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The pressure pumping market is estimated to grow by USD 5.22 billion at a CAGR of 3.2% between 2023 and 2028. The growth of the market depends on several factors, including rising investments in oil and gas exploration and production (E&P) activities, which drive technological advancements and infrastructure development. Additionally, increasing global rig activity reflects higher exploration and drilling efforts, contributing to market expansion. Furthermore, the growing focus on unconventional oil and gas E&P activities, such as shale and deepwater drilling, is pivotal as companies seek to tap into new and previously inaccessible reserves. These combined factors escalating investments, heightened rig activity, and an emphasis on unconventional resources collectively fuel the market's dynamic growth and evolution, responding to the ever-expanding energy demands and technological advancements.
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The market share growth of the hydraulic fracturing segment will be significant during the forecast period. Hydraulic fracturing is the process of injecting a pressurized mixture of water, sand, and chemicals into the bedrock formation. The process helps in creating new fractures in the rock and increasing the size of the old ones. Hydraulic fracturing eases the drilling process and also helps in rejuvenating presumed empty wells.
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The hydraulic fracturing segment was valued at USD 23.46 billion in 2018. Using pressure pumping services for hydraulic fracturing has various advantages. For instance, it reduces asphalt deposition in the wells, increases the effective drainage area, and reduces the required number of wells necessary to drain an area. These factors are expected to drive the growth of the market in focus during the forecast period.
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Middle East Africa is estimated to contribute 37% 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. The pressure pumping market encompasses the use of fracturing fluids in enhancing the extraction of hydrocarbons from tight gas and shale formations, primarily in onshore locations. Fracturing fluids are essential in improving well productivity by increasing the permeability of the reservoir rock, enabling the flow of crude oil reserves, lease condensates, and other unconventional liquids. Cement plays a crucial role in the process, particularly during cementing operations. In low permeability reservoirs, structural chemicals are employed to enhance hydrocarbon recovery. Acidizing is another technique used to improve reservoir permeability and optimize well performance.
Additionally, the energy sector continues to witness significant growth in the exploitation of unconventional resources, such as shale gas and tight gas, leading to an increased demand for pressure pumping services. Transportation networks and waste disposal facilities are essential infrastructure components in the pressure pumping market. The resource type segment includes both conventional and unconventional reservoirs, with the latter gaining significant attention due to their potential for substantial hydrocarbon reserves. Reservoir engineers play a vital role in optimizing the pressure pumping process to maximize well performance and minimize operational costs.
The market plays a crucial role in the Oil and Gas industry, particularly during well completion, stimulation, and intervention processes. Pressure pumps are essential tools used to discharge fluids, such as fracturing fluids, cement, and water, at high pressure to fracture rock formations and release hydrocarbons from unconventional sources like shale gas, tight gas, and unconventional liquids. Well completion involves the installation of production casing and the cementing process, which relies heavily on pressure pumping services. Well stimulation, on the other hand, utilizes pressure pumping to inject fluids into the wellbore to enhance production. Well intervention uses pressure pumping to repair or maintain wells, ensuring their continued productivity. Waterless fracturing foams, a recent innovation in the pressure pumping industry, have gained popularity due to environmental concerns and the need to reduce water usage. The market for pressure pumping services is driven by oil reserve discoveries, drilling activities, directional wells, and discharge locations, particularly in onshore locations. The mining industry also uses pressure pumping for mining operations, such as ore fragmentation and slurry transportation. Despite the challenges posed by cracks and other issues in low permeability reservoirs, the pressure pumping industry continues to evolve, offering solutions for waterless fracking and cementing services.
The rising investments in oil and gas E&P activities are notably driving market growth. Urbanization and industrialization in developing nations are expected to drive up liquid fuel consumption, with countries like China and India being among the world's largest fuel consumers. This trend underscores the importance of strategic activities, investments, technological breakthroughs, real-time data analytics, and artificial intelligence in managing and optimizing liquid fuel consumption in these regions.
To meet this rising demand, major oil and gas companies are investing in new Energy and Power (E&P) projects. In 2021, global investment in upstream oil and gas projects, totaling USD 367 billion, increased by approximately 10% compared to 2020, largely due to growth in the US shale sector. Key players like Chevron Corporation, Exxon Mobil Corporation, and ConocoPhillips Company are ramping up investments and planning Strategic Activities in shale, a trend likely to continue in the coming years, fueling market growth.
