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The global fracking fluids and chemicals market is expected to register a growth of 11.2% between 2021 and 2025. Domestic and industrial fuel usage demand is expected to boost the demand for fracking fluids and chemicals.
Fracking is required to explore unconventional gas potential. The struggle for energy independence is a boost for the fracking fluids and chemicals market. All countries want to establish energy security and energy independence. Most of the public and government agencies are shifting towards natural gas. This includes moving vehicles on imported fuels to cheaper natural gas, and this would also drive the growth for chemicals, pharmaceuticals and fertilizers.
Due to fracking, there is a rising concern of water usage in limited supply regions and contamination, including environmental hazards. The foam-based fluids can be used by industries to address these concerns. The maximum market share of 86% in the global fracking fluids market was from North America. Many new reserves are explored to increase the production rate of oil and gas wells, and companies have a high technological advancement degree. After the completion of oil and gas reserves, fracking fluids and chemicals are used for hydraulic fracturing. The blend of fluids and chemicals is used to fracture the conventional or non-conventional oil and gas reserves formation and stimulate oil and gas production. With hydraulic fracturing, it is possible to efficiently extract oil and gas from older gas fields and high production rate. Moreover, hydraulic fracturing is used to extract gas and oil from extreme geological formations that were earlier impossible. The oil and gas extraction from shale in different parts of the world will drive fracking fluids and chemicals.
The global leader for the fracking fluids and chemicals market is North America. Fracking activities for oil and gas reserves have driven the growth of fracking fluids in the North American subcontinent. The United States in North America is the dominant country in the market for fracking fluids and chemicals as the extraction of oil and gas from shale is quite high. This market continues to grow as fracking activities consume huge quantities of fracking fluids and chemicals. There are significant gas shale gas reserves in China and Indonesia, but the fracking activity is currently low in this region.
In Asia, there are unconventional gas reserves, and the activities for the development and extraction of oil is projected to increase, thereby driving the growth of fracking fluids and chemicals in this region of the world. The cost, technical complexity based on the geological condition and the effect on the environment decide the type of fracking fluids used to extract oil and gas. The most common type of fracking fluids used due to its various applications and cost-effectiveness is the water-based fluid. Due to increased environmental concerns and damages to the ecosystem, gelled oil-based fluids are used, and their demand will surge in the coming years. As fracturing can be used to recover oil and gas from older wells, the fracking fluid, and chemicals market is expected to be driven due to higher production rate.
The challenges that need to be addressed to flourish globally include water contamination and other geological factors. As there is a surge in demand for energy in countries worldwide, the fracking fluids and chemical market are set to exhibit a growth rate. In improving the final product's yield and quality, fracking fluids and chemicals play a crucial role. Due to rapid rise in oil exploration activities globally, growth is there for the fracking fluids and chemicals market. Many opportunities will be created in this market due to the adoption of natural gas by many countries. As a result of these factors, the global fracking fluids and chemicals market will project a growth rate of 10% over the forecast period from 2020 to 2030. But due to stringent environmental and government restrictions, the market for fracking fluids and chemicals may slow down shortly. Moreover, horizontal drilling of wells for oil extraction is witnessing an increased demand compared to the last decade. Horizontal fracking requires many fracking fluids and chemicals as compared to vertical drilling. Also, horizontal drilling has very less impact on the environment as compared to vertical fracking. Thus, there is a significant demand for fracking fluids and chemicals due to such factors and reasons. Moreover, companies can extract a large amount of oil from horizontal drilling as compared to vertical drilling of more than a dozen wells.
Key Market Players
The following are the key market players:
Market Segmentation of Fracking Fluids and Chemicals Market
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