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The Global Frac Stack Market size is estimated to grow by USD 8.49 billion at a CAGR of 4.36% between 2023 and 2028. The oil and gas industry is experiencing significant growth driven by the abundance of unconventional resources like shale gas and tight oil. These resources are expanding potential reserves for extraction, bolstering industry expansion.
Moreover, increasing investments in infrastructure such as offshore oil and gas pipelines and refineries are enhancing the capacity to transport and process oil and gas efficiently, thereby stimulating further market growth. Additionally, offshore exploration and production activities are on the rise, presenting new opportunities for oil and gas companies to explore and tap into previously untapped reserves. These factors collectively contribute to the robust growth trajectory of the oil and gas sector, shaping its outlook amidst evolving global energy demands and technological advancements.
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The market is crucial in the energy sector, particularly in accessing shale reserves and tight gas reserves. It addresses safety concerns through advanced analytics and simulation software, leveraging big data analytics for operational efficiency. Primarily used in the onshore sector for extracting crude oil from unconventional sources like shale and tight gas formations, it plays a pivotal role in enhancing global oil discoveries. Companies like Saudi Aramco utilize frac stacks extensively, notably in regions like the Jafurah shale play, to extract ethane, gas liquids, and condensates. The market is also responsive to seismic activities and regulatory requirements, ensuring compliance and operational safety in the extraction of hydrocarbons from unconventional and conventional reservoirs.
Increasing demand for unconventional oil and natural gas resources is a major driving factor for the growth of the frac market during the forecast period. The oil and gas resources found in shale and tight formations and oil sands are referred to as unconventional oil and gas resources. Unconventional hydrocarbon resources tend to make their natural pressure flow faster when compared to conventional hydrocarbon resources.
Moreover, there was an increase in demand for the use of different techniques to improve the production rate. The growing popularity of unconventional energy sources in the past decade along with their abundance across several countries such as the US, Canada, China, and Argentina, is expected to drive the market growth and trends during the forecast period.
Growing demand for the adoption of green fracking methods is the primary trend in the global frac market growth. Green fracking methods are adopted by energy technology providers to reduce the negative impact of fracking on the environment. For Instance, a new fracking method is introduced by GasFrac Energy Services Inc. (GasFrac) that eliminates the use of water.
Additionally, other major players are using eco-friendly fracking methods such as recycled water or brine pumped from underground instead of freshwater for fracturing, using non-potable brine and recycled frack water for the same application to reduce environmental hazards. Thus this trend continues to increase the frac market growth in the forecast period.
Rising environmental concerns associated with hydraulic fracturing processes is a major challenge impeding the growth of the global frac market. Environmental concerns caused by the hydraulic process, such as the threat of methane leaks and water pollution and large quantities of water used during hydraulic fracturing, which depletes the availability of freshwater, have gained prominence over the years.
For Instance, due to the injection of chemicals into the shale oil reservoir during fracturing, the hydraulic fracturing process also contaminates underground water reserves. Even though governments are taking initiatives to reduce the environmental concerns caused by the hydraulic fracturing process, such factors can hinder the market growth during the forecast period.
The onshore segment, mainly onshore wells, constitutes the major share in the production of oil globally. The lower operating cost of onshore exploration and production operations, when compared to offshore operations, has a significant impact on the growth of this segment globally. As offshore operations require advanced technologies and equipment such as a frac stack, there is an increasing demand for onshore E&P projects to gain profit margins.
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The onshore segment was the largest and was valued at USD 23.70 billion in 2018. For Instance, all the major unconventional oil and gas producing countries, unconventional resources, such as major shale plays in the US, Vaca Muerta plays in Argentina, and oil sands in Canada, are located and extracted onshore. As per data, almost 64,500 onshore wells were drilled globally in the year 2022 which in turn increased the demand for frac stacks as they help in pressure pumping. This trend is expected to drive the growth of the market in focus on the onshore during the forecast period.
Based on type, the market has been segmented into horizontal, deviated, and vertical. The horizontal segment has the major share in this segment as it is commonly used in shale and tight oil and gas formations to maximize contact with the reservoir and enhance production rates. It requires specialized frac stacks that can accommodate the long lateral sections and multiple fracturing stages. Thus the increasing fracturing methods using horizontal wells will drive the growth of the global market in the horizontal and deviated segment during the forecast period.