The use of supercritical carbon dioxide in shale gas fracking is the key trend in the market. Hydraulic fracturing, also known as fracking, is a well-stimulating process that uses huge amounts of water, sand, and chemicals to open the pores of the rock formation, creating a path for crude oil and natural gas to flow into the well. A large amount of freshwater is required to carry out hydraulic fracturing in wells. Shale gas formations require fracking of the sedimentary rock to release natural gas into the well.
Further, non-aqueous fracking fluids like supercritical carbon dioxide have been successfully tested as a replacement for water. By injecting carbon dioxide through pressurized pumps into shale rock instead of water, this technology decreases the dependence on millions of gallons of freshwater. The use of supercritical carbon dioxide will lead to increased gas production while lowering the environmental impact. This is a major technological innovation in oilfield services and will greatly help reduce water consumption for fracturing activities. This trend is expected to drive the growth of the market in focus during the forecast period.
The risk associated with drilling activities is the major challenge impeding market growth. Though hydraulic fracturing has advantages that support increased oil and gas production, it is not free from environmental concerns related to methane leaks and water pollution during fracking. It is a potential threat to the entire process. Violation of laws or international mandates due to oil spillage or any oil-related products into the environment entails penalties. These penalties vary significantly at regional as well as international levels. Therefore, oil and gas upstream companies increased their focus on safety.
Further, health concerns among individuals exposed to the drilling environment are another challenge for drilling activities. Inhaling the vapors or allowing direct contact with the drilling fluids can lead to severe health issues, as drilling fluids contain a mixture of chemicals. Thus, environmental and health concerns during drilling can hinder the growth of E&P activities in the oil and gas industry. This will directly affect the growth of the market during the forecast period.
The 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.
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.
SPP Pumps Ltd. - The company offers pressure pumping solutions that specialize in jetting, paint removal, and rust removal, but can be useful to a huge variety of applications, especially if the mobility of the unit is a factor.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
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The market plays a vital role in the Oil and Gas sector, particularly in well completion, stimulation, and intervention processes. Pressure pumps are utilized to discharge fluids, such as water, sand, and chemical additives, at high pressure to fracture rock formations and release hydrocarbons. Well stimulation techniques, including hydraulic fracturing and well cementing operations, are major applications for pressure pumps. The increasing exploration activities, especially in unconventional sources like shale gas and oil reserves, are driving the market growth. Horizontal and directional wells are gaining popularity due to their higher efficiency in extracting hydrocarbons.
However, the industry faces challenges such as cracks in rock formations, seismic disturbances, and environmental hazards, including water contamination, health impacts, and air emissions. Waterless fracturing foams and coiled tubing are emerging technologies in the pressure pumping industry, offering solutions to mitigate environmental concerns. The market is expected to grow significantly due to the increasing demand for oil and gas, drilling activities, and the need for efficient well completion and stimulation methods. The mining industry also utilizes pressure pumps in mining operations, further expanding the market scope. Despite challenges, the market is poised for growth, driven by the hydraulic fracturing technique's continued popularity and the potential of unconventional sources.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
Market growth 2024-2028 |
USD 5.22 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.06 |
Regional analysis |
North America, Middle East and Africa, Europe, APAC, and South America |
Performing market contribution |
Middle East and Africa at 37% |
Key countries |
US, Canada, United Arab Emirates, China, and Saudi Arabia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Baker Hughes Co., Calfrac Well Services Ltd., Danfoss AS, Flowserve Corp., Halliburton Co., ITT Inc., KAMAT GmbH and Co. KG, KSB SE and Co. KGaA, LEWA GmbH, MAXIMATOR GmbH, NOV Inc., Patterson UTI Energy Inc., RPC Inc., Sam Turbo Industry Pvt. Ltd., Schlumberger Ltd., SPP Pumps Ltd., Sulzer Ltd., Superior Energy Services Inc., Trican Well Service Ltd., and Weatherford International Plc |
Market dynamics |
Parent market growth 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 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 Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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