Proppants Market - Growth, Trends, and Forecast (2022 - 2030)

Market Overview

The global proppants market is expected to grow at a CAGR of over 5% during the forecast period of 2019 - 2024. The major factors driving the market studied are improvements in fracking technology and increasing shale gas production activities. However, environmental concerns and legislation are likely to hinder the growth of the market studied.

- Frac Sand product type is expected to dominate the global market, in terms of volume, during the forecast period.
- Shifting focus toward usage of ceramic proppants is likely to act as opportunities in the future.
- Asia-Pacific dominated the market across the globe with the largest consumption from countries such as China, India, and Japan.

Key Market Trends

Frac Sand Segmented Expected to Dominate the Market

- Frac sand proppants are the most widely used category for hydraulic fracturing in the market. Frac sand proppants are made out of highly pure and durable quartz sand with round grains.
- They are majorly made out of sandstone. Their size ranges from about 0.1 millimeters in diameter, to 2 millimeter in diameter, depending on the requirement of the fracking job.
- Frac sand accounts to more than 90% of the total proppants usage in the market, due to its efficiency, low cost, and availability. The market for frac sand proppants is expected to grow steadily, during the forecast period.
- Raw frac sand is most widely used, due to its broad applicability in oil and natural gas wells, and its cost advantage relative to other proppants.
- With the increasing hydraulic fracturing activities, the demand for frac sand is projected to increase, over the forecast period.

United States to Dominate the Market in North America Region

- The United States is one of the leading countries, globally, in terms of the exploration of unconventional crude oil reserves and application of hydraulic fracturing for the same.
- The quantity of oil produced from hydraulically fractured wells has been increasing significantly, in comparison to oil produced from conventionally-fractured wells.
- With the growing hydraulic fracturing applications in the country, especially for shale gas and tight oil purposes, the demand for proppants has been witnessing a positive impact.
- Currently, about 95% of new wells drilled in the United States are hydraulically fractured, which accounts for two third of the total marketed natural gas production in the country, and about half of the country’s crude oil production.
- The country is anticipated to witness growth in the demand for proppants in the coming years, owing to the increasing number of exploration and maturing wells.
- However, the environmental and health concerns associated with the hydraulic fracturing process, along with the changing political scenario in the United States, may serve as a restraint for the proppants market in the country, to a certain degree.

Competitive Landscape

The global proppants market is fragmented, with no player having a significant share to influence the market. The major players of the market studied include, Saint-Gobain, Hexion Inc., CARBO Ceramics Inc., and Imerys amongst others.

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