The global proppant market has been forecast to increase at a compound annual growth rate (CAGR) of 10.75% over the next five years, increasing from a valuation of $4.3 billion in 2012, to be worth a market value of $7 billion by 2017.
A proppant is a material that will keep a induced hydraulic fracture open, during or following a fracturing treatment, while the fracking fluid itself varies in composition depending on the type of fracturing used, and can be gel, foam or slickwater-based. In addition, there may be unconventional fracking fluids.
Currently, there are three main types of proppants: frac sand, resin coated proppants (RCP), and ceramic proppants. Each proppant type has its own advantages and disadvantages, and reservoir engineers decide on the type to be used depending on geology, availability, prices, and Government regulations.
North America holds the majority share within the global proppant market, with a production market share of nearly 80% in terms of hydraulic horse power supplied in 2011. R&D initiatives by American Government and favourable regulatory conditions for hydraulic fracturing have helped its market to grow to this level.
Proppant production in ROW accounts for about 20% of the global production. However, production in this region is expected to grow at a higher CAGR of 15.8% due to two main reasons. First, players in low cost manufacturing destinations such as India and China are expected to multiply due to the export opportunities to North America. Secondly, hydraulic fracturing is poised to take off in some countries such as Poland and China.
The global proppants market is currently dominated by a number of players including Carbo Ceramics (US), Saint Gobain (US), Momentive (US), Badger Mining Corp. (US), and Atlas Resin Proppants (US).
For more information on the global proppants market, see the latest research: Global Proppants Market
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