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The proppants market size is estimated to grow by USD 5.30 billion at a CAGR of 8.42% between 2023 and 2028. The surge in demand for fine mesh raw frac sand stems from its pivotal role in hydraulic fracturing operations, vital for extracting oil and gas from unconventional reservoirs like shale formations. Regions like North America boast abundant unconventional oil and gas resources, spurring heightened hydraulic fracturing endeavors and consequent frac-sand demand. Moreover, escalating investments in shale oil and gas exploration and production amplify the need for frac-sand as a cornerstone of the fracturing process. This growing demand underscores the criticality of frac-sand in enabling efficient oil and gas extraction, highlighting its indispensable status in the energy sector's quest for maximizing resource utilization and meeting escalating global energy demands.
The report includes a comprehensive outlook on the 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 market share growth by the frac and sand segment will be significant during the forecast period. The market encompasses various types of materials used in hydraulic fracturing processes to maintain fissures in rock formations and facilitate the production of crude oil and natural gas. The primary proppants include Frac Sand, which is a naturally occurring sand made from high-purity sandstone, and Ceramic Proppants, made from ceramic-sand, sintered bauxite, kaolin, magnesium silicate, and other artificial ceramic materials. These proppants are applied in exploration, including oil exploration processes and methods, and natural gas production from shale resources and tight gas formations.
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The frac and sand segment accounted for USD 6.88 billion in 2018. Proppants, such as sand and resin-coated sand, are essential components of fracturing fluids and are subjected to crushing forces during the hydraulic fracturing process. Environmental concerns and health risks associated with hydraulic fracturing and the use of raw frac-sand have led to the development of treated sand and alternative proppant materials. The proppant market is influenced by the political scenario, technological advancements in fracturing technology, and the demand for crude oil and natural gas production.
Shale gas is a natural gas that is trapped within shale rock formations deep beneath the earth's surface. The market is primarily driven by the drilling techniques used to extract shale gas, accounting for the largest market share in 2023. Proppants, such as sand, are essential in the multistage fracturing process used to extract shale gas from deep rock formations. The proppant consumption in this process is increasing due to the growing demand for a clean hydrocarbon source with low emissions. However, the use of water sources in hydraulic fracturing has raised concerns about water contamination, which may impact the market's growth trajectory. Sand consumption in the market is expected to increase during the forecast period due to the increasing demand in developing countries like India and China.
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 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 drilling. The market in North America is projected to expand substantially during the forecast period. With North America being the leading consumer of proppants like frac-sand for unconventional production, this region's growth can be attributed to its early adoption of advanced drilling techniques, such as multistage fracturing, which differ from conventional drilling methods. The US, in particular, is rich in shale and tight formations, containing approximately 170 billion barrels of technically recoverable shale oil resources and over 1,600 tcf of technically recoverable shale and tight natural gas. During the hydraulic fracturing process, large quantities of proppants, primarily sand, are consumed to maintain fracture integrity. Water sources are essential for this technique, but concerns regarding water contamination remain a significant challenge.
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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The market plays a significant role in the petroleum sector, particularly in the extraction of crude oil and natural gas from shale formations, tight gas, and coalbed methane. Proppants, such as sand, ceramic proppants, and resin-coated proppants, are essential components in hydraulic fracturing, or fracking, a process used to create fractures in rock formations, allowing the production of oil and natural gas. Fracturing fluid, a mixture of water, sand, and various additives, is pumped into the wellbore under high pressure to create fractures in the rock. The proppants, often in spherical shapes like quartz or high purity silica sand, are carried by the fracturing fluid to the fissures, where they are left behind to keep the fractures open, allowing the oil production of oil and natural gas.
Environmental concerns related to hydraulic fracturing have led to the exploration of alternative proppants, such as sintered bauxite and ceramic sand. Raw frac sand undergoes crushing forces to achieve the desired particle size, while ceramic proppants are produced through a more complex process involving the heating and cooling of clay. In summary, the market is a critical component of the petroleum industry, providing the necessary materials for the successful implementation of hydraulic fracturing and Crude oil production from various formations.
Growing demand for fine mesh raw frac sand is the key factor driving market growth. The market encompasses the use of various materials, including Frac-sand, Ceramic Proppants, and resin-coated sand, to maintain fissures in rock formations during the extraction of crude oil and natural gas through hydraulic fracturing. Proppants, such as sand, are essential components of fracturing fluids, which facilitate the flow of hydrocarbons. The increasing adoption of horizontal drilling and advanced fracturing technology in the petroleum sector has led to a surge in demand for proppants, particularly in North America. Natural resources like sand-stone, shale and tight gas, and coalbed methane are primary sources of proppants. Commonly used proppants include sand, ceramic sand, sintered bauxite, kaolin, magnesium silicate, and spherical shaped materials like round grain quartz sand and silica sand. The porosity of these materials enhances their effectiveness in maintaining the fractures. Ceramic proppants, such as sintered bauxite and artificial ceramic materials, offer improved performance compared to raw frac-sand.
