The global shale gas market is predicted to reach $214 billion (£151bn) by 2022.
It is expected to grow at a rate of 14.4% during the forecast period, according to a new report.
In terms of end users, the world shale gas market is segmented into industrial, power generation, residential, commercial and transportation.
Last year, power generation accounted for around one third of the market share, both in terms of revenue and volume.
That’s mainly due to the abundancy and low carbon footprint of shale gas compared to coal-fired power plants, the report states.
The residential and commercial sectors collectively accounted for a 34% share in world shale gas market revenue in 2015.
Due to its low price, shale gas is said to be replacing conventional energy sources like coal, nuclear and hydro in many industries, it adds.
The US was the largest shale gas producer last year followed by Canada and China.
In North America, most of the shale gas is consumed in power generation applications which accounted for around 36% last year.
It is expected to remain the highest revenue-generating region during the forecast period due to ample availability of technically recoverable shale reserves and favourable government regulations.
The report adds: “However, Europe would exhibit a highest CAGR [Compound Annual Growth Rate] of 59.5%, in terms of volume, due to presence of shale gas reserves in more than 14 countries and rising demand for natural gas. The growth of Asia-Pacific market is attributed to continuous investment by producers into domestic production, continuous decrease in the cost of shale well drilling, and rising LPG costs.
“The global shale gas market is gaining competitive advantage as the key companies are focusing on acquisition to expand their regional presence in the emerging countries and increasing the exploration and extraction of shale gas market.”
Another report warned shale investors are risking $8.9bn (£6.3bn) on the oil price rollercoaster.