Market Size of Artificial Lift System Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Artificial Lift Systems Market Analysis
The market for artificial lift systems is expected to grow at a CAGR of more than 4.5 % during the forecast period of 2022 - 2027. Artificial lift is a method used to lower the producing bottom hole pressure (BHP) on the formation to obtain a higher production rate from the well. It supports oil & gas to move upward when the natural drive (primary recovery) is not enough to push the oil to the surface. The COVID-19 pandemic has adversely affected the market by lowering the oil & gas demand in 2020. Oil companies in North America working on Shale Plays such as Whiting Petroleum Corp had either declared bankruptcy or announced plans to restructure due to a sharp decline in rices due to COVID-19. As of 2021, mature fields account for a significant percentage of the world's oil and gas production. These mature fields need a pumping system, i.e., the artificial lift system. The need for enhanced recovery rates, a growing number of wells that require pressure support for extraction, increasing demand for energy & petrochemicals, and technological advancements that are enabling companies to economically extract oil from challenging areas are some of the factors driving the growth of artificial lifts system market. However, the advancement in smart water flooding and various IOR technology are expected to hinder the market growth during the forecast period.
- An electric submersible pump (ESP) is preferred as the most suitable choice for usage in large oil wells that reached or crossed their peak oil production phase. In addition, the availability of abundant resources, coupled with an increase in investments, is expected to boost the offshore electric submersible pump market. This, in turn, is expected to drive the artificial lift market during the forecast period.
- The majority of the new fields and the older fields require an artificial lift of some form for production. Hence, all the major companies are regularly adopting artificial lifts in almost all wells. As the number of new exploration fields is increasing, these fields are expected to provide major opportunities for the artificial lift system market.
- North America dominated the market across the globe in 2021, with the majority of the demand coming from the United States. This trend is expected to continue as the rise in global prices may further help in continuing the mature oil fields.
Artificial Lift Systems Industry Segmentation
The artificial lift system market report includes:
| Type | |
| Electric Submersible Pump System | |
| Progressive Cavity Pump System | |
| Rod Lift System | |
| Others |
| Geography | |
| North America | |
| Asia-Pacific | |
| Europe | |
| South America | |
| Middle-East and Africa |
Artificial Lift System Market Size Summary
The artificial lift systems market is poised for significant growth, driven by the increasing need to enhance oil and gas production from mature fields and the rising demand for energy and petrochemicals. Artificial lift systems are crucial in situations where natural reservoir pressure is insufficient to bring hydrocarbons to the surface, particularly in mature fields that dominate global production. The market is experiencing a resurgence as companies invest in technological advancements to economically extract oil from challenging areas. Despite the challenges posed by the COVID-19 pandemic, which temporarily dampened demand, the market is expected to recover and expand, supported by the growing number of wells requiring pressure support and the ongoing exploration of new fields.
North America currently leads the global artificial lift systems market, with the United States being a significant contributor due to its extensive shale discoveries and mature oil fields. The region's focus on developing larger multi-well facilities and the availability of advanced technologies are key factors propelling market growth. Electric submersible pumps (ESPs) are particularly favored for their flexibility and efficiency in enhancing production rates, especially in mature fields. The Asia-Pacific region, with Russia at the forefront, is also witnessing rapid growth in demand for ESPs, driven by efforts to increase production from established fields. However, environmental concerns and the movement against fossil fuels in some regions pose potential challenges to market expansion.
Artificial Lift System Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast, in USD billion, till 2027
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1.3 Recent Trends and Developments
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1.4 Market Dynamics
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1.4.1 Drivers
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1.4.2 Restraints
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1.4.3 Opportunities
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1.5 Supply Chain Analysis
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1.6 Porter's Five Forces Analysis
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1.6.1 Bargaining Power of Suppliers
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1.6.2 Bargaining Power of Consumers
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1.6.3 Threat of New Entrants
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1.6.4 Threat of Substitutes Products and Services
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1.6.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Electric Submersible Pump System
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2.1.2 Progressive Cavity Pump System
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2.1.3 Rod Lift System
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2.1.4 Others
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2.2 Geography
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2.2.1 North America
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2.2.2 Asia-Pacific
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2.2.3 Europe
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2.2.4 South America
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2.2.5 Middle-East and Africa
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Artificial Lift System Market Size FAQs
What is the current Artificial Lift System Market size?
The Artificial Lift System Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)
Who are the key players in Artificial Lift System Market?
Halliburton Company, Schlumberger Limited., Weatherford International Ltd, Baker Hughes Co and Dover Corp are the major companies operating in the Artificial Lift System Market.
