HYDRAULIC FRACTURING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Hydraulic Fracturing Market Size and Trends

The global hydraulic fracturing market is estimated to be valued at USD 50.44 Bn in 2024 and is expected to reach USD 76.45 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

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Increased shale gas production across regions like North America has been a key factor driving greater adoption of hydraulic fracturing techniques.  The market has been witnessing significant growth over the past few years primarily attributed to factors like recovery of oil and gas from unconventional reservoirs through hydraulic fracturing. Growing focus on shale oil and gas exploration coupled with rising energy demand globally has heightened interest in hydraulic fracturing activities. However, stringent regulations such as remediation and cleanup standards regarding groundwater contamination may present challenges to market players in the coming years.

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Insights By Well Type - The horizontal segment is a key driver of market growth, fueled by advancements in well development techniques, particularly in hydraulic fracturing

In terms of well type, the horizontal segment is expected to contribute 65.5% share of the market in 2024, owing to its efficiency and productivity advantages. Horizontal drilling allows for access to wider areas of the shale formation compared to vertical wells, resulting in higher production rates from the same number of wells. As operators seek to optimize output, horizontal wells have become the preferred approach as they are able to reach deposits that were previously uneconomical to extract due to their spread over large footprints underground. 

Insights By Technology - The plug & perf segment leads the market, driven by the increasing demand for advanced technologies in this sector

In terms of technology, the plug & perf segment is expected to contribute 49.5% share of the market in 2024, owing to its effectiveness and cost advantages over alternatives. The plug & perf method employs multiple hydraulic fracturing stages along the horizontal wellbore with plugs placed in between to isolate stages for sequential treatment. This allows for maximum stimulation of the reservoir and heightens production performance. Compared to technologies like sliding sleeves that require removal of deployment tools after fracturing, plug & perf leaves the plugs permanently in the well to simplify operations and reduce costs. 

Insights, By Application - The onshore segment dominates the market, supported by expanding onshore production activities

In terms of application, the onshore segment is expected to contribute 67.5% share of the market in 2024, due to lower development risks and costs as opposed to offshore. With extensive onshore shale resources available across regions like North America and Asia Pacific, operators have heavily invested in expanding onshore production. Setting up the infrastructure required for hydraulic fracturing, drilling, completion, and production onshore is much less capital intensive and involves lower technological complexities than operating in offshore environments. 

Regional Insights

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Dominating Region: North America

North America is anticipated to dominate this market in 2024, holding an estimated 37.6% share. This leading position is primarily due to the region's substantial shale reserves and favorable government policies that encourage shale gas development. Additionally, major oil and gas companies such as ConocoPhillips in North America possess advanced hydraulic fracturing technologies and significant expertise, stemming from extensive experience in unconventional oil and gas exploration.

Fastest-Growing Region: Asia Pacific

The Asia Pacific region exhibits the fastest growth, led by China, India, and other emerging Asian countries looking to diversify their energy mix. Governments offer incentives to leverage domestic shale resources and reduce energy import dependence. Local players collaborating with global experts to enhance fracturing capabilities in tapping vast shale formations is a prevalent trend in the energy sector. This collaboration often involves sharing technology, expertise, and investments to maximize shale resource extraction efficiently and sustainably. Baker Hughes, a global oilfield services company, partnered with Liberty Energy, a U.S.-based hydraulic fracturing specialist, to improve shale production in key formations such as the Permian Basin and Eagle Ford.

Hydraulic Fracturing Market Outlook for Key Countries

U.S. Dominance in the Global Hydraulic Fracturing Market

The U.S. continues to lead the hydraulic fracturing market, fueled by substantial shale gas production and supported by advanced technologies and a well-established oil and gas infrastructure. According to the U.S. Energy Information Administration (EIA), shale gas production hit 835 billion cubic feet per day in 2019, highlighting the rapid growth of shale gas extraction. This achievement reflects the sector's potential, driven by innovations in hydraulic fracturing and horizontal drilling techniques.

Canada’s Growing Role in the Hydraulic Fracturing Market

Canada is a key player in the hydraulic fracturing market, primarily due to its vast shale reserves. The country has seen increased investment in hydraulic fracturing technologies, with the Canadian Association of Petroleum Producers projecting a rise in natural gas production. In 2021, Canada's natural gas production was estimated at 16.2 billion cubic feet per day, indicating strong market activity.  This production estimate is sourced from the Canada Energy Regulator's "Canada's Energy Future 2019" report, which projected that Canadian natural gas production would reach 16.2 Bcf/d by 2018.

