Global Proppants Market
As stated in our extensive report; the Global Proppants Market accounted for USD 7.9 Billion in the year 2022 and is forecast to reach USD 14.25 Billion by 2030 at a CAGR of 8.8%.
Oil and gas production worldwide has completely changed due to horizontal drilling and multistage fracturing technologies. The average sand consumption per horizontal well has increased 3 times since 2013 and is still projected to increase. The demand for Proppants for drilling is high because of developed technologies for the use of natural sand/frac sand instead of ceramic sand. The application of Proppants in hydraulic fracturing to mainly keep the fractures open and to impart high permeability is rising which can drive the growth. The different types of Proppants available in the market namely ceramic proppant, resin-coated proppant, and frac sand. Frac sand consists of high-purity quartz sand with durable, spherical grains to provide energy and overwhelm resistance.
Resin-covered sand includes coating sand with a resin for a clean surface, uniform shape, and better strength. Ceramic Proppants require controlled manufacturing to acquire their extremely high strength and most uniform shape, which provides greater oil and gas extraction output. The popularity of ceramic proppant is increasing day by day over the projected period because, of its excellent properties like high strength, conductivity, crush resistance, etc. The number of horizontal wells and increasing in North America can result in a higher demand for Proppants in keeping with properly that’s anticipated to have a effective effect on marketplace increase over the forecast period. The major shale plays are ready and open to experiment and install new equipment and technologies because the use of frac sand reduces the cost of raw material by more than 50%.
Key factors influencing Proppants Market Growth
The growth of the global Proppants market can be attributable to the following:
Frac sand is the maximum extensively used class for hydraulic fracturing, with inside the market. Frac sand Proppants is made out of highly pure and durable quartz sand with round grains.
- Raw frac sand is most widely used, due to its broad applicability in oil and natural gas wells, as well as its cost advantage relative to other Proppants.
- With increasing hydraulic fracturing activities, the demand for frac sand is projected to increase, over the forecast period.
- Countries such as Brazil, Algeria, South Africa, and Argentina have huge proven reserves of unconventional oil and gas which will lead to an increase in the demand for Proppants in the upcoming years.
- The United States is one of the leading countries, globally, in terms of the exploration of unconventional crude oil reserves and the application of hydraulic fracturing for the same.
- Shifting Focus toward the Usage of Ceramic Proppants is expected to provide opportunities to the market studied.
North America Region to Lead the Market
The Proppants market is segmented into Asia Pacific, Europe, North America, Latin America, the Middle East, and Africa. North America dominates the global proppant market and is expected to witness significant growth due to increased drilling and completion activities in the U.S. and Canada. Europe is also expected to show a healthy rise during the forecast period due to the high rise of hydraulic fracking in the region.
Although COVID-19 has severely impacted the price and trade of crude oil, the U.S. is anticipated to witness growth in demand for Proppants in the coming years, owing to the increasing number of exploration and maturing wells. The environmental and health concerns associated with the hydraulic fracturing process, along with the changing political scenario in the United States, affect the Proppants market negatively in the U.S. and the region, to a certain degree.
Due to the development of shell gas in the APAC region, the domestic demand for natural gas will increase in this region. The extraction of shell gas will increase the nation’s energy security by allowing the countries to become independent of other countries. Due to this APAC is estimated to be the fastest growing market for Proppants markets. Governments of countries like China and India have announced plans to develop shale gas reserves as a part of their 12th five-year plans, which is expected to have a positive impact on market growth.
Improvements in Fracturing Technology and New Drilling Techniques, are positively influencing the overall Proppants market.
Some of the key players in the Global Proppants Market include- Carbo (U.S.), Saint-Gobain (Courbevoie), JSC Norovich Refractories Plant (Russia), Superior Silica Sands (U.S.), Fairmount Santrell (Chesterland), Badger Mining Corporation (Germany).