Proppants Market Analysis

Global Proppants Market Overview

Proppants Market Size was valued at USD 8.5 Billion in 2022. The Proppants industry is projected to grow from USD 9.36 Billion in 2023 to USD 20.28 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.15% during the forecast period (2023 - 2032). Increased demand for proppants in the oil and gas sector due to new technological advancements and high demand for proppants in hydraulic fracturing are the key market drivers enhancing the market growth.Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Proppants Market Trends

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  Growing demand for unconventional oil & gas reserves is driving the market growth.

  
  

The rising demand for unconventional oil & gas reserves drives market CAGR for proppants. With conventional reserves becoming scarcer, the industry has shifted its focus toward unconventional sources, such as shale formations. These reserves require hydraulic fracturing techniques to extract hydrocarbons effectively. As a result, the demand for proppants has surged, creating a substantial market opportunity. The shale revolution in the countries has led to a significant expansion of hydraulic fracturing activities, consequently driving the demand for proppants.

The proppants market has witnessed notable technological advancements and product innovations, contributing to its growth and evolution. Manufacturers invest in research and development to enhance proppant characteristics, such as crush resistance, conductivity, and durability. These improvements aim to optimize well performance and increase hydrocarbon recovery rates. One key innovation in the proppants market is the development of resin-coated proppants. Coating proppant particles with a thin layer of resin significantly improves their crush resistance and conductivity. This coating acts as a barrier, preventing the flow back of fine particles and reducing the risk of proppant embedment in the formation. Resin-coated proppants offer better control over proppant placement and are increasingly preferred in high-stress reservoirs.

Moreover, advancements in manufacturing processes have resulted in the production of lightweight proppants. These proppants, made from ceramics or sintered bauxite, offer improved conductivity and can be transported more efficiently due to their lower bulk density. Lightweight proppants are gaining traction, especially in deep and ultra-deep reservoirs, where they help mitigate closure stresses and maintain fracture conductivity.

Environmental concerns surrounding hydraulic fracturing have prompted the industry to seek sustainable solutions, thus influencing the proppants market. The extraction process and the disposal of used proppants have raised concerns regarding water contamination and the generation of large volumes of waste. To address these challenges, manufacturers are developing environmentally friendly proppants. One such innovation is the introduction of recycled proppants. These proppants are produced from reclaimed materials, including used proppants, foundry sand, and other waste products. By reducing the consumption of natural resources, recycled proppants contribute to a more sustainable fracking process.

Furthermore, research is underway to explore alternative materials for proppants, such as ceramics and biodegradable polymers. These materials offer the potential for enhanced fracture conductivity while minimizing environmental impacts. The adoption of sustainable proppants aligns with the industry's increasing focus on corporate social responsibility and regulatory compliance, thus driving market growth.

As hydraulic fracturing activities expand globally, the demand for proppants continues to rise. Manufacturers respond to market needs by investing in research and development to improve proppant characteristics, leading to innovations such as resin-coated and lightweight proppants. Additionally, environmental concerns have spurred the development of sustainable proppants, including recycled materials and alternative options. By closely monitoring and adapting to these trends, industry stakeholders can position themselves for success in the dynamic proppants market, driving the Proppants market revenue.

Proppants Market Segment Insights

Proppants Product Type Insights

The Proppants market segmentation, based on product type, includes frac sand, resin-coated proppant, and ceramic proppant. The frac sand segment dominated the market due to its cost-effectiveness and abundance. It is composed of silica, providing the strength to withstand high pressure and temperature conditions. Sand proppants find extensive applications in the oil and gas industry, particularly in unconventional shale reservoirs. The growing exploration and production activities in regions such as North America have increased the demand for sand proppants.

Proppants Application Insights

The Proppants market segmentation, based on application, includes shale gas, tight gas, and coal bed methane. The shale gas segment category generated the most income. Shale gas extraction involves the hydraulic fracturing shale rock formations to release natural gas trapped within them. Proppants are injected into the fractures to hold them open, allowing the gas to flow to the wellbore. The demand for proppants in the shale gas application segment has been substantial, as hydraulic fracturing requires a large volume of proppants. The industry primarily uses frac sand as proppants due to its cost-effectiveness and compatibility with shale formations.

