Artificial Lift System Market (By Type: PWR, Electric Submersible Pumps, Gas lift, Progressing Cavity Pumps, Jet pump, Others; By Application: Onshore, Offshore; By Component: Pump, Motor, Cable System, Controller, Others; By Mechanism: Pump Assisted, Gas Assisted; By Well Type: Horizontal, Vertical) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030


The global artificial lift systems market size was estimated at USD 9.78 billion in 2021 and it is projected to reach around USD 18.7 billion by 2030, with a registered CAGR of 7.47% in the forecast period 2022 to 2030.

Artificial Lift System Market Size 2021 to 2030

Growth Factors

The artificial lift can be used to produce flow from a well that has no flow or to increase the rate of flow from a well that is already pumping. Many oil wells, as well as some gas wells, require artificial lift at some point throughout their life cycle to remove liquids from the formation and allow gas to flow at a faster pace. The artificial lift systems market is expected to grow in response to rising energy demand, industrialization, and population and urbanization. With increased energy consumption, so does reliance on traditional energy sources. Overexploitation of natural resources has resulted in the depletion of this resource. These reasons have increased the demand for advanced artificial lift systems for oil explorations from reserves, which is projected to drive artificial lift market demand throughout the projection period.

Rising expansion of the industrial manufacturing and transportation sectors oil consumption demand have been increased rapidly globally. To fulfill such rising demand for oil and other natural resource globally the demand for the artificial lift system market. Artificial lift systems are used for nonstop drilling to increase their output. However, the reservoir pressure in current wells is insufficient to bring fluids to the surface. The majority of wells across the world require some help to bring the hydrocarbon to the surface. The artificial lift system is device used for assessment of oil wells during high reservoir’s oil pressure. Artificial lift systems assistance helps to increase the efficiency by 85-90% and helps in supplementing & maintaining reservoir’s pressure.

Various types of artificial lifts are used depending on the well's features and technology availability, resulting in global market expansion in the coming years. Growing global oil consumption, as well as economic expansion in many industries such as transportation, aviation, and power generation, is all projected to contribute to increased hydrocarbon demand, which will lead to an increase in artificial lift demand in the coming years. This is projected to increase the market's demand. Moreover, severe rivalry has prompted manufacturers to engage in product development in order to better meet the needs of customers. For example, Baker Hughes developed the LEAP adaptive assembly line in 2016 to increase oil and natural gas output while addressing technical challenges associated with unorthodox production. This method has contributed to increased efficiency, increased ultimate recovery, and optimized production.

Report Scope of the Artificial Lift System Market

Report Coverage Details
Market Size by 2030 USD 18.7 Billion
Growth Rate from 2022 to 2030

CAGR of 7.47%

Largest Market North America 
Fastest Growing Region Asia Pacific
Base Year 2021
Forecast Period 2022 to 2030
Segments Covered Type, Component, Application, Mechanism, Well Type, Geography
Companies Mentioned General Electric Company, Hitachi, Ltd, Man Diesel & Turbo SE, Neuman&Esser Group, Ebara Corporation, Ariel Corporation, Mitsubishi Heavy Industries Compressor Corporation, Burckhardt Compression Holding AG, Atlas Copco Energas GmbH, Solar Turbine Inc.

 

COVID-19 Impact Analysis

Unprecedented growth observed in COVID-19 cases during the starting of the year 2021 has forced the government bodies of various countries to impose stringent regulation such as social distancing and lockdown to control the spread of the virus along with keep public safe during the pandemic period. However, the impact of the virus on the economies were sever during those time and even the impact continues in 2021 and present period. The high impact of the pandemic has disruption manufacturing and sales across various business and industries including technology, automotive, manufacturing, chemicals, and many others.

Technological along with the economic growth of the countries were badly impacted during the pandemic due to halt in manufacturing and interaction of public along with disruption in supply chain processes. Henceforth the impact of COVID-19 on the artificial lift system was immense on the global scale and has negatively impacted the market growth of the artificial lift systems during the pandemic period.

Type Insights

During the studied period, the rod lift segment dominated to the artificial lift system market by type. Artificial lift system uses surface power source for operating and exploring the downhole’s pumps assembly. Quite a few pieces are used in both the subsurface and surface of the unit. This hoisting mechanism can pump up to 1,000 BPD depending on the size of the equipment. Rod lifts can handle gas and corrosion well during the artificial lift process and provide a high salvage value for downhole equipment. In the next years, such features are set to increase demand for artificial lift. As a result, the rod lift market is being driven by the growing need to avoid gas and corrosion management during artificial lift operations.

The electric submersible pump (ESP) segment is expected to be the fastest-growing segment with a CAGR of around 8.6% during the forecast period. For use in large oil wells which have reached or past their peak oil production period, an electric submersible pump (ESP) is the best choice. Furthermore, the offshore electric submersible pump market is predicted to grow as a result of rich resources and increased investment. As a result, the artificial lift market is predicted to grow throughout the forecast period.

Application Insights

Based on application, the offshore segment dominated the global market, garnering a market share of around 82% in 2021. The offshore section is likely to rise at the quickest rate over the forecast period. The offshore sector is relied upon to increment at the quickest rate over the forecast period. Artificial lift systems consist of several methods such as hydraulic pumping, ESP, gas lift, and others are widely used for offshore wells. Since offshore holds large unexplored reserves, companies have been looking for offshore areas for oil development. As a result, the offshore market requires more money than the onshore market. According to the IEA, 2,500–3,000 offshore operations will be decommissioned between 2019 and 2040 when they approach the end of their operational lives. The most mature shallow fields are found in the Gulf of Mexico and the North Sea.

