Demand for raw frac sand is forecast to increase more than 4 percent per year to nearly 50 million tons in 2021, says The Freedonia Group in a new study, “Proppants Market in North America.”
The study also says raw frac sand is expected to grow 10 percent per year to more than $3 billion in 2021, reflecting gains in average prices and volume growth.
According to The Freedonia Group, healthy growth is forecast for all types of raw frac sand, although Northern White and Brady sand will see competition from new mines coming online in West Texas. The report says growth will be driven by gains for this other raw sand, which is expected to show increases of 12 percent per year though 2021.
The report also notes that both Canada and the United States will see demand gains through 2021, and that the United States is by far the largest user of the material.
“In 2016, the U.S. accounted for 88 percent of raw frac sand demand,” says analyst Dan Debelius. “While unconventional drilling is used in Canada, the oil sands in Alberta – an area of high activity in the country – do not require proppants.”
The Freedonia Group is an international industrial research company publishing more than 100 studies annually.
