Global Fracking Proppants Market: Country Overview; Recent Events; Value Chain Analysis; Production Process; Cost Structure; Market Dynamics: Drivers & Constraints, Innovations & Trends, SWOT Analysis, Porter’s Five Forces; Industry Best Practices: Sourcing Strategy, Procurement Model, Contract Structure, Key Factors Influencing the Quotation; Key Supplier Analysis, 2024-2032

Fracking Proppants Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Fracking Proppants market reached a value of about USD 7.14 billion in 2021. The industry is projected to grow at a CAGR of around 6% in the forecast period of 2022-2027 to reach a value of about USD 10.12 billion by 2027.

The global Fracking Proppants industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The demand for the product due to its use in exploration activities is driving the market growth. The United States is the highest category spender by region, driving the demand for the Fracking Proppants industry.

Industry Definition and Segmentation

A proppant, also known as ceramic proppants, is a sand-like solid substance used to keep an induced hydraulic fracture open during or after fracturing. It is ordinary sand, treated sand, or artificial ceramic materials. It is among the most crucial oilfield innovations and is utilised to frac shale gas, tight oil, and coal bed methane, among other oil and gas resources. The Fracking Proppants industry report comprises segments by type (frac sand, ceramic proppants, and resin-coated) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and Latin America).

The United States is Driving the Growth of the Industry

The United States holds the largest share in the industry as it is one of the world's leaders in exploring unconventional crude oil deposits and the use of hydraulic fracturing to extract them. The need for proppants has been increasing as the country's hydraulic fracturing applications, particularly shale gas and tight oil, have grown. Furthermore, as the number of horizontal wells in North America grows, the need for proppants per well grows, likely to boost the market.

The rise in exploration activities is driving the market; the demand for proppants has risen as crude oil prices. Because of its extensive use in oil and natural gas wells and its economic advantage over other proppants, raw frac sand is the most commonly employed. It accounts for a significant industry share due to its efficiency, low cost, and availability. Superior properties of high-quality frac sand, such as high-purity silica sand, a spherical form that allows it to be transported in hydraulic fracturing fluid with little turbulence, and durability to withstand crushing pressures of closing cracks, boost its use proppants, thus resulting in the market's expansion.

However, the stringent Government rules aimed at decreasing hydraulic fracturing because of its harmful environmental effect and groundwater pollution might impact the market negatively.

Best Procurement Practices

The global Fracking Proppants industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Fracking Proppants regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

The abrupt shock of propelling a liquid combination of proppant, chemicals, and water into a well causes cracks in the rock. If nothing is done to keep these fissures open, they will shut, limiting the number of hydrocarbons that may escape. They are crush-resistant and help keep fractures open for as long as possible, increasing well production.

Advancements in the Sector, Further Driving the Fracking Proppants Market

The industry is aided by advancements in fracturing technology and increased shale gas production operations. Furthermore, Ceramic proppants are expected to rise in popularity since they are believed to be more environmentally friendly. In addition, new fracking techniques, such as horizontal multistage fracturing, are also being introduced by manufacturers furthering the market. Additionally, the development of eco-friendly non-phenolic resin-coated proppants and improvements in the hydraulic fracturing process in terms of increasing fracture flow capacity paired with increased research and development (R&D) to produce lightweight proppant variations is likely to impact the market positively.

The regional markets for the industry can be divided into North America, Latin America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Fracking Proppants Industry Report

• Badger Mining Corporation
• CARBO Ceramics
• Hi-Crush Partners LP
• US Silica Holdings, Inc.
• Yixing Orient Co Ltd.

Market Landscape

The worldwide proppants market is fragmented, with no single company controlling a significant portion of the industry. Proppant providers may not be able to negotiate better terms with reduced but steady oil pricing. Service firms' high-volume purchases and long-term ties with suppliers will limit an E&P company's ability to buy proppants directly. Due to growing application growth in the Asia Pacific, the bulk of businesses has boosted manufacturing capacity.

Key Initiatives by Companies

• Badger Mining Corp. (BMC) announced a new relationship with TranSand Inc. in Berlin, WI, and Camrose, AB. This unique cooperation in Fort St John will significantly boost the region's frac sand trans-loading capabilities.
• December 3, 2020 — Hi-Crush Inc. announced that its Board of Directors had named a new leadership team to lead the company into its next expansion phase. Dirk Hallen has been named CEO, Stephen White has been designated COO, and William Barker has been appointed General Counsel and Chief Commercial Officer. All the appointments took effect on November 30, 2020.