Artificial Lift System Market Share, By Application, 2021 (%)

The rising number of mature fields in the industry is expected to drive demand for onshore electric submersible pumps. The growing emphasis on heavy oil reservoirs, along with the demand for ESP systems in shale reservoirs, is likely to push corporate growth and the artificial lift industry even further.

Mechanism Insights

On the basis of mechanism, gas lift capture significant market share in the year 2021 as well as exhibit escalating growth over the forecast time period. The prime factor contributing to the market growth includes less maintenance required to the gas lift compared to pump type lifts. In addition, gas lifts also are cost-effective in nature compared to pump lifts and are extensively used across several verticals and end use applications such as mining, oil & gas, and many others.

Well Type Insights

On the basis of well type, horizontal artificial lift systems capture notable revenue share in the global artificial lift system market as well as register the fastest growth over the forthcoming years. The prime factors contributing towards the escalating growth of the segment includes significant discoveries related to shale gas reserves in North America region. North America region has discovered prominent reserve of shale gas in the past few years that contribute positively towards the market growth in present years along with high growth predictions for the future period.

Region Insights

Over 80% of the global artificial lift system market is accounted for by North America, Europe, and Asia Pacific. Increased shale reserve penetration, cheap oil prices, and the development of Lower-48 blocks have created considerable potential for corporate expansion. The availability of aged and matured wells, as well as enormous potential across the offshore area, will drive regional industry demand even higher. The artificial lift systems market in Europe is expected to grow at a CAGR of more than 7% through 2027. The region's growing number of mature fields, along with volatile price changes, has created attractive conditions for company development. The rising need for gas, notably from Eastern Europe, has prompted the discovery of hitherto unexplored subsea sources, primarily in Norway and the United Kingdom. Concerns about domestic energy security have prompted nations to grant rebuilding licenses to E&P corporations despite the region's rigorous emission standards.

Artificial Lift System Market Share, By Region, 2021 (%)

Furthermore, the ever-increasing populace in nations like as India and China is anticipated to drive energy consumption, which in turn would result in greater exploration efforts, raising regional demand throughout the projection period. Furthermore, the Middle Eastern and African artificial lift systems business is supposed to build rapidly because to the widespread usage of wireline supplies and solutions. Additionally, the rapidly maturing oil fields as a result of continuous extraction are likely to propel demand for these lift systems during the projection period.

Key Market Developments

  • In February 2022, Upwing Magnetic Drive System (MDS) hermetically separates all the electrical components that are prone to failurefrom the harsh production fluids through placing them inside the well's annulus as a part of the permanent completion. This also simplifies the deployment coupled with intervention by using a slickline for the mechanical string of the system.
  • In August 2021, ChampionX Technologies introduced XSPOC production optimization software in order to deliver higher efficiencies in wells for artificial lift.
  • In April 2021, Microsoft Azure announced to allow the development of Ambyint’s production along with lift optimization applications for Energy and Power (E&P) related companies in the existing Azure environments.
  • In January 2019, Baker Hughes and ESP collaborated to design an efficient and customized artificial lift solution to be used the wells in the Bouri Field.

Some of the prominent players in the global Artificial Lift System Market include:

  • General Electric Company
  • Hitachi, Ltd
  • Man Diesel & Turbo SE
  • Neuman&Esser Group
  • Ebara Corporation
  • Ariel Corporation
  • Mitsubishi Heavy Industries Compressor Corporation
  • Burckhardt Compression Holding AG
  • Atlas Copco Energas GmbH
  • Solar Turbine Inc.

Segments Covered in the Report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Type

  • Pressurized Water Reactor (PWR)
  • Electric Submersible Pumps
  • Gas lift
  • Progressing Cavity Pumps
  • Jet pump
  • Others (hydraulic pumping systems and plunger lift)

By Application

  • Onshore
  • Offshore

By Component

  • Pump
  • Motor
  • Cable System
  • Controller
  • Others

By Mechanism

  • Pump Assisted
  • Gas Assisted

By Well Type

  • Horizontal
  • Vertical

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of artificial lift systems market?
The global artificial lift systems market size was reached at USD 9.78 billion in 2021 and it is anticipated to rake around USD 18.7 billion by 2030.
The global artificial lift systems market is expected to drive growth at a CAGR of 7.47% over the forecast period 2022 to 2030.
The major players operating in the artificial lift systems market are General Electric Company, Hitachi, Ltd, Man Diesel & Turbo SE, Neuman&Esser Group, Ebara Corporation, Ariel Corporation, Mitsubishi Heavy Industries Compressor Corporation, Burckhardt Compression Holding AG, Atlas Copco Energas GmbH, and Solar Turbine Inc.
The artificial lift systems market is expected to grow in response to rising energy demand, industrialization, and population and urbanization. Rising expansion of the industrial manufacturing and transportation sectors oil consumption demand have been increased rapidly globally.
North America region will lead the artificial lift system market over the forecast period.
  • Report Code:1765
  • Category:Energy and Power
  • No. of Pages:150+
  • Format:PDF/PPT/Excel
  • Status:Published

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