Figure 1: Proppants Market, by Application, 2022 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Proppants Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Proppants market area will dominate due to the extensive development of shale gas resources in the United States and Canada. The advent of advanced drilling techniques, such as horizontal drilling and multi-stage fracking, has significantly increased the demand for proppants in this region. Nevertheless, with abundant shale gas reserves and ongoing technological advancements, North America is expected to remain a key market for proppants.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: PROPPANTS MARKET SHARE BY REGION 2022 (USD Billion) Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Proppants market accounts for the second-largest market share due to the growing interest in shale gas exploration due to regulatory challenges, environmental concerns, and limited infrastructure. Nonetheless, as the region seeks to reduce its reliance on imported gas and diversify its energy sources, the demand for proppants is anticipated to rise in the coming years. Further, the German Proppants market held the largest market share, and the UK Proppants market was the fastest-growing market in the European region.

The Asia-Pacific Proppants Market is expected to grow at the fastest CAGR from 2023 to 2032. It is due to increased demand for proppants, primarily driven by the rapid growth of unconventional gas exploration. The increasing energy demand and favorable government policies in the countries are expected to drive the proppants market in the Asia Pacific region. Moreover, China’s Proppants market held the largest market share, and the Indian Proppants market was the fastest-growing market in the Asia-Pacific region.

Proppants Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Proppants market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The proppants industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Proppants industry to benefit clients and increase the market sector. In recent years, the Proppants industry has offered some of the most significant medical advantages. Major players in the Proppants market, including Carbo Ceramics Inc., COVIA, JSC Borovichi Refractories Plant, S. Silica Holdings Inc., Hi-Crush Inc., MineraçãoCurimbaba, XinmiWanli Industry' Development Co. Ltd., Atlas Sand Company, Llc, HEXION, Schlumberger Limited., and others, are attempting to increase market demand by investing in research and development operations.

Covia, previously known as Unimin, founded in 1970, and located in New Canaan, Connecticut, USA, is a corporation wholly owned subsidiary of the industrial minerals company of SCR, Belgium. It operates in the US, Mexico, and Canada mining and minerals processing facilities. Unimin merged with Santrol to become Covia in the year 2018. It is America's largest producer of non-metallic industrial minerals, quartz proppants, resin-coated proppants, etc. In December 2021, Covia, the leader in the proppants sector, announced that its Industrial Segment would adopt a price rise of up to 15% across all product lines beginning January 1, 2022. This step is important to assist in balancing sustained and considerable inflationary pressures in various sectors, including energy, steel, packaging, transportation, labor, resins, and additives. It will enable Covia to retain its service and value to industrial clients.

Select Sands Corporation, founded in 2006, and located in Vancouver, Canada, is a Canadian company that quarries and produces silica sand. The company sells them to industrial and energy customers. It was previously known as La Ronge Gold Corporation. In December 2019, Select Sands Corporation and Select Sands America Corp. designed a pact to supply proppants. Select sands will provide reliable and high-quality proppant to achieve the production results.

Key Companies in the Proppants market include

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  Carbo Ceramics Inc.

  
  


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  COVIA

  
  


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  JSC Borovichi Refractories Plant

  
  


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  S. Silica Holdings Inc.

  
  


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  Hi-Crush Inc.

  
  


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  MineraçãoCurimbaba

  
  


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  XinmiWanli Industry Development Co. Ltd.

  
  


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  Atlas Sand Company

  
  


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  Llc

  
  


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  HEXION

  
  


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  Schlumberger Ltd.

  
  

Proppants Industry Developments

March 2020: COVIA completed expanding its Canoitas facility in Mexico. The expansion will enable COVIA to add 350 tons of annual silica production capacity to support the growth of customers in Mexico.

March 2020: COVIA expanded the capabilities of its facility in North America to serve coating & polymers end-markets and create a highly efficient modern facility; the project cost was approximately USD 45 million.

May 2019: Hi-Crush Inc. acquired Proppant Logistics LLC, which owns Pronghorn Logistics LLC. The company provides end- to end-logistic services for proppants.

Proppants Market Segmentation

Proppants Product Type Outlook

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  Frac Sand

  
  


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  Resin-Coated Proppant

  
  


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  Ceramic Proppant

  
  

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  Shale Gas

  
  


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  Tight Gas

  
  


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  Coal Bed Methane

  
  

Proppants Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia  and New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America