Proppants Market - By Type, By Application, By Ceramic & Forecast, 2024 – 2032

Proppants Market Size

The global proppants market was valued at around USD 8.5 billion in 2023 and is anticipated to register a CAGR of over 7.8% between 2024 and 2032. The demand for proppants in the oil and gas industry is primarily driven by the increasing development of unconventional oil and gas resources, such as shale formations, which require hydraulic fracturing for extraction.
 

The surge in hydraulic fracturing activities globally, especially in North America, necessitates the use of proppants to keep fractures open and enhance hydrocarbon flow. Additionally, advances in proppant technology, including the development of higher strength and more conductive materials, further boost their effectiveness and appeal. Environmental regulations are also pushing for cleaner and more sustainable proppant solutions, expanding the market. Lastly, the rise in energy demand worldwide solidifies the need for efficient extraction methods, underpinning the robust growth in proppant demand. Thus, the market is expected to attain a market value of over USD 17.4 billion by 2032.

Environmental concerns and regulatory challenges present significant pitfalls for the proppants market, primarily due to the association with hydraulic fracturing (fracking) operations. Fracking, which uses proppants to keep fractures open in rock formations, has raised concerns over water contamination, excessive water use, and induced seismic activity. These environmental issues have prompted stricter regulations and even bans on fracking in several regions globally. As a result, companies in the market face operational restrictions, increased compliance costs, and potentially reduced market opportunities, especially in environmentally sensitive areas where fracking might pose significant risks to local ecosystems and water resources.
 

Proppants Market Trends

The market is witnessing several key trends that are shaping its growth and development. Increased efficiency in hydraulic fracturing technology is driving demand for specialized proppants that offer higher strength and better conductivity. There is a growing preference for environmentally friendly proppants, such as those that minimize silica dust or use less water during the fracking process. The proppants industry is also seeing a trend towards the development of innovative proppants that enhance hydrocarbon recovery and reduce overall production costs. Additionally, geopolitical factors and energy policies are influencing the global supply chain and pricing strategies, as countries seek energy independence and more sustainable extraction practices. These trends are crucial in guiding market strategies and investment decisions in the proppants industry.
 

Proppants Market Analysis

Based on type, the market is divided into frac sand, resin-coated proppants, and ceramic proppants. Frac sand type held the dominant market share of 4.7 billion in 2023 and is expected to reach USD 9.5 billion by 2032. Frac sand is the most used type of proppant due to its cost-effectiveness and high availability. In hydraulic fracturing, frac sand is favored for its ability to withstand high pressures and maintain the integrity of fractures in the rock formation, facilitating the extraction of oil and natural gas. Its relatively simple production process and lower cost compared to alternatives like ceramic and resin-coated proppants make it a popular choice among oilfield service companies, particularly in resource-rich regions such as North America.
 

Based on application, the market is categorized into shale gas, tight gas, coalbed methane and others. Shale gas application accounted for 39% market share in 2023 and is projected to grow through 2032. Shale gas is the leading application segment in the market as it requires the use of proppants to extract gas from fine-grained sedimentary rocks. The growth in the shale gas market is driven by the increasing demand for natural gas as a cleaner alternative to coal and oil, particularly in power generation. Shale gas production relies heavily on hydraulic fracturing, where proppants are essential to keep the shale formations open and allow gas to flow, thus driving significant demand for proppants.
 

Based on ceramic, the proppants market is categorized into high strength ceramic proppants, intermediate strength ceramic proppants, light weight ceramic proppants and other. Intermediate strength ceramic proppants accounted for major market share in 2023 and is projected to grow through 2032. Intermediate strength ceramic proppants are predominant in scenarios where higher performance than frac sand is required but where the highest strength ceramic proppants may not be economically justified. These proppants are engineered to perform under moderate to high pressure conditions prevalent in deeper well applications, offering a balance between cost and performance. Their ability to enhance hydrocarbon recovery more efficiently than frac sand, while being more cost-effective than higher-grade ceramic options, makes them a favorable choice in both mature and emerging markets.
 

North America dominated the global proppants market in 2023. It generated a revenue of USD 3.3 billion in 2023 and is expected to reach USD 6.7 billion by 2032. North America dominates the market due to its pioneering and extensive implementation of hydraulic fracturing, especially in the extraction of shale gas and oil. The region is home to some of the world's largest shale formations, like the Permian Basin and the Marcellus Shale, which have substantial reserves of oil and natural gas. Advanced drilling technologies, robust investment in unconventional oil and gas exploration, and a favorable regulatory environment have facilitated the growth of fracking activities. Additionally, the local presence of leading oilfield service companies and proppant manufacturers reduces logistics costs and operational complexities, further boosting the market.
 

Within North America, the United States is the predominant country in the proppants industry. It leads due to its extensive shale reserves and high volume of drilling and completion activities. The U.S. has advanced significantly in both technology and production capacities, making it a global leader in both natural gas and oil production from shale formations. The country's regulatory policies generally support the development of its oil and gas sectors, and its technological capabilities in hydraulic fracturing set a benchmark globally. The high demand for energy and the continuous innovation in fracking practices sustain the U.S.'s dominant position in the global market.
 

Proppants Market Share

The market is competitive, with many leading companies specializing in different types of proppants for the hydraulic fracturing industry. Companies like Badger Mining Corporation, Carbo Ceramics, Inc., and Saint-Gobain Proppants are known for their high-quality ceramic proppants, essential for high-pressure and deep well operations. Covia and Fairmount Santrol Holdings Inc. supply a wide range of proppants, including frac sand, which is popular due to its cost-effectiveness and efficiency in many shale plays. Each company has established a strong presence by offering products that balance performance and cost, suitable for the tough conditions of oil and gas extraction.
 

Emerge Energy Services LP and Hi-Crush Inc. focus on producing and distributing silica sand proppants, which are in high demand in U.S. shale regions. On the chemical side, Hexion, Inc. and Momentive Specialty Chemicals Inc. lead in developing resin-coated proppants, which offer benefits like better flowback control and increased conductivity. These companies drive technological advancements in the market. International players like China GngSheng Minerals, Inc. expand the market's reach and competitive dynamics, contributing to the global supply chain and influencing pricing and technology trends. This competitive environment ensures continuous improvements in product quality and cost efficiency, meeting global energy sector demands.
 

Proppants Market Companies

Major players operating in the proppants industry include:

• Badger Mining Corporation
• Carbo Ceramics, Inc.
• China GngSheng Minerals, Inc.
• Covia
• Emerge Energy Services LP
• Fairmount Santrol Holdings Inc.
• Hexion, Inc.
• Hi-Crush Inc.
• Momentive Specialty Chemicals Inc.
• Saint-Gobain Proppants
   

Proppants Industry News

• In February 2024, Atlas Energy Solutions Inc. has signed an agreement to buy Hi Crush Inc.'s proppant production assets in the Permian Basin and its North American logistics operations. The deal is valued at $450 million.
   

The proppants market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Billion) (Kilo Tons) from 2021 to 2032, for the following segments:

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Market, By Type

• Frac sand
• Resin-coated proppants
• Ceramic proppants

Market, By Application

• Shale gas
• Tight gas
• Coalbed methane
• Others (including tight oil, deep gas etc.)

Market, By Ceramic

• High strength ceramic proppants
• Intermediate strength ceramic proppants
• Light weight ceramic proppants
• Others (including ultra-light weight proppants, ultra-strength proppants etc.)

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Malaysia
  • Indonesia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA