The proppant market is projected to reach USD 9.87 billion by 2022, at a CAGR of 6.9% between 2017 and 2022.
Proppant is a solid material that is used to keep fractures propped open, during or after a hydraulic fracturing treatment. It is majorly used in hydraulic fracturing of shale gas, tight gas, and cold bed methane. Increasing proppant consumption per well and improvements in fracturing technologies are the major factors expected to drive the proppant market. However, the high cost of ceramic proppant and oversupply of crude oil are considered can restrain the growth of the market.
The frac sand proppant segment is estimated to be the largest segment of the market during the forecast period. The segment accounted for more than 60% of the total proppants produced, globally. It is a naturally occurring proppant made from high-purity sandstone. It is mostly applicable under closure pressure of 6,000 psi. The consumption of frac sand proppant is witnessed significant growth in recent years, due to its easy availability and low cost.
Key Market Drivers:
Improvements in Fracturing Technology and New Drilling Techniques
Increasing Proppant Consumption Per Well
Innovation in Proppant Technologies is Driving Its Demand for Well Drilling
Growing Demand for Frac Sand Proppant
Increasing Demand for Ceramic and Resin-Coated Proppants to Improve Well Economics