Fracking Chemicals Market Size (2024 - 2029)

The fracking chemicals market is anticipated to experience significant growth, driven by the increasing demand for horizontal drilling and the high production rates of natural gas globally. Despite the challenges posed by the energy transition towards renewables, which may hinder oil production, the market is poised for expansion due to advancements in fracking technologies and the adoption of green chemicals. The North American region is expected to lead the market, benefiting from its substantial unconventional oil and gas production.

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Market Size of Fracking Chemicals Industry

Fracking Chemicals Market Major Size
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 6.50 %
Fastest Growing Market North America
Largest Market North America
Market Concentration Medium

Major Players

Fracking Chemicals Market Major Players

*Disclaimer: Major Players sorted in no particular order

Fracking Chemicals Market Analysis

The fracking chemicals market is expected to record a CAGR of around 6.5% during the forecast period 2022-2027. The COVID-19 pandemic severely impacted the fracking industry as oil and gas upstream operations came to a sudden halt due to low demand for oil and gas, which resulted in low commodity prices. For instance, in the United States, the price of WTI (West Texas Intermediate) crude reached its lowest level, amounting to USD 14 per barrel from USD 63 per barrel at the beginning of the year. The cost of the fracking process is exorbitantly high, thus was not affordable in a scenario where they got a few projects. The fracking chemicals market is expected to thrive in the near future due to the increased demand for horizontal drilling for unconventional resources and the high rate of production of natural gas in many parts of the world. However, the reduced oil production due to the energy transition toward renewables is expected to impede the market in the near future.

The horizontal or drilling segment is expected to grow at the fastest rate during the forecast period due to the increased number of horizontally drilled wells in many countries.

The new alternative fracking technologies, such as waterless fracking, the introduction of green chemicals, propane gel, and other technologies, are expected to create tremendous growth opportunities in the future.

The North American region is expected to dominate the market during the forecast period due to the high share of unconventional oil and gas production in petroleum production in the United States and Canada.

Fracking Chemicals Industry Segmentation

The fracking chemicals market report includes:

Fluid Type
Water-based Fluid
Foam-based Fluid
Other Fluid Types
Well Type
Vertical
Horizontal or Directional
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa
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Fracking Chemicals Market Size Summary

The fracking chemicals market is poised for significant growth, driven by the increasing demand for horizontal drilling and the high production rates of natural gas globally. Despite the initial setbacks caused by the COVID-19 pandemic, which led to a temporary halt in oil and gas operations due to plummeting demand and prices, the market is expected to recover and expand. The adoption of new fracking technologies, such as waterless fracking and green chemicals, is anticipated to create substantial opportunities for market growth. However, the transition towards renewable energy sources may pose challenges to the market's expansion. The horizontal drilling segment is projected to experience the fastest growth, supported by the rising number of horizontally drilled wells worldwide.

North America is expected to maintain its dominance in the fracking chemicals market, largely due to the substantial share of unconventional oil and gas production in the United States and Canada. The region's market leadership is further bolstered by significant investments in unconventional resources, such as the Permian Basin and oil sands in Canada. These developments are anticipated to attract private investments and enhance production capabilities. The fracking chemicals market is moderately fragmented, with key players including Dow Chemical Company, Parchem Fine & Specialty Chemicals, Flotek Industries Inc., BASF SE, and Solvay SA. Global initiatives, such as Exxon Mobil's proposal for a hydraulic fracturing project in Colombia, highlight the ongoing expansion and potential of the fracking industry beyond North America.

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Fracking Chemicals Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitute Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Fluid Type

      1. 2.1.1 Water-based Fluid

      2. 2.1.2 Foam-based Fluid

      3. 2.1.3 Other Fluid Types

    2. 2.2 Well Type

      1. 2.2.1 Vertical

      2. 2.2.2 Horizontal or Directional

    3. 2.3 Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 South America

      5. 2.3.5 Middle-East and Africa

Fracking Chemicals Market Size FAQs

The Fracking Chemicals Market is projected to register a CAGR of greater than 6.5% during the forecast period (2024-2029)

The Dow Chemical Company, Parchem Fine and Specialty Chemicals Inc., Flotek Industries Inc., BASF SE and Solvay SA are the major companies operating in the Fracking Chemicals Market.

Fracking Chemicals Market Report Snapshots

Fracking Chemicals Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)