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The proppants market size is estimated to grow at a CAGR of 8.42% between 2023 and 2028. The market size is forecast to increase by USD 5.30 billion. The growth of the market depends on several factors, including the growing demand for fine mesh raw frac sand, the abundance of unconventional oil and gas resources, and the rising investments in shale oil and gas.
The report includes a comprehensive outlook on the Proppants Market, offering forecasts for the industry segmented by Product Type, which comprises frac sand, ceramic proppants, and resin coated proppants. Additionally, it categorizes Application into shale gas, coal bed methane, tight gas, and others, and covers Geography regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
A proppant is a gritty material with uniformly sized particles that are further combined with fracturing fluid during or after the hydraulic fracturing (fracking) process to ensure that the opening of an induced hydraulic fracture remains open or unobstructed.
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Growing demand for fine mesh raw frac sand is the key factor driving market growth. Fine mesh raw frac sand is a proppant used during extracting oil and natural gas and enhancing the flow. It is relatively more cost-effective than other proppants. The demand for fine mesh raw frac sand, including the Northern White sand, is growing, mainly in the US, due to factors such as the adoption of various technological advances, increased demand for petroleum products, and the emergence of unconventional oil and natural gas reservoirs across the globe especially in North America.
Moreover, the oil and gas industry is increasingly adopting cost-effective proppants such as fine mesh raw frac sand. Furthermore, fine mesh raw frac sand allows fractures to remain open for longer durations in locations that would typically close because they are physically unreachable by the coarser grains. Hence, such beneficial properties will boost the adoption of fine mesh raw frac sand, thereby driving the growth of the market during the forecast period.
The technological developments in the hydraulic fracturing process is the primary trend shaping market growth. Hydraulic fracturing is mainly adopted for unconventional oil and gas production. A lot of technological advancements are taking place in various processes in hydraulic fracturing. The hydraulic fracturing process now makes use of sensors and software to monitor the water quality and the condition of the equipment used to improve the efficiency of the entire process. Similarly, real-time pressure data are of prime importance to prevent the issue of over-fracturing.
In addition, the integration of the Internet of Things (IoT) for data acquisition, as well as the use of data analytics and machine learning, improves the efficiency of the tools used in the hydraulic fracturing process. Furthermore, with the advances in drilling technology, proppant placement in downhole wells has increased hydrocarbon recovery from unconventional wells. Thus, such factors will drive the growth of the market during the forecast period.
The increasing dependency on renewable energy sources is a challenge that affects market growth. Factors such as the globally increasing energy demand, implementation of clean energy initiatives, and subsidies for power generation using sustainable sources are promoting the use of renewable energy sources. Renewable energy sources are clean, inexhaustive, less carbon-intensive, and sustainable. Therefore, governments of various countries are undertaking several initiatives to mitigate greenhouse gas (GHG) emissions.
Moreover, the consumption of renewable forms of energy, such as solar, hydropower, and wind, has increased over the years. Consequently, the rising dependence on renewable energy sources will negatively impact the consumption of conventional fossil fuels such as oil and gas. This may inhibit oil and gas E&P activities in the future. The growing emphasis on renewables will even challenge the growth of the global proppants market during the forecast period.
The market share growth by the frac and sand segment will be significant during the forecast period. The frac sand is a naturally occurring proppant, which is made from high-purity sandstone. Frac sands are more than 99% quartz; the grains are especially spherical and very hard to crush. It is applied to produce petroleum products such as oil and natural gas from rock formations that do not have sufficient pore space for the fluids to flow to a well. The applications of frac sand include oil exploration and natural gas exploration.
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The frac and sand segment accounted for USD 6.88 billion in 2018. Oil exploration includes the processes and methods involved in finding potential oil sites for drilling and extraction. Due to the ever-increasing demand for oil, the frac sand is witnessing an increase in oil exploration activity worldwide. The high consumption of oil from individual use to industry use is driving the oil demand globally. Thus, the demand for frac sand is expected to grow, which, in turn, will drive the growth of the global proppants market through the frac sand segment during the forecast period.
Shale gas is a natural gas that is trapped within shale rock formations deep beneath the earth's surface. It is a fossil fuel, like conventional natural gas, primarily composed of methane with small amounts of other hydrocarbons and trace impurities. Shale gas is a clean hydrocarbon that produces low emissions compared with its alternatives. In addition, owing to the increasing consumption of natural gas in developing countries such as India and China, the demand for shale gas will increase during the forecast period. Hence, the global proppants market growth is expected to grow significantly via the shale gas segment during the forecast period.
North America is estimated to contribute 66% 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.
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North America is the largest user of proppants such as frac sand for unconventional oil and gas production as it was an early adopter of unconventional drilling techniques, which were an alternative to conventional oil and gas drilling. Horizontal wells in tight formations such as shale are drilled using the hydraulic fracturing technique. The US also has an abundance of shale oil and gas reserves. Moreover, in Canada, oil sands are a major source of oil and gas. Canada is the second-largest adopter of unconventional oil and gas drilling techniques, and large oil and gas companies such as Royal Dutch Shell Plc (Shell), ConocoPhillips Co (ConocoPhillips), and Chevron Corp. (Chevron) are investing in unconventional E&P activities in Canada. Hence, such factors are expected to drive market growth in this region during the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Atlas Energy Solutions, Inc., Badger Mining Corp., CARBO Ceramics Inc., ChangQing Proppant Corp., Compagnie de Saint Gobain, Covia Holdings LLC, Curimbaba Group, Hexion Inc., Hi Crush Inc., JSC Borovichi Refractories Plant, Minerals Technologies Inc., nikapetrotech.com, Preferred Proppants LLC, Schlumberger Ltd., SUN Specialty Products, US Silica Holdings Inc., WaterTectonics Inc., Xinmi Wanli Industry Development Co. Ltd., and Rockleigh Industries Inc.
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 analyzes the latest trends and growth opportunities from 2018 to 2028.
Proppants Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.42% |
Market Growth 2024-2028 |
USD 5.30 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.85 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 66% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Atlas Energy Solutions, Inc., Badger Mining Corp., Baker Hughes Co., CARBO Ceramics Inc., ChangQing Proppant Corp., Compagnie de Saint Gobain, Covia Holdings LLC, Curimbaba Group, Hexion Inc., Hi Crush Inc., JSC Borovichi Refractories Plant, Minerals Technologies Inc., nikapetrotech.com, Preferred Proppants LLC, Schlumberger Ltd., SUN Specialty Products, US Silica Holdings Inc., WaterTectonics Inc., Xinmi Wanli Industry Development Co. Ltd., and Rockleigh Industries Inc. |
Market dynamics |
Parent market analysis, 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 report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product 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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