North and Central America Proppant demand is estimated to surpass US$ 1.1 Bn by 2022. The sales in the market is expected to total US$ 1.86 Bn by the end of 2032, rising at a remarkable CAGR of 14% during the forecast period 2022-2032. The growth in the market is driven by the improvement in fracturing techniques and growing demand for oil & gas in the U.S. and Canada.
| Report Attribute | Details |
|---|---|
| Estimated Base Year Value (2021) | US$ 0.9 Billion |
| Expected Market Value (2022) | US$ 1.1 Billion |
| Anticipated Forecast Value (2032) | US$ 1.86 Billion |
| Projected Growth Rate (2022 to 2032) | 14% CAGR |
Proppants are solid material, typically sand, man-made ceramic materials, or treated sand used for keeping an induced hydraulic fracture open, during the fracturing treatment. Hydraulic fracturing is a process that involves injecting sand, water, and chemicals into the well under a highly controlled condition to fracture solid rocks and release trapped gas deposits. As proppants assist in keeping the fissures open in shale rock, they are increasing being used in hydraulic fracturing operations, thereby facilitating the demand in the market.
Rising introduction of multi-stage fracturing techniques has resulted in increasing number of fracturing stages per well, which is in turn, increasing the consumption of proppants. In addition, growing number of shale gas and crude oil exploration activities across the U.S. and Canada is projected to augment the sales in the North and Central America proppant market.
With surging demand for fossil fuel products such as gasoline, natural gas, diesel, and others worldwide, governments in several countries are emphasizing on increasing the production of crude oil and natural gas. For instance, according to the Energy Information Administration (EIA), the production of natural gas and crude oil has increased 9.8% and 12.7% respectively in 2019 in comparison to 2018.
This is encouraging oil & gas industry players of increasing hydraulic fracturing activities for increasing the production of natural gas and shale gas, which is in turn, creating lucrative growth opportunities in the market.
Also, increasing oil & gas exploration activities and the discovery of new fossil fuel reserves are driving the growth in the market. For instance, in 2019, the U.S. Government announced the discovering new fossil fuel reserves in New Mexico, North Dakota, Texas, and with barrels capacity of 1.1 billion, 0.7 billion, and 3.5 billion, respectively in 2019. As proppants are extensively used in oil & gas wells, such developments are estimated to bolster the sale of proppants in the market.
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Although hydraulic fracturing activities are not carbon-intensive processes, they still poses a significant threat to the environment causing small earthquakes and methane leaks during the process. It also causes a hazardous impact on the soil quality and contaminates the groundwater reserves due to the use of large amounts of toxic chemicals in the process.
Thus, with rising concerns pertaining to environmental sustainability, governments in the region are increasingly implementing numerous stringent regulations for declining hydraulic fracturing activities, which is in turn, hampering the growth in the North and Central America Proppant market.
As per FMI, the U.S. is projected to continue dominating the North and Central America proppant market between 2022 and 2032.
The U.S. Government is extensively focusing on implementing numerous subsidies and tax exemptions to promote and increase the production of fossil fuel the country. According to the Environmental and Energy Study Institute, every year, the U.S. provides nearly US$ 20 Bn worth of direct subsidies to the fossil fuel industry, with 80% allocated to crude oil and natural gas, for encouraging domestic energy production. These initiatives are expected to fuel the demand for proppants in the U.S.
Also, leading players in the market are increasingly aiming to expand their production capacity to meet the surging demand for proppant. For instance, in 2019, the U.S. Silica, a global industrial minerals and logistics company, announced acquiring a former ceramic proppant manufacturing facility in Georgia, U.S., to increase the production of high-end products such as proppant. A multiplicity of such developments are forecast to accelerate the growth in the U.S. market.
Principal Consultant
Future Market Insights states that Canada is anticipated to account for a significant share in the North and Central America proppant market over the forecast period 2022-2032.
Growing government emphasis on increasing the production of crude oil and gas is the primary factor favoring the growth in the market. According to the Natural Resource Canada, the Government in Canada aims to increase the production of tight and shale gas to represent nearly 80% of the country’s total natural gas production by 2035.
In addition to this, increasing hydraulic fracturing activities in more than 130 active drilling rigs across Alberta, British Colombia, Manitoba, and Saskatchewan in the country is expected to bolster the sales of proppant in the Canada market.
Some of the leading players in the North and Central America proppant market are U.S. Silica, Carbo Ceramics, and Hi Crush LP Partners. Key participant are aiming at innovation in proppants technologies and expanding their production capacity to gain edge in the highly competitive market.
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| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 14% from 2022 to 2032 |
| Base Year for Estimation | 2021 |
| Historical Data | 2015 to 2020 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | Revenue in USD Billion, Volume in Kilotons and CAGR from 2022 to 2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered |
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| Countries Covered |
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| Key Companies Profiled |
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| Customization | Available Upon Request |
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FMI projects the North and Central America proppant market to expand at 14% value CAGR by 2032
The FMI projects the North and Central America proppant market to expand at 14% value CAGR by 2032 North and Central America proppant market is dominated by the U.S., and this trend is projected to continue in the foreseeable future.
U.S. Silica, Carbo Ceramics, Hi Crush LP Partners, and others are among the major participants in the North and Central America proppant market.
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North and Central America Proppant Market
