NEW YORK, June 5, 2024 /PRNewswire/ — The global frac sand market size is estimated to grow by USD 4.50 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 9.38% during the forecast period.
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Technavio has announced its latest market research report titled Global frac sand market 2024-2028
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Frac Sand Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 – 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.38% |
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Market growth 2024-2028 |
USD 4500.2 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
8.36 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 67% |
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Key countries |
US, Canada, China, Australia, and Argentina |
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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 |
Market Driver
The global frac sand market is experiencing robust growth due to the expanding oil and gas industry. With the world’s population and energy demand on the rise, the consumption of liquid fuels is projected to exceed 100 million barrels daily by 2024. Notable oil producers, such as Canada, Brazil, and Norway, anticipate a 12% increase in production from new sources like Guyana.
Refinery expansions, including India’s plan to double its capacity, further fuel the oil and gas sector’s growth. This industry expansion significantly contributes to the increasing demand for petroleum refining and the subsequent growth of the global frac sand market.
The frac sand market is experiencing significant demand due to the increase in shale oil and gas production. Key players in this industry include providers of proppant services and companies supplying frac sand. The market is seeing a trend towards the use of finer sand particles for more effective fracturing. This has led to an increase in demand for silica sand and a shift towards sourcing sand from regions with high-quality deposits.
Additionally, the market is witnessing a rise in the use of resin-coated sand for improved sand retention. The market is also seeing a trend towards the use of rounder and smoother sand particles for better flowback. Overall, the frac sand market is expected to continue growing due to the increasing demand for shale oil and gas.
Market Challenges
• The renewable energy sector’s expansion, driven by increasing global energy demand and clean energy initiatives, poses a challenge to the frac sand market. Governments worldwide are shifting focus towards renewables, reducing the consumption of conventional fuels such as oil and gas. By 2030, renewable resources are expected to account for 80% of the global power demand, according to the IEA.
• Solar and wind energy are leading this transition, with China aiming to increase solar PV capacity from 4.91% to 22.53%. The US government’s solar investment tax credit further boosts solar adoption. India aims to reach 500 gigawatts of renewable energy capacity by 2030. These developments will negatively impact oil and gas exploration and production activities and the frac sand market.
• The frac sand market faces several challenges in its operation and production. One major challenge is the high demand for frac sand in the oil and gas industry, leading to increased competition among suppliers. Another challenge is the need for consistent and high-quality frac sand to meet the specifications of oil and gas companies. Additionally, transportation and logistics play a significant role in the frac sand market, as sand must be delivered efficiently and cost-effectively to drilling sites.
• Environmental concerns, such as the impact of sand mining on local communities and ecosystems, also pose challenges for frac sand producers. Furthermore, regulatory compliance and safety standards are essential considerations for frac sand companies. Overall, the frac sand market requires a strategic approach to address these challenges and maintain a competitive edge.
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Segment Overview
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 experiences significant demand due to its usage in the hydraulic fracturing process in the oil and gas industry. Frac sand is essential for extracting natural resources efficiently. Its high-quality properties, such as hardness and roundness, enable improved production and enhanced well performance. The market’s growth is driven by the increasing focus on energy independence and the continuous advancements in drilling technologies. Frac sand suppliers play a crucial role in meeting the industry’s demands, ensuring a steady supply of this essential resource.
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Research Analysis
The Frac Sand Market plays a significant role in the petroleum industry, particularly in hydraulic fracturing (fracking) operations for extracting hydrocarbons from tight shale formations. High-purity quartz sand, also known as frac sand, is essential as proppants to keep hydraulic fractures open, allowing the flow of oil and gas. Shale gas formations, such as those found in shale reserves, require large quantities of water, sand, and chemicals for fracturing processes.
Silica, a primary component of quartz sand, can pose health risks, including silicosis and lung cancer, to workers in the mining sector. The demand for frac sand continues to grow due to the increasing consumption of oil and gas. The market for proppants, including frac sand, is expected to expand as oil and gas companies continue to explore and extract resources from tight shale formations.
Market Research Overview
The frac sand market refers to the business sector involved in the production, processing, and distribution of frac sand, a crucial component in the hydraulic fracturing process used to extract natural gas and oil from shale formations. Frac sand is mined from various sources, including in-ground deposits and surface mines. The market for frac sand is driven by the demand for natural gas and oil, with the United States being a significant consumer due to its vast shale formations.
The frac sand market is segmented based on the size of the sand particles, with the most common being 20/40, 30/50, and 40/70 mesh sizes. The market is competitive, with numerous suppliers vying for market share. The frac sand industry faces challenges such as transportation costs, environmental concerns, and regulatory oversight. Despite these challenges, the frac sand market is expected to continue growing due to the increasing demand for natural gas and oil.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Application
Oil Exploration
Natural Gas Exploration
Type
White Frac
Brown Frac
Geography
North America
Europe
APAC
Middle East And Africa
South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio