According to a recent report published by Zion Research, the global demand for shale gas market, which was valued at USD 63 billion in 2014, is expected to reach USD 105 billion in 2020, growing at a CAGR of around 9 percent between 2015 and 2020. In terms of volume, the global shale gas market stood at around 10.0 trillion cubic feet in 2014.
The report, entitled “Shale Gas Market by Technology (Horizontal Drilling, Hydraulic Fracturing, and Water Usage Issues) for Power Generation, Residential, Industrial, Commercial, Transportation and Other Applications: Global Industry Perspective, Comprehensive Analysis, and Forecast, 2014-2020,” argues that the rapidly increasing demand across the world is a major driving factor for shale gas market.
In an attempt to lower down dependence on crude oil as source of energy, the U.S. is highly focused on shale gas. Moreover, government funding coupled with large investment by many private players is expected to fuel the growth of this industry, although this might be stymied to a degree by the high cost of production as compared to any other conventional energy source. On the other hand, ongoing research and development and introduction of new technologies in the field are expected to bring down cost of production. Large number of proven reserves for shale gas in North America, Europe and Asia Pacific is expected to provide future growth opportunity to industry participants.
According to the report, industrial applications segment was the largest segment of global shale gas industry and accounted for more than 30 percent share of the entire market in 2014. Power generation is the second largest application segment for the global shale gas market. Residential applications segment is also expected to exhibit rapid growth during the forecasted period.
While North America dominated the production and consumption of shale gas in 2014, accounting for over 75 percent share in production and consumption of shale gas in that year, with commencement of shale gas production in China the shale industry in Asia Pacific is also expected to experience robust growth. Some additional developments are also expected in Europe, while Latin America and Middle East & Africa are expected to retain their marginal regional position for shale gas during the forecast period.
The report can be found here.
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