China’s Strategic Expansion in the Hydraulic Fracturing Market

China's hydraulic fracturing market is experiencing rapid growth, propelled by governmental initiatives aimed at achieving energy independence and developing unconventional resources. In 2021, the National Energy Administration set a target to increase domestic natural gas production to 22.3 billion cubic feet per day by 2025, with a significant portion expected from shale gas. This strategic focus has led to substantial investments in shale gas exploration and hydraulic fracturing technologies, positioning China as a significant player in this market.

Brazil Government’s Influence on the Use of Hydraulic Fracturing

Brazil is emerging as a significant player in the hydraulic fracturing market, particularly in the pre-salt offshore fields. The government has been promoting the use of hydraulic fracturing to enhance oil recovery. In 2021, Brazil's National Agency of Petroleum reported a 10% increase in oil production, largely attributed to advanced extraction techniques, including hydraulic fracturing.

Australia’s Growing Demand for Natural Gas

The Australia hydraulic fracturing market is growing, driven by increasing demand for natural gas and government support for unconventional gas projects. The country has significant coal seam gas reserves, and in 2021, the AEMO projected that gas production would rise by 20% by 2025, largely due to hydraulic fracturing activities. AEMO operates and oversees Australia’s energy markets and systems, ensuring energy reliability and security across the electricity and gas sectors.

Market Concentration and Competitive Landscape

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Top Strategies Followed by the Global Hydraulic Fracturing Market Players

• Established Players: Leading companies in the market focus extensively on research and development to innovate high-performance products. Companies such as Halliburton, Baker Hughes, Schlumberger, and Weatherford continuously invest around 5-7% of their annual revenues in R&D. Through dedicated R&D facilities worldwide employing thousands of engineers and scientists, these giants develop innovative fracturing chemicals, reservoir simulation tools, drilling equipment, and related technologies.
• Mid-Level Players: Mid-sized firms look to stay competitive by offering cost-effective, high-value solutions. They focus on delivering quality fracturing, wireline, and drilling services at affordable prices to appeal to cost-conscious consumers. Some leverage partnerships for mutual gains. For example, many collaborate with national oil companies in high-growth markets like Asia Pacific and the Middle East on onshore fracturing projects.
• Small-Scale Players: Emerging players capitalize on niche areas often ignored by giants. Some have specialized in refracturing old wells or complex hydraulic jobs requiring customized solutions. A few firms provide micro-fracturing services for oil & gas reservoirs too small for major players.

Emerging Startups in the Global Hydraulic Fracturing Market

Innovative Technologies: Several startups are actively developing advanced technologies like AI-enabled fracture modeling and smart cementing solutions. For instance, Fractyl (US) uses machine learning to optimize fracture planning and improve recovery rates from 10-15%. Similarly, PaleBlue (Canada) manufacturers nanoparticle-based smart cement that enables real-time fracture monitoring through downhole sensors. Such innovations have the potential to transform reservoir surveillance and production management in the coming years.

Sustainable Solutions: Biowaterway (US) recycles fracturing wastewater using natural anaerobic bacteria to treat contaminants. Meanwhile, FracStar (Canada) has engineered composite proppant made from rice hulls that dissolve harmlessly after stimulation. Their technologies and new entrants promoting carbon footprint reduction are significant given the sector's negative environmental image.

Market Contribution: Startups also address niche market needs. For example, FRAC-CARE (UK) provides on-site monitoring of silica dust exposure in fracturing operations, important for worker health and safety compliance. Similarly, FRAC Robotics (US) helps explore hard-to-access shale pockets using agile automated rigs. Collaboration is also key - Quaise (US) partners major service providers to test and refine its fracturing simulation software worldwide. 

