Proppants Market Growth Analysis | 2023-2028

Market Insights

The proppants market was estimated at USD 8.2 billion in 2022 and is likely to grow at a CAGR of 8.5% during 2023-2028 to reach USD 13.1 billion in 2028.

Want to know more about the market scope? Register Here

Market Dynamics

Introduction

Proppant is a crucial granular material—like sand, ceramic, or resin-coated particles—used in hydraulic fracturing (fracking) to keep underground rock fractures open, which facilitates the flow of oil and gas. It plays a vital role in boosting well productivity by ensuring permeability in shale formations. For instance, ceramic proppants made from sintered bauxite provide superior strength for deeper wells. The selection of proppant is influenced by reservoir conditions, requiring a balance among conductivity, crush resistance, and cost to maximize the efficiency of hydrocarbon extraction.

Market Trends

• Increased Shale Gas Exploration: The rising demand for shale gas and tight oil, particularly in North America, is driving the use of proppants. Hydraulic fracturing, a key technique in shale production, relies on proppants to keep the fractures open and maintain optimal extraction flow rates.
• Shift to Ceramic and Resin-Coated Proppants: While sand remains the most commonly used proppant due to its cost-effectiveness, there is a growing preference for ceramic and resin-coated proppants in high-pressure and high-temperature wells due to their superior performance in extreme conditions.
• Technological Advancements in Fracking: Ongoing innovations in hydraulic fracturing technologies are leading to greater efficiency in proppant use. This includes optimizing the size, shape, and material of proppants to enhance recovery rates while minimizing costs.
• Environmental and Regulatory Challenges: Increasing regulations concerning environmental impact, particularly water use and contamination in hydraulic fracturing, have led to the development of more sustainable proppant solutions. The shift towards eco-friendly proppants, such as non-toxic, biodegradable options, is gaining traction.

The proppants market will be driven by advances in drilling and fracturing technology, rising proppant consumption per well, new proppant technologies, and rising natural gas demand to ensure energy security during the forecast period. Between 2022 and 2028, the increase in oil prices throughout the projection period will also increase demand for proppants.

Want to have a closer look at this market report? Click Here

Key Players

The market is highly populated, with the presence of several local, regional, and global players. Most of the major players compete on some of the governing factors, including price, product offerings, regional presence, etc. The following are the key players in the proppants market:

• Atlas Sand Company, LLC (US)
• Carbo Ceramics Inc. (US)
• COVIA (US, JSC Borovichi Refractories Plant (Russia)
• HEXION (US)
• Hi-Crush Inc. (US)
• Mineração Curimbaba (Brazil)
• U.S. Silica Holdings Inc. (US)
• Xinmi Wanli Industry Development Co., Ltd. (China)

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com

Segment Analysis

By Type

The proppant market is segmented into frac sand, resin-coated proppant, and ceramic proppant. A common proppant is frac sand. It is a naturally occurring proppant crafted from sandstone of the highest quality. Most of these proppants can be used with a 6,000-psi closure pressure. Frac sand has a substantial market share and is frequently chosen as a proppant when oil prices are falling and E&P companies need to cut production costs. During the forecast period, the frac sand market is anticipated to be driven by rising US shale gas production as well as the creation of new shale gas basins around the globe.

Regional Insights

Asia-Pacific is expected to remain the largest market for proppants during the forecast period. The development of shale gas in the area will enhance domestic demand for natural gas in major APAC nations. By reducing the countries' reliance on outside resources, the mining of shale gas is projected to improve the region's energy security. Shale gas development is still in its early stages, though. China is the main force behind countries employing cutting-edge technologies to extract shale gas from their reserves.

Shale gas extraction is riskier and more expensive than producing conventional gas. The extraction procedure is expected to be efficient, economical, and socially responsible. The region that produces the most coalbed methane worldwide is the Asia-Pacific. High coalbed methane reserves can be found, among other nations in the region, in China, India, Australia, Japan, and Indonesia. The region's low conventional natural gas deposits and high natural gas prices on the global market stimulate the development of coalbed methane. Due to the greatest coalbed methane deposits in the world, Australia is the leading nation in the area in terms of high commercial coalbed methane production. Additionally, these nations have large shale gas deposits.

Want to have a closer look at this market report? Click Here

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s proppants market realities and future market possibilities for the forecast period of 2023 to 2028. After a continuous interest in our proppants market report from the industry stakeholders, we have tried to further accentuate our research scope to the proppants market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The proppants market is segmented into the following categories:

By Proppant Type

• Frac Sand
• Resin-Coated Proppant
• Ceramic Proppant

By Application Type

• Shale Gas
• Coalbed methane
• Tight Gas
• Others

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and The Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and The Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Argentina, and Others)

Click Here, to learn the market segmentation details.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com