Hydraulic Fracturing Market by Well Type (Horizontal Well, and Vertical Well), Technology (Plug and Perf, and Sliding Sleeve), Application (Shale gas, Tight Oil, and Tight gas) and Region - Global Trends and Forecast to 2028
[256 Pages Report] The global hydraulic fracturing market is estimated to grow from USD 52.1 billion in 2023 to USD 74.4 billion by 2028; it is expected to record a CAGR of 7.4% during the forecast period. Recently regions have witnessed that crude oil prices are gaining momentum again. The upstream companies are optimistic about the long-term recovery of oil and natural gas, thereby leading to a surge in demand for hydraulic fracturing services.
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Hydraulic Fracturing Market Dynamics
Driver: Growing demand for hydraulic fracturing technology with increasing requirement for energy
According to the IEA, global energy demand is set to increase by 5.4% in 2021, despite a decline of 4% in 2020 owing to the COVID-19 crisis. By 2026, global oil consumption is projected to reach 104.1 mb/d. This would represent an increase of 4.4 mb/d from the 2019 level. Oil demand in 2025 is expected to be 2.5 mb/d lower than 2020, according to a report by IEA. In addition, Asia Pacific is expected to be the largest consumer of oil and gas in the next decade. The region is witnessing a rapid increase in demand for oil and gas in recent years attributed to the growing population, increased per capita income, urbanization, and growth in the number of petrochemical refineries. The region, on average, accounted for about two-thirds of the global oil and gas demand between 2011 and 2019.
The increasing supply-demand gap for primary energy sources is one of the leading factors driving the growth of the hydraulic fracturing market, as the demand for oil and gas is constantly growing, and the production capacities of the related reserves are limited. Unconventional gas accounts for 44% of total natural gas production, out of which shale gas represents 28% of unconventional gas sources. While Eastern Europe, Eurasia (including Russia), and the Middle East are estimated to hold 61% of conventional gas, these regions account for only 16.6% of unconventional gas; all the other regions have a larger proportion of conventional gas as compared with unconventional gas. Due to this distribution, the development of unconventional gas reserves will create a shift in the global energy supply. As onshore and shallow water fields are depleting, oil companies are focusing on deepwater and unconventional reserves, where hydraulic fracturing is expected to be an ideal technique for exploration and production.
Restraint: Local ban and suspensions on hydraulic fracturing
Various landowners or residents belonging to shale-rich areas have expressed their opposition to extracting hydrocarbons using hydraulic fracturing, citing potential environmental impacts. As a result, the process has come under international scrutiny. A few countries, including France, which has significant shale reserves, have banned fracturing. Moreover, the government of California has initiated a regulatory action to end the issuance of new permits for hydraulic fracturing (fracking) by January 2024. Additionally, the California Air Resources Board (CARB) is aiming to phase out oil extraction across the state by 2045.
Hydraulic fracturing is primarily regulated by state oil and natural gas commissions and agencies. Some states have already adopted, and others are considering, new or stricter regulations pertaining to permitting, disclosure, or well construction for fracking operations. Certain states are even contemplating banning high-volume hydraulic fracturing altogether. Apart from state laws, local land-use restrictions can also restrict drilling or hydraulic fracturing activities. Municipalities may establish ordinances aiming to either prohibit fracking entirely or regulate the time, location, and method of these processes within their jurisdictions. In addition, the federal government can limit hydraulic fracturing activities on federal lands through permitting. In Australia, the Tasmanian government extended its moratorium on fracking from 2020 to 2025. In Western Australia, 98% of the land is protected from fracking due to strict regulations, including those that prohibit fracking within two kilometers of public drinking water sources, towns, and national parks. A few countries, such as Bulgaria and Germany, have extended moratoriums on fracking.
Opportunities: Capability of foams of providing waterless fracking
Foams, with their advantageous qualities like high viscosity and low liquid content, have extensive applications in various processes within the petroleum industry. They offer a viable alternative to traditional fracturing methods by consuming less water, thus addressing environmental concerns associated with fracturing operations. Fracturing constitutes a significant portion (about 89%) of the total water usage in well drilling, creating an opportunity for companies to integrate waterless fracking solutions into their offerings and gain a larger market share. Foams are prepared by dispersing a large internal volume (55–95%) through the liquid phase under a typical formation temperature of 90°F (32.2°C). The internal phase normally contains N2 or CO2 gases.
Challenges: Disruptions in hydraulic fracturing operations and demand shock
The propagation of the COVID-19 pandemic has slowed down the growth of various industries. The outbreak of the pandemic led to a significant reduction in oil and gas demand due to widespread global lockdowns. As of May 28, 2020, 212 countries were affected, resulting in decreased transportation and related activities. The International Energy Agency (IEA) reported that geopolitical events increased the supply of low-priced oil while demand declined due to the pandemic, causing oil prices to collapse in March 2020. These factors negatively impacted the demand for oil, natural gas, and hydraulic fracturing services and products, leading to price fluctuations in the oil market. The government's measures to contain the virus further affected the global oil and gas industry. As of December 31, 2019, West Texas Intermediate’s (WTI) oil price was USD 61.1, and by March 23, 2020, it was USD 23.4, a decline of more than 60.0%. As of April 2020, OPEC and other oil-producing countries had agreed to reduce oil production by 10 million bpd, which is about 23.0% of their production levels.
