Coatings For Hydraulic Fracturing Market - Forecast(2023 - 2028)

Coatings For Hydraulic Fracturing Market Overview

Coatings For Hydraulic Fracturing Market size is forecast to reach US$834.1 million by 2027, after growing at a CAGR of 3.8% during 2022-2027. Globally, the rising need of coatings for hydraulic fracturing in the oil & gas industry, is driving the market growth. Coatings with polymer for hydraulic fracturing exhibit good properties such as increased fracture conductivity, prevent proppant flow back, stop formation fines from migrating toward the wellbore. Also, the installation of sand control equipment integrated into a sliding sleeve device (SSD) is another strategy to avoid proppant flowback post-hydraulic fracturing. Moreover, the rising requirement of coatings such as phenol, formaldehyde, polyurethane, epoxy, acrylic, and others, for hydraulic fracturing, to be utilized in applications such as shale gas, tight gas, coal bed methane, liquefied natural gas (LNG), shale/tight oil, and others, is surging the demand for global coatings for hydraulic fracturing in the forecast period.

Report Coverage

The report: “Coatings For Hydraulic Fracturing Market Report – Forecast (2022 - 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the global coatings for hydraulic fracturing industry.

Key Takeaways

• The Asia Pacific region dominates the global coatings for hydraulic fracturing market owing to the rising growth and increasing investments in the oil & gas industry. For instance, Indian state-owned petrochemical producer Gail plans to build the country's first propane dehydrogenation (PDH) plant at Usar in the western state of Maharashtra by 2024, aiming to meet a projected increase in domestic demand for polypropylene (PP). The project amounts to US$ 1.2bn and the PDH unit will have a capacity of 500,000 t/yr.
• Rapidly rising demand for coatings for hydraulic fracturing in the oil & gas industry to gain a higher fracture conductivity, has driven the growth of the global coatings for hydraulic fracturing market.
• However, the rising environmental and health effects associated with the coatings for hydraulic fracturing can hinder the growth of the global coatings for hydraulic fracturing market.

Figure: Asia-Pacific Coatings For Hydraulic Fracturing Market Revenue, 2021-2027 (US$ Million)

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Coatings For Hydraulic Fracturing Market Segment Analysis – By Coating Type

The polyurethane segment held the largest share in the global coatings for hydraulic fracturing market in 2021. The polyurethane coated hydraulic fracturing has the low density, low crushing rate, and high strength. A polyurethane coated hydraulic fracturing is introduced to address the issue of proppant flowback in post-fracturing fluid flowback treatments and for hydrocarbon production. It helps in the self-aggregation in the water environment. The main difference between the polyurethane coated hydraulic fracturing and other coatings such as the epoxy coated hydraulic fracturing, is in the molecular structure of the two, which affects the molecules to fuse together during the curing process. Polyurethanes exhibits a higher cross-link density than epoxies, which makes them more durable. These coating possess an excellent impact and abrasion resistance, offering up to four times longer life than the other type of coatings. Thus, the increasing demand for polyurethane coating for hydraulic fracturing will drive the growth of the global coatings for hydraulic fracturing market during the forecast period.

Coatings For Hydraulic Fracturing Market Segment Analysis – By Application

The liquefied natural gas (LNG) segment held the largest share in the global coatings for hydraulic fracturing market in 2021 and is expected to grow at a CAGR of 4.3% during 2022-2027. The oil & gas industry is growing rapidly in recent years, which will increase the market growth for the global coatings for hydraulic fracturing, to be used in its reservoirs, owing to an increase in liquified natural gas (LNG) fueled vehicles. The growing demand for LNG as an alternative transportation fuel, due to its affordability, safety, and clean-burning qualities, is nourishing the market growth. In recent years, the rising growth and increasing investments in the oil & gas industry has further raised the demand for liquefied natural gas (LNG). For instance, in 2021, according to International Energy Agency (IEA), global oil consumption was expected to exceed 104.1 million barrels per day (mb/d). This was a 4.4 mb/d increase from 2019 levels. Additionally, according to the Interstate Natural Gas Association of America, in the U.S and Canada, a total of US$791 billion is invested in the new oil and gas infrastructure, which is estimated to be completed by 2035. Thus, increasing oil & gas industry will require more liquefied natural gas (LNG), which will drive the growth of the global coatings for hydraulic fracturing market during the forecast period.

