Artificial Lift Systems Market

Global Artificial Lift Systems Market Size (2024 to 2029)

The global artificial lift systems market size is expected to reach USD 9.97 billion by 2029 from USD 7.85 billion in 2024, registering a CAGR of 4.9% from 2024 to 2029.

Artificial lift systems are broadly accepted technology that assists in oil production from oil wells and are used to lower bottom hole pressure (BHP) in the reservoir and support the movement of oil and gas upwards from the well to the surface. The system can extract greater output by increasing production, output, and recovery. Artificial lift systems are used for both onshore and offshore oil production and operate in two mechanisms that include pump-assisted and gas-assisted. The technologies applied in the Artificial lift systems are ESP, hydraulic pumping systems, gas lift, rod pumps, sub-surface pumping, rod-less pumping, continuous belt transportation, and others. The main types of automatic lift systems are electric submersible pumps (ESP), gas lifts, rod lifts, PCPs, and others. At the same time, electric submersible pumps (ESP) are widely used and referred to as multi-stage centrifugal pumps to lift high volumes of liquids from oil wells.

Global Artificial Lift Systems Market Drivers:

High adoption of artificial lift systems in the oil and gas industry is primarily driving the global market growth. Artificial lift is deployed in the oil and gas industry to enhance production recovery and reduce operating costs for production companies. Furthermore, the growing number of oil fields, both old and new oil wells, need Artificial lift systems for crude oil extraction from oil wells to the surface, which is driving the market growth. In addition, an increase in oil explorations and heavy investments in offshore oil and gas production is driving the Artificial lift systems market. Furthermore, Heavy oil production in countries such as Iran, China, Canada, Venezuela, Mexico, and Columbia require Artificial lift systems technologies for production. This accelerates the growth of the artificial lift systems market during the forecast period. Even growing demand for oil and gas in developing countries for consumption, power generation, aviation, and other purposes is responsible for market expansion.

New advanced technologies for Artificial lift systems will render a huge opportunity for market growth during the forecast period. The work area of the oil and gas industry is very challenging and dangerous. Thus, many oil and gas production companies are opting for automation and digitalization of challenging work. Further, to meet the rising demand for oil and gas, the companies are developing advanced lift systems for high-volume oil fields. These lucrative opportunities will positively impact market growth.

Global Artificial Lift Systems Market Restraints:

The fluctuating oil and gas oil prices are hampering the growth of the global artificial lift systems market. The fluctuation in prices impacts the exploration and processing activities of the oil and gas industry. The uncertainty in prices hampers companies' capital expenditure and affects oil and gas companies' long-term plans of production. This results in the decline of the Artificial lift systems market. In addition, the supply and demand of oil and gas production and stringent government regulations for operations can impede the growth of the market. Moreover, the challenging work area can also negatively impact the Artificial lift systems market.

Impact of COVID-19 on the artificial lift systems market:

The COVID-19 pandemic broke out worldwide in November 2019. It has spread to almost 200 countries at an alarming pace. The U.N. reported a global emergency and urged the governments of every nation to contain the virus transmission. Countries such as China, Italy, Japan, Korea, Iran, Spain, Germany, and the U.S. are the worst affected due to COVID-19, and a death toll of 6.6 billion deaths has been reported globally. The world faced high unemployment, travel bans, and a severe economic crisis. Countries like Brazil, Pakistan, and Sri Lanka have faced economic crises. Numerous businesses are shut down around the world, and several processing and non-processing industries have delayed or scraped off their projects. There is a supply and demand mismatch, and the limited availability has created havoc for interconnected economies globally. This outbreak has an economic impact and implications on all global markets. A negative impact is witnessed on the Artificial lift systems market owing to a decrease in demand for oil and gas during COVID-19. Artificial lift systems are needed for the production and exploration activities of the oil and gas industry. The volatility of the oil prices made it worse for companies involved in oil and gas-supporting activities. Several North American companies have reported bankruptcy due to limited oil production and high production rates. However, the need for oil and gas is increasing in developing countries. These factors can propel the Artificial lift systems market post-pandemic.