Hydraulic fracturing Market Ecosystem
In this market, prominent companies stand out as well-established and financially stable providers of hydraulic fracturing products and services. With years of experience, these companies boast a diverse product portfolio, cutting-edge technologies, and robust global sales and marketing networks. Their proven track record in the industry positions them as reliable and trusted partners for customers seeking hydraulic fracturing solutions. These companies have demonstrated their ability to adapt to market dynamics and consistently deliver high-quality products and services, making them leaders in meeting the demands of the oil and gas sector. Prominent companies in this market include Halliburton (US), Schlumberger (US), Liberty Oilfield Services LLC (US), Baker Hughes (US), and NexTier Oilfield Solutions (US).
The sliding sleeve segment, by technology, is expected to be the second-largest market during the forecast period.
This report segments the hydraulic fracturing market based on technology into different types: plug & perf and sliding sleeve. The sliding sleeve segment is expected to be the second-largest market during the forecast period. Sliding sleeve technology is a critical component in hydraulic fracturing operations. It allows operators to selectively open or close downhole ports in the wellbore, facilitating precise and controlled fracturing stages. This innovation enhances efficiency, reduces costs, and optimizes the overall effectiveness of hydraulic fracturing processes.
By application, tight oil is expected to be the second fastest growing during the forecast period.
This report segments the hydraulic fracturing market based on application into three segments: shale gas, tight oil, and tight gas. Hydraulic fracturing is the key technique for extracting tight oil, which can be further processed into gasoline, diesel, and jet fuels. The surge in tight oil production is driven by a combination of horizontal drilling and hydraulic fracturing. Technological advancements have significantly improved the profitability and economic feasibility of recovering tight oil from its resource base.
“North America: The largest in the hydraulic fracturing market.”
North America is expected to be the largest region in the hydraulic fracturing market between 2023–2028, followed by the Asia Pacific and Latin America. North America has been leading the hydraulic fracturing market. Unconventional gas production in North America is responsible for high growth in the sector, giving opportunities to oilfield companies for fracturing in this region. Growing environmental concerns have raised the importance of natural gas, which, in turn, has increased the demand for hydraulic fracturing. Hydraulic fracturing plays a vital role in increasing a well’s productivity.
Key Market Players
The hydraulic fracturing market is dominated by a few major players that have a wide regional presence. The major players in the hydraulic fracturing market include Halliburton (US), Schlumberger (US), Liberty Oilfield Services LLC (US), Baker Hughes (US), and NexTier Oilfield Solutions (US). Between 2018 and 2023, Strategies such as contracts, agreements, acquisitions, and expansions are followed by these companies to capture a larger share of the hydraulic fracturing market.
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Report Metric |
Details |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million/USD Billion) |
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Segments Covered |
Hydraulic fracturing market by well type, Technology, Application, and Region. |
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Geographies covered |
Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. |
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Companies covered |
Halliburton (US), Schlumberger (US), Liberty Oilfield Services LLC (US), Baker Hughes (US), NexTier Oilfield Solutions (US), Calfrac Well Services Ltd. (Canada), STEP Energy Services (Canada), Patterson-UTI Energy, Inc. (US), Trican (Canada), National Energy Services Reunited Corp. (US), Petro Welt Technologies AG (Austria), ProFrac Holding Corp. (US), Tacrom (Romania) TAM International, Inc. (US), GD Energy Products, LLC (US), Petro Welt Technologies AG (Austria), ProPetro Holding Corp. (US), TechnipFMC plc (UK), Weatherford (US), Nine Energy Service (US), and AFG Holdings, Inc (US). |
This research report categorizes the hydraulic fracturing market by design, industry, capacity, voltage, Application, and Region.
On the basis of by Well Type, the hydraulic fracturing market has been segmented as follows:
- Horizontal
- Vertical
On the basis of by Technology, the hydraulic fracturing market has been segmented as follows:
- Plug & Perf
- Sliding Sleeve
On the basis of by Application, the hydraulic fracturing market has been segmented as follows:
- Shale Gas
- Tight Oil
- Tight Gas
On the basis of Region, the hydraulic fracturing market has been segmented as follows:
- North America
- Latin America
- Europe
- Asia Pacific
- Middle East & Africa
Recent Developments
- In June 2023, NexTier Oilfield Solutions and Patterson-UTI Energy, Inc. announced that they have entered into a definitive merger agreement to combine in an all-stock merger of equals transaction. The combined company will be an industry-leading drilling and completions services provider with operations in the most active major U.S. basins.
