Frac sand: Key market research highlights
- Advancements in oil extraction drives the market
- Increase in market consolidation amongst vendors
- Key vendors—Emerge Energy Services, Hi-Crush Partners, Northern Frac Proppants, and US Silica
Technavio’s market research analysts predict the global frac sand market to grow at a CAGR of more than 10% in terms of revenue between 2016 and 2020. Technological advances in the oil extraction process is the primary driver for the market. The introduction of hydraulic fracturing has transformed the oil and gas industry, especially in the US, thereby stimulating an increased demand for frac sand. In 2015, North America occupied more than 74% of the market space to dominate the global frac sand market. The market is flourishing in this region due to the abundance of shale plays in the US. The positioning of shale gas as an available source of natural gas is likely to boost the growth of the frac sand market in North America during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Increased market consolidation is the latest trend in the global frac sand market. Large operators in the market are procuring smaller companies in an attempt to widen their product portfolio and improve their capabilities in the market. This is beneficial in terms of revenue generation as well as maintaining a strong foothold in the competitive market. For instance, Gordon Brothers Group and Hilco Industrial, a unit of Hilco Global, acquired certain assets of Preferred Sands, including the Hanson Lake facility in Saskatoon, Saskatchewan, Canada,” says Abhay Sinha, Lead Analyst, New Coverage, Technavio Research.
The emergence of horizontal multistage fracturing is expected to reflect positively on the frac sand market globally in the coming years. Multistage hydraulic fracturing is the process of hydraulic fracturing in multiple stages in a horizontal well, starting at the end of the leg and finishing at the vertical part of the well. This approach is stimulating an increased demand for frac sand as it increases the volume of proppants needed per well. The increasing adoption of horizontal multistage fracturing will propel market growth in the global frac sand market by 2020.
The key vendors in the market are Emerge Energy Services, Hi-Crush Partners, Northern Frac Proppants, and US Silica. The global frac sand market is moderately fragmented due to the presence of a few large players in the market. However, market penetration is growing due to the consolidation of vendors. The competition in the market will intensify further with an increase in product and service extensions, technological innovations, and M&A. The international players are likely to grow inorganically by acquiring regional or local players.
A more detailed analysis is available in the Technavio report, Global Frac Sand Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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