Coatings For Hydraulic Fracturing Market Segment Analysis – By Geography

Asia-Pacific region dominated the coatings for hydraulic fracturing market with a share of 38.9% in the year 2021. The Asia Pacific region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for coatings for hydraulic fracturing in developing countries such as China, Japan, India, and South Korea. China is expected to continue its dominance in the coatings for hydraulic fracturing market during the forecast period. This is due to the growth of the oil & gas industry in the country. For instance, in 2021, a new ethylene plant started production in Korla city in China's Xinjiang Uygur Autonomous Region (XUAR), according to the Dushanzi Petrochemical Company of PetroChina, the country’s largest oil and gas producer. The project is expected to have an annual production capacity of 600,000 tonnes. Its construction began with an investment of US$1.24 billion. Coatings for hydraulic fracturing are applied in shale gas, tight gas, coal bed methane, liquefied natural gas (LNG), shale/tight oil, and other applications. The demand for coatings for hydraulic fracturing is rising owing to their properties such as to increase fracture conductivity, prevent proppant flow back along with a sliding sleeve device, stop formation fines from migrating toward the wellbore, prevent reduction in fracture permeability resulting from crushing and embedment, to maintain a long-term fracture permeability, and other properties. These properties resulted in the increased applications of these coatings for hydraulic fracturing in various applications. India and Taiwan are also predicted to grow their coatings for hydraulic fracturing market during the forecast period with the rising growth in the oil & gas industry, the demand for coatings for hydraulic fracturing is also estimated to rise. Thus, the increasing growth in oil & gas industry will drive the coatings for hydraulic fracturing market growth in the forecast period.

Coatings for Hydraulic Fracturing Market Drivers

Growing Oil & Gas Industry Will Drive the Market Growth

The oil and gas industry utilizes coatings such as a thin layer of polymer for hydraulic fracturing, to gain a higher fracture conductivity, to reduce fines generation and scaling, and therefore, enhancing the quality of hydraulic fracturing treatment, and other applications. In the projected period, the rising investments and production of oil and gas will raise the demand for coatings for hydraulic fracturing, which will drive the global coatings for hydraulic fracturing market growth. For instance, according to the Indian Brand Equity Foundation (IBEF), in November 2021, Oil and Natural Gas Corp. Ltd (ONGC) invested US$ 800 million in the petrochemicals arm—ONGC Petro Additions Ltd. (OPaL), in order to meet its equity requirements. Also, the increasing development in projects related to jet fuel production plants will drive the market growth. For instance, in 2021, International Air Transport Association (IATA) announced a commitment to reach "net zero" CO2 emissions by 2050, the nonprofit organization Atmosfair has opened the world's first plant, to produce carbon-neutral jet fuel. Additionally, the Odessa Development Corporation and Houston-based Nacero Inc. recently announced plans to construct a US$6.5- US$7.0 billion lower-carbon gasoline manufacturing facility in two phases at a site in Penwell, Texas. Phase one will generate 70,000 barrels of gasoline per day (bpd) (ready for blending). The capacity will be increased to 100,000 bpd in phase two. Thus, the rising installation of new plants will raise the oil & gas industry growth and also, the increasing investments and production of oil and gas will require more coatings for hydraulic fracturing, which will drive the demand for the global coatings for hydraulic fracturing during the forecast period.

Coatings For Hydraulic Fracturing Market Challenges

Environmental and Health Effects Associated with the Coatings For Hydraulic Fracturing Will Hamper the Market Growth

In-spite of various benefits of coatings for hydraulic fracturing, there are considerable negative impacts as well. For instance, the U.S. Environmental Protection Agency (EPA) highlighted several issues with the chemicals used in polyurethane manufacture. The manufacturing plants that manufacture polyurethane are a primary source of myriad hazardous air pollutants such as methylene chloride. Also, phenol generates acute toxic effects, including the death of birds, animals, or fishes, and low growth rate or death in plants. The long-term effects of phenol include reproductive problems, lower fertility, shortened lifespan, and changes in appearance and behaviour. Additionally, on exposure to formaldehyde, animals can get sick, it can affect their ability to breed, and reduce their life spans. It is highly toxic to aquatic life in our rivers, lakes, and oceans. Thus, due to the rising environmental and health effects, the growth of the coatings for hydraulic fracturing market will be hindered in the forecast period.

Coatings For Hydraulic Fracturing Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies players adopt in the global coatings for hydraulic fracturing markets. Global coatings for hydraulic fracturing top 10 companies include:

1. Surfix
2. Nanogate
3. AdMat Innovations
4. Nanomech
5. Buhler
6. Nanofilm
7. P2I Ltd
8. CIMA Nanotech
9. Integran Technologies
10. Nanophase Technologies Corporation

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