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The APAC hydraulic fracturing market size is forecast to increase by USD 8.65 billion, at a CAGR of 8.74% between 2023 and 2028. The market growth analysis depends on several factors, such as the increasing consumption of natural gas, the growth in E&P of unconventional oil and gas sources, and the stringent regulatory policies for the production of oil and gas. Our market report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.
Allison Transmission Holdings Inc. company offers products such as FracTran that are designed for use in hydraulic fracturing operations. Also, Avantech Engineering Consortium Pvt. Ltd. company offers products designed for a wide range of hydraulic fracturing applications using IPI DuraFRAC packers with straddle packer system options and a proppant capable system.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The increasing consumption of fuel in developing economies such as India and China due to rapid industrialization and urbanization will increase the demand for natural gas during the forecast period. According to the IEA, demand in China grew from more than 275 billion cubic meters (bcm) in 2019 to 375 bcm in 2023. This increase in demand is mainly attributed to the growing demand in fertilizer plants, power generation units, and the petrochemical, transportation, and residential and commercial sectors. China has been using it in many industrial and household applications.
Additionally, the demand for power generation in developing countries in APAC, such as China and India, is also increasing. According to the IEA, the consumption in India for power generation is expected to grow by six bcm during 2018-2024. Therefore, the increasing demand for natural gas will lead to an increase in demand for more offshore and onshore projects. These factors will lead to a high demand to access unconventional gas reserves, such as shale gas, which will drive the expansion of the market over the forecast period.
Low operating costs and emissions have increased the adoption of both passenger and commercial NGVs. Original equipment manufacturers (OEMs) such as GM, Fiat, Ford, Volvo, and Audi offer light, medium, and heavy vehicles that are powered by natural gas. The growing popularity of NGVs has encouraged companies such as Ford and GM to introduce certified natural gas conversion systems.
Moreover, the use of NGVs offers several advantages when compared with conventional fossil fuel-powered vehicles. The availability of natural gas-powered engines in different capacities and the economic benefits of their use have increased the adoption of NGVs. This is increasing the demand for new CNG stations. Moreover, they produce only 5%-10% of allowable emissions and do not produce greenhouse gasses, which lowers the impact on the environment. Hence, the increase in the usage of NGVs will positively impact the market development during the forecast period.
The hydraulic fracturing process requires millions of gallons of water, sand, and chemicals for its operations. The requirement for water depletes the natural water resources, leading to a reduction in the freshwater supply. Moreover, the chemicals added to the hydraulic fracturing process cause major health concerns to the inhabitants of the nearby areas. For instance, chemicals such as hydrochloric acid, ethylene glycol, methanol, and isopropanol are used in the hydraulic fracturing process, and they cause health hazards related to respiratory tracts and the nervous system.
Moreover, the increase in seismic activities is another environmental impact that negatively affects the growth of the market. This process includes the water injection process for disposing of wastewater. The injection of wastewater increases the rates of earthquakes in the environment. The volumes of water injected and the depth of wastewater injection levels are a few factors that generate tremors on the earth's surface. Hence, the environmental impacts may lead to a decrease in demand for shale gas, which, in turn, acts as a major challenge for the market expansion during the forecast period.
The plug and perf segment will account for a major share of the market's growth during the forecast period.? Plug and perf is a more versatile and effective technique that offers many advantages over other completion methods. Its ability to provide greater flexibility in sizing and positioning stages, as well as the potential to increase production rates and improve well integrity, makes it an attractive option for oil and gas operators seeking to optimize operations.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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