REPORT COVERAGE:

This research report on the global artificial lift systems market has been segmented and sub-segmented based on type, application, mechanism, well type and region.

Global Artificial Lift Systems Market - By Lift Type:

• Pressurized Water Reactor (PWR)
• Electric Submersible Pumps
• Gas Lift
• Progressing Cavity Pumps
• Jet Pump
• Others

Based on lift type, the electric submersible pumps segment held 33.4% of the global market share in 2023 and the domination of the segment is expected to continue during the forecast period. The electrical submersible pumps (ESP) segment is broadly used in the oil and gas industry to assist crude oil in reaching the surface and is referred to as a multi-stage centrifugal pump used to lift high volumes of liquids from oil wells. ESPs are also suitable for matured and new oil wells and helps enhance the production rate recovery of the well and is propelling the growth of the ESP segment in the global market.

The gas lift segment captured 24.7% of the global market share in 2023 and is expected at a prominent CAGR during the forecast period. Factors such as rise in unconventional oil and gas production that drive the demand for gas lift systems for efficient reservoir pressure maintenance, increase in shale gas exploration, cost-effective production and flexibility in reservoir management are driving the growth of the gas lift segment in the global market.

Global Artificial Lift Systems Market - By Application:

• Onshore
• Offshore

Based on application, the offshore segment dominated the market in 2023 and is expected to hold the leading share of the worldwide market during the forecast period. The growth of the offshore segment is majorly attributed to the rise in upstream activities in deep water, increase in investments in offshore oil & gas production and the presence of advanced technologies such as electrical submersible pumps (ESP) and Progressing cavity pumps (PCP) for offshore exploration and production.

Global Artificial Lift Systems Market - By Mechanism:

• Pump Assisted
• Gas Assisted

Based on mechanism, the pump assisted segment is anticipated to account for the major share of the global market during the forecast period. The pump-assisted mechanism is the most broadly used mechanism in the oil and gas industry. The increasing adoption of pumps such as electrical submersible pumps (ESP) and Progressing cavity pumps (PCP) for offshore and onshore exploration and production is assisting the market expansion.

Global Artificial Lift Systems Market - By Well Type:

• Horizontal
• Vertical

Based on well type, the horizontal segment is expected to hold the largest share of the global market during the forecast period. Large discoveries of shale reserves in the North American region and the best suitable well type for production purposes have driven the rise of horizontal well types.

Global Artificial Lift Systems Market – By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

North America led the market in 2023 and is anticipated to record the largest share of the global market during the forecast period. The North American region has rising upstream activities in matured and new oil wells, which is primarily propelling the regional market growth. Furthermore, oil and gas companies in countries such as Canada and U.S. are opting for automation and digitalization in challenging work areas of industry. Moreover, the increase in demand for oil in the North American region, technological advancements in hydraulic fracturing, mature oil fields and the need for enhanced oil recovery are further driving the North American artificial lift systems market. The majority of the share of the North American market was accounted by the U.S. in 2023, which stood at 70.8%.

Europe is a prominent regional market for artificial lift systems and held for a substantial share of the global market in 2023. The growth of the European market is primarily attributed by factors such as aging oil fields and the need for efficient production boosting the adoption of artificial lift systems in the North Sea region.

The Asia-Pacific region is estimated to witness the highest CAGR in the global market during the forecast period owing to the expanding oil and gas exploration activities in countries like China and Indonesia driving the demand for artificial lift systems. Rising energy demand, investment in unconventional resources, and technological advancements in ESP and PCP systems are further fueling the growth rate of the APAC market.

KEY MARKET PLAYERS:

Some of the notable companies in the global artificial lift systems market are Weatherford, Schlumberger Ltd., Baker Hughes, Dover Corporation, Borets International, National Oilwell Varco, Halliburton, Summit ESP, LLC., John Crane, SPOC Automation, Flotek Industries and Quick Connector, Inc.