In-Depth Forecast & Analysis on Proppant Market to Witness Comprehensive Growth by 2015 – 2025
Although the recent plummeting of international crude oil prices has negatively impacted the hydraulic fracturing industry, the overall outlook on the future prospects of the industry is positive. The proppant market is expected to register significant growth in the near future due to anticipated increase in global crude oil prices, which is likely to revamp the global shale industry.
Although the crude oil market is going through a slump, increasing energy demands all over the world are projected to provide an impetus to the market. This, in turn, is anticipated to augur well for the hydraulic fracturing- and proppant- market. After witnessing the shale boom in North America, many countries across the globe are exploring shale prospects in respective shale plays. The proppant market is expected to register increased revenues and volumes with shale exploration picking pace in such countries.
One of the key restraints in the proppant market can be attributed to the prevailing low international crude oil prices. The plummeting of crude oil prices makes shale extraction uneconomical and as a result, the proppant market revenues decline due to decreased hydraulic fracturing activity.
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The proppant market has been segmented into the types of proppants used for hydraulic fracturing. Sand, resin coated and ceramic are the three types of proppants used for hydraulic fracturing. Within the proppant market, sand proppant is most widely used for hydraulic fracturing. However, the type of proppant to be used in coming years most likely depends on the price of crude oil in the international market.
In terms of geography, the proppant market has been segmented into North and Central American region wherein the U.S. & Canada and Mexico is considered respectively. Amongst these regions, the North American region accounts for a leading share in the proppant market, both in terms of value as well as volume. The key players in the proppant market include U.S. Silica, Carbo Ceramics, and Hi Crush LP Partners.
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