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The global hydraulic fracturing market size valued at USD 37.23 Billion in 2018 is projected to reach USD 71.72 Billion by 2026, exhibiting a CAGR of 8.69% during the forecast period.
Fossil fuel is one of the quintessential sources of energy in the global energy scenario. Limited reserves of oil and gas and incessant exploration and production of crude oil have impacted the prices of hydrocarbon on the global platform. Energy security is utmost in the economic development of any country. Hydraulic fracturing or fracking service has been used by many countries in the extraction of shale gas.
Unlike conventional fuel which is predominantly concentrated to a few regions of the globe, shale gas can be exploited in numerous countries. It is a unique opportunity to shore up their supplies and limit their dependence on energy imports in times of geopolitical uncertainty. It is highly crucial for countries with massive energy needs and high consumption. Modern hydraulic fracturing combined with horizontal drilling allows multiple wells to be drilled from one spot reducing the size of drilled area along with the cost of drilling.
The technology has been helping to lower power and material costs along with stimulating economic activity for a variety of businesses such as service and supply companies. Hydraulic fracturing has supported growth across those economy that struggled over the years.
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According to the U.S. Energy Department, up to 95% of new wells drilled today are hydraulically fractured, accounting for two-thirds of the total U.S. marketed natural gas production and about half of the total U.S. crude oil production. Fracking has unlocked shale and other tight rock formations to produce an American energy renaissance that has seen a dramatic reduction of oil imports while shifting America from needing to import natural gas to potentially rank as one of the world’s leading natural gas exporters. Fracking is the backbone of an energy renaissance that’s making the U.S. more prosperous and safer in the world today.
“Increasing exploration and production of unconventional gas leading to the rapid growth of hydraulic fracturing”
The global energy outlook is on the verge of changing traditional exploration to assessing quintessential unconventional gas, such as shale gas, tight gas, coal bed methane gas, etc. The U.S. is massively investing in exploring a substantial amount of unconventional gas by the application of hydraulic fracturing. The technology has been used to explore reserves of unconventional gas. The dormant exploration and production of shale gas coupled with increasing investments are propelling the global hydraulic fracturing market growth.
“Enormous potential to get an ample amount of energy reserves.”
Unconventional gas reserves provide enough amount of energy reserves to cater to the massive demand for energy due to high potential in exploration and production of shale and tight gas. Natural gas production by fracking has been so effective that the global prices of crude oil have plunged, giving consumers and the industry a financial break.
Several countries are in a nascent stage to fully develop the exploration and production of unconventional gas, which in turn, creates energy security and jobs. Also the shifting trend towards developing a more secure and enhanced method to acquire extensive amount of oil and gas is anticipating the growth of hydraulic fracturing. The technology not only assists in meeting the growing demand for energy but also produces value-added services by generating jobs.
“Ability to extract multiple hydrocarbon reserves to propel horizontal well type.”
On the basis of well type, the hydraulic fracturing market can be segmented into horizontal well and vertical well. Horizontal drilling opened up very deep rock formations that were previously inaccessible, by using vertical drilling.
Horizontal fracturing has been used since the last couple of decades due to its stupendous advantages. By using this type of technology, multiple numbers of hydrocarbon reserves can be extracted from a single wellhead resulting in the avoidance of unnecessary drilling. It not only reduces the overall product cost but also helps to mitigate the rising carbon emission.
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“Plug & Perf is one most commonly used and established technology used across the world”
On the basis of technology, the hydraulic fracturing market can be segmented into plug & perf and sliding sleeve.
Plug & perf is the most common technology used in the field of hydraulic fracturing across the world owing to ease of operation and competitive cost. It not only ensures the performance of well for higher production but also cuts down the production cost. However, the sliding sleeve sub-segment is in the nascent stage and still requires research and development which is boosting the growth of plug & perf technology across the world.
