The Global Artificial Lift Market size is expected to grow at a CAGR of 10.2 percent to USD 13 billion by 2028, up from an estimated USD 8.0 billion in 2022.
The worldwide oil consumption market is increasing substantially in recent decades as a result of potential expansion in the industrial and transportation sectors. To fulfill the increased demand for hydrocarbons, several operators throughout the world are drilling constantly. The reservoir pressure in existing wells, on the other hand, is insufficient to bring fluids to the surface. To bring hydrocarbon to the surface, the majority of wells throughout the world require some assistance.
The artificial lift system is a well-established and well-proven technology for assisting oil wells in increasing reservoir pressure. Artificial lift assistance is required in 85-90 per cent of wells to supplement reservoir pressure. Various types of artificial lifts are used depending on the well's features and technology available, resulting in global market expansion in the coming years.
ARTIFICIAL LIFT MARKET REPORT COVERAGE:
REPORT METRIC |
DETAILS |
Market Size Available |
2022 – 2028 |
Base Year |
2022 |
Forecast Period |
2023 - 2028 |
CAGR |
10.2% |
Segments Covered |
By Type, Mechanism, and Region. |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Halliburton Co (US),Weatherford International Ltd (Switzerland),Baker Hughes Co (US),Dover Corp (US),United Drilling Tools Ltd (India),Borets International (Russia),National Oilwell Varco (US),Oilserv (UAE),Novomet (Russia),Apergy (US),JJ Tech (US) and Others. |
Global population growth and urbanization are driving up oil demand around the world. Increasing advancements in major oil-producing countries, including Saudi Arabia, Kuwait, and Egypt, among others, are boosting the market's expansion. Electrical submersible pumps are also becoming more popular due to their versatility and availability in all high-production countries. They can handle a wide range of flow rates and extremely high downhole temperatures, making them perfect for oil wells as countries focus on oil reservoirs, propelling artificial lifts market expansion. Furthermore, during the projection period, onshore exploration and production are assisting global oil output and boosting the artificial lift industry's expansion.
The Artificial Lift market growth is being hampered by factors such as exorbitant capital and maintenance costs, as well as a shortage of experienced labour to operate the equipment.
The market is segmented into Electrical Submersible Pumps, Rod Lift, Progressive Crafty Pumps, Gas Lift, and Others.
Electric submersible pumps are regarded as the most versatile and commonly utilised pump by operators all over the world. It can handle a huge volume, a wide range of flow rates, and operate in challenging conditions. In an environmentally sensitive area, ESP is the only option for artificial lift deployment. The electric submersible pump enjoys a fictitious market share of above 40%.
Rod lift is a form of artificial lift system in which a surface power source drives a downhole pump assembly. The unit is made up of a variety of components that are used both above and below ground. Depending on the size of the equipment, this hoisting mechanism can pump up to 1,000 BPD. Rod lifts provide a high salvage value for downhole equipment and can handle gas and corrosion well during the artificial lift operation. Such advantages are likely to enhance the demand for artificial lift during the trial phase. As a result, the increased necessity to minimise gas and corrosion management during artificial lift operations is driving the rod lift industry.
The market is segmented into Onshore and Offshore.
Onshore exploration and production dominate global oil output, although the recent movement of North America and Europe to offshore exploration has raised offshore exploration's prospective growth. Onshore exploration activities are a major contributor to the expansion of the artificial lift in North America, Europe, MEA, and APAC.
During the projected period, the offshore segment is expected to increase at the fastest rate. Because offshore has vast unexplored reserves, corporations have started seeking offshore regions for oil and gas development. As a result, the offshore market requires more money than the onshore market. The Gulf of Mexico and the North Sea have the most developing shallow fields, which means artificial lift systems are in significant demand.
Currently, the US market accounts for more than 40% of all artificial lifts deployed around the world. Artificial lift system market share in North America has increased as a result of technological advancements and increased exploration activities. Oil output increased in 2018 as a result of new projects and expansion in the Gulf of Mexico basin. Texas, the Permian Basin, Oklahoma, Alaska, and North Dakota are significant counties where production is at an all-time high, indicating that the market in North America is expected to rise.
Exploration efforts in the North Sea region, which are led by Norway, Germany, the United Kingdom, and others, are expected to fuel major expansion in Europe. When it comes to adopting and creating novel technologies, European countries are ahead of the pack, which drives the ESP business. As a result, Sucker Rod Pump will play a vital part in Europe's artificial market. In APAC, Chinese oil exploration is the most common, followed by Indonesia and the Philippines.
The artificial lift system market in Latin America is estimated to grow at a CAGR of more than 2.78 per cent between 2021 and 2026. Brazil is expected to be one of the leading markets for artificial lift systems. The country is predicted to produce 5 million barrels of oil per day by 2026, making it one of the world's top non-OPEC producers of petroleum.
Shandong Shenyu Mechanical Manufacture Co Ltd is the world's largest producer of Artificial Lifts. In terms of valuation, Schlumberger Ltd is the market leader.
The COVID-19 epidemic impacted the artificial lift market's supply chain, especially because manufacturing setups were shut down during the global lockdown. Following the epidemic, the need for oil and gas skyrocketed, propelling the artificial lift sector to new heights. The market is concerned about the steep increase in oil and gas prices, which has negatively impacted demand for artificial lifts.
Key Players in the Market:
Major Key Players in the Global Artificial Lift Market are
Frequently Asked Questions
By 2028, it is predicted that the global Artificial Lift market can reach a valuation of US$ 13 billion.
The Global Artificial Lift market can expand with a CAGR of 10.2% during the forecast period.
Halliburton Co (US), Weatherford International Ltd (Switzerland), Baker Hughes Co (US), Dover Corp (US), United Drilling Tools Ltd (India), Borets International (Russia), National Oilwell Varco and Others.
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