The global proppants market accounted for $53.03 billion in 2014 and is expected to grow at a CAGR of 13.68 percent to reach $115.68 billion by 2022, according to a new study by market consulting firm Stratistics NRC. Industrial shift toward alternative energy resources is the key factor favoring the market growth.
An increasing demand for energy and unconventional gas are the key drivers, whereas high logistics cost is inhibiting proppant market growth. Future growth lies in potential explorable reserves, the company said. At present, the proppant market is in surplus, so demand for proppants continues to plunge due to culmination activities between operators and reduced drilling.
The frac sand segment accounts for around 86 percent of proppant market share, leaving resin-coated proppants and ceramic proppants with around 14 percent. A majority of manufacturers are using frac sand products due to their low cost and abundant availability.
The global fracking proppants market is segmented by type and by geography. Based on type, the market is categorized into ceramic, resin coated proppants and frac sand. The resin coated proppants market is further segmented into resin-coated sand and resin-coated ceramics.