- In January 2023, ProFrac Holding Corp. acquired REV Energy Holdings, LLC ("REV"), a privately owned pressure pumping service provider with operations in the Eagle Ford and Rockies. ProFrac paid $140 million for REV. The acquisition will expand ProFrac's presence in both South Texas and the Rockies.
- In January 2022, ProFrac acquired Producers Services Holdings LLC, an pressure pumping services company serving Appalachia and the Mid-Continent. ProFrac bought Producers for about $35 million in total transaction value, according to the terms of the arrangement.
- In December 2022, ProPetro Holding Corp. signed an agreement with a top independent Permian operator to use ProPetro's first electric-powered hydraulic fracturing fleet ("e-fleet"). ProPetro will provide committed services for three years following the delivery of the e-fleet under the terms of the agreement.
Frequently Asked Questions (FAQ):
What is the current size of the hydraulic fracturing market?
The current market size of the hydraulic fracturing market is USD 49.3 billion in 2022.
What are the major drivers for the hydraulic fracturing market?
Growing demand for hydraulic fracturing technology with increasing requirements for energy will be major drivers for the hydraulic fracturing market.
Which is the largest region during the forecasted period in the hydraulic fracturing market?
North America is expected to dominate the hydraulic fracturing market between 2023–2028, followed by Asia Pacific and Latin America.
Which is the largest segment, by technology, during the forecasted period in the hydraulic fracturing market?
The Plug & Perf segment is expected to be the largest market during the forecast period, owing to the growing need for reliable operations to increase the production capacity of wells.
Which is the fastest segment, by application, during the forecasted period in the hydraulic fracturing market?
Shale gas is expected to be the fastest market during the forecast period. The increasing demand for natural gas is attributed to driving the market of hydraulic fracturing for shale gas applications in the forecasted period.
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The study involved major activities in estimating the current size of the hydraulic fracturing market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the hydraulic fracturing market involved the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, EIA, International Energy Agency, and BP Statistical Review of World Energy, to identify and collect information useful for a technical, market-oriented, and commercial study of the hydraulic fracturing market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The hydraulic fracturing market comprises several stakeholders, such as raw material suppliers, service providers, and oilfield operators in the supply chain. The demand side of this market is characterized by the rising demand for hydraulic fracturing for shale gas, tight oil, and tight gas. The supply side is characterized by rising demand for contracts from the industrial sector and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information.
Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the hydraulic fracturing market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share in the respective regions has been determined through both primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Hydraulic Fracturing Market Size: Tow-Down Approach
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Hydraulic Fracturing Market Size: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments, data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Defenition
Hydraulic fracturing, or fracking, is a well-stimulation method used in the oil and gas industry to extract hydrocarbons from deep underground formations. It entails injecting a high-pressure fluid mixture into a wellbore, creating fractures in the rock, and enabling the flow of trapped oil or gas. The market driving forces for hydraulic fracturing encompass growing global energy demands, the exploration of unconventional resources like shale gas and tight oil, technological advancements, and economic advantages from enhanced domestic oil and gas production. These factors contribute to increased energy security and reduced reliance on imported resources.
The growth of the hydraulic fracturing market during the forecast period can be attributed to the increasing global energy demand, the exploration, and exploitation of unconventional resources, such as shale gas and tight oil, technological advancements, and economic benefits from increased domestic oil and gas production across major countries in North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.
Key Stakeholders
- Consulting companies and associations in the hydraulic fracturing industry
- Environmental research institutes
- Government organizations
- Investors/shareholders
- Hydraulic fracturing equipment manufacturers
- Hydraulic fracturing service providers
- Organizations, forums, alliances, and associations
- Research and consulting companies in the oil & gas industry
- State and national regulatory authorities
Objectives of the Study
- To define, describe, segment, and forecast the hydraulic fracturing market on the basis of well type, Technology, Application, and Region, in terms of value.
- To describe and forecast the market for five key regions: North America, Europe, Asia Pacific, Latin America, Middle East & Africa, along with their country-level market sizes, in terms of value.
- To provide detailed information regarding key drivers, restraints, opportunities, and challenges influencing the growth of the market.
- To provide the supply chain analysis, trends/disruptions impacting the customer’s business, market map, pricing analysis, and regulatory analysis of the hydraulic fracturing market.
- To analyze opportunities for stakeholders in the hydraulic fracturing market and draw a competitive landscape of the market.
- To strategically analyze the ecosystem, tariffs and regulations, patent landscape, trade landscape, Porter’s five forces, and case studies pertaining to the market under study.
- To benchmark market players using the company evaluation quadrant, which analyzes market players on broad categories of business and product strategies adopted by them.
- To compare key market players with respect to product specifications and applications.
- To strategically profile key players and comprehensively analyze their market rankings and core competencies.
- To analyze competitive developments, such as contracts & agreements, investments & expansions, mergers & acquisitions, new product launches, partnerships, joint ventures & collaborations, in the hydraulic fracturing market.
Available Customizations:
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Product Analysis
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Company Information
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Generating Response ...
Growth opportunities and latent adjacency in Hydraulic Fracturing Market