Hydraulic Fracturing Presents a Most
Profitable Market Opportunity for CFT Product and Service Companies
The hydraulic fracturing market offers the opportunity for combust, flow and
treat (CFT) suppliers to generate large unit margins and substantial gross
profits by creating products with lower total cost of ownership. This is due to
the severe and critical service requirements as well as rapidly evolving
technology.
McIlvaine is offering a service to help suppliers quantify the market in terms
of the obtainable gross profit at various prices levels resulting in the revenue
and gross margin combination to provide the Most Profitable Market (MPM).
The market is large and will grow at close to double digit rates in the coming
years. Because the frac sand manufacturing plants are now being built near
fracking sites and because many of the same CFT products are used in both the
two markets can be treated as one. The Total Available Market (TAM) is $70
billion per year for all CFT products and services.
The pump and valve TAMs are each in excess of $3 billion per year. There are
very large markets for instrumentation, software, dust collection, liquid
filtration, sedimentation, centrifugation, dryers, conveyors and screens.