The global hydraulic fracturing market is expected to reach US$90.55 billion by 2020, according to a new report by Grand View Research Inc. Hydraulic fracturing enables easier crude oil and natural gas extraction from unconventional reserves such as coalbed methane, shale formations, and tight sand.
Government support in the form of financial incentives and tax benefits, particularly in Asia and North America, is anticipated to drive the market over the forecast period. Shifting focus toward developing unconventional hydrocarbon resources owing to depleting production rates in conventional oil and gas reserves is expected to positively impact industry growth. Growing concern for groundwater contamination has led regulatory bodies to ban hydraulic fracturing, particularly in European countries, including France and Tunisia. This is anticipated to remain a key challenge for industry participants over the next six years.
Plug & perf was the leading technology segment, accounting for more than 80% of total revenue in 2013. This technique is widely used in shale oil and shale gas completions, and assists multistage fracturing for cased holes.
Further key findings from the report suggest:
- The global hydraulic fracturing market was valued at US$41.62 billion in 2013, and is expected to reach US$90.55 billion by 2020, growing at a CAGR of 11.8% from 2014 to 2020.
- Proppants were the major fracking materials, accounting for more than 25% of total revenue in 2013. Frac sands were the leading proppant type, generating revenue worth US$3.89 billion in 2013.
- Shale gas was the leading application segment, accounting for more than 20% of total industry in 2013. Rising shale plays – particularly in the US, Canada, and China – is anticipated to drive the market growth over the next six years.
- North America accounted for more than 80% of total revenue in 2013. Initial development of the unconventional hydrocarbon resources coupled with favorable legislations by the Federal Government has contributed significantly for industry penetration in the region.
- The Asia Pacific hydraulic fracturing market is anticipated to witness the fastest growth over the forecast period on account of rising exploration and production (E&P) in unconventional oil and gas reserves, particularly in China, Indonesia, and Australia. The regional industry is estimated to grow at a CAGR of 19.1% from 2014 to 2020.
- Major players operating in the global hydraulic fracturing industry include Halliburton, Schlumberger, FTS International, and Baker Hughes. Other players operating in the industry include Calfrac Well Services, Weatherford International, Cudd Energy, Talcrom Services, Superior Well Services, Trican Well Services, and United Oilfield Services.
Grand View Research Inc. is a US-based market research and consulting company, headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services.