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Proppants Market by Type (Frac sand, Resin-coated proppants, Ceramic proppants), by Application (Shale gas, Tight gas, Coalbed methane, Others (including tight oil, deep gas etc.)), by Ceramic (High strength ceramic proppants, Intermediate strength ceramic proppants, Light weight ceramic proppants, Others (including ultra-light weight proppants, ultra-strength proppants etc.)), by North America (U.S., Canada), by Europe (Germany, UK, France, Italy, Spain, Russia, Rest of Europe), by Asia Pacific (China, India, Japan, Australia, Malaysia, Indonesia, South Korea, Rest of Asia Pacific), by Latin America (Brazil, Mexico, Argentina, Rest of Latin America), by MEA (Saudi Arabia, South Africa, UAE, Rest of MEA) Forecast 2025-2033
The size of the Proppants Market was valued at USD 8.58 billion in 2023 and is projected to reach USD 14.52 billion by 2032, with an expected CAGR of 7.8% during the forecast period. The proppants market is expanding due to the growing demand for hydraulic fracturing (fracking) in the oil and gas industry. Proppants are solid materials, such as sand, ceramic, or resin-coated particles, used to keep fractures in rock formations open during fracking, allowing oil and gas to flow more efficiently. The market is driven by the increasing exploration and production of shale gas and tight oil, particularly in North America. Innovations in proppant technology include the development of lightweight, high-strength ceramic proppants and resin-coated proppants that improve conductivity and well productivity. Additionally, advancements in proppant logistics and transportation are enhancing supply chain efficiency. However, the market faces challenges such as environmental concerns related to fracking, fluctuating oil prices, and the high cost of advanced proppants. Regulatory restrictions on hydraulic fracturing in certain regions also pose hurdles to market growth. Despite these challenges, the proppants market is expected to grow as energy demand increases and new technologies improve the efficiency and sustainability of hydraulic fracturing operations.
The proppants market is moderately concentrated, with several key players holding a significant market share. The industry is characterized by innovation, with companies constantly developing and improving their products to meet the changing needs of the end-users. Government regulations and product substitutes play a moderate role in shaping the market landscape, while end-user concentration is relatively low. The level of mergers and acquisitions (M&A) activity in the market is moderate, with companies seeking to expand their geographical reach and product offerings.
The proppants market is highly competitive, with numerous companies offering a wide range of products to meet the varied requirements of end-users. Leading market players include:
These companies are engaged in various strategies, such as capacity expansion, mergers and acquisitions, and research and development, to consolidate their position in the market.
In February 2024, Atlas Energy Solutions Inc. signed an agreement to acquire Hi Crush Inc.'s proppant production assets in the Permian Basin and its North American logistics operations. The deal is valued at $450 million. This acquisition strengthens Atlas Energy's position as a leading provider of proppants and related services to the oil and gas industry.
Aspects | Details |
---|---|
Study Period | 2019-2033 |
Base Year | 2024 |
Estimated Year | 2025 |
Forecast Period | 2025-2033 |
Historical Period | 2019-2024 |
Growth Rate | CAGR of 7.8% from 2019-2033 |
Segmentation |
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Note* : In applicable scenarios
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