management Ltd., Superior Energy Services Inc., Trican Well Service Ltd., and Weatherford International Plc |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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