Hydraulic Fracturing Market Is Estimated To Witness High Growth Owing To Growing Demand For Shale Gas

The hydraulic fracturing market is estimated to be valued at US$ 50.44 Bn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights.

The hydraulic fracturing market is witnessing significant growth due to growing demand for shale gas across the globe. Shale gas provides advantages such as clean-burning fuel source and cost effectiveness over coal and oil. Moreover, hydraulic fracturing technique recovers gas from shale rock formations located deep underground which were previously inaccessible. For instance, according to the U.S. Energy Information Administration, the United States is estimated to have approximately 2,457 trillion cubic feet of potential natural gas resources from shale formations as of January 2021. Additionally, increasing demand for crude oil is also boosting the hydraulic fracturing market growth as this technique is utilized for extraction of oil from tight formations.

Key Market Trends:

Two of the major trends in the hydraulic fracturing market are growing adoption of horizontal drilling technology and usage of environment-friendly fracturing fluids. Horizontal drilling allows extraction of oil & gas from a larger area with a single wellbore, thereby improving production efficiency. Also, it reduces surface footprint and disturbance. Further, growing focus toward utilization of cleaner fracturing fluids such as food-grade gels, compressed air, and liquid petroleum gas is helping reduce environmental footprint of hydraulic fracturing. For instance, in February 2022, Halliburton introduced Clean Stim technology that uses solid-state friction to generate high- pressures without use of water or chemicals. More coverage can be found in the sample copy.

Market Opportunities

Horizontal drilling allows operators to access unconventional oil and gas resources trapped in tight rock formations like shale. By drilling sideways instead of vertically, horizontal wells can contact a far greater length of the productive formation and extract more resource. This has helped unlock vast reserves of shale gas and tight oil. Around 150 words

Multistage fracturing techniques involve pumping fracturing fluid into the wellbore at multiple locations along the horizontal section of the well. This allows multiple fracturing stages along the well which increases production rates. Advances in multistage fracturing have been a game changer for shale development. Around 150 words

Key Market Takeaways

The global hydraulic fracturing market is anticipated to witness a CAGR of 6.1% during the forecast period 2024-2031, owing to increasing shale gas production.

On the basis of well type, horizontal wells are expected to hold the dominant position, accounting for over 70% market share by 2031, due to effective extraction of unconventional resources.

By technology, multistage fracturing is projected to be the leading segment over the forecast period, supported by increasing productivity through multiple fracturing stages.

Regionally, North America is expected to dominate the global market through 2031, driven by ongoing development of vast shale regions in the U.S. and Canada.

Key players operating in the global hydraulic fracturing market include Halliburton, Schlumberger, RPC Inc., Baker Hughes, a GE company, TechniFMC Inc., among others. These players are focusing on technological advancements to achieve operational efficiency.

Horizontal Wells segment is expected to hold a dominant position, accounting for over 70% market share by 2031.

Multistage fracturing technology is projected to be the leading segment through 2031.

North America is dominating the global market and will continue to do so through 2031, due to ongoing development of vast shale regions in the U.S. and Canada.

Competitor Insights:

Halliburton

Schlumberger

RPC INC

TechniFMC Inc

Baker Hughes

GE company

Recent Developments in Hydraulic Fracturing Market

The hydraulic fracturing industry outlook for 2023-2024 appears positive, driven by ongoing technology improvements that make operations more efficient, economical, and environmentally responsible. Reduced costs through advanced drilling, water reuse, and multi-well development will support stability amid any potential volatility in oil and gas commodity prices. Real-time monitoring and automation are helping optimize production from every well.

While challenges persist domestically around permitting and community concerns, as well as internationally from political risks, ongoing innovation will remain the catalyst propelling hydraulic fracturing forward to unlock critical energy supplies globally in the years ahead. Full coverage of the report available here.