Posted on May 20, 2024
The global frac 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.
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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.
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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.
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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 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.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
- Type
- Geography
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.
