Artificial Lift Systems Market

Artificial Lift Systems Market Growth and Forecast (2022 - 2027):

The Artificial Lift Systems Market size was valued at US$ 8.55 billion in 2021 and is anticipated to reach the valuation of US$ 11.36 billion by 2027 and is predicted to register a CAGR of 5.0% during 2022-2027.

Market Overview:

Artificial lift refers to the use of artificial means to increase the flow of fluids, such as crude oil or water, from the well of output. This is usually accomplished by using a mechanical device inside the well (known as a pump or a velocity string) or by reducing the weight of the hydrostatic column by injecting gas into the fluid at some distance down the well. A newer method called Continuous Belt Transportation (CBT) uses an oil-absorbing belt to remove from marginal and idle fields.

Artificial lift is required in wells when there is a lack of pressure in the reservoir to lift the generated fluids to the ground but is often used in naturally flowing wells (which do not theoretically require it) to raise the flow rate above what would flow naturally. The fluid created can be oil, water, or a combination of oil and water, typically combined with a certain amount of gas.

Recent Developments in Artificial Lift Systems Industry:

• In May of 2019, Quick Connector, Inc., a market leader of artificial lift wellhead system provider has introduced a gas lift wellhead solution that allows flexibility to connect capillary lines to the gas lift without the expense or delay of sourcing from the conventional wellhead supplier.
• In February of 2019, Tenaris, a global leader of the market, announced that they are looking forward to opening a new manufacturing plant, specifically for manufacturing sucker rods in Conroe, Texas. The development of the plant will be completed by the second quadrant of 2019, with entirely advanced and efficient equipment for more productivity.

REPORT COVERAGE:

Drivers and Restraints of Artificial Lift Systems Market:

Drivers:

In addition to economic developments in different industries such as transport aviation, power generation, etc., growing world oil consumption is likely to contribute to increasing demand for hydrocarbons, which will lead to a corresponding need for artificial lift systems in the coming years.

The technological advancements in the field as a result of substantial R&D investments from key players are expected to improve efficiency and increase productivity, which is expected to fuel the artificial lift systems market. 

Artificial Lift Systems Market Restraints:

Environmental concerns about oil production, as well as a paradigm shift toward renewable energy sources, may operate as market restraints.

Because of the market's significant players, there are constant product improvements. If one wants to gain market share, one must invest more in R&D, which can be a barrier to entry for new competitors in the artificial lift systems market.

Artificial Lift Systems Market Opportunities:

Upstream oil and gas corporations are expanding offshore and investing heavily in deep and ultra-deep waters in order to discover and utilise the deposits that exist there. Companies have increased their investments in these projects as oil prices have recovered, allowing them to profit from the price movement. Thus Because of the vast distance between the reservoir and the production outlet, artificial lift systems are frequently necessary for resource production in offshore areas. As a result, the artificial lift systems market is expected to benefit from increased investment in offshore oil and gas exploration and production activities.

Artificial Lift Systems Market Challenges:

Prices of crude oil are usually market driven. They are driven mostly by supply-demand scenarios as well as geopolitical conditions, particularly in the Middle East and the United States. Therefore, prices of crude oil are volatile This has a significant impact on upstream investment. After mid-2014, the price of crude oil fell, causing a drop in investment in the sector. This has a negative impact on demand for artificial lift systems. As a result, the artificial lift systems industry is projected to be hampered by crude oil price volatility in the near future.

Artificial Lift Systems Market Segmentation Analysis:

By Type:

Based on the Type, the Artificial Lift Systems market is segmented into, Rod Lift, Electrical Submersible Pumps (ESP), Gas Lift, Progressive Cavity Pumps (PCP). Of these, in terms of market share, the Electrical Submersible Pumps (ESP) segment dominated the global market and is expected to maintain this trend across the whole forecast periods. The versatility of the ESP is the significant factor that accounted for its market share. It is calculated that the segment accounts for 43% of the total market share. It is the ideal technology for moderate to high production rates, including highly deviated wells, remote and subsea deep-water wells. Due to its lower installation cost and relatively long life, the sucker rod pump is the most popular type of artificial lift system.

By Application: 

Based on the Application, the Artificial Lift Systems market is segmented into Onshore and Offshore. Of these, the offshore segment provides lucrative opportunities for industry players and is expected to show higher growth compared to the other sections. North America, Europe, MEA, and APAC have large-scale onshore exploration activities that contribute a large part to the growth of artificial lifts. In the coming years, offshore exploration activities are projected to see massive growth due to the vast potential of oil and gas reserves.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Regional Analysis:

North America is the largest revenue-generating market estimated at US$ 4.5 billion in 2020. By 2025, the area is expected to reach a market value of US$ 6.7 billion, rising at a CAGR of 7.3 percent. The wider use of the artificial lift system is due to low-pressure oil wells in the area. Nevertheless, Asia-Pacific would be the fastest-growing market with expected revenue of US$ 3.1 million by 2025, rising at 9.4 percent CAGR during the forecast period. This rapid growth in the LAMEA area is possibly due to the rapid maturation of oil fields due to years of production.

Key Players in the Market:

Major Key Players in the Global Artificial Lift Systems Market are

• Tenaris
• Quick Connecter
• Dover Artificial Lift
• Baker Hughes
• Halliburton Company
• Kudu Industries
• Flotek Industries, Inc
• Weatherford International
• Schlumberger Ltd