Published Date : 08 Dec 2022
The global artificial lift systems market size accounted for USD 10.51 billion in 2022 and is expanding around USD 18.7 billion by 2030, poised to grow at a CAGR of 7.47% from 2022 to 2030.
During the projected period, the artificial lift systems market is expected to rise at a positive rate. Certain obstacles, however, operate as roadblocks for producers. For example, the artificial lift systems industry is highly concentrated, with five large manufacturers accounting for 65% of the market. This makes it difficult for developing firms to compete with industry leaders in the artificial lift systems market since the former lacks the resources and cash to match end-user demands. Onshore exploration and production dominate global oil output, but the current trend in North America and Europe toward offshore exploration has raised the potential growth in offshore exploration. Large onshore exploration efforts in North America, Europe, MEA, and APAC are contributing significantly to the rise of artificial lift. Because of the enormous potential of oil and gas deposits, offshore exploration operations are likely to skyrocket in the next years.
Artificial Lift System Market Report Scope
|Market Size In 2022||USD 10.51 Billion|
|Market Size By 2030||USD 18.7 Billion|
|Growth Rate from 2022 to 2030||CAGR of 7.47%|
|Forecast Period||2022 to 2030|
|Segments Covered||By Type, By Application, By Component, By Mechanism, By Well Type|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America, Middle East and Africa|
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 the 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.
Driver: High potential & growth in offshore exploration
Oil and gas wells all over the world need artificial lifts to grow their oil production efficiency. The fall of conventional oil and gas supplies has transferred focus to unconventional sources. For optimal oil production, oil and gas reserves require an artificial lift system during production and exploration activities, which will lead to an increase in demand for artificial lift systems in the coming years. The artificial lift system is used in many wells. These wells require an artificial lift-based pumping system. Some of the factors driving the growth of the artificial lifts system market involve the need for better recovery rates, the increasing number of wells that requires pressure to support extraction, the rising demand for petrochemicals, and rising technological advancements to extract oil from challenging wells to drive the market growth.
Restraint: Unstable crude oil market
Crude oil prices are typically driven by the market. They are heavily influenced by supply-demand circumstances as well as geopolitical conditions, particularly in the Middle East and the United States. As a result, crude oil prices are erratic. This has a significant impact on upstream investment. The fall in crude oil prices after mid-2014 resulted in a drop in investment in the sector. This has a negative impact on the demand for artificial lift systems. As a result, volatility in crude oil prices is expected to impede the artificial lift systems industry in the near future.
Opportunity: Offshore expanding with heavy investment
Upstream enterprises are expanding offshore and investing heavily in deep and ultra-deep waters to seek and extract deposits. Oil price recovery has encouraged companies to spend heavily in these projects in order to capitalize on the price trend. Because of the vast distance between the reservoir and the production outlet, artificial lift systems are frequently necessary for resource extraction in offshore areas. As a result, increased investment in offshore oil and gas exploration and production activities is expected to create new opportunities in the artificial lift systems market.
Challenge: High operational costs
In terms of minimizing operational costs while increasing productivity levels, software is expected to drive innovation in the artificial lift systems market. Mid- and small-sized oil producers, on the other hand, suffer financial constraints due to the upfront installation and maintenance expenses of business intelligence software. As a result, manufacturers should strategically offer revolutionary software to top oil producers with large capital expenditures and other resources to incorporate software into their production workflow.
Key Players in the Report:
Segments Covered in the Report
By Well Type
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