Hydraulic Fracturing And Services Market

Global Hydraulic Fracturing And Services Market Size (2024 to 2029)

The global hydraulic fracturing and services market is predicted to reach USD 110.73 billion in 2024 and USD 178.33 billion by 2029, growing at a CAGR of 10% during the forecast period.

Hydraulic fracturing and services are modern technology. It is used to pump fluids into the oil wells at a very high injection rate to break down the oil reservoir. This fluid conventionally includes water, sand, and chemicals. Fracturing fluids are employed as a part of hydraulic fracturing treatments of shale that aid in keeping viscosity to develop an adequate width. The cost of hydraulic fracturing varies according to the well type, and the cost of sand and water in the region of the well will affect the change in price. North America is the market leader for the hydraulic fracturing and services market by region. The United States alone contributes to 85% of the global hydraulic fracturing and service activities.

Global Hydraulic Fracturing And Services Market Drivers:

The increased exploration and production of unconventional gases accounts for a drastic growth in the global hydraulic fracturing and services market. The increased demand for shale is driving the market. The government’s interest in exploring a new way of hydraulic fracturing where less gas emission takes place and investing in private projects is creating a positive impact. The huge demand for energy is helping the market grow. During hydraulic fracturing, in unconventional gas reserves, sufficient energy is released for high-potential exploration and production of shale and tight gas. A way to use this energy to power the machinery will save a lot of electricity; it is cost-efficient and less time-consuming.

Global Hydraulic Fracturing And Services Market Restraints:

The major restraints affecting the growth of the global hydraulic fracturing and services market are the strict policies and environmental laws passed by governments. These laws limit fracturing operations in many regions. One of the main components of hydraulic fluid for hydraulic fracturing is water, and the scarcity of water in regions such as China and the United States restricts development in these areas. The high cost of machinery and equipment and the danger of releasing harmful gases during fracturing are setting back the market's growth.

GLOBAL HYDRAULIC FRACTURING AND SERVICES MARKET REPORT COVERAGE:

This research report on the global hydraulic fracturing and services market has been segmented and sub-segmented based on the technology, material, application, well type, and region.

Global Hydraulic Fracturing And Services Market - By Technology:

• Plug And Perforation          

• Sliding Sleeve 

The global hydraulic fracturing and services market by technology is bifurcated into plug and perforation and sliding sleeves. The plug and perforation technology is expected to be the market leader by technology, with an increased market share of 12% during the forecast period. This is because it involves pumping down a bridge plug on a wireline with perforating guns. The sliding sleeve is expected to grow steadily during the forecast period due to the increasing demand for open-hole well applications.

Global Hydraulic Fracturing And Services Market - By Material:

• Raw Sand 

• Resin Coated Sand               

• Ceramic    

• Proppant 

Proppants are a major material for hydraulic fracturing and had a market value of US$ 9.05 Billion in 2015. The proppants are further segmented into raw sand, resin-coated sand, and ceramic. Resin-coated sand is expected to be the market leader during the forecast period. It is used for packing and holding the proppant without allowing the water to flow back. It is the most cost-efficient material compared to raw sand and ceramics and performs better. 

Global Hydraulic Fracturing And Services Market - By Application:

• Onshore   

• Offshore  

• Conventional Reserves      

• Unconventional Reserves

• Tight Oil    

• Tight Gas  

• Crude Oil  

• Shale Oil   

• Shale Gas 

• Coal Bed Methane (CBM)

The global hydraulic fracturing and services market by application is segmented into Onshore, Offshore, Conventional Reserves, Unconventional Reserves, Crude Oil, Tight Oil, Tight Gas, Shale Oil, Shale Gas, and Coal Bed Methane (CBM).

Onshore hydraulic fracturing is projected to have the highest market share by application during the forecast period. This is credited to the latest initiatives by the governments to fund onshore exploration because of its optimal operation accessibility. Onshore is more cost-efficient, and the availability of advanced technology makes it that much easier. Shale gas hydraulic fracturing is projected to have a market share of 14% during the outlook period.

Global Hydraulic Fracturing And Services Market - By Well Type:

• Horizontal Drilling 

• Vertical Drilling      

The global hydraulic fracturing and services market is divided into horizontal and vertical drilling by healthy type. During the forecast period, horizontal drilling was the market leader by well type, and it is estimated that 69% of the oil and gas wells drilled in the United States use horizontal hydraulic fracturing (drilling).

Global Hydraulic Fracturing And Services Market - By Region:

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus

North America is expected to dominate the global hydraulic fracturing and services by region. This is because it accounted for over 85% of the total revenue 2015. The availability of resources such as technology, government, and skilled workforce with increased E&P activities helped the market reach the top. 

The Asia Pacific is next in line with the high potential for drastic growth during the projection period. This is due to the availability of recoverable shale and CMB reserves across the region. Also, the investments the government made through FDI channels in the hydrocarbons sector gave it unconventional potential to rise in the market.

Arab regions, such as Saudi Arabia, are projected to grow steadily during the calculated period. Saudi Aramco (officially the Saudi Arabian oil company) aims to invest USD 334 billion in the exploration and production of unconventional resources and to support infrastructure projects and service facilities. This increase in investment in oil and gas projects is one of the primary factors creating a positive impact on the global hydraulic fracturing and services market.

KEY MARKET PARTICIPANTS:

The major companies operating in the global hydraulic and fracturing services market include Schlumberger (United States), Halliburton (United States), Baker Hughes (United States), Calfrac Well Services (United States), FTS International (United States), Nabors Industries Ltd. (Bermuda), Trican Well Services (United States), Weatherford International Inc. (United States), Tacrom Services SRL (Romania), United Oilfield Services (United States), and Patterson UTI Energy Inc. (United States) and others.

RECENT HAPPENINGS IN THE MARKET:

• Halliburton, located in the United States, launched the Elect frac sleeve in July 2019. It is a monobore sleeve that enables unlimited stage count in multistage fracturing activities. It has great flexibility for a highly optimized reservoir and can pinpoint exact well stimulation options. 

• Baker Hughes, a GE company located in the United States, announced in April 2019 that it will use the Permian Basin in West Texas to start a fleet of new turbines. These turbines will use the natural gas produced by drilling to power the hydraulic fracturing machinery. This will help decrease the equipment's flaring and decrease carbon emissions.