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The Frac Stack Market size is estimated to grow by USD 9.50 billion at a CAGR of 5.01% between 2022 and 2027. The abundance of unconventional oil and gas resources, such as shale gas and tight oil, is expanding the potential reserves available for extraction, driving growth in the industry. Growing investments in oil and gas infrastructure, such as pipelines and refineries, are enhancing the industry's capacity to transport and process oil and gas, further fueling market growth. Additionally, rising offshore exploration and production activities are opening up new opportunities for oil and gas companies, contributing to overall market growth. The report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Market Customer Landscape
This report extensively covers market segmentation by deployment (onshore and offshore), type (horizontal, deviated, and vertical), and geography (North America, Europe, APAC, South America, Middle East and Africa).
The integration of Internet of Things (IoT) technology is transforming exploration and production (E&P) activities in the oil and gas industry, particularly in the extraction of resources from unconventional reservoirs. These reservoirs, such as the Cardium Formation, Duvernay Formation, Montney Formation, and Viking Formation, present unique challenges, including groundwater contamination and the use of fracking chemicals. IoT devices enable real-time monitoring of E&P operations, providing valuable data to optimize production efficiency and mitigate environmental risks. In unconventional reservoirs, where traditional drilling methods may not suffice, IoT technology offers insights into reservoir behavior and well performance, enhancing decision-making processes. Moreover, IoT sensors can detect potential groundwater contamination early, allowing for proactive measures to safeguard water quality. By monitoring fracking chemicals and their impact on the environment, operators can ensure responsible resource extraction practices and compliance with regulatory standards. Overall, the application of IoT in E&P activities is revolutionizing the oil and gas industry, driving innovation and sustainability in the exploitation of unconventional reservoirs while minimizing environmental impact.
Key Driver
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 have the tendency 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 growth of market 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.
Vendors 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.
Baker Hughes Co: The company offers frac stacks such as PERF-FRAQ.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market players, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
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 valued at USD 22.85 billion in 2017 and continued to grow until 2021. 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 32% 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 US Energy Department, two-thirds of all marketed natural gas production in the country are 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.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The Market is influenced by various factors, including producers' strategies, Fracking market, Oil discoveries, Capital investment Economic impact fracking operations, and oil prices. While conventional oil fields continue to play a role, the shale boom has reshaped the industry, leading to increased energy demand. However, the market faces challenges such as a lack of capital market support, particularly in the onshore sector. Despite this, crude oil production, especially from tight oil formations, remains a focus for many producers.
Shale reserves, tight gas reserves, and conventional reservoirs represent diverse sources of hydrocarbon wealth. Global oil discoveries, including those managed by entities like Saudi Aramco, continue to shape energy markets. Specific plays such as the Jafurah shale play are gaining attention for their potential contributions. Ethane, gas liquids, and condensates are valuable components extracted alongside natural gas. Seismic activities aid in exploration and resource assessment, while regulation oversees industry practices. Distinct geological formations like the Cardium, Duvernay, Montney, and Viking play significant roles in hydrocarbon exploration and production, particularly in regions like Alberta, Saskatchewan, and British Columbia. Unconventional resources like the Bakken Shale and Horn River Shale complement conventional reserves. Tar sands represent another significant resource, though their extraction poses environmental challenges. Hydrocarbon export infrastructure facilitates the movement of resources to markets.
The hydraulic fracturing market, essential for accessing unconventional reserves, is influenced by upstream companies and the demand for fracturing services, often affected by price fluctuations in the oil market. However, concerns about environmental impacts and regulatory restraints, including local bans and suspensions, present challenges. Entities like the California Air Resources Board (CARB) and state oil and natural gas commissions play crucial roles in overseeing industry practices. Issues such as water usage in well drilling drive innovation towards waterless fracking solutions and alternative techniques like foams. Transportation activities and international energy dynamics, monitored by organizations like the International Energy Agency (IEA), shape global energy supply. Technological advancements like plug & perf and sliding sleeve systems optimize fracturing operations.
In today's rapidly evolving industrial landscape, safety concerns and efficiency remain paramount. Advanced analytics, bolstered by simulation software and big data analytics, offer unprecedented insights into operational optimization and risk mitigation. By harnessing the power of these cutting-edge technologies, industries can proactively address safety hazards while enhancing productivity. Simulation software enables real-time scenario testing, while big data analytics identify patterns and trends for informed decision-making. Embracing these innovations not only safeguards workers but also drives business success through streamlined operations. As industries continue to prioritize safety and efficiency, the integration of advanced analytics becomes indispensable for sustainable growth.
Frac Stack Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.01% |
Market growth 2023-2027 |
USD 9.50 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.77 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 32% |
Key countries |
US, Canada, China, Australia, and Argentina |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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 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 report has not included the data you are looking for, you can reach out to our analysts and get customized segments. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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