APAC Hydraulic Fracturing Market by Technology and Type - Forecast and Analysis 2024-2028

APAC Hydraulic Fracturing Market Forecast 2024-2028

The APAC hydraulic fracturing market size is forecast to increase by USD 8.65 billion, at a CAGR of 8.74% between 2023 and 2028. The market growth analysis depends on several factors, such as the increasing consumption of natural gas, the growth in E&P of unconventional oil and gas sources, and the stringent regulatory policies for the production of oil and gas. Our market report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.

Allison Transmission Holdings Inc. company offers products such as FracTran that are designed for use in hydraulic fracturing operations. Also, Avantech Engineering Consortium Pvt. Ltd. company offers products designed for a wide range of hydraulic fracturing applications using IPI DuraFRAC packers with straddle packer system options and a proppant capable system.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamic

Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Driver- Increasing consumption of natural gas

The increasing consumption of fuel in developing economies such as India and China due to rapid industrialization and urbanization will increase the demand for natural gas during the forecast period. According to the IEA, demand in China grew from more than 275 billion cubic meters (bcm) in 2019 to 375 bcm in 2023. This increase in demand is mainly attributed to the growing demand in fertilizer plants, power generation units, and the petrochemical, transportation, and residential and commercial sectors. China has been using it in many industrial and household applications.  

Additionally, the demand for power generation in developing countries in APAC, such as China and India, is also increasing. According to the IEA, the consumption in India for power generation is expected to grow by six bcm during 2018-2024. Therefore, the increasing demand for natural gas will lead to an increase in demand for more offshore and onshore projects. These factors will lead to a high demand to access unconventional gas reserves, such as shale gas, which will drive the expansion of the market over the forecast period. 

Trends- Shift in focus toward natural gas vehicles (NGVs)

Low operating costs and emissions have increased the adoption of both passenger and commercial NGVs. Original equipment manufacturers (OEMs) such as GM, Fiat, Ford, Volvo, and Audi offer light, medium, and heavy vehicles that are powered by natural gas. The growing popularity of NGVs has encouraged companies such as Ford and GM to introduce certified natural gas conversion systems.

Moreover, the use of NGVs offers several advantages when compared with conventional fossil fuel-powered vehicles. The availability of natural gas-powered engines in different capacities and the economic benefits of their use have increased the adoption of NGVs. This is increasing the demand for new CNG stations. Moreover, they produce only 5%-10% of allowable emissions and do not produce greenhouse gasses, which lowers the impact on the environment. Hence, the increase in the usage of NGVs will positively impact the market development during the forecast period.

Challenge- Environmental concerns 

The hydraulic fracturing process requires millions of gallons of water, sand, and chemicals for its operations. The requirement for water depletes the natural water resources, leading to a reduction in the freshwater supply. Moreover, the chemicals added to the hydraulic fracturing process cause major health concerns to the inhabitants of the nearby areas. For instance, chemicals such as hydrochloric acid, ethylene glycol, methanol, and isopropanol are used in the hydraulic fracturing process, and they cause health hazards related to respiratory tracts and the nervous system. 

Moreover, the increase in seismic activities is another environmental impact that negatively affects the growth of the market. This process includes the water injection process for disposing of wastewater. The injection of wastewater increases the rates of earthquakes in the environment. The volumes of water injected and the depth of wastewater injection levels are a few factors that generate tremors on the earth's surface. Hence, the environmental impacts may lead to a decrease in demand for shale gas, which, in turn, acts as a major challenge for the market expansion during the forecast period.

Market Segmentation by Technology and Type

Technology Segment Analysis: 

The plug and perf segment will account for a major share of the market's growth during the forecast period.? Plug and perf is a more versatile and effective technique that offers many advantages over other completion methods. Its ability to provide greater flexibility in sizing and positioning stages, as well as the potential to increase production rates and improve well integrity, makes it an attractive option for oil and gas operators seeking to optimize operations.

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The plug and perf segment was valued at USD 8.31 billion in 2018. Although the debris of oil and gas exploration is very small in size, the debris is still required to flow from the well during flowback operations. Thus reducing the overall material volume is necessary. Hydraulic fracturing with a plug and perf technique is much more common than fracturing with sliding sleeves due to the perceived importance of having a large number of individually fractured stages in the wellbore. Thus, such factors will drive the segment of the Asia Pacific hydraulic fracturing market during the forecast period.

Type Segment Analysis:

Based on type, the market has been segmented into horizontal, and vertical. The horizontal?segment will account for the largest share of this segment.?Horizontal hydraulic fracturing enhances shale gas extraction efficiency by increasing contact area with the shale rock, yielding higher production rates and gas recovery compared to others. Its economic viability stems from offsetting initial drilling costs with enhanced gas recovery. Environmentally, it minimizes surface impact by reducing well pad numbers and footprints, making it suitable for constrained or sensitive locations. It improves reservoir connectivity, enabling even distribution of fracturing fluid and proppant material. They serve both exploratory and production purposes, requiring fewer surface locations, thus mitigating community and ecosystem impacts and reducing emissions. These advantages will propel the growth of the segment of the Asia Pacific hydraulic fracturing market during the forecast period.

Who are the Major Market Companies?

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.

• Baker Hughes Co.: The company offers services, namely Baker Hughes fracturing services, to maximize well productivity with effective, application specific solutions tailored to formation and challenges for applications such as low to ultra high temperatures, slickwater, crosslinked, aqueous based, hydrocarbon based, and viscoelastic.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Gates Industrial Corp. Plc, Haimo Technologies Group Corp., Halliburton Co., Japan Petroleum Exploration Co. Ltd., National Energy Services Reunited Corp., Parveen Industries Pvt. Ltd., Schlumberger Ltd., TechnipFMC plc, Weatherford International Plc, and Vedanta Ltd 

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market analysis and report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Technology Outlook 
  • Plug and perf
  • Sliding sleeve

• Type Outlook 
  • Horizontal
  • Vertical

Market Analyst Overview:

The hydraulic fracturing market in APAC is gaining momentum amidst growing demand for oil and gas and technological advancements. While traditionally associated with North America, hydraulic fracturing is expanding globally, including in APAC. The foam-based segment, particularly foam-based fluids, is witnessing increased adoption in hydraulic fracturing operations due to their effectiveness in water-sensitive formations and shale gas reservoirs.

Environmentalists raise concerns about the impact of fracturing fluids on the environment, especially in regions like Alberta, where the Alberta Energy Regulator oversees operations. Despite this, hydraulic fracturing continues to play a significant role in crude oil production, with vertical integration driving efficiency and competitiveness in global oil and gas operations. As crude oil prices fluctuate, the hydraulic fracturing market in APAC remains dynamic, shaping the future of the shale oil and gas sector.

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What are the Key Data Covered in this Hydraulic Fracturing Market In APAC Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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