Hydraulic Fracturing Industry News

• In December 2022, ProPetro Holding Corp. entered into an agreement with a leading independent operator in the Permian Basin to deploy its first electric-powered hydraulic fracturing fleet ("e-fleet"). Under this three-year agreement, ProPetro Holding Crop. will deliver committed hydraulic fracturing services following the fleet's delivery. ProPetro Holding Corp. is a leading oilfield services company primarily focused on providing hydraulic fracturing services to upstream oil and gas operators in the U.S.
• In January 2022, Texas A&M University graduate researcher at Texas A&M University developed an innovative approach using 3D printing technology to accurately replicate the hydraulic fracturing process involved in oil and natural gas extraction
• In July 2021, Halliburton Company launched the Express Fiber optic solution, providing precise subsurface measurements. This cost-effective technology is designed for routine cross-well monitoring, minimizing disruption to ongoing operations. Halliburton Company is one of the largest and most diversified oilfield services companies in the world. The company provides a wide range of services and solutions for the upstream oil and gas industry, including exploration, development, and production optimization.
• In January 2021, the U.S. Environmental Protection Agency (EPA) informed the Texas Commission on Environmental Quality that the state could assume federal oversight for regulating the discharge of produced water, provided it meets specific toxicity standards. This initiative is expected to drive the adoption of cleaner hydraulic fracturing practices.

Key Takeaways from Analyst

• With conventional reserves declining, there is a rising need to exploit unconventional reserves through hydraulic fracturing. This technique creates fractures in the deep rock formations by pumping fluid at high pressure, enabling extraction of oil and gas. North America remains the dominant region owing to extensive shale oil and gas reserves in the U.S. and Canada. However, the growth is expected to accelerate in the Middle East and Asia Pacific regions in the coming years.
• While the long-term demand outlook remains positive, the industry will face challenges from the increasing adoption of renewable energy sources and stricter environmental regulations surrounding groundwater contamination and induced seismicity. The oil price fluctuation also exerts downward pressure on investments by exploration and production companies. Nonetheless, technological advancements in fracturing techniques and ongoing productivity improvements could help boost recovery rates and lower costs, acting as a key opportunity.
• In conclusion, despite various challenges, the market will likely witness steady growth driven by the energy requirement and emphasis on reserve replenishment. While North America will continue dominance, regions with large unconventional reserves like the Middle East and Asia Pacific are poised for faster expansion to meet their increasing domestic demands. Overall, focus on sustainability and community engagement will be important for long-term viability of this industry.

Market Report Scope

Market Dynamics

Market Driver - Growing energy demand and the need for enhanced oil and gas recovery

With rapid urbanization and industrialization taking place all over the world, energy demand has been consistently rising year on year. Several developing and emerging countries like India, China, Brazil, etc. are witnessing high economic growth leading to increased energy consumption in different sectors like power generation, transportation, manufacturing, etc. At the same time many countries worldwide are striving to reduce dependency on imported fossil fuels and become more energy independent. Hydraulic fracturing helps in enhancing oil and gas production from tight reservoirs which were previously not considered to be economically feasible to extract from.

Market Challenge - Environmental concerns surrounding water usage and potential contamination

Hydraulic fracturing requires massive amounts of water, as high as 5 million gallons per fracturing site. The disposal of this contaminated water has led to major environmental concerns. There have been various reported cases such as The Environmental Protection Agency (EPA) conducted a study in Pavillion and found evidence of groundwater contamination linked to hydraulic fracturing. of water contamination of surface and groundwater from fracking fluid migration and spillages. Finding alternative water sources and ensuring proper treatment and disposal of produced water remains a key challenge for the industry. Transitioning to practices that minimize water usage and reuse produced water where possible would help address growing concerns around the sustainability of water resources.

Market Opportunity - Expansion of shale gas exploration in emerging markets

The expansion of shale gas exploration and production in emerging markets presents significant opportunities for growth in the market. Countries like China, Argentina, and South Africa have sizable shale reserves that are increasingly being tapped. As these nations seek to expand domestic energy production and replace coal with cleaner natural gas, the demand for fracking services and equipment is expected to rise tremendously. Global service companies such as Schlumberger and pressure pumping firms are actively pursuing opportunities in these new shale frontiers. However, the markets are still in nascent stages with considerable investments required in infrastructure and skilled workforce. 

Market Segmentation

•  Well Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Horizontal
  • Vertical
•  Technology Insights (Revenue, USD Bn, 2019 - 2031)
• • Plug & Perf
  • Sliding Sleeve
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Onshore
  • Offshore
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Halliburton Company
  • Schlumberger Limited
  • Baker Hughes Company
  • National Oilwell Varco, Inc.
  • Weatherford International plc
  • TechnipFMC plc
  • C&J Energy Services, Inc.
  • Superior Energy Services, Inc.
  • Calfrac Well Services Ltd.
  • RPC, Inc.
  • Frac Tech Services LLC
  • Keane Group, Inc.
  • Pioneer Energy Services Corp.
  • Nabors Industries Ltd.
  • ProPetro Holding Corp.