DETROIT, June 25, 2019 /PRNewswire/ -- After publishing a comprehensive report on composite frac plugs and balls market, Stratview Research announces the launch of an exclusive research report on Dissolvable Frac Plugs Market by Material Type (Magnesium Alloys and Poly Glycolic Acid), by Well Type (Horizontal Well and Vertical Well), by Sales Channel Type (Direct Sales and Distributor Sales), and by Region (Americas, Asia-Pacific, and Rest of the World), Forecast, Competitive Analysis, and Growth Opportunity: 2019-2024.
This report studies the current market trends including the shift from composite frac plugs, changing material dynamics, detailed competitive landscapes, and emerging trends in order to accurately forecast the dissolvable frac plugs market for the forecast period of 2019 to 2024 in terms of both value as well as units. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of low-hanging fruits available in the market as well as to formulate growth strategies.
Dissolvable Frac Plugs Market: Highlights
Operators performing hydraulic fracturing are keen to adopt different technologies and products which can maximize their production and save their cost and time of fracturing. These requisites have led to the evolvement of dissolvable frac plugs in the fracturing industry. Elimination of the cost and mill-out time, easy cleaning of the debris with no bottom hole assembly issues, reduced well complexities, omitted coiled tubing from the operation, and reduced flow back challenges are the key benefits provided by dissolvable frac plugs.
Dissolvable frac plugs are new to the market and currently hold a diminutive share of the frac plugs market. Magnum Oil Tools (Now part of Nine Energy Service Inc.) is the first company to commercialize dissolvable frac plug in the year 2014. Since then, various leading suppliers of composite frac plugs, such as Haliburton, Baker Hughes, and Schlumberger, have also launched dissolvable frac plugs and are offering a unique product portfolio in this market. The attractiveness of the market has led to the entry of the leading oil & gas industry players, who were not even into composite frac plugs manufacturing. For instance, recently in Feb 2019, a US-based oil & gas multinational corporation, National Oilwell Varco (NOV), has launched VapR dissolvable frac plugs.
As per Stratview Research, the global dissolvable frac plugs market is likely to experience excellent double-digit growth over the next five years to reach US$ 1,178.8 million in 2024. Increasing production of oil & gas, an expected recovery of wells and rigs count in the coming years, increasing number of frac stages per well, increasing share of horizontal wells in the overall drilling activities where there is a requirement of more frac stages, increasing lateral lengths of the wells, and reduction in mill out time as well as drilling cost are some of the key factors driving the market.
Based on the material type, Magnesium (Mg) alloys are expected to remain the dominant segment of the market during the forecast period and are also likely to exhibit faster growth in the same period, as compared to Poly Glycolic Acid (PGA). Mg alloy is the material of choice for dissolvable frac plugs, owing to their properties, such as reliable dissolution rate at different temperature and pressure brine, high toughness, strength, and hardness. However, PGA is new to the industry and is not being of interest for all the major players.
Horizontal well is expected to remain the dominant well type in the dissolvable frac plugs market during the forecast period. Horizontal wells are majorly used for drilling extended reach and long lateral areas where vertical wells are not of worth. A large number of frac plugs and balls are deployed in horizontal wells, which leads to the optimum gas production from wells, whereas in case of vertical wells, very small amount of gas can be extracted as compared to horizontal wells.
In terms of regions, the Americas is projected to remain the largest dissolvable frac plugs market during the forecast period in terms of both value and volume. The USA is the growth engine for the Americas' market where dissolvable frac plugs have been in the run in all the major shale basins such as Permian Basin, Eagle Ford, Williston basin, and South-Central Oklahoma Oil Province. Canada is another key market in the Americas, whereas Argentina is likely to be an emerging market with excellent growth expected soon.
The supply chain of this market comprises raw material suppliers, dissolvable frac plug manufacturers, distributors, and end users. The key dissolvable frac plug manufacturers are Baker Hughes, Haliburton Company, KLX Energy Services, Kureha Corporation, Innovex Downhole Solutions, Inc., Nine Energy Service, Inc., Schlumberger Limited, and Maverick Downhole Technologies Inc. Development of high-performance dissolvable frac plugs in order to overcome operators' or contractors' challenges along with ease of operations and the formation of strategic alliances with operators are the key strategies adopted by the major players to gain a competitive edge in the market.
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights on the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter's five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, product portfolio, product launches, etc.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
This report studies the global dissolvable frac plugs market and has segmented the market in four ways, keeping in mind the interest of all the stakeholders across the value chain. The following are the four ways in which the market is segmented:
Dissolvable Frac Plugs Market, By Material Type
- Mg Alloy
Dissolvable Frac Plugs Market, By Well Type
- Horizontal Well
- Vertical Well
Dissolvable Frac Plugs Market, By Sales Channel Type
- Direct Sales
- Distributor Sales
Dissolvable Frac Plugs Market, By Region
- The Americas (Country Analysis: The USA, Canada, Argentina and, Others)
- Asia-Pacific (Country Analysis: China, and Others)
- Rest of the World (The Middle East, and Others)
Stratview Research has several high value market reports in the global oil & gas industry. Please refer to the following link to browse through our reports:
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