“Incessant investment in exploration to fuel onshore hydraulic fracturing”
Several companies and government entities are primarily investing in onshore exploration due to feasible operational accessibility. The availability of advanced technology and competitive cost for onshore drilling are the major factors for the growth of onshore hydraulic fracturing. However, there is a lot of potential in offshore hydraulic fracturing due to unexplored region and vast availability of hydrocarbon. In the upcoming years, offshore hydraulic fracturing is likely to gain significant market of hydraulic fracturing share.
The hydraulic fracturing market scenario in the U.S is quite interesting with immense exploration activities and massive investment. The combination of industry standards, best practices, effective state, and federal regulation is protecting communities and the environment. In addition, it will increase the production of natural gas allowing U.S. to lead the global natural gas market. Therefore, ongoing development and persistent investment in the extraction of unconventional gas are driving the hydraulic fracturing market in the U.S. In the current scenario.
Chinese energy giants are making progress in unlocking natural gas from the shale rock formation, taking a step towards replicating the shale revolution of the U.S. Over the years, China has developed homegrown drilling technology which slashed the cost of drilling exploration wells by 40%.
Several countries have been using hydraulic fracturing to acquire a large number of energy reserves, such as Canada, Argentina, Russia, Australia, China, etc. Hydraulic fracturing is mainly used in the U.S. followed by Canada and the other remaining countries. The policies, rules, and regulations in these countries are well-drafted to support the energy security which in turn support the fracking activities in this region.
The global outlook of hydraulic fracturing is severely hampered by several communal issues such as lack of political will power, agitation against hydraulic fracturing, opposition from people and more. Fracking can be made available in banned countries only by integrating the government bodies with locals through awareness program.
“Halliburton continues to be an undisputed market leader of hydraulic fracturing”
Several companies around the world are providing hydraulic fracturing services. Halliburton is the world’s largest oilfield services company and it continues to dominate the global hydraulic fracturing market. The company continues to focus on offering world-class services to its customers across the globe. At the same time, various other companies are operating worldwide which include Baker Hughes, a GE Company, Schlumberger, Weatherford, and FTS International among the market leaders.
The unique factor about natural gas that is released by fracking is the availability of it in huge amount i.e. it is potentially available. Natural gas resources that were known about but considered unreachable suddenly became available for commercial purposes. Fracking has significantly helped to minimize the cost of gas for residential, commercial, and industrial purpose.
Shale gas, being an indigenous energy resource can provide energy security and create job opportunities in many countries at present, depending on imports of the energy supplies. This has important implications for regions with high natural gas cost, such as Asia and Europe. Therefore, by application of fracking, many countries can mitigate their dependence on energy imports and produce their energy demand.
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Along with this, the report provides an elaborative analysis of the global hydraulic fracturing market dynamics and competitive landscape. Various key insights presented in the report are the investment trend analysis, recent industry developments in the global market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key retail industry trends, competitive landscape and company profiles.
Value (USD Billion)
By Well Type
Fortune Business Insights says that the hydraulic fracturing market was valued at USD 37.23 Bn in 2018.
The global hydraulic fracturing is projected to reach USD 71.72 Bn in 2026.
Growing at a CAGR of 8.69%, the hydraulic fracturing market will exhibit steady growth in the forecast period (2019-2026).
The hydraulic fracturing market in the Asia Pacific was valued at USD 26.41 Bn in 2018
Horizontal well is expected to lead the hydraulic fracturing market during the forecast period.
Driver- Massive investment by major oil giants in exploring unexplored hydrocarbon reserves is projected to drive the hydraulic fracturing market. Restraint- Hydraulic fracturing causes severe environmental issues and opposition from community which retarding the growth of the hydraulic fracturing market.
Halliburton, Baker Hughes, a GE company, Schlumberger, Weatherford, and FTS International among others are the top companies in the hydraulic fracturing market.
Hydraulic fracturing allows the exploration of inaccessible hydrocarbon reserves and provide abundant source of unconventional gas energy which specifies its importance in oil and gas industry.