Composite Frac Plugs and Balls Market Size, Share & Forecast (2019-2024)

Composite Frac Plugs and Balls Market Insights

Plug-n-perf is the most common technique and accounts for more than 85% share of the hydraulic fracturing market in which composite frac plugs and balls are the most preferred choices. The global composite frac plugs and balls market size is likely to experience an excellent CAGR over the next five years to reach US$ 2,837.1 million in 2024. Rebounding crude oil prices; recovering rigs count, especially of North America; increasing share of hydraulically fractured oil & gas in the USA; increasing share of horizontal wells drilling in the USA; increasing average lateral length of wells; and increasing average number of frac stages are some of the major factors that are driving the demand for frac plugs and balls.

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Hydraulic fracturing is considered to be the most promising technology for oil & gas production, where composite frac plugs and balls have a proven track record of more than three decades. The market for composite frac plugs and balls is highly dependent on the hydraulic fracturing activity which in turn, is dependent on the volatility of crude oil prices. Despite the short-term fluctuations in composite frac plugs and balls demand in North America caused by dropping new shale oil & gas activities that is a result of the decreasing crude oil prices, the long-term business outlook seems promising with good growth potential in the foreseen future.

Composite Frac Plugs and Balls Market Share Analysis

Insights by Product Type

The market is firstly bifurcated into frac plugs and frac balls. Both, composite frac plugs as well as balls, play a pivotal role in the plug-and-perf operation in the hydraulic fracturing. However, in terms of market size, frac plug dominates the total market and is expected to remain the larger and faster-growing segment of the market over the next five years, as composite frac plug is the highly-used technology in the plug-n-perf method, which optimizes the entire lifecycle of extraction of natural gas from run, set, test, hold, and mill.

Regional Insights

In terms of region, North America is expected to remain the largest as well as the fastest-growing market during the forecast period. The major players such as Haliburton, Schlumberger Limited, Downhole technology Ltd., Weatherford International, and Baker Hughes, are based in North America only. The USA is the growth engine of the North American as well as the global composite frac plugs and balls market and will continue to drive the region’s market over the next five years. It is estimated that hydraulic fracturing accounts for about 70% share of the new oil and natural gas wells drilled in the USA, where plug-n-perf is the most dominant method. This is assuring a huge demand for composite frac plugs and balls in the country.

Key Players

The supply chain of this market comprises raw material manufacturers, composite frac plugs and balls manufacturers, drilling contractors, EPC contractors and operators (oil & gas companies). The key oil & gas service companies are Baker Hughes, Halliburton (Houston), Schlumberger (Houston) and Weatherford International (Zug, Switzerland). The key oil & gas companies are British Petroleum, Shell, Exxon Mobil, Chevron, and ConocoPhillips.

The composite frac plugs and balls market is marked by the presence of both, service companies manufacturing composite frac plugs and balls in-house as well as independent frac plug and ball manufacturers. The key well completion companies manufacturing composite frac plugs and balls are Baker Hughes, Halliburton, Schlumberger, and Weatherford, whereas the key independent manufacturers are Magnum Oil Tools, Downhole Technology, and Team Oil Tools. New product development, collaboration with customers, and regional expansion are the key strategies adopted by the key players to gain a competitive edge in the market.

Research Methodology

For calculating the market size, our analysts follow either Top-Bottom or Bottom-Top approach or both, depending upon the complexity or availability of the data points. Our reports offer high-quality insights and are the outcome of 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. We leverage multitude of authenticated secondary sources, such as company annual reports, government sources, trade associations, journals, investor presentation, white papers, and articles to gather the data. More than 10 detailed primary interviews with the market players across the value chain in all four regions and industry experts are usually executed to obtain both qualitative and quantitative insights.

Market Scope & Segmentation

Composite frac plugs and balls are designed to provide zonal isolation of the wellbore between multistage stimulation treatments during the hydraulic fracturing. These composite balls and plugs are made from glass fiber with epoxy or phenolic resin and are easier to mill out than metal plugs and balls. They can withstand higher pressures and temperatures than traditional plastic and dissolvable salt balls. Frac plugs are generally in the range from 4.5 to 5.5 inches in diameter and 22 to 30 inches in length, whereas frac balls typically measure from 1.0 to 5.75 inches in diameter. A single wellbore requires 10 to 40 multi-part frac plugs to pressurize and perforate multiple oil and gas producing layers, also known as stages.

The market is segmented in the following ways:

Composite Frac Plugs and Balls Market Size, Share & Forecast by Product Type:

• Frac Plugs
• Frac Balls

Composite Frac Plugs and Balls Market Size, Share & Forecast by Resin Type:

• Epoxy Composites
• Phenolic Composites
• Other Composites

Composite Frac Plugs and Balls Market Size, Share & Forecast by Process Type:

• Injection Molding
• Filament Winding
• Compression Molding

Composite Frac Plugs and Balls Market Size, Share & Forecast by Sales Channel Type:

• Direct Sales
• Distributor Sales

Composite Frac Plugs and Balls Market Size, Share & Forecast by Region:

• North America (Country Analysis: The USA and Rest of North America)
• Europe (Country Analysis: CIS and Rest of Europe)
• Asia-Pacific (Country Analysis: Australia, China, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Latin America, and MEA)

Report Features

This report, from Stratview Research, studies the global composite frac plugs and balls market over the trend period from 2013 to 2018 and the forecast period from 2019 to 2024. 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 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, product portfolio, product launches, etc.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.