However, they are more expensive. Environmental concerns and health risks associated with hydraulic fracturing and the use of certain proppants have led to political scrutiny and regulatory oversight. Proppants play a crucial role in enhancing oil and natural-gas production from unconventional crude oil reserves. The global market is expected to grow due to the increasing demand for petroleum products and the emergence of new shale resources. However, the market is subject to various factors, including the cost of raw materials, environmental concerns, and political scenario. Therefore, these advantageous properties are expected to drive the adoption of fine mesh raw frac sand, contributing to market growth in the forecast period.
The technological developments in the hydraulic fracturing process is the primary trend shaping market growth. The market plays a significant role in the hydraulic fracturing process used for the production of crude oil and natural from unconventional resources such as shale and tight gas, and coalbed methane. Proppants, including Frac Sand, Ceramic Proppants, and resin-coated varieties, are essential components of fluids that help maintain fissures in rock formations during hydraulic fracturing. Horizontal drilling and advanced fracturing technologies, like high-volume slickwater fracturing, rely on drilling proppants to improve oil and natural gas production. Proppants come in various forms, such as sand, ceramic sand, sintered bauxite, kaolin, magnesium silicate, and artificial ceramic materials. Their spherical shape and high porosity enhance their effectiveness in maintaining fracture conductivity. Hydraulic fluid and crushing forces during the fracturing process determine the proppant's selection.
Moreover, environmental concerns and health concerns related to hydraulic fracturing have led to increased scrutiny of the petroleum sector. The use of raw frac sand and quartz sand in proppants has raised concerns due to their potential environmental impact. In response, the industry has turned to alternative proppants like ceramic sand and sintered bauxite. The integration of IoT, data analytics, and machine learning in hydraululic technology enhances the efficiency of the process by monitoring water quality, equipment condition, and real-time pressure data. This, in turn, helps prevent over-fracturing and optimizes the use of proppants. The political scenario surrounding hydraulic and its environmental impact may influence the market's growth. Regulations and policies aimed at reducing the environmental footprint of hydraulic fracturing could drive the demand for alternative proppants and more efficient fracturing technologies. 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. The market is experiencing significant growth due to the increasing use of these materials in the petroleum sector for enhancing oil and natural gas production. Fracturing fluids are employed during horizontal drilling to create fissures in rock formations, with proppants, such as Frac Sand, Ceramic Proppants, and resin-coated varieties, used to maintain these fissures and allow the flow of oil or gas. Shale Gas, Tight Gas, and Coalbed Methane resources are primary targets for this fracturing technology. Proppants come in various forms, including sand, ceramic sand, sintered bauxite, kaolin, magnesium silicate, and artificial ceramic materials. Their spherical shape and high porosity make them suitable for enhancing the productivity of sandstone formations.
However, environmental concerns and health risks associated with hydraulic fracturing and the use of raw frac sand have led to regulatory scrutiny and the development of alternative, less hazardous proppant types. The global demand is expected to increase due to the growing focus on unconventional oil and natural gas resources. The market is influenced by factors such as the political scenario, crude oil and natural gas production, and advancements in fracturing technology. Despite these opportunities, the market faces challenges related to environmental concerns and the availability of sustainable alternatives. This may inhibit E&P activities in the future. The growing emphasis on renewables will even challenge the growth of the global market 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 market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is a significant segment of the oil and gas sector, utilizing materials such as Frac Sand, Ceramic Proppants, and Propants from Coaled and Shale Gas. These Proppants are crucial in enhancing the production of hydrocarbons by maintaining fractures in reservoirs during hydraulic fracturing processes. Frac Sand, a type of Proppant, is mined and processed to meet specific grain size and shape requirements. Ceramic Proppants, on the other hand, are engineered materials that offer improved strength and durability. Proppants from Coaled and Shale Gas are gaining popularity due to their availability and environmental benefits. Further. the demand for Proppants is driven by the increasing focus on unconventional oil and natural gas wells. The US is the largest consumer of Proppants, with Texas and New Mexico being the major producers.
In Europe, the market is growing due to the exploration of shale gas resources. The market is competitive, with major players like US Silica, Hi-Crush Partners, and Fairmount Santrol holding significant market shares. Companies are investing in research and development to improve the efficiency and sustainability of Proppants. In conclusion, the market is a vital component of the oil and gas industry, with Frac Sand, Ceramic Proppants, and Proppants from Coaled and Shale Gas being the primary types. The market is driven by the increasing focus on unconventional resources and is competitive, with major players investing in research and development.
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 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 market forecast period. |
Customization purview |
If our market research 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 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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