Hydraulic Fracturing - Drilling Market Growth Rate and 2019 Market Size
The growth rate of the hydraulic fracturing drilling market in North America from 2016 to 2019 is 12.02% and the 2019 market size is estimated to be $71.85 billion.
- The overall global hydraulic fracturing market is anticipated to have a 12% market growth from 2016 to 2024.
- The drilling sector of the total hydraulic fracturing market makes up 41.5% of the total market.
- The market is dominated by North America in terms of market share at 39%.
- This is because shale oil and gas production in the United States and Canada is expanding each year.
- Based on the available figures, the market growth of the hydraulic fracturing drilling market in North America from 2016 to 2019 is 12.02%. [calculated in the research strategy section]
DRILLING MARKET SIZE in NORTH AMERICA
- In 2016, the total value of the hydraulic fracturing market was $316 billion.
- The market size of the hydraulic fracturing drilling market in North America in 2016 was $51.12 billion, accounting for 39% of the global drilling market. [outlined in the strategy document]
- Using the information on the global market in 2016, the market share of the drilling sector, and North America as part of the total market, the estimated market size of hydraulic fracturing drilling in North America in 2019 is $71.85 billion. [calculated in the research strategy section]
- There were around 7,000 new wells drilled in North America in Q4 2018, compared to 4,000 new wells in Q4 2016.
- Due to the increasing use of drilling tools and equipment and hydraulic fracturing techniques, it only takes 15 days to drill a single well in 2018, compared to 60 days in 1978.
- There has been a rise in the utilization of horizontal drilling tools and equipment in hydraulic fracturing due to diminishing petroleum production levels.
- This growth is driven by a rising demand for primary energy, as well as the expanding development of unconventional fields.
- The increasing demand for oil as well as the developing concern for natural resources depletion are also driving growth.
- Additionally, drilling companies are now implementing horizontal drilling to optimize production as it facilitates them to drill numerous wells at the same location.
To get the market size of the hydraulic fracturing drilling market in North America in 2019, we initially looked for market reports covering the growth rate during the period 2016 to 2019. As the figure specific to the drilling sector was not available, we changed our approach by first obtaining the overall market size in 2019 based on the available global market value and its growth rate, then the drilling sector growth rate specific to North America.
The global market size of hydraulic fracturing market in 2016 was $316 billion, and we found that the market's growth rate is expected to be 12% from 2016 to 2024. We initially found the 2019 market size as a whole given the available values using a reverse CAGR calculator.
Starting value: $316 billion
Number of periods: 3 years (2016 to 2019)
2019 market size = $443.96 billion
The drilling sector accounted for 41.5% of the total market, and North America accounted for 39% of the total hydraulic fracturing drilling market. Therefore, using the global market size derived for 2019 ($443.96 billion) and these market shares, we can get the 2019 market size of hydraulic fracturing drilling market in North America in 2019.
2019 market size of drilling sector in North America
= derived global hydraulic fracturing market size * market share of the drilling sector * market share of North America
= $443.96 billion * 0.415 * 0.39
= $71.85 billion
Then, to get the growth rate of the hydraulic fracturing drilling market in North America from 2016 ($51.12 billion) to 2019 ($71.85 billion), we used the CAGR calculator with the following values:
Starting value: $51.12 billion (2016)
Ending value: $71.85 billion (2019)
Number of periods: 3 years
CAGR = 12.02%