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North America is estimated to contribute 34% to the growth of the market. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. This region is an early adopter of unconventional drilling techniques and the largest user of a frac stack for unconventional oil and gas production. For Instance, as per rig data in March 2020, more than 772 rigs that are used in the US were used for horizontal wells to extract oil and gas from shale. In addition to that, as per the US Energy Department, two-thirds of all marketed natural gas production in the country is hydraulically fractured. Thus, it indicates that the adoption of hydraulic fracturing is high in North America, which signifies that the frac stack is largely used in the region; hence it has a major frac market when compared to other regions.
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.
AWC Frac Technology: The company offers frac stacks such as Manual Frac Valve and Hydraulic Frac Valve.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including AWC Frac Technology, Baker Hughes Co., Calfrac Well Services Ltd., Caterpillar Inc., CCSC Petroleum Equipment Co. Ltd., Covenant Testing Technologies LLC, Halliburton Co., Jiangsu Hongxun Oil Equipment Co. Ltd., KLX Energy Services Holdings Inc., Moto Mechanics Argentina SA, Oil States International Inc., REIN PROCESS EQUIPMENT JIANGSU CO. LTD., Schlumberger Ltd., SHAANXI KERGY MECHANICAL EQUIPMENT CO. LTD., Sunnda Corp., Trican Well Service Ltd., Universal Wellhead Services Holdings LLC, Worldwide Oilfield Machine Inc., Yancheng Qihang Petroleum Machinery Co. Ltd., and Yantai Jereh Oilfield Services Group Co. 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.
The Frac Stack market research and growth 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 plays a pivotal role in the extraction of hydrocarbons from unconventional reservoirs, addressing challenges such as groundwater contamination and the use of fracking chemicals. It supports upstream companies in bridging the supply-demand gap for primary energy sources by enhancing production capacities. This market caters to both unconventional gas from shale formations and conventional gas from onshore and shallow water fields, contributing significantly to the global energy supply. Environmental impacts, particularly in regions like California, drive regulatory action governed by state laws. Innovations such as waterless fracking solutions and advanced techniques like foams, plug & perf, and sliding sleeve systems optimize operations while responding to fluctuations in oil prices. Horizontal drilling techniques further enhance efficiency in extracting resources from challenging geological formations.
In addition, the market is increasingly leveraging Internet of Things (IoT) technologies to enhance operational efficiency and safety in oil and gas extraction from formations like Cardium, Duvernay, Montney, and Viking. Regulation plays a crucial role in shaping industry practices and environmental stewardship across these formations. Frac Stack equipment is designed to optimize hydraulic fracturing processes, particularly in unconventional reservoirs such as shale formations like Cardium and Duvernay. The market's growth is driven by advancements in technology that improve production capabilities and minimize environmental impact. Regulatory compliance ensures adherence to safety standards and environmental regulations, crucial for sustainable operations in the energy sector. Innovations in IoT enable real-time monitoring and control of frac stack operations, ensuring efficient resource extraction while mitigating risks associated with groundwater contamination and other environmental concerns.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market Growth 2024-2028 |
USD 8.49 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.11 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Canada, Argentina, and Australia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AWC Frac Technology, Baker Hughes Co., Calfrac Well Services Ltd., Caterpillar Inc., CCSC Petroleum Equipment Co. Ltd., Covenant Testing Technologies LLC, Halliburton Co., Jiangsu Hongxun Oil Equipment Co. Ltd., KLX Energy Services Holdings Inc., Moto Mechanics Argentina SA, Oil States International Inc., REIN PROCESS EQUIPMENT JIANGSU CO. LTD., Schlumberger Ltd., SHAANXI KERGY MECHANICAL EQUIPMENT CO. LTD., Sunnda Corp., Trican Well Service Ltd., Universal Wellhead Services Holdings LLC, Worldwide Oilfield Machine Inc., Yancheng Qihang Petroleum Machinery Co. Ltd., and Yantai Jereh Oilfield Services Group Co. Ltd. |
Market dynamics |
Parent market growth analysis, Frac Stack market Forecasting, Frac Stack market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Frac Stack market worth and condition analysis for the market forecast period. |
Customization purview |
If our Frac Stack market analysis 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 Deployment
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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