Market Insights
The Dissolvable Frac Plugs Market is poised for exceptional double-digit growth of 15.5% over the next five years (2023-2028), with a projected value of US$ 2,468.9 million in 2028.
What is a Dissolvable Frac Plug?
A dissolvable frac plug is a type of frac plug that is made of materials that can dissolve in wellbore fluids over time. Dissolvable frac plugs are typically made of magnesium alloys or biodegradable polymers. The dissolving rate of the plug is determined by the material used and the composition of the wellbore fluids. Dissolvable frac plugs can be designed to dissolve in a variety of wellbore fluids, including fresh water, brine, and oil. Dissolvable frac plugs are used in hydraulic fracturing operations to isolate different sections of the wellbore during the fracturing process. This allows for more precise placement of fracturing fluid and proppant. Dissolvable frac plugs are also used to create multiple fracture stages in a single well.
These plugs are crucial for efficient well completions, as they eliminate the need for costly interventions to remove traditional plugs once fracturing is complete. The dissolvable nature of these plugs reduces operational downtime, labor, and environmental impact. Dissolvable frac plugs are a key component in modern well-stimulation techniques, enhancing the productivity and cost-effectiveness of oil & gas extraction.
Market Dynamics
Several key factors are driving the dissolvable frac plugs market. These include an increase in oil & gas production, the expected recovery of wells and rigs in the coming years, a rise in the number of frac stages per well, an increase in the share of horizontal wells in overall drilling activities, greater lateral lengths of wells, and reductions in mill-out time and drilling costs. In addition to that, the dissolvable frac plugs market is growing due to its ability to reduce operational costs, minimize environmental impact, and enhance efficiency in hydraulic fracturing. With technological advancements and increased adoption of multi-stage fracturing, these plugs are becoming essential tools for good completion in the oil & gas industry.
Recent Product Developments: In 2019, Halliburton released the Illusion Spire, the first fluid-efficient dissolvable frac plugs. This offering expands on the capabilities of current dissolvable frac plugs but with a larger internal diameter and less mass for greater efficiency.
Recent Market JVs and Acquisitions: In 2018, Nine Energy Service, Inc. announced the acquisition of Magnum Oil Tools International, Ltd., a market-leading downhole technology provider serving the global oil & gas industry for over a decade. Magnum has a broad offering of proprietary downhole completion products, including dissolvable and composite frac plugs and several other patented consumables.
Segments Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Material-Type Analysis
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Poly Glycolic Acid and Magnesium Alloys
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Magnesium Alloy is anticipated to remain the most preferred material for dissolvable frac plugs in the years to come.
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Well-Type Analysis
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Horizontal Well and Vertical Well
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Horizontal well is anticipated to be the biggest demand generator in the market during the forecast period.
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Sales-Type Analysis
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Direct Sales and Distributor Sales
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Direct sales are holding the larger market share over the forecasted period.
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Regional Analysis
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North America, Asia-Pacific, and The Rest of the World
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North America is expected to remain the largest as well as the fastest-growing market over the next five years.
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By Material type
The dissolvable frac plugs market is segmented into polyglycolic acid and magnesium alloys. Magnesium (Mg) alloys are expected to remain the most preferred material during the forecast period and are also likely to exhibit faster growth in the same period. Mg alloy is the material of choice for dissolvable frac plugs, owing to their properties, such as reliable dissolution rate at different temperatures and pressure brines, high toughness, strength, and hardness. Magnesium alloy is gaining popularity in the dissolvable frac plugs market due to its rapid dissolution rates, making it suitable for precise wellbore isolation. Its ability to dissolve in various downhole fluids, such as brine or produced water, offers efficient and reliable performance, contributing to the growth of dissolvable frac plug adoption in oil & gas operations.
By Well type
The market is segmented into horizontal wells and vertical wells. Horizontal well is expected to remain the dominant well type in the dissolvable frac plugs market during the forecast period. Horizontal wells are majorly used for drilling extended reach and long lateral areas where a vertical well is of no worth. Many frac plugs are deployed in horizontal wells, which leads to optimum gas production from wells, whereas in the case of vertical wells, very small amounts of gas can be extracted as compared to horizontal wells. The necessity for effective and affordable well-completion solutions drives interest in dissolvable frac plugs in horizontal wells. Dissolvable frac plugs help horizontal wells, which are extensively employed in traditional oil & gas fields, since they reduce the requirement for plug retrieval procedures, conserving time, and resources. Because of their propensity to dissolve and disintegrate in the wellbore surroundings, dissolvable frac plugs are well-suited for vertical uses, improving well performance and simplifying the completion process.
Regional Analysis
Americas is projected to remain the largest dissolvable frac plugs market during the forecast period in terms of both value and volume. The USA is the growth engine for the Americas' market where dissolvable frac plugs have been in the run in all the major shale basins such as the Permian Basin, Eagle Ford, Williston Basin, and South-Central Oklahoma Oil Province. Canada is another key market in the Americas, whereas Argentina is likely to be an emerging market with excellent growth expected soon. There is a growing demand for effective well-completion and stimulation methods as research and production operations develop in nations such as the USA, Canada, and Argentina. Dissolvable plugs provide benefits like lower intervention costs and increased healthy productivity, making them an ideal choice for American operators looking to optimize their hydraulic fracturing operations.
Key Players
The market is highly consolidated with the presence of a handful number of 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 dissolvable frac plugs market:
- Halliburton Company
- Nine Energy Services Inc.
- Schlumberger NV
- NCS Multistage
- NexTier Oilfield Solutions
- KLX Energy Services Holdings
- Innovex Downhole Solutions, Inc.
- Weatherford International plc
- Baker Hughes Company
- Downhole Technology LLC
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s dissolvable frac plugs market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order 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 1,000 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 the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.
What Deliverables Will You Get in this Report?
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Key questions this report answers
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Relevant contents in the report
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How big is the sales opportunity?
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In-depth Analysis of the Dissolvable Frac Plugs Market
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How lucrative is the future?
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Market forecast and trend data and emerging trends
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Which regions offer the best sales opportunities?
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Global, regional, and country-level historical data and forecasts
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Which are the most attractive market segments?
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Market Segment Analysis and Forecast
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Which are the top players and their market positioning?
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Competitive landscape analysis, Market share analysis
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How complex is the business environment?
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Porter’s five forces analysis, PEST analysis, Life cycle analysis
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What are the factors affecting the market?
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Drivers & challenges
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Will I get the information on my specific requirement?
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10% free customization
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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
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