August 2024 | Report Format: Electronic (PDF)
U.S. Frac Tank Market Growth & Trends
The U.S. frac tank market size is anticipated to reach USD 127.3 million by 2030, registering a CAGR of 5.2% from 2024 to 2030, according to a new report by Grand View Research, Inc. The primary driver is the robust oil and gas sector activity, particularly the continued exploration and production of shale oil and gas. Hydraulic fracturing, or fracking, is critical in extracting these resources, requiring substantial volumes of water, chemicals, and proppants. Frac tanks are indispensable in storing and transporting these materials, ensuring efficient and uninterrupted fracking operations. The high level of drilling and fracking activities, especially in prolific shale regions like the Permian Basin and the Bakken Formation, fuels the demand for frac tanks.
The U.S. has significantly boosted its natural gas production by approximately 30 billion cubic feet per day over the past 15 years. Frac tanks, characterized by their quarter-inch corrugated walls, are essential in the hydraulic fracturing industry for the efficient storage of materials such as sand, water, and chemical additives. These components are crucial for the fracking process, and the design of these tanks ensures the safe and effective containment of these materials.
A variety of equipment is essential for construction activities, notably for dewatering tasks and storing fuel and other liquids. The ability to store water conveniently enables workers to have a readily available supply for activities such as mixing concrete, cleaning the site, and controlling dust at drilling locations. In addition to these applications, frac tanks are frequently employed in the hydrostatic testing of pipelines involved in constructing natural gas infrastructure.
Frac tanks also play a crucial role in waste management within refineries. They are used to segregate and store waste products and by-products until they can be processed, treated, or disposed of properly, minimizing the environmental impact of refinery operations. In addition to storage, frac tanks can be employed in other processes, such as separation, where water and oil can be temporarily stored separately as they are treated or prepared for further processing.
Innovations in frac tank design and materials significantly drive market growth. Manufacturers are continually developing more durable, efficient, and cost-effective frac tanks to meet the industry’s evolving needs. Modern frac tanks often feature advanced leak prevention technologies, improved mobility, and modular designs, which enhance their utility in various fracking scenarios. These advancements not only improve operational efficiency but also reduce environmental risks, making them more attractive to operators.
Frac tank manufacturers are adopting several strategies, such as acquisitions, mergers, joint ventures, new product launches, and geographical expansion, to enhance market penetration and cater to changing technological demands from various end-use applications, including residential, commercial, and industrial applications.
For instance, in September 2023, Dragon Products acquired a new 19-acre production tank manufacturing plant in San Angelo, Texas. The newly acquired facility is expected to continue to build API-certified production tanks. The acquisition was driven by increased customer demand for surface production equipment of Dragon in the Permian Basin.
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U.S. Frac Tanks Market Report
U.S. Frac Tanks Market Report Highlights
- The closed top type segment held the largest share of the global revenue in 2023. These frac tanks are used for temporary liquid storage in fracking, where safe and reliable on-site liquid storage is required. These tanks range from 8,400 gallons to 21,000 gallons.
- The environmental remediation application segment is expected to show lucrative growth over the forecast period. Frac tanks use remediation equipment, such as pumps, filters, and treatment systems, to facilitate cleanup. They are integral components of mobile remediation units, providing temporary storage for treated or untreated liquids until they can be safely transported off-site or discharged in compliance with regulatory standards.
- The Southwest region segment held the largest share of the global revenue in 2023. The Energy Information Administration (EIA) reports that gross natural gas withdrawals in the Permian region recorded a new annual high in 2022 at 21.0 billion cubic feet per day (Bcf/d), a 14% increase from the 2021 average. This production growth can be attributed to the region’s response to fluctuations in crude oil prices, as most natural gas production in the Permian Basin is associated with oil wells.
- In October 2023, CST Industries, a market player in storage solutions, announced a strategic partnership with Aquastore Canada East as its authorized dealer. This alliance is expected to expand CST Industries’ presence and facilitate the delivery of its high-quality storage solutions to Eastern Canada.
U.S. Frac Tanks Market Segmentation
Grand View Research has segmented the U.S. frac tanks market based on type, application, and region:
U.S. Frac Tank Type Outlook (Revenue, USD Million, 2018–2030)
- Open Top
- Closed Top
- Mix Tank
- Double Wall
- Gas Buster
U.S. Frac Tank Application Outlook (Revenue, USD Million, 2018–2030)
- Oil & gas
- Construction
- Environmental remediation
- Shipyards and Airports
- Refinery
- Others
U.S. Frac Tank Regional Outlook (Revenue, USD Million, 2018–2030)
- Southwest
- West
- Midwest
- Southeast
- Northeast
List of Key Players in the U.S. Frac Tanks Market
- Dragon Products
- Texoma MFG LLC
- Wichita Tank
- CST Industries
- Pinnacle Manufacturing
- Sabre Manufacturing
- Geneva Equipment
- KOKS Group bv
- H & H Welding LLC
- JWF Industries, Inc
