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Hydraulic Fracturing Market Size to Hit USD 28.93 Billion by 2028 | Industry Trends, Growth, Share, Statistics, And Forecast Analysis
Fortune Business Insights
7 min read
According to Fortune Business Insights, the global hydraulic fracturing market size is projected to grow from USD 15.31 billion in 2021 to USD 28.93 billion in 2028, at CAGR of 9.5% during forecast period; Rising Demand for Oil, Gas, and Other Petroleum Products to Foster Industry Growth.
Hydraulic Fracturing Market Size
Hydraulic Fracturing Market Size Forecast
Pune, India, May 02, 2022 (GLOBE NEWSWIRE) -- The global hydraulic fracturing market size is projected to touch USD 28.93 billion by 2028, exhibiting a CAGR of 9.5% during the forecast period. The market stood at USD 11.74 billion in 2020 and USD 15.31 billion in 2021. The rising demand for oil, gas, and other petroleum products and the rising demand for advanced hydraulic equipment for exploration may propel market growth. Fortune Business Insights™ provides this information in its report, titled, “Hydraulic Fracturing Market Forecast, 2021-2028.”
Prominent Companies Announce Innovative Products to Enhance Brand Image
The prominent companies operating in the market launch innovative products to provide effective extraction services and boost brand image. For example, Halliburton Company launched its Express Fiber optic solution in July 2021. It is an extremely effective solution with a lower impact on existing exploration activities and routine cross-well monitoring. This launch may enable the company to provide effective solutions and boost its brand image globally. Further, the adoption of research and development activities may enable manufacturers to develop effective solutions that eliminate complications during oil and gas reserve exploration and speed up the process. This strategy may enable them to boost their market position.
By Well Type; By Technology; By Application; and By Region
Growth Drivers
Fluctuating Oil Prices and Closure of Manufacturing Facilities to Hinder Market Progress
Rising Awareness Regarding the Potential of Untapped Energy Reserves to Foster Market Growth
Fluctuating Oil Prices and Closure of Manufacturing Facilities to Hinder Market Progress
This market is expected to be negatively affected during the COVID-19 pandemic because of oil price fluctuations and the closure of several manufacturing industries. An alarming spike in COVID-19 infections provoked governments to impose strict lockdown restrictions on extraction and manufacturing. As a result, prices for natural resources such as oil, fuel, and other resources began fluctuating.
Furthermore, the halt on manufacturing and transport led to a lack of raw materials and supply chain disruptions. However, the post relaxation phase is likely to raise the market’s position as industries adopt automated production and extraction technologies alongside social distancing. This factor is expected to boost market growth during the pandemic.
Drivers and Restraints:
Rising Awareness Regarding the Potential of Untapped Energy Reserves to Foster Market Growth
The rising awareness regarding the potential and effectiveness of untapped reserves such as tight and shale gas is likely to boost hydraulic fracturing’s adoption. The rising demand for reliable and sustainable energy reserves is likely to facilitate unconventional gas exploration activities. Nearly one-third of U.S. crude oil is obtained from the Permian, which, in turn, may boost its extraction activities. Furthermore, a rising focus on the productivity of crude oils and other gas is likely to fuel the market development.
The deployment of advanced technologies for oil extraction is expected to enhance productivity and boost hydraulic fracturing’s adoption. According to the information provided by the American Petroleum Institute, approximately 95 percent of all-natural gas wells shall require hydraulic fracking techniques in the upcoming years. The adoption of automated machinery is likely to enhance oil mining activities and improve the production of petroleum, oil, and gas products. These factors are likely to drive the hydraulic fracturing market growth.
However, strict government environmental protection norms and the growing trend of renewable energy production are likely to hamper the market's growth.
By well type, the market is segmented into vertical and horizontal. As per technology, it is bifurcated into sliding sleeve and plug & perf. Based on application, it is classified into offshore and onshore. Geographically, it is grouped into the U.S., Canada, Argentina, Russia, China, Australia, and the rest of the world.
Highlights of the Report
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.
Regional Insights
Incorporation of Government Regulations and Mining Standards to Fuel Growth in U.S.
The U.S. is expected to dominate the hydraulic fracturing market share because of industry standards and favorable federal regulations. The market in the U.S. stood at USD 9.12 billion in 2020 and is projected to grow positively in the upcoming years. Further, the huge potential for oil production, tight gas reserve, shale gas reserve, and natural gas is expected to boost hydraulic fracturing’s adoption. In addition, consistent investments and upcoming development are expected to boost market development in the U.S.
In China, oil & gas manufacturers actively work on the extraction of natural gas from shale rock formations, which, in turn, may boost hydraulic fracturing’s adoption. Governments encourage domestic national oil companies (NOCs) to boost their foreign and domestic contribution in the exploration and production (E&P) sector, which, in turn, may boost investments and production. These factors may propel the industry growth in the country.
Countries such as Brazil, the UAE, China, Australia, Russia, Argentina, and Canada adopt hydraulic fracturing to boost the exploration of energy reserves. Government initiatives, policies, regulations, and investments may support the adoption of hydraulic fracturing in countries, thus boosting the market growth.
December 2020: Schlumberger contributed its onshore fracturing business to Liberty Oilfield Services Inc. in Canada and the U.S. The contribution consisted of pump-down perforating, Permian frac sand business, and pressure pumping.
List of Key Players Profiled in the Hydraulic Fracturing Market Report
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