PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1555549
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1555549
Hydraulic Fracturing Market size was valued at USD 49,518.2 Million in 2023, expanding at a CAGR of 8.80% from 2024 to 2032.
Fracking, also known as hydraulic fracturing, is the process of drilling oil and gas wells to collect natural gas or petroleum and to enhance the flow of oil and gas by forming new fractures in low-permeability rocks like coal, shale, and sandstone. It entails pumping chemicals, sand, and water under high pressure into the well's bedrock formation. In order to control pressure between the extraction zones, hydraulic fracturing frequently makes use of plug and perf and sliding sleeve technologies, which entail stimulating wells with cemented liners and stopping flow from one or more reservoir zones. Proppants, including sand, ceramic pellets, and small incompressible particles, are used to drill the wells in horizontal and directional portions. Reduced air pollution and easier access to gas and oil resources are two benefits of hydraulic fracturing.
Hydraulic Fracturing Market- Market Dynamics
Changing Trends Toward Producing Unconventional Reserves to Propel Market Growth
The rising development of unconventional reserves such as shale gas, tight oil, tight gas, and coal bed methane (CBM) is driving the growth of the hydraulic fracturing business. A significant shift toward utilizing the energy potential of solid rocks has resulted from growing concern over the substantial reduction in oil and gas output in recent years caused by the depletion of conventional energy sources. For instance, domestic production accounts for a sizable share of the natural gas generated in the US. Since 2005, there has been a noticeable increase in gas output due to the application of hydraulic fracturing techniques and horizontal drilling. According to figures released by the U.S., the United States produced 34 trillion cubic feet (Tcf) in 2019, the highest amount ever recorded. Energy Information and Administration. Moreover, the study states that the nation's dry natural gas production in 2019 was 9% higher than its overall natural gas production. Texas (23.9%), Pennsylvania (20.0%), Louisiana (9.3%), Oklahoma (8.5%), and Ohio (7.7%) are the five states that produce the most natural gas in the nation. There are 35 states in all. Thus, the quick advancements being made to explore unconventional reserves are anticipated to propel the growth of the hydraulic fracturing market.
Hydraulic Fracturing Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 8.80% over the forecast period (2024-2032)
Based on well-type segmentation, the horizontal category was predicted to show maximum market share in the year 2023
Based on application segmentation, the shale gas category was the leading segment in 2023
On the basis of region, North America was the leading revenue generator in 2023
The Global Hydraulic Fracturing Market is segmented on the basis of Well Type, Technology, Application, and Region.
The market is divided into two categories based on Well Type: Horizontal and Vertical. The horizontal category dominates the market. The primary factor driving this strong expansion is its capacity to optimize the extraction of resources. When compared to vertical wells, horizontal drilling greatly increases the contact area with the reservoir and hence enhances production rates. This method works especially well for reaching unconventional resources where wide lateral reach is essential, like shale deposits. Furthermore, horizontal drilling is becoming more and more popular due to improvements in success rates and cost reductions brought about by drilling technology innovations.
The market is divided into two categories based on technology: Plug & Perf and Sliding Sleeve. The plug & perf category dominates the market and is likely to maintain its dominance during the forecast period. This significant growth can be mostly attributed to its extensive use and efficacy. Because of its great flexibility and ability to precisely target fracturing zones, this approach can be applied to a variety of geological conditions and complex geometries. The method's adaptability is increased by the fact that it works with both horizontal and vertical wells. Furthermore, plug and performance technology is becoming more efficient and less expensive to operate due to ongoing developments. In the foreseeable future, there will likely be a continued demand for dependable and flexible technologies like plug & perf as energy demands rise.
Hydraulic Fracturing Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
Over the course of the forecast period, North America is anticipated to hold the greatest share of the global market for Hydraulic Fracturing. The abundance of tight oil and shale gas reserves, especially in the US and Canada, contributes to this supremacy. The area gains from substantial investments in R&D, cutting-edge technology, and well-established infrastructure. Hydraulic fracturing operations are also expanding due to regulatory frameworks and policies that are supportive of the industry. North America is positioned as a major market for hydraulic fracturing due to its mature market landscape, trained workforce, and strong industry experience. For instance, Shale gas plays a vital role in the nation's energy supply; in 2023, shale deposits accounted for almost 77% (29.35 trillion cubic feet) of all dry natural gas produced in the United States.
In addition, the hydraulic fractioning market is anticipated to expand at the fastest rate in the world during the projected period in Asia Pacific. Growing energy demand from developing nations like China and India, which want to diversify their energy sources and lessen their reliance on coal, is what is driving this expansion's rapid pace. The region offers substantial development prospects due to its enormous undeveloped shale gas deposits. Additionally, the widespread use of hydraulic fracturing technology is being facilitated by government programs and investments in energy infrastructure. The Asia-Pacific market is expected to grow significantly as nations in the region place a higher priority on greener options and energy security.
The global hydraulic fracturing market's participants, such as Archer Well Company Inc., Baker Hughes a GE Co., Basic Energy Services, Calfrac Well Services Ltd, and FTS International Services, among others, are employing a variety of growth tactics to obtain a competitive advantage over their competitors. Major market players in the industry have been examined, along with their relative competitive strategies, and the study also covers recent transactions and investments made by various market participants in the last few years. The company profiles section includes a corporate description, financial performance (for public firms) over the previous few years, main products and services offered, and recent deals and investments by these key market participants.
May 2024: The sophisticated hydraulic fracturing simulation program XSite 4.0 was made available by ITASCA. Features like heat advection and convective heat transfers, better matrix flow computations, and enhanced fluid flow analysis were introduced in this release. It sought to improve fracture design, facilitate economically viable operations, and increase reserve recovery in the mining, unconventional geothermal, and oil and gas industries. The updated user interface also increased productivity and usability, satisfying industry expectations for more rapid simulations and in-depth reservoir research.
January 2024: With the goal of improving fracture operations, Halliburton introduced a number of innovations. With the ZEUSTM electric fracturing system, operators can cut operating expenses by reducing emissions fuel costs and amplifying efficiency. By making it easier to create digital frac sites, the Octiv intelligent fracturing platform improved consistency and dependability throughout operations. The examination of fracture performance was made more efficient by the SmartFleet fracture monitoring system, which offered real-time, useful data.
June 2023: In order to merge in an all-stock merger of equals deal, NexTier Oilfield Solutions and Patterson-UTI Energy, Inc. announced that they had signed a formal merger agreement. With operations in the busiest major U.S. basins, the merged business will be a market leader in the drilling and completions services sector.
May 2023: The Allison Transmission introduced the Allison FracTran to the Chinese energy sector. Built from the ground up to meet the unique needs of the hydraulic fracturing industry, the FracTran was intended to be on display at the 23rd China International Petroleum & Petrochemical Technology and Equipment Exhibition (CIPPE) from May 31 to June 2.