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  • Fracking Fluid End Market Analysis | 2023-2028

    Fracking Fluid End Market Analysis | 2023-2028

    Fracking Fluid End Market Analysis | 2023-2028
    Report code - SROG125 Published On : Oct,2023 No. of Pages: 151
    Fracking Fluid End Market Size, Share, Trend, Forecast, Competitive Analysis, and Growth O See more...

    Market Insights

    The Fracking Fluid End Market will experience a promising CAGR of 4.2% in the long term to reach $734.7 Million by 2028.

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    Hydraulic fracturing, the technique used for the production of oil and natural gas, uses frac pumps to transmit the fracking fluid into the wellbore. Each frac fleet uses several frac pumps. Typically, 18-20 frac pumps are used per frac fleet. These pumps consist of two major components, the power end and the fluid end.

    Responsible for the high-pressure injection of the fluid into the well, these fluid ends are not only an essential part of the frac pumps but are also an indispensable component of the pressure pumping market. The lifespan of a fluid end decreases with the use of recycled water, advanced chemicals & slickwater, and the quality of frac sand pumped through it. Stainless steel fluid ends offer a longer lifespan, ranging from 1,000 to 5,000 pumping hours, compared to carbon steel fluid ends (100 to 500 pumping hours). Due to this fact, the fluid ends market offers attractive opportunities to manufacturers despite accounting for ~30% only of the total pump’s cost.

    The year 2020 brought up two major setbacks for the oil & gas industry: The price war between Russia and Saudi Arabia and COVID-19. The disagreement between Russia and Saudi Arabia on the reduction of oil production resulted in a more than 30% plunge in oil prices to below US$ 30 per barrel. The decline in oil prices has a major impact on the American shale industry as fracking becomes unprofitable at oil prices less than US$ 40 per barrel. The market for fracking fluid end, a sizeable market, was not immune to these trends and saw a significant decrease of more than 35% in 2020.

    However, the price of crude oil is again back on track with the recovery from the pandemic. Recent changes in geopolitical conditions affected the supply demand dynamics. As a result, there was a spike in the price of crude oil and natural gas. According to EIA projections (June 2023), the average oil price is expected to stabilize at $79.5 per barrel in 2023 and is forecast to reach $83.5 per barrel in 2024.

    Increasing oil demand is expected to lead to a surge in fracking activities, driving higher demand for fluid ends and propelling market growth alongside the rising number of frac stages in North America.

    Segment Analysis

    Segmentations

    List of Sub-Segments

    Dominant and Fastest-Growing Segments

    Material-Type Analysis

    Carbon Steel and Stainless Steel

    Stainless steel is anticipated to remain the dominant as well as the faster-growing material in the market.

    End-User-Type Analysis

    OE and Aftermarket

    Aftermarket is estimated to remain dominant as well as the faster-growing end-user type.

    Horsepower-Type Analysis

    2000-2500 HP and Above 2500 HP

    2000-2500 HP is projected to retain its position as the largest horsepower, whereas above 2500 HP is likely to grow at the faster pace.

    Design-Type Analysis

    Triplex and Quintuplex

    Quintuplex stands out as the prevailing design.

    Regional Analysis

    North America, Europe, Asia-Pacific, and The Rest of the World

    North America is expected to remain the largest market over the next five years, whereas Asia-Pacific is likely to grow at the fastest rate

     

    By Material Type

    The fracking fluid end market is segmented into carbon steel and stainless steel. Stainless steel is likely to maintain its dominance in the market during the forecast period and is also likely to grow at a higher rate during the same period in the wake of its corrosion-resistant property and longer pumping hours as compared to carbon fluid end.

    By End-User Type

    The market is segmented into OE and aftermarket. Aftermarket not only governed the fracking fluid end market in 2022 but is also estimated to remain the fastest-growing end-user type during the forecast period. The lifespan of fluid ends gets shorter with the harsher fracking environment, a larger volume of proppant used, and rising pumping pressure resulting in increasing replacement of fluid ends in existing frac pumps. While the power end lasts for two years, fluid ends need to be replaced three to four times per year (approx.).

    By Horsepower Type

    The market is segmented into 2000-2500 HP and above 2500 HP. In 2022, fluid ends compatible with frac pumps of horsepower between 2000-2500 held a major share of the market. The above 2500 horsepower segment is expected to grow at a higher rate during the forecast period, driven by the gradual shift in demand towards higher horsepower pumps to reduce the number of assets on the site while extending the parts' life. For example, 11 units of 5,000 HP fracking pumps can do the job of 20 units of 2,500 HP frac pumps.

