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The Frac Sand Market size is estimated to grow by USD 1.75 billion at a CAGR of 4.53% between 2022 and 2027. The abundance of unconventional oil and gas resources has led to an increase in hydraulic fracturing activities, driving the demand for frac sand. The growing demand for fine mesh raw frac sand is driven by the need for high-quality sand that can withstand the high pressures and temperatures involved in hydraulic fracturing. Additionally, innovation at frac sites to reduce wastage is leading to more efficient and cost-effective frac operations, further driving market growth. Overall, these factors indicate a positive outlook in the coming years. Our report examines historic data from 2017 to 2021 besides analyzing the current market scenario.
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This market report extensively covers market segmentation by Type (white frac and brown frac), Application (oil exploration and natural gas exploration), and Geography (North America, Europe, APAC, Middle East and Africa, and South America),].
The white frac segment is estimated to witness significant growth during the forecast period. White frac sand is monocrystalline sand, mainly found in Wisconsin, the US, and limited areas in the upper Midwest region of the US. Due to its favorable physical characteristics, such as crush strength, turbidity, roundness, and sphericity, this is the preferred choice as a proppant. Owing to its low cost, oil and natural gas producers worldwide prefer white frac sand.
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The white frac segment was the largest segment and was valued at USD 4.04 billion in 2017. This is used to improve hydrocarbon recovery in hydraulic fracturing oil and natural gas production. With large-scale oil and natural gas exploration projects being implemented around the world, the demand is expected to increase globally. Therefore, increasing demand for oil and natural gas around the world, especially in North America, will drive the segment growth during the forecast period.
North America is estimated to contribute 65% 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 leads the global market as it was an early adopter of unconventional drilling techniques, particularly hydraulic fracturing, for extracting oil and gas from shale formations. The region, including the US, Canada, and Argentina, witnesses high adoption rates due to abundant unconventional oil and gas reserves. The US holds significant shale and tight oil resources, while Canada focuses on oil sands in Duvernay and Montney formations. Major companies like Shell, ConocoPhillips, and Chevron invest in unconventional exploration and production (E&P) activities. This widespread use of hydraulic fracturing drives increased investments in unconventional production, leading to a growing demand in North America during the forecast period.
The market plays a crucial role in the hydraulic fracturing process, particularly in shale gas formations. As a type of proppant, this is injected into wells under high pressure to prop open fractures, allowing hydrocarbons to flow more freely. This process is essential in the petroleum industry for extracting oil and gas from tight shale formations. Frac sand, typically made of silica, is preferred for its durability and conductivity. However, concerns exist regarding silicosis and lung cancer among workers in the mining sector due to exposure to fine silica particles. The demand is closely tied to oil and gas exploration and the production of shale oil and gas, with companies like Emerge Energy Services and Badger Mining Corporation playing key roles in the market. 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.
Growing demand for fine mesh raw frac sand is a key factor driving the market growth. The market is being propelled by the growing utilization of affordable proppants, such as fine mesh raw frac sand, in the oil and gas sector. This trend is particularly evident in the extraction of oil and gas from tight shale formations, where water, chemicals, and sand are injected into the formations to create fractures that allow the oil and gas to flow more freely. The mining sector plays a crucial role in providing the necessary resources for this process, contributing to the overall growth of the oil and gas industry. Thus, such characteristics make it a favored proppant in oil wells, particularly in the United States. With the increasing demand for petroleum products and the emergence of unconventional oil and gas reservoirs in North America, the use of fine mesh raw frac sand is expected to continue expanding. This trend presents opportunities for the overall market in the foreseeable future.
The rise in the adoption of green fracking methods is a key trend influencing the market. Hydraulic fracturing is a process that poses environmental risks due to water consumption, toxic liquid waste, and GHG emissions from methane leakage. To address these concerns, energy technology providers are developing eco-friendly fracking methods. GasFrac Energy Services Inc. introduced a waterless fracking approach using propane gel and chemicals. Halliburton uses recycled water or brine in some regions, while other companies utilize non-potable brine and recycled frack water. Additionally, natural gas- or solar-energy-powered equipment reduces GHG emissions. These environmentally friendly fracking methods aim to decrease hazards and promote the adoption of hydraulic fracturing, thereby supporting the growth of the market during the forecast period.
Environmental concerns associated with the hydraulic fracturing process is a major challenge hindering the market growth. Growing global awareness of environmental issues linked to fossil fuel combustion has highlighted concerns surrounding hydraulic fracturing. Despite being less carbon-intensive, the process poses threats like methane leaks and water pollution. Water usage, chemicals, and waste generated during hydraulic fracturing deplete fresh water sources and raise health and contamination concerns. Methane emissions from the process significantly impact climate conditions due to its high global warming potential. Efforts to monitor methane leaks, such as MethaneSAT, aim to address these risks. Though governments work on mitigating concerns, environmental issues may hinder the adoption of unconventional production projects, potentially affecting the growth of the market during the forecast period.
The market research 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 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.
Smartsand- The company offers frac sand for building products, ceramic products, and chemical production.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Athabasca Minerals Inc., Atlas Sand Co. LLC, Badger Mining Corp., CARBO Ceramics Inc., Covia Holdings LLC, Diversity Technologies Corp., Emerge Energy Services LP, FEECO International Inc., Hi Crush Inc., Permian Frac Sand LLC, Preferred Proppants LLC, SCR Sibelco NV, Sierra Frac Sand LLC, SmartSand Inc., Source Energy Services Ltd., US Silica Holdings Inc., Victory Nickel Inc., and Vista Proppants and Logistics
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 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 a crucial component of the hydraulic fracturing (fracking) industry, supporting operations in various regions like the Permian Basin and Bakken Formation. Frac sand, including Northern White Sand and brown sand, is essential for oil and gas demand, aiding in the extraction of resources from low-permeability reservoirs. Companies like Fairmount Santrol and Hi-Crush Partners play key roles in supplying high-purity quartz sand for production capacity expansion. However, maintenance issues and ecological footprint are challenges. Technological advancements, such as pattern recognition and AI, are improving drilling processes and enhanced oil recovery (EOR) techniques, contributing to sustainability in the industry.
The market is a crucial part of the hydraulic fracturing (fracking) industry, supporting operations in regions like the Appalachian area and Marcellus Formation. Frac sand, including brown sand like Chieftain Sand, is essential for shale gas and oil production. Companies are focusing on diversification of product offerings to meet the needs of domestic and small businesses, with domestic brands competing alongside global brands. However, challenges such as regulations and tariffs impact the supply chains and transportation costs of specialty sand products. The industry is also witnessing advancements in AI and research and development, improving reservoir behavior understanding and hydraulic fracturing operations.
Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.53% |
Market growth 2023-2027 |
USD 1.75 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.05 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 65% |
Key countries |
US, Canada, China, Australia, and Argentina |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Athabasca Minerals Inc., Atlas Sand Co. LLC, Badger Mining Corp., CARBO Ceramics Inc., Covia Holdings LLC, Diversity Technologies Corp., Emerge Energy Services LP, FEECO International Inc., Hi Crush Inc., Permian Frac Sand LLC, Preferred Proppants LLC, SCR Sibelco NV, Sierra Frac Sand LLC, SmartSand Inc., Source Energy Services Ltd., US Silica Holdings Inc., Victory Nickel Inc., and Vista Proppants and Logistics |
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, Market condition analysis for 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 market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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