Global Proppants Market Overview
The key driver impacting the proppants market is an augmentation in natural gas demand and production. For instance, According to the International Energy Agency, the global demand for natural gas in 2019 is augmented by 1.5% than 2018, that is, a 57.9 Bcm, reached 3 986 Bcm. The U.S. Energy Information Administration report shows that in 2020 U.S. natural gas production was about 34.4 trillion cubic feet (Tcf), the second-highest yearly amount recorded. The production of natural gas from shale gas and tight oil plays at present makes up around half of the total dry natural gas production of the U.S. The production of natural gas from tight oil and shale gas plays is predictable to augment from 14 trillion cubic feet (Tcf) of 2015 to 29 Tcf in the year 2040. This is around 69% of the total dry natural gas production in 2040. Moreover, the growing demand for frac sand to extract petroleum fluids and rise proppants consumption per well contributes to proppants market demand in the coming years. Whereas with regards to volume, the market was calculated XX Kilo Tons in 2020 and foreseen to grow with a CAGR of XX% during 2021-2027.
According to Value Market Research, the global Proppants market size was valued at around USD 7750 million in 2020 and is estimated to grow at a CAGR of about 9% during the forecast period 2021 to 2027.
The rising popularity of ceramic proppants due to its excellent properties and benefits associated with usage are likely to augment the demand in the forecast period. The benefits include high conductivity, strength, crush resistance, ease of maintenance, and high durability. The rising production of and oil demand is majorly driving the demand for proppants in the coming years. For instance, According to International Energy Agency, global oil production accounts for 98.1 Mb/d in 2018, increased slightly from the 2018 daily production level of 97.7 Mb/d. This rise in worldwide oil production was majorly driven by the United States, where production escalated by 10.9% than 2018. According to the International Association of oil and gas producer report (2018), the worldwide demand for oil in 2018 was 30% higher than 2000. However, the high cost of ceramic proppants may hamper the market in the long run. Also, Price fluctuations in the oil & gas sector are negatively impacting the market. The current industry trends, such as the increasing exploration of unconventional oil and gas reserves and integration of disruptive technologies such as IoT, microchips, sensors, and AI in proppants, are expected to offer several beneficial market opportunities to the key players.
The Proppants market is vast, with many local and global players. The Proppants market is extensive, with many regional and international players. The prominent market leaders follow several strategies to improve their market status, such as extending product portfolio, acquisitions, contracts, acquisitions, amalgamation, acquisitions, product upgrades to mount their market share across the globe. The prominent players studied in the report include U.S. Silica, Carbo Ceramics, Fairmount Santrol, Momentive, Hi-Crush LP Partners, Fores, Saint-Gobain, and Preferred Sands.
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In this research report, the proppants market is segmented by product, application, and region.
Analysis by Product:
By product, the report is categorized into sand, resin coated, and ceramic. The sand segment dominates the product segment with over 75% in the forecast period. It is low cost, and high availability of sand as compared to ceramic and resin roasted proppants. Also, it is extensively utilized by exploration and production (E&P) companies in fracturing processes. Therefore, it contributes to the high demand for sand segment growth in the forecast period.
Analysis by Application:
By application, the report is categorized into shale gas, tight gas, coal bed methane, and others. The shale gas segment dominates the application segment with over 40% share in 2020. It is due to the growing application of proppants in shale gas extraction as it is majorly utilized for transportation and power generation. In addition, ceramic proppants are majorly used in shale plays due to high Estimated Ultimate Recovery (EUR) and permeability. Moreover, large unexplored shale gas reserves in China, Argentina, Australia, Algeria, Saudi Arabia, and Brazil contribute to the high market demand in shale gas production application in the forecast period.
Analysis by Region:
In the regional outlook of the global Proppants market, the North America region dominates globally with a 50% market share in the forecast period. It is due to the increased drilling and completion activities in the U.S. and Canada for shale plays. Also, growing shale gas production in the U.S. is adding growth to the market. For instance, According to US Energy Information Administration (EIA), the production of sale gas accounted for over half of the total natural gas production of U.S. It is predictable to be double from 37 billion cubic feet per day(bcf/d) in 2015 to 79 bcf/d by 2040. Thus, it will be approximately 70% of the total natural gas production of the US by 2040. Moreover, a moderate recovery in oil prices increased material loading levels, and the introduction of longer laterals to boost natural gas production contributes to tremendous market growth across North America.
Market Segmentation covered in the Report:
By Product
- Sand
- Resin Coated
- Ceramic
By Application
- Shale Gas
- Tight Gas
- Coal Bed Methane
- Other
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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