Proppants Market Research Report—Global Forecast till 2028

Proppants Market Research Report: Information By Product Type (Freac Sand, Resin-Coated Proppant, Ceramic Proppant) By Application (Shale Gas, Tight Gas, Coal Bed Methane) By Region ( North America, Europe, Asia Pacific, Latin America, Middle East & Africa) Forecast till 2028

ID: MRFR/CnM/9075-HCR | April 2021 | Region: Global | 180 pages

Market Synopsis


Proppant Market is projected to be worth USD 16.72 billion by 2028, registering a CAGR of 10.15% during the forecast period (2021 - 2028), The market was valued at USD 7.95 billion in 2020.


Proppants are gritty, uniformly sized materials that are mixed with fracturing fluid during the hydraulic fracturing (fracking) process to hold open fractures made in the ground. Lately, demand for proppants has increased as oil and natural gas wells are made to yield more oil and gas using hydraulic fracturing.By combining new drilling techniques with ultra-sophisticated frac designs, proppant solutions help to improve the production capacity of the wells by delivering more oil and natural gas daily.The proppant market is experiencing very high growth, majorly driven by the increasing drilling activities from North America and the Asia-Pacific regions.


The major factors favoring themarket's growth are surging demand for proppants from across the oil and gas industry due to its hydraulic fracturing. Hydraulic fracturing is used in the oil and gas industry to increase the flow of oil or gas from the well. Proppants (propping agents) are pumped into the oil well with fracturing fluid to hold the fissures open so that the crude oil or natural gas can flow up in the well. In a frac job, proppant is one of the key components.Proppant can remove the hydrocarbons from the reservoir,which depends solely on the performance characteristics of the proppant pack. The proppants market is expected to have excellent demand in the coming years due to the introduction of new fracking techniques such as horizontal multistage fracturing, which are anticipated to gain major traction in the review years. Moreover, the enhanced research and development to develop lightweight proppant variants are expected to contribute to the market growth in the forecast period.


However, governments across the world are implementing rules to regulate hydraulic fracturing due to the growing concerns towards the environment and its preservation.Furthermore, the exploitation of fossil fuel and renewable energy acts as a significant restraint for the market growth.


Pricing Analysis


In 2020, the proppants were priced around USD 0.68 to 1.27per kg across the globe. In the same year, the price of ceramic proppants varied from USD 1.02 to 1.24 per kg. The proppants are expected to witness a gradual rise in the price with a range from USD 0.74 to 1.42per kg by 2028. This price change is expected to be influenced by the availability and pricing of raw materials, while the demand for proppants is expected to streamup during the forecast period.


Market Drivers



  • High demand for proppants in hydraulic fracturing

  • Increasingdemand for proppants in the oil & gas sector due to new advanced fracking techniques


Market Restraints



  • Environmental issues, exploitation of fossil fuel, and use of renewable energy resources


Segmentation


By Product Type



  • Frac Sand: The frac sand segment held the largest market share of over 50% in 2020 and is expected to dominate the market during the forecast period. Frac sandare high-purity quartz sand which are very round and durable grains. They offer crush-resistant, which helps them to be used as a fracking material in the petroleum industry.

  • Resin-Coated Proppant: Resin-coated proppants are used in hydraulic fracturing to increase fracture conductivity, stop formation fines from migrating toward the wellbore, prevent proppant flow back, prevent reduction in fracture permeability resulting from crushing or embedment, and maintain a long-term fracture permeability.These factors are expected to gain major traction for the market during the forecast period.

  • Ceramic Proppant: The ceramic segmentis one of the fastest-growing product type segments. This is mainly attributed to its use as an alternative to frac sand. Ceramic proppants, which areartificial,have a higher crush strength than sand, limitingthe latter's application to wells having lower closure stresses, thus making ceramic one of the fastest-growing segments in the market.


By Application



  • Shale Gas: It is expected to be the largest segment in terms of application and is expected to dominate the market throughout the forecast period.The increasing application of proppants is expected to boost this segment in the coming years. Shale gas, whichcontains 70 to 90 percent of methane, helps generate electricity and acts as a domestic source for heating and cooking.

  • Tight Gas: Tight gas is natural gasproduced from reservoir rocks with low permeability that uses large hydraulic fracturing to produce wells at an economical rate. The use of hydraulic fracturing, in turn, boosts the consumption of proppants in the tight gas segment. It is one of the fastest segments in the market.

  • Coal Bed Methane: It is one of the major sectorsin the applications segment.Coal bed methane—an important unconventional gas that occurs naturally in coal beds—is increasingly being used for industrial and utility purposes.

  • Others: The other segment includes gas hydrates and conventional natural gases.


By Region



  • North America

  • Europe

  • Asia-Pacific

  • Latin America

  • Middle East & Africa


Regional Analysis



  • North America: Adevelopment of new gas technologyispropelling the growth of the North American market.According to the US Energy Information Administration, the US natural gas production was 34 trillion cubic feet in 2019, with over 60% produced through hydraulic fracturing. The top natural gas-producing states are Texas, Pennsylvania, Louisiana, and Oklahoma,which accounted for a share of 23.9%, 20%, 9.3%, and 8.5%, respectively, in 2019. Thus, the oil and gas industry is expected to propel the proppants market in the region.

  • Europe: Europeis expected to be the fastest-growing market during the forecast period. The development of natural gas productionand an increase in the development of petroleum productsare the major factors driving the market growth in the region.

  • Asia-Pacific: This region held the largest market share, over 35%, in 2020and is projected to retain its dominance during the forecast period; this is primarily due to itshigh demand from the oil and gas industry, which has an extensive presence in China and India.

  • Latin America: Relatively small but rapidly expandingoil and gas industryisexpected to boost the market growth for the proppants market in the region.Venezuela and Brazil are the largest producers in the region, with over 7.5 million barrels per day.

  • Middle East & Africa: This region has considerable investments in the oil and gas industries over the years due to its ever-growing oil and gas demand. This region is expected to have a large consumption of the proppants market.


Key Players



  • Carbo Ceramics Inc.

  • COVIA

  • JSC Borovichi Refractories Plant

  • S. Silica Holdings Inc.

  • Hi-Crush Inc.

  • MineraçãoCurimbaba

  • XinmiWanli Industry Development Co., Ltd.

  • Atlas Sand Company, Llc

  • HEXION

  • Schlumberger Limited



Report Scope:
Report Attribute/Metric Details
  Market Size   2028: USD 16.72 billion
  CAGR   10.15% (2021 - 2028)
  Base Year   2020
  Forecast Period   2021 - 2028
  Historical Data   2019
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Product Type, Application, Region
  Geographies Covered    North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors    Carbo Ceramics Inc. COVIA JSC Borovichi Refractories Plant S. Silica Holdings Inc. Hi-Crush Inc. MineraçãoCurimbaba XinmiWanli Industry Development Co., Ltd. Atlas Sand Company, Llc HEXION Schlumberger Limited
  Key Market Opportunities   - Environmental issues, exploitation of fossil fuel, and use of renewable energy resources
  Key Market Drivers   - Increasingdemand for proppants in the oil & gas sector due to new advanced fracking techniques