Frac Sand Market size is set to grow by USD 4.5 billion from 2024-2028, abundance of unconventional oil and gas resources to boost the market growth, Technavio
PR Newswire
7 min read
NEW YORK, May 19, 2024 /PRNewswire/ -- The globalfrac sand market size is estimated to grow by USD 4500.2 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 9.38% during the forecast period.
Technavio has announced its latest market research report titled Global frac sand market 2024-2028
Application (Oil exploration and Natural gas exploration), Type (White frac and Brown frac), and Geography (North America, Europe, APAC, Middle East and Africa, and South America)
Region Covered
North America, Europe, APAC, Middle East and Africa, and South America
Key companies profiled
Athabasca Minerals Inc., Atlas Sand Co. LLC, Badger Mining Corp., CARBO Ceramics Inc., Chongqing Changjiang River Moulding Material Group Co. Ltd., Covia Holdings LLC, Diversity Technologies Corp., Emerge Energy Services LP, FEECO International Inc., Hi Crush Inc., Permian Frac Sand LLC, Preferred Proppants LLC, SCR Sibelco NV, Sierra Frac Sand LLC, SmartSand Inc., Source Energy Services Ltd., US Silica Holdings Inc., Victory Nickel Inc., and Vista Proppants and Logistics
Segment Overview
This frac sand market report extensively covers market segmentation by
Application
1.1 Oil exploration
1.2 Natural gas exploration
Type
2.1 White frac
2.2 Brown frac
Geography
3.1 North America
3.2 Europe
3.3 APAC
3.4 Middle East and Africa
3.5 South America
1.1 Oil exploration- The Frac Sand Market is significantly driven by the oil and gas industry, particularly oil exploration in low-permeability reservoirs such as shale formations and tight shale formations. The increasing demand for oil, driven by individual and industrial use, transportation fuel, and natural gas exploration, necessitates the use of proppants like frac sand in the petroleum industry. The mining sector sources quartz sand, or Northern White Sand, from regions like the Mid-Continent and Permian Basin for use as frac sand. Operators face maintenance issues and regulations related to mining, processing, and transportation of these raw materials. Specialty sand products, including resin-coated sand and specialty proppants, are used for pattern recognition in reservoir behavior. Sustainability concerns, trade routes, and transportation costs, including railway infrastructure, are key factors influencing market dynamics. Labor, safety concerns such as lung cancer and silicosis, and production capacity expansion are also critical considerations. Methane hydrate and shale gas formations, as well as tariffs and water usage, further impact the market landscape.
3.1 North America- The Frac Sand Market in North America has significantly emerged due to the high adoption of hydraulic fracturing, with over 772 rigs in the US dedicated to horizontal drilling in March 2020. Key players in this market include Emerge Energy Services, Fairmount Santrol, Hi-Crush Partners, and Global Brands. Frac sand, a crucial component in hydraulic fracturing operations, is primarily sourced from the mining sector, with high-purity quartz sand being the preferred choice. The market caters to the oil and gas industry, particularly in low-permeability reservoirs such as the Marcellus Formation and the Permian Basin. Companies like Hi-Crush Partners have expanded production capacity to meet the increasing demand. However, challenges such as maintenance issues, regulations, and lung cancer concerns related to silica dust exposure persist. The glass manufacturing sector and railway infrastructure also contribute to the market as they require large quantities of sand for their processes. Additionally, the market is influenced by the behavior of hydrocarbon reservoirs, methane hydrate, and natural gas exploration in mid-continent regions. Proppants, including resin-coated sand, play a vital role in enhancing production and overcoming challenges in high-pressure, high-temperature environments.
For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 - 2022) - Download a Sample Report
Key Market Trends Fueling Growth
The oil and gas industry's expansion, driven by global population growth and rising energy demand, fuels the Frac Sand Market's growth. The EIA reports global petroleum consumption at 95.3 mbpd in 2021, up from 98.55 mbpd in 2017. The Permian Basin, with its petroleum industry processing facility expansion, requires vast quantities of proppants like quartz sand for fracking. Railways, roads, and transportation facilities are crucial for transporting raw materials like silica sand from sources like Badger Mining Corporation and Chieftain Sand to production sites. Regulations, reservoir behavior, and sustainability concerns influence market dynamics. AI and specialty sand products are emerging trends.
Market Challenges
The renewable energy sector is expanding due to increasing energy demand, clean initiatives, and subsidies. In 2018, renewables met 25% of global power demand, projected to reach 30% by 2023. Meanwhile, the frac sand market is significant in oil and gas exploration, particularly in hydraulic fracturing operations. Key players include Badger Mining, Fairmount Santrol, and Hi-Crush Partners. Frac sand mining raises environmental concerns, including ecological footprint and potential health risks like lung cancer.
Research report provides comprehensive data on impact of trend, driver and challenges -Buy Report
Research Analysis
The Frac Sand Market plays a significant role in the Petroleum Industry, particularly in Hydraulic Fracturing (fracking) operations for extracting Shale Gas Formations and Hydrocarbons from Tight shale formations. High-purity Quartz Sand, also known as Frac Sand, is essential as Proppants to keep the created Fractures open, allowing the flow of Oil and Gas. The Mining sector, including companies like Emerge Energy Services and Badger Mining Corporation, supplies this Sand. Water and Chemicals are also used in the process. While the benefits of Hydraulic Fracturing are debated, concerns regarding Silica content in Frac Sand and its potential health risks, such as Silicosis and Lung Cancer, remain. The Frac Sand Market's growth is closely linked to the expansion of Shale Reserves and the demand for Oil consumption.
Market Research Overview
The Frac Sand market is a significant sector in the oil and gas industry, with applications in hydraulic fracturing processes. Key players in this market include Badger Mining, Mining Corporation of America, and Cargill. Formation types such as the Arkansas, Fort Worth, and Brownstones are commonly used. Frac sand is transported to well sites through operators like Hi-Crush Partners and Profrac Services. Hydrated sand is used for proppant applications, while crushed sand is utilized for filtration purposes. The demand for frac sand is driven by the increasing focus on unconventional resources and the need for enhanced oil recovery. Ecologic and economic considerations, such as the reduction of water usage and the implementation of sustainable practices, are also influencing market trends. The use of frac sand is essential for maximizing the productivity of wells and extracting hard-to-reach reserves.
7 Customer Landscape 8 Geographic Landscape 9 Drivers, Challenges, and Trends 10 Company Landscape 11 Company Analysis 12 Appendix
About Technavio
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