Global Shale Gas Market, By Application Type (Power Generation, Industrial and Manufacturing Applications, Residential Applications, Commercial Applications and Transportation), Technique Type (Horizontal Drilling, Rotary fracking and Hydraulic Fracturing) - Industry Trends and Forecast to 2031.
Shale Gas Market Analysis and Size
The shale gas market is advancing rapidly, driven by technological innovations such as hydraulic fracturing and horizontal drilling. These methods boost extraction efficiency and reduce costs. The use of advanced sensors and data analytics enhances operational precision. This growth is propelled by increasing energy demands and a shift towards cleaner energy sources, making shale gas a key player in the energy sector.
The global shale gas market size was valued at USD 93.81 billion in 2023 and is projected to reach USD 177 billion by 2031, with a CAGR of 8.26% during the forecast period 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Application Type (Power Generation, Industrial and Manufacturing Applications, Residential Applications, Commercial Applications and Transportation), Technique Type (Horizontal Drilling, Rotary fracking and Hydraulic Fracturing)
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
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Market Players Covered
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Occidental Petroleum Corporation (U.S.), Antero Resources Corporation (U.S.), Chesapeake Energy Corporation (U.S.), Chevron Corporation (U.S.), EQT (Sweden), Pioneer Natural Resources Company (U.S.), Range Resources Corporation (U.S.), Shell International B.V. (Netherlands), SM Energy (U.S.), Equinor ASA (Norway), Repsol (Spain), MARATHON OIL COMPANY (U.S.), Mitsubishi Corporation (Japan), Quicksilver Resources (U.S.), Exxon Mobil Corporation (U.S.), and Reliance Industries Limited (India)
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Market Opportunities
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Market Definition
Shale gas is natural gas trapped within shale formations, fine-grained sedimentary rocks. It is extracted using hydraulic fracturing (fracking) and horizontal drilling. Shale gas has transformed the energy landscape, particularly in the United States, by increasing natural gas supply, lowering prices, and reducing reliance on coal, contributing to lower greenhouse gas emissions.
Shale Gas Market Dynamics
Drivers
- Increasing Investment in Private Sector
Increasing private sector investment in shale gas exploration and production is pivotal for driving market growth. Companies such as ExxonMobil and Chevron have ramped up investments in shale gas projects, expanding drilling operations and deploying advanced technologies. This influx of capital enhances extraction efficiency and boosts overall production capacity, contributing to the sector's resilience and competitiveness amid fluctuating energy markets. Such investments underscore the private sector's crucial role in shaping the future of shale gas as a key energy source.
- Global Demand for Natural Gas
The global demand for natural gas is increasing due to its lower carbon footprint compared to coal and oil, aligning with efforts to reduce greenhouse gas emissions. This trend supports the growth of the shale gas market as countries seek cleaner energy alternatives. For instance, countries in Europe and Asia are expanding their natural gas imports to meet energy needs while complying with stricter environmental regulations, thus boosting the demand for shale gas worldwide.
Opportunities
- Advancement in Technology
Technological advancements in hydraulic fracturing (fracking) and horizontal drilling have revolutionized shale gas extraction. Fracking involves injecting water, sand, and chemicals at high pressure into shale formations, releasing trapped gas. Horizontal drilling allows access to larger areas from a single well, maximizing resource recovery. For instance, improvements in fracking fluid composition and drilling techniques have significantly reduced costs and increased shale gas production efficiency, making it a more viable energy source globally.
- Supportive Government Policies and Incentives
Government policies and incentives play a crucial role in fostering shale gas development. For instance, in the U.S. the federal government offers tax incentives such as accelerated depreciation for shale gas infrastructure investments. Subsidies for research and development in shale gas technologies further encourage innovation and efficiency gains. These supportive measures aim to reduce production costs and attract investment, thereby promoting the expansion of shale gas production across the country.
Restraints/Challenges
- Requirement of Water Management
Water management poses a significant challenge for the shale gas market due to its high demand for fracking operations. This demand exacerbates water stress in already scarce regions, straining local water resources. The sustainability and responsible management of water become critical issues, impacting operational feasibility and public perception of shale gas extraction. Regulatory scrutiny and environmental concerns further complicate efforts to secure and manage water resources effectively.
- Rising Environmental Concerns
Environmental concerns surrounding shale gas extraction, notably through hydraulic fracturing (fracking), include potential water contamination, air quality degradation, and seismic risks. These issues contribute to stringent regulatory barriers and public resistance, posing significant obstacles to market expansion. Such challenges often lead to project delays or cancellations, impacting investor confidence and operational continuity within the shale gas industry.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.
Expected Impact of Economic Slowdown on the Pricing and Availability of Products
When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.
Recent Development
- In December 2023, the U.K. government launched initiatives to support shale gas development, including establishing a Shale Environmental Regulator and a Planning Brokerage Service. These measures aim to streamline the planning process for shale gas projects
- In August 2023, Falcon Oil & Gas and Tamboran Resources discovered substantial dry gas potential at the Shenandoah South 1H (SS1H) well in Australia’s Beetaloo sub-basin, marking a significant find in shale gas exploration
- In October 2022, Sinopec announced a major shale gas discovery in the Sichuan basin, paving the way for plans to achieve 100 billion cubic meters per annum of gas production in southwest China
Shale Gas Market Scope
The market is segmented on the basis of application type and technique type. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Application Type
- Power Generation
- Industrial and Manufacturing Applications
- Residential Applications
- Commercial Applications
- Transportation
Technique Type
- Horizontal Drilling
- Fracture Stimulation
- Hydraulic Fracturing
- Water
- Chemicals
- Proppants
- Rotary fracking
Shale Gas Market Regional Analysis/Insights
The market is analysed and market size insights and trends are provided by application type and technique type as referenced above.
The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America is expected to dominate the shale gas market, buoyed by key players and advanced drilling techniques such as hydraulic fracturing with horizontal drilling. This dominance is set to endure through the forecast period, leveraging extensive reserves of ultra-hard shale deep underground.
Asia-Pacific is expected to project the highest CAGR in the shale gas market due to increasing demand of gas from shale. The region's growth is driven by escalating shale gas consumption, bolstered by expanding industrialization and urbanization. This trend reflects a robust economic trajectory, with significant implications for energy markets and regional development strategies.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Shale Gas Market Share Analysis
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Some of the major players operating in the market are:
- Occidental Petroleum Corporation (U.S.)
- Antero Resources Corporation (U.S.)
- Chesapeake Energy Corporation (U.S.)
- Chevron Corporation (U.S.)
- EQT (Sweden)
- Pioneer Natural Resources Company (U.S.)
- Range Resources Corporation (U.S.)
- Shell International B.V. (Netherlands)
- SM Energy (U.S.)
- Equinor ASA (Norway)
- Repsol (Spain)
- MARATHON OIL COMPANY (U.S.)
- Mitsubishi Corporation (Japan)
- Quicksilver Resources (U.S.)
- Exxon Mobil Corporation (U.S.)
- Reliance Industries Limited (India)
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