Fracking Chemicals Market Size, Share & Growth Report | 2031

Report Description

The global fracking chemicals market size is projected to expand at a CAGR of 6% during the forecast period, 2021-2028. The growth of the market is attributed to rising demand for longer lateral lengths and stabilizing drilled rates in the mining industry.

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Fracking fluids and chemicals are used in hydraulic fracturing. These fluids and chemical additives aid in the prevention of corrosion, dissolution of minerals, stabilization of the product, prevention of scale deposition, and maintenance of fluid viscosity, among others. It provides access to cleaner energy through the hydraulic fracturing process. Fracking fluids and chemicals play a vital role in increasing yield and product quality.

Several European countries, including Germany, the Netherlands, and France, have urged the European Union (EU) to pass legislation to improve funding for low-carbon technologies. Several policies are being implemented to encourage the use of renewable energy.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing initiatives and support from government agencies is projected to drive the market.
• Rising energy demand is expected drive the market growth.
• Growing number of exploration activities is estimated to provide lucrative opportunities on the projected timeline.
• Increasing demand for natural gas is anticipated to propel the fracking chemicals market.
•  Expanding reliance on hydraulic fracturing for oil & gas extraction can positively influence the growth of the market.
• Development of innovative water fluids is anticipated to create immense opportunities for the market players.

Scope of the Report

The report on the global fracking chemicals market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Fracking Chemicals Market Segment Insights:

Water-based segment to hold a large market share

Based on fluid types, the market is segregated into water-based, foam-based, and other fluid types. In 2020, the water-based segment accounted for a sizable share of the fracking fluid & chemicals market. The type of fracking fluids used can be determined by parameters such as cost, technical complexity based on geological conditions, and environmental impact. Water-based fluids are the most commonly used fracking fluid in the industry. They are non-viscous with minor proppant concentrations and can be pumped at a higher rate to achieve narrow fractures.

The various properties of water-based fluids include high fluid efficiency, low proppant concentration, and high pumping rate, and allowance for the formation of complex fractures. Freshwater, brine, saturated or format brine are all types of water-based fluids. Growing concerns about the environmental impact of oil & gas operations is expected to drive the demand for water-based fluids during the forecast period. Oil-based fluids are used in low quantities across the hydraulic fracturing industry owing to their adverse impact on the environment associated with water discharge.

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Horizontal and directional wells segment is anticipated to exhibit a substantial CAGR

On the basis of well types, the market is segregated into vertical wells and horizontal and directional wells. The horizontal and directional well segments accounted for a significant market share in 2020. Horizontal wells allow drillers to access a much larger area while extracting oil from a reservoir at slow rates. On the other hand, vertical wells allow extraction of oil in a short period of time through short boreholes. The heterogeneous influence associated with the flow geometry of horizontal wells along the long drain is reduced, increasing total production. Horizontally drilled wells provide access to gas and oil accumulations that have been bypassed or isolated within a large field.

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North America is projected to grow at a healthy rate

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market  in 2020 owing to low breakeven price and technological advancement in hydraulic fracturing in the US. The country Rising shift from vertical to horizontal drilling, with longer lateral lengths and an increase in the number of frac stages per well are driving the growth of the market in the region. Moreover, increasing fracking fluid consumption per foot is positively influencing the market growth. Western Canada produces roughly 95% of the country's total output. The liquid-rich Montney and Duvernay formations are expected to contribute to the major demand for fracking chemicals, accounting for roughly half of total production by 2026.

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