    Regional Analysis

    In terms of regions, North America is projected to remain the largest market during the forecast period primarily because of the presence of high technically recoverable reserves of shale oil & gas and the presence of major fluid end manufacturers in the region. The rise in the number of hydraulic frac stages in North America has resulted in a notable increase in high hydraulic pressure (HHP) requirements at well sites, subsequently driving the demand for fluid ends. Asia-Pacific is expected to witness the highest growth in the market during the forecast period, mainly driven by China. The country has increased its investments in the exploration and production of oil & natural gas, using the hydraulic fracking technique.

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    Key Players

    The market is fairly consolidated with the presence of a handful 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 fracking fluid end market.

    • Caterpillar Inc.
    • Dragon Products Ltd.
    • Forum Energy Technologies, Inc.
    • GD Energy Products, LLC
    • Halliburton
    • Kerr Pumps
    • ST9 Gas + Oil
    • TechnipFMC plc
    • VP Sales & Manufacturing
    • VULCAN Industrial Holdings

    Research Methodology

    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?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth analysis of the Fracking Fluid End Market

    How lucrative is the future?

    Market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional and country level historical data and forecasts

    Which are the most attractive market segments?

    Market segment analysis and forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirement?

    10% free customization

     

    The fracking fluid end market is segmented into the following categories-

    By Material Type

    • Carbon Steel
    • Stainless Steel

    By End-User Type

    • OE
    • Aftermarket

    By Design Type

    • Quintuplex
    • Triplex

    By Horsepower Type

    • 2000-2500 HP
    • Above 2500 HP

    By Region

    • North America (Country Analysis: The USA and Canada)
    • Europe (Country Analysis: Russia, Norway, and  Rest of Europe)
    • Asia-Pacific (Country Analysis: China, Australia, and Rest of Asia-Pacific)
    • Rest of the World (Country Analysis: The Middle East, Latin America, and Others)

    Report Features

    This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s fracking fluid end market realities and future market possibilities for the forecast period. The report segments and analyzes 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 market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate 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 12 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

    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

    Recent Market JVs and Acquisitions

    • In February 2021, American Industrial Partners ("AIP") acquired the majority interest in High-Pressure Solutions (HPS) from Ingersoll Rand Inc. for an enterprise value of US$ 300 million. Ingersoll Rand Inc. retained 45% common equity in the business. HPS now transitioned into an independent business entity, operating under the name GD Energy Products, LLC.
    • In February 2021, Caterpillar Inc. completed the acquisition of the Oil & Gas Division (“Weir Oil & Gas”) of the Weir Group Plc, a Scotland-based global engineering business for an enterprise value of US$ 359 million. The transaction includes more than 40 global service centers and approximately 2,000 employees.
    • In February 2020, Gardner Denver Holdings, Inc. completed the merger with the Ingersoll Rand Industrial segment. The newly combined company was named “Ingersoll Rand Inc." The integration efforts are on track to deliver US$ 250 million in synergy efficiencies.

    Frequently Asked Questions (FAQs)

    The fracking fluid end market is estimated to grow at a healthy CAGR of 4.2% by 2028, driven by a recovery in oil prices, growing global oil demand, the upward trend in rig counts, and an increase in the number of frac stages, and increase in the share of horizontally drilled wells.

    GD Energy Products, LLC, Caterpillar Inc., TechnipFMC plc, Kerr Pumps, and Forum Energy Technologies, Inc. are the leading players in the fracking fluid end market.

    Answer: North America is estimated to remain dominant in the fracking fluid end market in the foreseeable future primarily because of the presence of high technically recoverable reserves of shale oil & gas and the presence of major fluid end manufacturers in the region.

    Answer: Stainless steel is likely to maintain its dominance during the forecast period. Also, the segment is likely to grow at a higher rate. Key drivers are longer pumping hours and greater resistance to corrosion.

    Aftermarket is likely to maintain its dominance during the forecast period. Key drivers are the increasing use of 100-mesh frac sands; increasing pressure and advanced chemicals; and low fluid ends lifespan.

    The above 2500 horsepower segment is expected to grow at a higher rate in the fracking fluid end market during the next five years.