North America Will Significantly Leverage the Global Frac Sand Market until 2020 Due to Abundant Resources, Says Technavio

June 2, 2016

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LONDON–(BUSINESS WIRE)–According to the latest market research report by Technavio, the global frac sand market is expected to grow at a CAGR of more than 10% until 2020.

In this report, Technavio covers the present scenario and growth prospects of the global frac sand market for 2016-2020. This report provides a list of vendors across all geographical regions that are active in providing frac sand. Vendors are identified based on their revenue and market dominance in terms of experience, geographical presence, product portfolio, financials, and R&D.

“Sourcing frac sand from Mexico is an emerging trend in the international market. The proximity of Mexico to oil plays in Texas, a leading location of oil drilling, favors the Mexico market. Frac sand prices and delivery times have increased substantially due to logistics limitations. The frac sand plants in Mexico will resolve these logistics limitation to a great extent over the course of the forecast period,” said Abhay Sinha, one of Technavio’s lead industry analysts.

Global frac sand market by geography (revenue) 2015 (%)

 

North America

    73.50%

APAC

11.50%

Europe

10.25%

ROW

4.75%
 

Source: Technavio research

 

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Frac sand market in North America: largest region

The frac sand market in North America is in the growth stage. North America is the largest consumer of proppants and accounted for 73.5% of the global frac sand market in 2015. The market in the region will grow in the future, mainly because of the positioning of shale gas as an available source of natural gas.

The US is the dominating country in North America in terms of production as well as consumption, and it is followed by Canada. The abundance of shale plays in the US makes it a shale-rich country. So, the growth in the shale oil industry in the country will likely generate a strong demand for frac sand. Texas, Wisconsin, Minnesota, and Illinois are the key shale sources in the US.

Frac sand market in APAC: second-largest region

The frac sand market in APAC is in its early growth stage. The volume consumption was 5.7 million MT in 2015, and it will reach 9.08 million MT by 2020. The frac sand market in APAC will grow because of the presence of large shale gas reserves and an increasing number of hydraulic fracturing projects in China and shale gas extraction projects in India. China has the largest recoverable shale gas reserves in the world and has started conducting horizontal drilling and hydraulic fracturing on a large scale.

Frac sand market in Europe

The frac sand market in Europe is in the early growth stage. The volume consumption was 4.52 million MT in 2015, and it will reach 7 million MT by 2020. Several European countries such as the UK, Poland, Lithuania, and Ukraine are planning to explore shale gas reserves, which will increase the demand for frac sand and other proppants. The UK and Poland are the two key countries in Europe for shale gas development. One-third of the energy demand from the UK is met by gas. In 2013, around a quarter of the gas used in the UK was used to produce electricity. Shale gas and oil can offer the UK greater energy security, growth, jobs, and tax revenues. However, the hydraulic fracturing technique increases various environmental risks.

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